How to trade cryptocurrencies – tips & tricks

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From 2015 till the end of 2017 it was quite easy to invest and take profit while trade cryptocurrencies. Most of them increased the value 10-100 times, lot of people took profit and continues to invest in new cryptocurrencies and ICOs. During the last months of 2018, a bear VS bull market played an important role and most cryptos are moving in a lateral way without generating profit to investors.

Tips and Tricks

We collected our top tips and tricks to trade cryptocurrencies. Just think about the tips while you are trading. Good luck!

1. Diversify your investment

The first important rule is to diversify your investments. Never put all your money in a single coin. If that coin fails.. you fail too! Study the technology behind the coins, select some of them and start trading. Remember the gold rules to pick a coin!

2. Do not Diversify too much

Second important rule, related to the first one, is to keep a small portfolio. Do not buy tons of crypto currencies, but do your research and choose widely-distributed coins with high market capitalization and trading volumes. Start obviously with Bitcoin, but then just choose one or two altcoins at first until you’ve got some experience. There are so many altcoins (more than 1000) out there now that it’s almost impossible to know which ones are legitimate and which ones are scams.

3. Keep calm – don’t over trade

Don’t over trade! It means do not trade every second! It’s quite impossible to take profit with a minute-trading system. Follow the trends, apply some technical analysis and plan your strategy. If you suddenly see a coin dumping in 10 seconds, keep calm! Wait, count until 100, re-plan your strategy! The market is full of bull trap.

4. Do not fall in love

This sounds strange, but it’s true. Don’t fall in love with a coin, Take your profit, think logically and not emotionally.

5. Do not Panic

The altcoin scene is incredibly volatile. This can create feelings of panic and fear in your gut, the worst emotional state to be in while doing trade. Never make a decision (buy/sell) based on panif and fear. Just relax and wait, it’s plain of possibilities and remember, an ATH (All time high) is the first step for a coin and there’ll be much more.

6. Do not Fall For Scam coins

Study the technology behind the coins, select some of them and start trading. Remember the gold rules to pick a coin!

During the last years, too much scam coins were created, lot of them are pump&dump coin or ponzi coin. Study the team behind the coin, study the technology and.. don’t panic! Don’t buy coins with a non open-source code and with premined coins.

7. Watch out the Exchange

During the last years, lot of new Exchanges are born. As for coins, do your research on new exchanges, don’ trust them, keep always your coins in your wallets.

Watch Your Step & You Won’t Fall

Trading cryptocurrencies is exciting, awesome and in the same time terrifying. Just keep in mind the gold rules, think twice before trade and plan a good strategy, for both scenarios: enter strategy, exit strategy. Just make a small step at a time. Newbies can lose all your money in a coupe of seconds.