guest.png
 
icon1icon4icon5icon6
hokalawon070

Key tips you need to know for cryptocurrencies investing

Cryptocurrencies have continued to build a
noticeable momentum in the business world as
the preferred alternative currency. Recent
research statistics show that an increasing
number of middle and high income earners are
owning and trading in cryptocurrencies
especially the bitcoin. Having recently
celebrated the 10-year anniversary of the
establishment of bitcoin, all indicators point to
the fact that cryptocurrencies especially the
bitcoin are here to stay. Here are some
relevant tips which will assist those who are
already trading in cryptocurrencies and those
who plan to venture into it.
Security
Data security is one of the most serious
problems of the cryptocurrencies. Hacker
attacks on exchanges can easily result in the
loss of digital assets. Therefore, no precautions
are too much when it comes to buying, selling,
and storing your coins. One of the best
security measures you can employ is using a
cold wallet, which allows you to control your
private keys. It permits the safe access of your
coins in the Blockchain.
Market cap important than price
Price is simply based on the total supply of
tokens in circulation, and does not make for a
significant investment metric. Focus on coins
that have a low market capitalization when you
buy. The number of coins in existence times
the price of those coins is the market
capitalization of the token, which is the most
important metric to consider. When you buy a
coin, you should look at how many of them
you are buying against its total market cap, as
this is what will determine its scarcity, supply,
and value in the long-term.
Fees
Each exchange offers different commission
rates and fee structures. As a day trader
making a high volume of trades, just a
marginal difference in rates can seriously cut
into profits. There are three main fees you
must know. Exchange fees is how much you’ll
be charged to use cryptocurrency software.
Trade fees is how much you’ll be charged to
trade between currencies on the exchange. A
marker fee is the cost of making an offer to
sell. A taker fee is the cost of taking an offer
from somebody. Deposit and withdraw fees is
how much you’ll be charged when you want to
deposit and withdraw money from the
exchange.
Avoid panic selling
The crypto market is extremely volatile, which
means price swings are normal. Avoid
incurring losses by engaging in panic selling.
Panic selling is a common mistake beginners
make, when they first get into a market
without much research and then, when faced
with a sudden drop, sell to ‘cut their losses’.
Most coins do bounce back in days, if not
hours, and then the same people, seeing a
surge, buy back at higher prices, only to repeat
the cycle.
Diversify
Cryptocurrencies are unpredictable and in a
state of evolution, which means there is no
single coin (not even Bitcoin) that is
‘guaranteed’ to survive down the road.
Diversification and risk management is the key
to a sound portfolio and finding good entries
in multiple coins will increase your chances of
profiting.
Stay current
Crypto markets are highly speculative and
respond strongly to good and bad news. To be
successful, you need be current with crypto
news and other relevant and upcoming
economic and business developments.
The tips provided above should assist you to
record some gains in the world of crypto.

Comments

 
Ashemi

Thumbs up man...tnks

 
Johnson15309

Some university in United States now offering cryptocurrency as a subject...
And it's said that cryptocurrency will be a means of payment in the next century
As it's easy and fast

 
hokalawon070
Ashemi: Thumbs up man...tnks

thanks