Cryptocurrency has become the winning game and you need daily cryptocurrency trading tips to trade successfully.
There are various reports we get from diverse news platforms about cryptocurrencies and the market has been unstable due to the recent market correction.
Some months ago, as reported by ABC News there has been a bubble in market prices, and that’s the issue, a lot of problems have been spotted but no one seems to be eager to provide solutions.
Those who even care about guiding others, do so at a fee either in paid seminars, online courses, or other ways.
For this reason, I have decided to provide some useful trading tips to guide you, when the market seems to be discomforting.
In this post, I will also share some of the most volatile cryptocurrencies you should steer clear of and the best among them for daily trading.
These cryptocurrency tips are more like safety precautions. We know how sad it can be to loose your coins from improper guidelines in trading.
Therefore, how can those mistakes be avoided? How can we remain on the green side always?
First, you need to deal crypto trading with so much understanding and attention to get profitable outcome. Other than the tips that will be listed on this post, make sure to pay good attention to demand and supply in the trading market.
Now, let’s begin!
Daily Cryptocurrency Trading Tips
These trading tips includes:
Have a Motive for Engaging each Trade
First, make sure you have a clear reason for getting into cryptocurrency trading. Be it day trading or scalping, you should have a reason for indulging.
Digital currency trading is a zero-sum game, you should know that in every win, there is a equivalent loss. When someone wins, someone else gets to lose.
The large “whales” controls the cryptocurrency market some what like the ones that put thousands of Bitcoins in the market order books.
Now, what do these whales do best? They wait patiently for naive traders like me and you to fall into the trap from an avoidable mistake, then they use it to their advantage.
Whether you are a scalper or day trader, sometimes it’s better for you not to gain anything on a particular trade than getting into losses.
From years of market analysis, I can assure you that on a certain day or periods, you can remain profitable by avoiding some trades.
Set Targets for your Profit and use Stop Losses
Another daily cryptocurrency trading tips you could use for a successful trading is setting profit targets as well as making use of stop loss.
What is the term stop loss in trading? click this link to help you have an idea of what it is.
Whether you are getting a bitcoin profit or not, you should know when to get out of any trade. Yu can cut your losses by creating a stop loss; a skill that most traders rarely have.
Choosing a stop loss can be a bit distressing because it is not a random activity. Don’t let your emotions guide you when doing so – a best point which you can set stop loss is at the cost of your coin.
Let’s say, you purchased a coin at $1,000, the minimum you should trade your coin should be at the same rate. This will guide you if the worst happens. You can leave with the amount you traded with in the first place.
The same is applicable to profit levels if you target to leave the market after making a minimum profit; hold on to that. Don’t let greediness cloud you. It doesn’t end well for anybody.
Welcome to FOMO!
FOMO means “fear of missing out”.
Most traders fail in trading for this reason. looking at it from an outside viewpoint, it is a bad sight for people make great profits in a short period from pumped-up coins.
Well, here’s what you should know…
Never get to a point where the green candles seem to scream at you and tell you to jump in.
Now, at this point the large whales I talked about earlier will happily watch you buy the coins they purchased earlier at low prices.
And here’s what normally follows? It’s the small traders that buy these coins guess what happens, the red candles pops up as a result of an oversupply, then boom, loses kick in.
Manage Your Risks
You should know how to manage your risk when trading cryptocurrency. You know what it means when they say little pigs eat a lot but the big ones get eaten.
That phrase truly projects the market profits when trading cryptocurrencies. Wise traders never get to assume massive profits. They prefer gathering up small but sure profits from basic trades on the bitcoin up official app.
Take a step of investing little of your portfolio in a less liquid market. High trades require more patience, while the profit target points and stop loss will be granted further from the buying level.
Underlying Assets Create Volatile Market Conditions
The price of Bitcoin is a determinant of most alt coins. You should note that Bitcoin is quite volatile and relates to fiat currencies.
The easier version of this is, when the value of Bitcoin goes high, the value of altcoins becomes low and vice versa.
When the price of Bitcoin is volatile, the market becomes foggy as you would imagine, it is difficult for grasp what goes on in the market.
At this point, it is wise to either have a close targets for trades or not to trade at all.
Don’t Purchase Simply Because Price is Low
It is noted of beginners to make the mistake of buying a coin because it’s price seems affordable. This is similar to someone who prefers Ripple instead of Ethereum all because Ripple is cheaper.
The market cap should determine your decision to invest in a coin and not it’s cheap price.
This is one of the daily cryptocurrencies trading tips you should not ignore.
Pay Attention to Crowd-Sales/ICOs
It is vital for traders to be greatly cautious when looking forward to invest in any ICO(Initial Coin Offering).
During an ICO (Initial Coin Offering), startups provide the public with the early chance to trade in their idea using a crowded sale and these traders are granted tokens at a low price in return with the assurance to sell them out at a higher amount when listed on an exchange.
Time has proven that most tokens on the ICOs hit ten times higher than the value of the estimated returns. This shows how successful they are
Investments are unstable. Even those that seem to offer great returns can come crumbling down as a result of certain economic condition.
Cryptocurrencies are even more unstable. Diversifying is the best way to avoid this become at one point, you can make thousands of profit and the next moment, you can lose everything.
Like I said earlier, the value of bitcoin against the dollar affects the value of other coins and vice versa. So, when other BTC loses it’s worth, other coins lose their worth as well.
You can see that diversifying is the best way to guide against bullish markets.
There was a time in the late 2017/early 2018 when Bitcoin was at its high time. Everyone knew that the way forward was to purchase many digital currencies to earn more value over the dollar.
Also, in the second half of 2018, A lot of people got rich from Bitcoin in a short period of time than it has happened in history. Yes, billionaires were made but people do not seem to understand that many people also lost money.
And while this happened, the currency worked it’s market cap to more than thirty times higher in the past year only.
This shows that Bitcoin can be the base asset for traders but should also note that the dollar value should be checked.
Therefore, you should diversify your investment to avoid being cut up when the market gets bad. Viable investment that are not as risky as cryptos you can engage in includes mutual funds, stocks, real estate, and a lot more.
If you prefer watching a video other than read contents, here is a quick video on daily cryptocurrency trading tips you can watch.
Cryptocurrency Trading Strategies
You could use some help from the following cryptocurrency strategies
- Range Trading
- FC Markets
- Playing Bitcoin Volatility
For more, Check out Coin Market Manager
5 Top Best Coins You Can Trade Today
Below are the coins you can trade today:
5 Volatile Cryptocurrencies to Look Out For
The most volatile cryptocurrencies is the one with the least market capitalization, and Ethereum Classic is the most volatile one.
The next most volatile is NEO, followed by Binance Coin, and then EOS, lastly Ethereum.
You should note that the most volatile crypto is also be the best for day trading.
- Check these Tips on How To Trade Forex For Beginners
- Read: The Crypto World: Useful Guide
- Related: Pros and Cons of Day Trading: Is it Worth it?
- Discover 5 Tips and Tricks for New Day Traders
- Related: 5 Reasons You Shouldn’t Worry About Cryptocurrency
Now that you have 8 Daily Cryptocurrency Trading Tips, you can start trading.
It is a great idea to sign up on a credible exchange with will guide your personal data, assets, and also offer various trading pairs.
If you are comfortable with Day trading instead of the other trading strategies, you could use these exchanges: