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Tips for Beginners Trading Bitcoin and Altcoins

The crypto market is growing because of the investors bringing more capital. It is not yet too late to consider a crypto investment but before anything, it is crucial that you understand its basics. Cryptocurrency is a virtual currency that can be used as a medium of exchange. It has this cryptography technology that secures the transactions. It is often decentralised with a limited supply. Browse through www.smartoptions.io for more information.

There are different cryptocurrencies but the most common is Bitcoin. As of April 2018, cryptocurrencies are over 1,565. Bitcoin is the major cryptocurrency and the rest is called alternative coins or altcoins. When you invest in coins long-term, the safest strategy is to hold it. However, if you want short-term profit allowing you to increase your stack faster, you should trade.

Trading requires attention and focus. It is not for everyone. With this, it is crucial that you follow some tips to internalise trading. Here are some tips:

Think of your reasons

Remember that not all traders make gains. Think of it this way: enormous whales drive the crypto market. These whales are waiting for little fishes to make mistakes. If you are not clear about your reasons, you will be swallowed by these whales. Do you want to trade on a daily basis or do you want to hold it? Check www.smartoptions.io for more information.

Set clear target level

For every trade, you must set a target level for taking profit. Similarly, you should also consider a stop-loss level to mitigate the losses. You have to know that a stop-loss level is setting loss level where the trade will be closed. To be successful, you need to choose the level correctly.

Manage the risk wisely

Do not jump into the rushing water and get swallowed by enormous whales. To be profitable, you should not look for the peak of the movement. Instead, look for small profits that can accrue into a big one. It is not easy to manage the risk across your portfolio but you should remember one thing – never invest a small percentage of the portfolio in the non-liquid market.

Learning volatile market conditions

Bitcoin is considered a volatile asset. As a trader, you should understand that Bitcoin and altcoins have this opposite relationship. When the value of the Bitcoin increases, the value of the altcoins is decreasing. When the Bitcoin is volatile, the market condition is kind of hazy. If it is hazy, you cannot see ahead so it is prudent to close targets or not trade at all.

Remember that altcoins lose value over time

Most altcoins lose value over time. Think of this when you are holding altcoins whether for medium or long-term investment. Choose altcoins wisely. When choosing altcoins, consider the community and the coin’s continuous development. You can start with the leading altcoins like Ethereum, Monero, DASH, XMR, and Factom.

Trading is overwhelming, especially for beginners. Do not trade coins if you do not have any forex trading experience. The mechanics and the goals are the same. If you want to know more and looking for inspiration, you should browse through www.smartoptions.io.