Practical Tips on How to Trade Cryptocurrencies
The rise in the rates of several cryptocurrencies for the last few years has made them a desirable mode of trade among investors. Many traders and investors are viewing it as a lucrative opportunity to increase their wealth. The volatility associated with cryptocurrencies offer big returns, but the losses can be even bigger if trading is not done the right way.
Tips on cryptocurrencies trade:
The growing popularity of cryptocurrencies has added many new dimensions to digital currencies. Below are some of the sides to digital currencies:
- You can trade or invest in it using a cryptocurrency exchange.
- You can use the coins for transactions anywhere cryptocurrencies are accepted. The Auto Coin Cars are one such example that enables people to sell or buy a car for sale using cryptocurrencies.
- You can break out a GPU (graphics processing unit) and a software to mine coins
With that being said, this post is focused on the trade of cryptocurrencies because you will need to be set up for trading even if you want to do other things with digital coins. Despite the rapid growth and extensive use of cryptocurrencies, people still do not quite understand how to trade in cryptocurrencies successfully.
In this article, we explain crypto trading in detail and share practical tips on how to succeed in the world of digital currencies.
Choose a cryptocurrency wallet and an exchange:
To start crypto trading, you will need to choose a cryptocurrency wallet and a cryptocurrency exchange to trade on. A cryptocurrency wallet is simply a place where you can store encrypted passwords that represent the ownership of the digital coins. It is roughly an equivalent of saving money in a bank account.
A cryptocurrency exchange is similar to a stock exchange or currency exchange that allows people to trade one cryptocurrency for another cryptocurrency or a fiat currency like the US dollar. Just like a stock trade requires a bank account and access to the stock exchange, crypto trade requires a wallet and cryptocurrency exchange.
Understand cryptocurrency exchanges:
Cryptocurrency trading is different from trading stocks, so it is crucial to understand how each trading website and the program works. It is advised to make a mock account on any crypto trading site to learn and practice how it works before you place a trade. It also needs to be kept in mind that unlike fiat currencies, the crypto trading takes hours to settle. Therefore, be patient and do not expect your trade or purchase to complete right away.
Understand the digital coins:
Before you commit to trade in cryptocurrencies, it is vital to educate yourself about the different cryptocurrencies and the way they work. Unlike conventional currencies, the rules of crypto trading are different, and one must have a deeper understanding of them all to make a fortune.
As Warren Buffet advises, “Never invest in a business you cannot understand,” a trader needs to get a sense of things before stepping into the crypto space. Like other commodities and currencies, the trading rates of cryptocurrencies depend on market demand and supply. Whenever there is an increase in demand, the rate of a cryptocurrency rises, and vice versa.
Hence, it is essential to know how currency has fared in the recent past so that you know its price stability, appreciation and depreciation rate, and the possible reasons prior to making a decision.
Analyze the risk:
Cryptocurrencies are known for their volatile nature which makes their trade a high risk-high gain venture. Trading in cryptocurrencies can either make or break your wallet. It is evident from the surge in Bitcoin rates which was trading at around $900 at the start of 2017 and reached a staggering $20,000 per Bitcoin at the end of the year.
A few days later, the surge was followed by a 30 percent drop in rates which sent Bitcoin’s price below $11,000. Today, it fares at around $8,367 per BTCs.
The wild price swings indicate that though the chances of profits are enormous, the losses can equally be huge if not more. Also, the prices of cryptocurrencies are susceptible to many factors, including government regulations, bugs in the system, and hacks which can have terrible consequences for traders and investors. This demands a complete analysis of the financial environment and the inherent risks before trading in cryptocurrencies.
Never risk more than you can afford to lose:
Many brokers attract crypto customers in a way where they present the cryptocurrency exchange as a place that offers easy and huge money. This is only partially true because the attribution of volatility brings significant risks in cryptocurrency trade. There is also a possibility that a trader may lose more than s/he puts in. A prudent way, therefore, will be to trade with as many coins as you can afford to lose.
However, the good news is that the crypto market ultimately balances itself out. This means that the period of losses may be bad, but they are balanced by a better period of gains. You only need to wait for the right moment.
Buy low, sell high:
Buying and selling at the right time is a golden principle that holds for any trade and investment. The adage seems simple, but it is tough to execute and implement it. There is no rule vis a vis the market propensity to overshoot upside and downside; however, a good way is to look at the price trend of the last few months and its trading pattern.
Once you analyze and understand a coin’s behavior, you can predict the next bullish cycle. The best option is to choose a coin at a steady price and avoid investing at a time when the bubble is peaked or falling.
The Bottom Line:
Cryptocurrency trading can be lucrative if you’re well equipped with the necessary knowledge about the market and understand the currency in which you trade. It is essential to analyze the risks and approach crypto trading with an open mind. Once you improve your trading strategies and knowledge, you’re in a better position to understand the volatility of a coin and put it to your advantage.
We’ve lived in the most advanced era of our time. The world is changing at an exponential rate.
Technology is changing the world one device at a time. But it is essential to consider that invention counts a lot. Humans have this ability to control technology and do whatever they want to do with it.
The technology that we’ve already used has changed the way we spend our lives.
In this blog, we will present innovations that changed the world for good. So, the technology aims to use it to do something good.
For decades, geniuses gave us ground-breaking inventions in various fields. More and more inventions are consuming us, altering us, and making us smarter than before.
Let us look at some of the most promising innovations that helped us make our lives better. These are just a few of the thousands of changes that are already there. Maybe these will inspire you to make something of your own. So, let’s start with these amazing innovations.
Detect Disease with Paper
Can you imagine a 20 cents paper device that can help you diagnose malaria and HIV in a few minutes? No electricity required!
A Stanford University professor inspired by a whirligig toy developed Paperfuge – a device that can take blood samples just by moving the strings back and forth. The strings spin fast to separate blood from plasma so that it is ready for disease testing.
The fantastic device can prove revolutionary in many countries and save millions of lives in the process.
Move your body and get food
UNICEF launched the Kid power app that extends the fitness program for kids and people living in under-developed areas. The goal of the app is to make kids and adults move and as a reward, give them food for it.
Every 2,500 steps will unlock a reward for you, and this reward will enable you to get food for your movement. This is such a fantastic invention by UNICEF. A social service app that is doing well for people without asking for anything in return.
Feeling down? Talk to a Bot!
We are living in an era where people feel that suicide is the only option when there is no one left to talk to them. People with anxiety are getting less attention, which is why they opt for killing themselves. Well, not anymore. Woebot will speak to you when no one is there for you. A bot designed to listen to you and give you suggestions on how to make your mood better. The bot is not a replacement for a doctor, but surely this is something that will save tons of lives without costing any life in the future.
Do you know any homeless people? Do you want to give them a roof? This solar-powered tent can be the perfect gift for them. San Fernando high-school girls gathered together to solve the problem for homeless people, and the result was this fantastic solar-powered tent. The tent is a blessing for people who don’t have a place to live. They can carry this tent around and live wherever they want. Just unwrap the tent and place it on the ground. Let the sun absorb some sunlight, and this tent will be ready to serve you at night. An important invention that is helping people live peacefully without begging for a place to live.
Buy a car with Cryptocurrency
Gone are the times when you had to go through a painful process of paperwork and much patience to buy a car. Now, with cryptocurrency, you can buy a car without going through any lengthy procedures. Just buy a car with Bitcoin, and you’ll get your vehicle in a garage without any hassle. Yes, it is true, there are platforms like autocoincars that let you purchase your car with cryptocurrency.
A fantastic invention that is revolutionizing the way we buy cars. It is not just about cars; now you can buy anything with Cryptocurrency. You don’t have to go through the endless process of verifying things because Bitcoin made it easy to pay for everything without giving anyone a chance to steal your personal information or knowing much about you.
Glasses for Deaf people
Peri glasses are designed for people who are unable to hear. These glasses can act like an eye. The glasses can alert the deaf people regarding the sound that they hear near them.
If there is any danger, like, car coming towards them, the glasses will alert them, and they can move away for the car to pass.
The glasses are fun to wear. Just like in video games, when the enemy shoots at you, the glasses will point at the danger with an arrow. You can take it as an indication of risk and move away from it.
A Wheelchair with a twist
Have you ever wondered how the disabled people will feel if they can stand from a wheelchair?
Laddroller made it possible. Designed by Dimitrios Petrotos, this incredible invention is doing good for people who are not able to stand or walk. After 13 unsuccessful attempts, the designer came up with a successful model. Now, people can move like ordinary people without taking help from anyone around them.
This is such a fantastic invention that is giving hope to people who don’t know whom to share their pain.
Wrapping it up
These are just a few of the inventions that are changing the world we live in. This proves that there are still people who want the best of other people. The devices came into existence because some people felt the pain and did something about it.
Technology is moving fast. But one thing to keep in mind is that technology is nothing without the human brain. If people don’t build technology, there will be no innovation at all. So, we all should give some credit to human intelligence instead of giving everything to technology. Sure, technology is making us efficiently do things, but it is doing so with the help of humans.