Before you even start trading in cryptocurrencies, it is easy to have some information. You could use our manual for that. It is good to have basic knowledge before you start. When you have mastered the basics, you can take the next step: trading in cryptocurrencies like Sicarious . The tips below can help you on your way to becoming a better crypto currency trader.
Best Tip: Do Research Into Cryptocurrencies
It is good to first do research into the purchase of a crypto coin. Many beginners jump into a random coin because a friend or friend has told you about it. This is not the right way. It is good to do your own research. You don’t just buy a TV, do you? To do this, first, view the specifications and compare this with other models. You should also do this before purchasing crypto coins.
You can consult all kinds of websites. Google the coin you have in mind and see what the coin has to offer and ask yourself a few questions:
- Does this coin have a good product / service (view the white paper, among others)
- Is it a unique product / service
- Which crypto coins are the competitors
- Is there a solid team behind the crypto-coin
- Is there sufficient communication from the developers?
- Are the owners active on channels such as Facebook, Reddit & Twitter?
In this way, you can determine for yourself whether the coin is interesting enough to invest in it.
Spread Your Chances, But Not Too Much
When you start purchasing cryptocurrencies, it is good to ask yourself how many coins you are going to put money into. As a tip, we can give not to put all the money into just one coin. It’s good to spread your investment, but don’t overdo it.
If you have a few hundred dollars to spend, our advice is to leave it at a few cryptocurrencies. Suppose you have a few thousand dollars to spend, you can consider taking a few extra coins. In addition, it is good to find a nice balance in your portfolio.
Prefer a number of larger crypto coins based on market cap (larger than 10 trillion). In addition, a coin that is somewhat smaller in terms of market cap, but that has proven itself. Finally, I opt for a currency that is a bit riskier. This can also be an ICO.
Sell High and Buy Low
The advanced cryptocurrency trader can, by means of technical analysis, form a conclusion to step in or sell at a certain moment. As a beginner, this material is less accessible. Fortunately, this strategy has not really proven itself to date.
As a novice trader, it may be tempting to step in when a crypto coin is rising sharply, but don’t just step into this trap. Personally, prefer to step in when the course is in a dip. By looking at the history of cryptocurrencies, you can see what happened in the past. Of course, this information does not offer any certainty for the future, but you can estimate whether the currency is expensive or cheap compared to previous rates.