TIPS ON CRYPTO TRADES
Cryptocurrencies are great to debate about nowadays. While some business personalities are billing cryptocurrencies as futuristic and sustainable. Others are skeptical and do compare them to a fragile bubble that is ready to burst.
Major crypto-currencies rates have soared in the past few months. As an example the world’s biggest crypto-currency Bitcoin (BTC) did reach 14,129 on December 31, 2017.
Three months later bitcoin was traded at $8547 a coin. Simple ups and downs are evident on other crypto-currencies including ethereum, altcoin, ripple, litecoin, and cardano. We would suggest you to become more cautions when investing in cryptocurrencies.
Here are some tips to help you figure out if you should be investing in cryptocurrencies, and tips on how to avoid mistakes.
1 Should you invest in Crypto-Currency?
This is the first question that you should be asking yourself. If you are aiming for high returns, you should forget about this one. As everyone knows that there are no assurances in cryptocurrencies.
Nor are there any buffers in its prices, this will be evident from the major performance on bitcoin and other major cryptocurrencies. Unlike conventional fiat currencies you are not assured of returns.
At any time you may get high profits while unexpected drops could result in heavy losses, but this depends on the rates on when you invested on the crpytocurrencies.
2 Invest in Several Crypto-Currencies
One of our tips is that don’t focus on expensive cryptocurrencies as they maybe bubbles. You should also focus on more stable and inexpensive currencies. If your investments on one drops, you can derive some from others that are rising. Never buy coins that are on upswing. These are seasonal and can prove misleading which is evident with bitcoin.
Prices rise and fall during its year span. Always place an order to but at rates below its median price. As this can increase seasonal and can mislead you which is evident with bitcoin.
You will always need to watch for peaks and drops on market corrections. There are some ways and means to get free bitcoins or at least a fraction of bitcoin called Satoshi. Before believing some website or scheme ensure that it’s genuine and not a scam.
3 Place Orders with Exchanges
With crypto-currency you can use a system called limit orders rather than market orders used by brokers. Limit orders will allow you to pay minimal fees when buying cryptos. Limit orders allows you to buy cryptocurrencies with the budget that you have.
Place your order for a fixed price when rates of a crypto are on the decline. This ensures you get them at a rate you wish to pay rather than what the market demands. The system allows you to add more coins to a portfolio, though it can take some time.
4 Choose long-term Investments
To strike big with cryptocurrencies, invest for a long term. This can offer you several benefits while investing with cryptos. Firstly, you get opportunities to buy low at the right entry point and can hold without bothering about occasional dips and market corrections.
It also helps to prevent unde panic selling, its prices plunge without any warning. One top never sell whatever cryptos during severe drops.
Instead keep them for a fixed number like till certain months or years. Like any conventional currency term deposit.
5 Avoid One-Time Investments
When saying this this means you should not place all your money on one crypto currency. Instead invest on various crypto-currencies. Keep enough money to buy when crypto hits the lowest mark compared with its prices in preceding months. In order to do this you need to finalize how much you intend to invest in crypto-currency.
Never opt for more than 10 different crypto-currencies for your portfolio since managing them gets cumbersome. An ideal crypto portfolio would consist of high, medium and low price coins as well as those emerging on the market and showing promise of good growth.