So, you’ve seen how the cryptocurrency markets have taken the world by storm and want to take advantage of them and reap huge profits. If you’re a serious cryptocurrency trader, you know just how important 2018 is as a year for reaping huge profits from the market. We are currently still in the middle of a crypto bubble that may probably die off this year. That said, if you don’t take advantage of it now, you may never get the opportunity to take advantage of it again. At least, if we’re going to have 2018 be as interesting as 2017, then you can’t be guaranteed that 2019 will be just as good.
However, it’s not as simple as saying you’ll take full advantage of the markets. You need a strategy to guide you through the murky world that is the cryptosphere. As a trader, you are in one of the most stressing and dangerous professions out there. Sure, trading won’t give you any bodily injuries or be a threat to your life directly. However, it will stress your mind, and it poses a financial danger to you. The amount of devastation you get from losing everything on a bad trade is just as bad as bodily harm in my book.
So, how do you avoid that bad trade? What can you do to beat the market? Actually, what do the best investors in the world do to beat the market? The answer is that there are some general tips that you can use to get your performance up as high as that of the most skilled and experienced traders in the world. I decided to list three of them here, so you have enough variety in your arsenal. Remember, these are general tips and not hard and fast rules. I’m not telling you how you’re going to be a millionaire overnight. However, with these tips, you will get in the right mindset, and with the right mindset, you will make much more than a million consistently.
1. Get Yourself a Trading Bot
Bitcoin code software is the future. If you’ve got your ears to the ground and have been religiously following all the news in the cryptocurrency space, then you’ve heard of crypto trading bots. These pieces of software have made a ton of money for many people who knew how to use them well. How can you use them to your advantage and make money passively while you sleep?
A crypto trading bot is simply a program that communicates with exchanges via an API and executes trades on behalf of the trader. The bot will be programmed by the trader to be able to track the markets, calculate various indicators, follow a strategy when executing trades according to a set of parameters and also act appropriately when the situation demands for contingencies.
Because this bot can trade much more rapidly than a human being and doesn’t have emotions, it is a superior trader and can follow a given strategy more consistently and successfully.
However, don’t think the bot is a get rich quick kind of solution. It is ultimately only as good as the person who programmed it. It will act exactly according to the instructions it has been given. Therefore, if it’s given a poor strategy to trade on, it will only quicken the financial demise of the owner. If it is given a robust strategy that is consistently profitable, then it will enhance the moneymaking abilities of the trader and indeed ensure they get rich quicker.
There are several good robots out there that are widely used by beginning traders and experienced ones alike. Likewise, many dubious bots have been designed by scammers and will not give any advantage to the trader. Unfortunately, I can’t recommend any here as that would need an entire article all by itself. However, I will urge you to thoroughly do your research and ensure you land on the right kind of trading bot that is not only genuine but also fits in with your particular trading style.
2. Be Particular with What You Trade
There are plenty of cryptocurrencies to trade out there and plenty of exchanges on which to trade them. Last I checked, nearly a thousand cryptocurrencies were being offered on many different exchanges. In a world with so much variety and so many options, it can be tempting to want to try out everything. As tempting as it is, however, I would like to urge you not to. That is surely the road to failure.
When you focus on a single thing, whether it is a single set of cryptocurrencies or a single kind of trading strategy, it makes it a lot easier for you to become an expert in that. Remember that even the sun’s light does not burn unless it is brought to a focus. It is the same in the world of crypto.
Pick a set of cryptocurrencies, pick a specific trading style and stick to them religiously. In time, you will become an expert in them, and you will be able to make money a lot more easily.
3, The Time Scale Matters
Many traders think that the only way you can make money from cryptocurrencies is by trading in the short-term. Nothing could be further from the truth. There are many roads to Rome. If making money in the world of crypto was the road to Rome, those roads would be about a dozen. You could buy and hold for the long-term, realizing much greater returns for a longer time. That is what most early investors in bitcoin did, and they saw some of the most insane profits ever seen by investors.
You could also decide to trade via arbitrage, taking advantage of market inefficiencies to make your profits. This is a very lucrative method of making money in the unregulated world of crypto. You could also use technical and fundamental analysis to predict where the price of a cryptocurrency will be in the future and trade based on that guess. There are plenty of ways, and you should find one that works for you. Somewhere on your journey, you’ll find a sweet spot and begin to beat the markets more confidently.