INVESTMENT PRINCIPLE: DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE!
NB! BUYING CRYPTOCURRENCIES - YOU SHOULD LOOK LEGACY AND PRICE COURSE OF EXCHANGE!
Remember, the cryptomarket changes faster than the regular stocks.
Investing in short period there are two main thing that’s needed:
- Exchange – where’s possible to buy coins and tokens
- Knowledges – Where, when and how long to invest
Usually such trading style is based on technical analysis. Which is method that forecasts future stock price change, considering past price movements. In crypto market such way is so so .. because there’s a lot volatility in crypto market and prices goes more up and down than in regular stock market. For example in one point token/coin price may be couple of cents but few minute later it may be couple of dollars.
What should I look?
If cryptocurrency value is increasing tremendously there should be taking consider it may be “Pump and Dump” scheme. There may be situation where people who’s bought in low price they’re selling their coins/tokens and people who has bought just in (with high price), they’re losing money cause investors who bought in with low price causing big sell walls which causing price decreasing (if amount is enough big). So people who bought in with high price, they have to wait a longer (if it’s legit project there’s possible to get profit after some time.. if it’s shitcoin then probably not..).
- Cryptocurrency could have no future – There are a lot of cryptos that are pointless and non usable.
- Stop – Loss possibility on exchange – For safety measure if you can’t be 24/7 clued into computer and still want to trade, but you really should know what you’re doing by using it.
- Whats out for fees in exchanges. For example Coinbase has 1.46% fee in every trade, but Bittrex has only 0.2% ..
- Never trade with emotions! – Use strategy and stick to it, analyse, think before sell/buy.
- Cryptocurrencies are magical, there is everything possible! – Smart trader considers both negative and positive.