How to Win Big in the Crypto Trading Industry
Cryptocurrency trading has solidified the value of blockchain technology and its potential. It has also become a means to increase the awareness of blockchain in the end. By following the business models and structures found in stock exchanges, a completely new relationship has begun between blockchain startups, their tokens, and digital asset trading platforms in the crypto trading industry.
Trading platforms were centralized in the past. The crypto trading industry has driven the old financial system to the point of no return. This is a welcome development in this era of digital currency. Exchanges have become effortless, transparent and decentralized. The decentralization is leading towards a shared global economy.
How to win big in the crypto trading industry
Since the winter came early for bitcoin last year, the crypto trading industry is seeing a general upturn. The crypto ecosystem was especially favored when Google and Facebook reversed its crypto bans. Since then, there has been a spiked interest in crypto trading.
Bearing that in mind, it is evident that crypto is here to stay. There have been highs and lows but the first digital asset has – all things considered – held relatively steady.
1. Avoid bottom trade
This is a beginner error. It is when you monitor a plummet in the price of an asset. Then you buy at the absolutely lowest price. Catching a bottom trade is as easy as catching a falling knife.
2. Be careful with the concept of HODLing
Hodling began as a typing error on a Bitcoin forum in 2013. Since then, it has become popular among crypto traders. Hodlers believe that long-term value is better obtained by holding a digital asset rather than actively trading it. While hodling could be profitable in the long-term, do not rush to subscribe to this idea.
3. Suppress Emotions
The price of crypto is very volatile. This means that even a seemingly perfect trade can collapse and result in a huge loss. Your exposure to market extremes is proportional to your ability to suppress emotions. Stock traders and brokers have mastered this technique.
4. Trade multiple coins
Until 2016, if you wanted to invest in crypto, you bought Bitcoin. There was no other option. Other cryptos or altcoins have changed that. While Bitcoin is still dominant, its share of the market has fallen to around 50%.
5. Read the whitepaper
A white paper is a guide prepared by the creator(s) of cryptos, especially blockchain startups. The white papers informs readers concisely about a complex idea. It also presents the philosophy behind a crypto asset. A whitepaper will help you to understand an asset. This is important in your decision to dabble in crypto trading. An example is Bitcoin’s whitepaper. “Satoshi Nakamoto” published that white paper in 2008.
6. Be secure
Here is a rule of thumb. Do not keep your coins in an exchange. There is a long history of hacks and bankruptcies in crypto markets. Giant exchanges like Mt.Gox have been brought to their knees by hacks.
The bottom line: Evolve
Handling financial trades was long thought to be impossible for machines. Recent advancements in deep learning disprove this. In line with its attribute as the money of the future, it would make sense for crypto to embrace this. Trades can now be automated. An algorithm analyzes and finds the right trading opportunities. It then opens a trade on your behalf. The algorithm does this in a way which gives you profit from the spread. No prior experience needed to use crypto trading software.
Furthermore, the trading software does not have human emotions that influence trading. Volatility will not trick the algorithm to pull a trade too early or to over-invest. Most of all, it is free of charge and hidden fees. If you are ready to start winning big with crypto trading, you might want to check out this trading tool, which is easy to navigate.
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