Even though we’re now several years into cryptocurrency becoming somewhat mainstream, although the hype has worn off, the digital, decentralized monetary format is still very much a big earner for people around the world, more commonly known as cryptocurrency traders.
As a cryptocurrency trader yourself, you’ve probably witnessed the highs and lows of the market yourself, or even if you’re just getting started, you’ll look for the best way to make a start. With this in mind, today we’re going to help you get going.
Below, we’re going to explore eight essential need-to-know tips to help you make the most in your cryptocurrency trading career, ensuring you have the best and most profitable experience.
#1 – It’s Just Getting Started
Although lots of people have heard of Bitcoin or might have seen it on the news, it’s not fully integrated into society just yet, and there’s only a real minority of people out there who actually use cryptocurrencies daily.
That means there’s so much room for progression in the future, and if people start using them more and more and, perhaps one day they become the primary financing method, it could be such a great investment to make now.
#2 – Bitcoin Isn’t the Only Cryptocurrency
As we’ve mentioned already, a lot of people think Bitcoin when they hear the term ‘cryptocurrency’, but this is simply scratching the surface of what’s actually out there. Of course, there are a ton of hopeful cryptocurrencies that exist for a bit, get very hyped up and then fade away, but there are potentially thousands of other opportunities that could make it.
In short, don’t just restrict yourself to a single cryptocurrency, and especially not just Bitcoin. There are plenty of opportunities out there to look into.
#3 – Be Careful with Your Choices
Hand in hand with the consideration above, it’s estimated, like many dotcom companies, that around 80% of altcoins and cryptocurrencies will not survive, and sooner or later, a select few (the 20%) will dominate the market, and that will be all there is.
This all happens because the investors and users of a certain altcoin will become super-excited about the hype surrounding an altcoin, rather than looking at the real, numerical value that is created. As an investor or crypto-trader, it’s vital to do your research.
#4 – Money to Cryptocurrency
Although we’re spending a lot of time talking about cryptocurrencies, remember that cryptocurrency can be withdrawn in the physical world as cash, and visa versa. This means that you can actively use your cryptocurrencies as a way to store money and look after it. You have fluidity between the two.
#5 – Remember How You Profit
It’s so vital to remember that, at the end of the day, the only way you’re going to make money as a cryptocurrency trader is when you actually sell your cryptocurrencies. Of course, this is the same with any kind of trading, but it’s important to be mindful of market fluctuations and figuring out the best time to sell.
For example, if you had invested in Bitcoin and the value skyrocketed as it did, you probably would have felt amazing during that time; but remember, those gains aren’t actually profiting until you make the sale.
#6 – Use Authentic Sources
There are a lot of websites, blogs, magazines and services that all claim to be able to produce the content that will keep you up to with the latest news, tips and information. Some of these websites and publications can be extremely helpful, but it’s so important to make sure these websites are genuine.
If you’re getting your information from illegitimate and untrustworthy sources, your results are going to be the same, so make sure you’re researching in the right places and choosing legit sources that are actually going to help you.
#7 – Cryptocurrency Solves Problems
Perhaps one of the most important things you’ll want to remember is the fact that cryptocurrencies exist in the world to help address or solve a problem. Just betting on a currency and hoping for the best and that it will take off is the biggest risk you can take.
Instead, look for cryptocurrencies that are designed to help bring benefits to the world. The bigger the benefit, the more likely it is to increase in value and the more money you’ll make back.
#8 – Monitor Your Emotions
Thinking about you as an individual for my final point, currency trading can be an extremely emotional career path, especially when you’re on huge highs and low losses. It’s easy to make a split-second decision you’re going to regret, so don’t let it get that far!
As you can see, there are lots of things for you to think about when it comes to being a cryptocurrency trader, and plenty of things to think about. The most important thing to remember is to educate yourself and remember, don’t get caught up in the hype. Good luck!
Nora Mork is a business and marketing journalist at Write my essay for me agency. She shares her experience by speaking at public events and writing posts for magazines and blogs, such as Boom Essays and Essay Roo.