Come 2018 and welcome to the cryptocurrency age. Ever since the Bitcoin burst onto the scene in 2009, it has certainly revolutionised the way we see currency forever. People are flocking to purchase with what is the future of money as we see today. The market cap of cryptocurrency has skyrocketed from a few million dollars in its early days to around USD 200 billion within a matter of a few years.
The industry is expected to grow further as more and more traders are flocking to the market. Multiple alt coins and ICOs have entered the cryptocurrency fray and are posing as serious contenders to becoming the next Bitcoin in the market.
Stiff competition from altcoins
This is just going to grow considering the stiff competition from altcoins such as RXP, LiteCoin, Ethereum etc. Options are aplenty, but the question arises on which coins to invest on. It is a relatively unpredictable form of currency. Hence care has to be taken before investing your money into cryptocurrency. One failed to move and you could end up turning your investment into an outright loss.
More options imply more confusion. More confusion eventually results in becoming vulnerable to fraud. The number of traders is increasing and so are the number of third-party hackers who are out there looking for easy targets.
Leave no room for fraud
There are several cases of how people have lost hundreds of thousands of dollars in investment just because they blindly invested in cryptocurrency and also without taking any precautionary measures before investing. This is definitely not advisable considering the fact that it is a very new industry and that it is not at all predictable as compared to other forms of investment such as stocks, real estate etc.
This article consists of a few traits of successful cryptocurrency traders who have managed to convert their meagre investments into multi-figure profits. One classic example is a man who invested USD 500 in Bitcoin, back in its earlier days and today, he has Bitcoins worth USD 500,000.
Let us see how one can become a successful trader:
Do lots and lots of research
Before investing in any sort of investment, not just cryptocurrency, one must go through a thorough research on the internet. Recent trends on the targeted Cryptocurrency should be read upon. For example, the Bitcoin has had its value skyrocket to almost USD 9,000, hence the question arises whether it will continue to rise or not.
It is simply unpredictable, and experts have warned that the Bitcoin bubble might burst just about any moment. These are alarming questions one must find answers to before investing in any Crypto Currency and not just Bitcoin.
A trader must also find out the concept behind the cryptocurrency. What is it set out to achieve? Does it hold an innovative business model which is different from tradition coins out there?
Sites such as https://www.cryptocoinjudge.com/ help you equip yourself with the recent trends in the world of cryptocurrency. You gain access to multiple facts and figures on multiple cryptocurrency traders in the market as well.
Also, do a thorough background research on the team behind the cryptocurrency. Some might just be frauds and you do not want them to elope with your money.
Finally, research on how engaging the developers are with the community of investors. This is just a highlight of how genuine they could be. Lesser activity on their end could just be a signal that there is something fishy going on.
Investing at the right time
People continue to ask, ‘What is the best time to invest in cryptocurrency?’. The answer to that is- there is no right time to invest. As earlier mentioned, the cryptocurrency world is highly unpredictable and prices continue to fluctuate with time.
However, the best time would be when the prices are relatively low. The Bitcoin is certainly an expensive option, hence, keep a look on alternative cryptocurrencies which are relatively new in the market and offer low investment options along with high yields in the future.
Coins such as XRPs are available at rather low rates. Nowadays, it has also been predicted that the value is only going to skyrocket as time passes. Several other options include the Ether, which is available at close to USD 1900 per unit. This is relatively cheaper than the BITCOIN which requires a rather hefty investment of close to about USD 9000 per unit.
Keep yourself updated with the latest prices per unit for different cryptocurrencies in the market. Sites like this offer you great insights on the current happenings and trends of multiple cryptocurrencies in the market out there.
Don’t be afraid to make an investment, take a deep breath and let your investment do the talking!
Do not invest in a single Cryptocurrency
There is a classic rule when it comes to investing your hard-earned money. You never invest your money in one place all at once. You need to diversify your investment. This holds true even when it comes to investing in cryptocurrencies.
It is highly advised to invest a little bit of your money in different coins. There could be chances that one might yield high returns while the other could cause you a huge loss. However, the net profit will be there and you will not end up experiencing a complete loss.
Owing to the instability in the market, it is always better to not focus too much on just one currency. Do your research well, look out for upcoming cryptocurrencies and invest in multiple options.
Invest a little bit on coins such as Bitcoin, also invest in new cryptocurrencies in the market like the Lite-Coin, Solar Coin etc. Their potential is higher than that of the bitcoin and you could see a meagre investment yield you a huge profit in the future.
There’s always room for growth. So, invest wisely!
Do not take up a huge portion of your profit earnings
The feeling of getting hold of a tidy profit from your investment is certainly a great feeling. However, the more profit you take up, the lesser are your chances that even that profit could yield a larger profit in the future.
It is always advised to not exceed your profit transactions beyond 18% of your current profit. The remaining 82% has the potential to increase your initial investment by almost tenfold. So, it’s a gamble worth taking.
We advise you to take out just a small portion or percentage of your earnings as profit. It is always best to let your investment grow further. Who knows? The price might skyrocket again and you could end up becoming a potential millionaire!
Be a happy trader!
Do not make cryptocurrency trading an obsession! There have been multiple cases where people have become so engrossed in the trade that many of them have committed suicide just because they lost all their money. This is not right.
Make sure you find a hobby to keep yourself occupied. The best way to really reap a tidy profit is by investing and letting your investment grow as time passes. The more you worry about it, the more your health is affected.
Make trading a sort of a fun activity for yourself. Connect with fellow investors on various social media platforms. Discuss on current trends and share your very own cryptocurrency journey to date. You could be an inspiration for a lot of people.
The key is to turn cryptocurrency into a passion rather than turning it into an obsession. Finally, invest an amount which you can afford. Do not invest beyond your capable means. Being a highly dynamic industry, it could turn tables anytime. What was earlier a journey towards achieving a profit could end up becoming a high source of debt and let’s not forget the high interest rates that are involved.
Invest with a happy mind and see your investment turn gold someday.
A few more tips to becoming a successful trader
- The world of Crypto Currency is just growing by the minute. More and more people are flocking to become cryptocurrency traders. The market is expected to become bigger and bigger as time passes. Just as its size is growing, so are the risks as well. Since it is not regulated by any government controlled central authority, it makes it a good market for criminals as well.
- There have been multiple cases as to how people have been duped by third-party hackers and ended up losing every single dollar they had invested.
- Make sure you secure your computer with the latest firewall software and most importantly, store all your cryptocurrency units in a trusted online wallet. They come with already built in encryption and certain other security measures. This way your investment is safe and you will be at peace of mind.
We have discussed some of the most important tips and tricks that are needed to turn you into a successful trader. Invest wisely and safely and enjoy the road to becoming a cryptocurrency trader.