Altcoins are cryptocurrencies that are considered as alternatives to Bitcoin. They provide investors with unique opportunities to diversify their risk. In this article, we will provide tips to trade in Altcoins.
Broadly speaking, Altcoins trading strategies can be categorized into long-term and short-term strategies.
Short-Term Trading Strategy
Traders following this strategy hold their cryptocurrencies for a few minutes, hours, or weeks.
In this trading strategy, traders buy altcoins assuming that the price of altcoin will rise within a short time, and by selling-off their altcoins, traders can make profits.
Because Altcoins experience quick swings, traders have the opportunity to make a quick profit in short-span.
Long-Term Trading Strategy
In long-term trading strategies, traders purchase cryptocurrency and hold it for at least a year time. This trading strategy is suitable for traders who lack large finance to invest in the cryptocurrency asset class, or for those who are not savvy traders.
Long-term traders track price movements, make small progressive investments, hold cryptos in wallets and diversify their portfolio.
Apart from following these strategies. It’s essential to identify potential coins and to not keep all eggs in the same basket. It is always recommended to diversify your portfolio and to select a range of coins to invest in after considering the project and development community behind the coin.
Secondly, it is as important to time the market by spotting market patterns and devising strategies that work best for you. Remember not to jump into the speculative bandwagon. Identify your profit and loss level for every position and go long or short accordingly.
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