Call Our Currency Exchange Broker Now on +44 207 4594107

Currency Converter

5 Tips to Increase Your Chances of Profit

One of the main goals of our cryptocurrency writing is help readers understand the market but also improve their understanding of how to trade and invest to reduce the risk of losing money and have a better chance of making good decisions. We have published articles such as 7 errors of crypto traders to aid people falling into common pitfalls.

5 Tips to Increase Your Chances of Profit

It’s still an exciting time to be buying and selling (despite the mass selloff) or at the very least, monitoring and observing the cryptocurrency market but as usual, there are still many opportunities out there on a daily basis to exploit. Here are 5 ways to maximise your potential of making financial gains or at the very least, learn the most in the crypto world.

Watch and learn

It sounds simple and to some, even lazy but having a watchlist of your top 10-20 coins and merely watching the price fluctuation will give you a rough idea of where the support and resistance falls. Whilst you are checking the price action, ensure you take the time to read and research the particular coins and any surrounding relevant information on the macro market. You will be acquiring information by osmosis and simply be engaging in more content and technical analysis.

Buy low, sell high

It sounds obvious and is the golden bullet in trading but it’s all about buying coins in the dips at a perceived “discount” compared to what the value was. This obviously means buying on a downtrend on when the general consensus is selling. You may become more educated from implementing point 1 of just watching but a sound understanding of technical analysis, indicators (leading and lagging) and charts such as higher highs and lower lows etc. One thing to get comfortable with early is you very rarely buy at the bottom and sell at the top but when you want to buy (at the perceived right time) and it continues to sell, you can “scale in” meaning you can gradually by more, with less of an aggressive position to acquire more and have a better average price until the retracement finally happens and the momentum reverses into an uptrend

Related:  How Cryptocurrencies Are Changing the Future of Payments

Never chase the pack

By this, I mean never chase a pump and dump. When you’re in a bubble one of the characteristics is that you don’t realise you’re in a bubble – it just feels like financial utopia aka December 2017. In normal markets, 500% in a day is almost unheard of and usually from rare tech or resource start-ups finding a new gold mine etc. The ICOs promising the earth and have fast moving price action is usually a fraud or a fake or at best a pump and dump. Proof of this is most ICOs have closed or gone bust due to mismanagement or fraud. Forget the hype and FOMO and focus on the logic fundamentals and the reason why you should buy and sell a coin based on sound reason and research. If you are keen to do so to make a quick profit and quick wins, remember the above, buy the dip and the sell-off as another pump is close by for another coin.

Treat yourself – take your wins

tips to trade forex

Finding a 10 bagger and making loads of “free” money is an amazing feeling but make sure you convert a number on the screen into the real world. What goes up can come down as the market the last 6 months have demonstrated. Take profit regularly and remember why you are doing it – new car, pizza tonight, wedding payment etc. It looks good on screen but even better in reality. If you don’t have a desire to spend it at least know that the cash can be redistributed amongst more appreciating assets or more coins.

Related:  The Best Cryptocurrency Trading Platforms

Keep some skin in the game

So… you would have bought a coin for a reason, and hopefully good reason. When and if you sell it there is good logic to say at least keep 10-20% of that original holding. There is nothing worse than watching a coin soar after you’ve just sold it and yes, it’s worth that an asset going down. It’s money you could/should have had and been even nearer to having as you did previously own it! Management teams evolve, tech develops, markets and fundamentals change and all, hopefully, with the idea of creating value and growth of the coin. It’s worth holding some of your coins based on your original analysis and scale in/out accordingly as there could be more value to come. This is all about trying to exercise a range of control over your emotions and options of making money. A span of coins with different prices at different times will by definition, give you more chance of a profitable return.

To use the words of popular betting companies – “when the fun stops, you stop”.

Foreign Exchange Live
Foreign Exchange Live
icon-angle icon-bars icon-times