Five key recommendations for novice crypto-traders
Starting with crypto trading can be challenging. There are so many coins out there, and whitepapers fly around like doves (there are many of those too). It can be hard to understand which ones are legit and have a good long-term vision.
Stop thinking in fiat currencies
One of the challenges for many traders is the fiat currency mindset. Instead of seeing coins for their value, they try to relate them to dollars or euros. When you start diving into crypto, it is good to start relating the value to Bitcoin. In the end, Bitcoin is the major coin and the others are altcoins. Strong traders always read charts that benchmark coins to Bitcoin to understand their trajectory as well as the overall market.
Stay up-to-date passively
You can monitor the crypto market continuously without getting bored. However, this will be a huge toll on your health. Why should you, if you only need to know what happens when major things happen? You can leverage a crypto tracker with features such as push notifications to set up alerts. In that case, you will receive a message about certain fluctuations or news related to your holdings. Less hassle to track the market, while you can act fast when needed.
Keep an eye on the order book
The order book is a crucial element, especially for coins with small market caps. Here you can see how many people want to buy or sell a specific coin. These pending transactions can give you a good feel of what you should aim for. Do note that there are bots out there that try to push up the price through this mechanism. Sometimes it’s good enough to stay below the price at least for a bit.
Stay the course: prepare for volatility
The crypto market is different from traditional stocks. You need to be able to look past the sentiment and go for several coins you believe in. There will be a lot of volatility down the road, but if you believe in the developers, community, and concept, you need to stick to your principles. Look at a major drop as a buying opportunity and continue to invest in the coins.
Fear of Missing Out (FOMO) is one of the common enemies of crypto traders. Make sure you stick with several coins and only invest in smaller coins for a smaller portion of your portfolio. This will help you to spread the risk and stay on course for long-term portfolio growth.
Sentiment versus long-term coins
On the other hand, you can also go for short-term gains. The crypto market is sentimental, and you can easily use it to your advantage. Do note that many people try to and that there are many pump-and-dump schemes in coins with lower market caps. With a cryptocurrency tracker, you can see these changes happen in real-time. By creating clusters of coins, you can determine your potential next target. By checking your transaction analytics in the app you can review your past trades and see how well y
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