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Cryptocurrency Trading like Bitcoin isn’t for the Faint of Heart.

Strategies To Invest

By EstalontechPublished 6 months ago 10 min read

Cryptocurrency trading like Bitcoin isn’t for the faint of heart. It’s possible to see Bitcoin values double or drop by 50% within hours or days.

However, there are successful Bitcoin traders that make an excellent living.

If you’d like to throw your hat into the ring and try some Bitcoin trading, it’s important to learn all you can about Bitcoins and adopt a Bitcoin trading strategy before making your first trade.I did my first reseach back in 2019 , and today , I offer a new update

Consider these strategies:

Follow the News

In the short-term, stock and Bitcoin prices are very sensitive to related news.

Negative news regarding Bitcoins, such as government regulation or the hacking of a Bitcoin exchange, tends to drive the price down.

Positive news items, such as a large company announcing the acceptance of Bitcoins as a form of payment or a story about a Bitcoin millionaire, can drive up the price of Bitcoins.

Use Technical Analysis

Pull out the historical price charts and look for patterns.

Experts claim to have their own formulas for using price and volume data to predict short-term price changes.

It’s likely that human psychology is the biggest component of short-term price changes in the Bitcoin market.

Study the Metrics

Many traders believe that the long-term value of Bitcoins can be predicted from the recent price, the number of wallets versus the number of active wallets, trading volume, and so on.

Using this information, traders attempt to assign a current value to a Bitcoin and make trading decisions based upon the current market price.

Trade on Margin

If you’re feeling especially confident, there are opportunities to take your trading skills to the next level and trade on margin.

Therefore, you need to invest strategically in order to maximize your return on investment and minimize your risks. There are specific strategies you need to adopt to ensure a successful cryptocurrency investment and building your portfolio.

There are 5 strategies, which may come in handy for you especially if you are relatively new to the cryptocurrency realm.

Understand the whole concept of cryptocurrency

· Spy on the market

· Invest in more than one coin

· Start small and scale higher

· Reallocate your investment

Firstly, it is important for you to understand the whole concept of cryptocurrency.

Always keep in mind that you do not simply invest in something you are not sure and uncertain of. Do not jump on the bandwagon and follow what other people are doing just because you fear of missing out. For instance, a lot of people see their peers investing in property and they just follow suit in hopes to generate millions without even conducting prior research.

Therefore the first thing you ought to do is to study the space. These are the important points to be digested before kick-starting your investment:

· What is cryptocurrency?

· What is Blockchain Technology?

· What is Bitcoin?

· What are the other popular digital currencies?

· What are the coins market caps?

· How can you start your own cryptocurrency exchanges?

· Where can you make cryptocurrency exchanges?

Take your time to understand the realm of cryptocurrency and don’t rush the process. It may take weeks or even months to digest all the information but this step is imperative for you so you can be on top of the game and an expert in the field. This way, there’s a very low chance for you to waste your resources as you are familiar with the cryptocurrency industry.

The second strategy to invest is to spy on the market.

What does spying on the market mean? Spying on the market means you are observing what is currently working in the cryptocurrency market.

What you want to specifically look into is:

What is the most sought after currency?

What is the value of the currency?

Which currency has the highest market cap?

Should you buy and hold the currency for future investments?

Always remember that the cryptocurrency market is very volatile and the values fluctuate every now and then. The values usually depend on a lot of factors such as the speculators, the market demand, the supply demand and different institutions manipulating the prices.

My advice is for you to shop around and do not settle immediately for a specific cryptocurrency just because it has the highest value or popularity at the moment.

For instance, the most sought after currency at the moment is Bitcoin, but many professional traders and investors have predicted that Ethereum may surpass Bitcoin and become the currency of the future in the coming years. Therefore, always spy on the market and analyze the information.

The next strategy is to invest in more than one cryptocurrency.

It is not wise to invest all of your money into a single digital currency. A well balanced portfolio minimizes your risk as when you possibly lose on a cryptocurrency you own, you can still gain with the other ones you have.

If you decide to invest in only one currency for example Litecoin, what if the whole currency collapses? You’ll lose all of the money you have invested in a split second without any backups.

Therefore, always invest in 2 or more currencies. Constantly spy on the market and choose the currency you prefer.

The fourth strategy is to start small and scale higher as you go.

A lot of people assume you become instantly rich when you invest in cryptocurrency. However, that is not always the case. You don’t just become rich once you choose to invest in cryptocurrency. There’s a strategy and a learning curve to get where you want to be.

Therefore always remember to start small, especially for those who have a small risk appetite. As mentioned in the previous chapters, cryptocurrency values are very volatile in nature as it depends on many factors. The values fluctuate even more in this cryptocurrency season where many people are starting to trade digital currencies.

For beginners, the rule of thumb is to start investing $500 for your cryptocurrencies. You don’t necessarily have to start investing thousands! Now that you have your $500, how do you divide the money and what currency do you start to purchase first?

Firstly, remember to sign up for your digital wallet, and deposit your fiat currency and purchase the top 2 cryptocurrencies; Bitcoin and Ethereum.

The reason why we’re selecting the 2 is because they are the safest and established choice as compared to the other currencies. They are prone to fluctuation, but not as much for now.

So, you split the $500, and purchase $250 worth of Bitcoin and $250 for Ethereum. This is a smart way to do it and if there are chances of you losing any of your funds, the risk is still worth taking.

When you get the hang of it, you can scale your investment higher by purchasing your cryptocurrencies in a higher value.

Last but not least is to reallocate your investment.

Once you’ve completed all the steps as mentioned before which means you’re familiar with the cryptocurrency realm, you can reallocate your funds according to the digital currency market.

When you’ve started trading and investing, you’ll notice over a period of time some currencies will do better than others.

For instance, you’ve observed Bitcoin’s market and it has gone up whereas Ethereum has gone down, you can drag your funds to the higher currency market. This means, you can play around according to what’s working in the current market and constantly reallocate your money.

When you get the hang of it, you’ll realize that your investment will build up eventually from $500 to $1000, from $1000 to possibly $100,000! Always remember to do your part in getting to know more of the cryptocurrency market as there is always something new to look into.

Be strategic in your investment and only investment in what you know! Now lets share on of my associate new training guide , just released for your insights to newer update of the Cryptocurrencies,which to many web 2 fanatic is a major paradigm shift

In the span of a few years, cryptocurrencies have grown from digital novelties to trillion-dollar technologies with the potential to disrupt the global financial system.

Every day the world financial system is moving closer to a cashless future, where money in coins or notes is replaced with digital currency such as Bitcoin.

Bitcoin is a digital currency, but it is not the only one. Today there are many other digital currencies such as Ethereum, Litecoin, and Dogecoin, which is a much more evolved version and offers more security and freedom.

The increase of online purchases and transactions during the pandemic has exponentially accelerated interest in using these digital currencies as an alternative to financial management in a much more digitalized world today.

Bitcoin and hundreds of other cryptocurrencies are increasingly held as investments, and they are used to buy everything from software to real estate.

Central banks around the world, including the U.S. Federal Reserve, are considering introducing their own digital currencies to compete with the crypto boom.

With all this action behind the scenes, it seems inevitable, in the coming years, that state digital currencies will become widely available to ordinary citizens.

But before you get into the digital currencies’ and cryptocurrency market, you get educated in them, learn the terminology, the risks, and ways to ensure your assets at the same time that you learn how to get the best value for your money.

So, here we are with this Awesome course — Digital Currency Mastery Training Guide available on amazon kindle and googleplay books

This guide will educate you about what are digital currencies, how do they work, cryptocurrency trading, digital wallets, crypto exchanges, understanding blockchain technology and so much more.

This course covers:

1. About digital currency and its nature, working, benefits and risks

2. Types of Digital Currencies present around the world.

3. What do you mean by blockchain technology and how does it work?

4. What is cryptocurrency trading and how does it work?

5. How Central Bank Digital Currencies (CBDCs) Work, its types and so much more

6. How many types of crypto coins are available in the market?

7. Understanding the fundamentals of digital wallets

8. What are the threats to digital wallets and how to secure them

9. The process of purchasing cryptocurrency.

10. Which are the best places/exchanges to buy Bitcoin?

11. Common mistakes new crypto investors make and how to avoid them.

12. Legal risks associated with Crypto currency

And so much more! Some of the most crucial statistics to satiate your knowledge thirst.

-Already 20% of 66 central banks reported that they are likely to issue a CBDC within the next six years.

-Bitcoin had a market capitalization of $1072.21 billion as of February 21st, 2021.

The figures mentioned above are jaw breaking, considering the relatively short time that cryptocurrencies have been in existence. We believe this should give a hint as to why the world is clamouring for the increased adoption of cryptocurrencies.

Bitcoin is a digital currency, but it is not the only one. Today there are many other digital currencies such as Ethereum, Litecoin, and Dogecoin, which is a much more evolved version and offers more security and freedom.

The increase of online purchases and transactions during the pandemic has exponentially accelerated interest in using these digital currencies as an alternative to financial management in a much more digitalized world today.

It is time that you should have an effective understanding of Digital Currencies and how they will impact financial transactions and your business. Just use the tips and information we covered to get started.

Using the strategy and information provided in Dwayne’s anderson Mastery Guide, you will master the essentials of using Digital Currency.

This ebook comes with a disclaimer , and it is only a training guide and not meant as an investment Guide.All remarks in the disclaimer’s page has informed all readers, that the contents are for educational and indight reading

careereconomyfintechinvestingstockspersonal finance

About the Creator


Estalontech is an Indie publisher with over 400 Book titles on Amazon KDP. Being a Publisher , it is normal for us to co author and brainstorm on interesting contents for this publication which we will like to share on this platform

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