With fiscal tightening loosening and interest rates paused, this is an ideal time to jump into cryptocurrency trading and make the most of what the market offers.
There needs to be more clarity amongst crypto traders while trading cryptos in the currency market scenarios. It even discourages many who wish to join the crypto community and make the most of it. However, many need help understanding that the market is bearish, and as per the historical data and other crypto gurus, the crypto market will resume its bullish trend.
Points you don’t want to miss out on
One of the most famous, and synonyms for other cryptos, Bitcoin is trending at a get-able-price range. This elusive crypto is within reach of many crypto fans who want to buy it. Now is the perfect time to buy it as it is within reach.
Some speculate that the price of Bitcoin will fall a bit further than it is. However, there is no perfect timing to enter a crypto market; the time you intend to enter the market is the right time to enter it. Then, on a rarer occasion, you have the honor of buying an excellent financial asset with a promising future at a reasonable price.
If you want to stretch it further and endure the waiting game for crypto like Bitcoin to fall further, then remember that the entire price trend of Bitcoin, like any other cryptocurrency, depends upon the demand and supply. Once the market grows, the price of it will start to appreciate, and once the selling starts, the price will fall more quickly.
Many experts say that the crypto market will surge since it is the way to the future.
How you may merit with it
Besides this, other benefits are most attractive to crypto users. For one, you can amass a lot of crypto wealth, and no government can freeze your account. This is quite true if you consider the middle American continent, Mexico. Inflation has hit the locals so severely that they are investing and trading in cryptocurrencies to hedge the risk of it. As a result, many Mexicans have adopted cryptocurrencies and would use them for daily transactions rather than Mexican Pesos.
No other country has taken cryptocurrency trading platform to the next level than El Salvador, one of the central American countries. El Salvador has recently announced that they are creating a Bitcoin City, where an ordinary individual can trade directly in cryptos for daily transactions. Cryptocurrency will be so prevalent that even the taxes collected will be in the form of cryptos. The government will be mining or, instead, minting Bitcoin by harnessing the thermal power of nearby volcanoes. Thus the entire process of mining would be eco-friendly.
Many banks in the United States are granting loans by having their customers pledge cryptocurrencies as collateral. In addition, there are a few congressmen who support cryptocurrencies publicly. Recently Elon Musk announced that Twitter accepts cryptocurrencies as a mode of payment.
So what does the above discussion have to do with trading cryptos?
Well, it has to do everything with crypto. The magnitude of people adopting cryptocurrency is increasing daily. Many have understood the crypto’s importance and consider it a wise decision. Crypto trading has impacted the world so much that even mainstream enterprises accept it since they also understand the importance and viability of cryptos. Even they are now getting that crypto is the way forward into the future. As per the latest report, the amount of cryptos people adopt is astounding. The rate of Shrimp and Crabs has been increasing daily. It’s not the Whales who have been actively buying and hodling the cryptos, but the Shrimps and the Crabs.
The fact that many countries are creating digital currencies says a lot about how the world has changed.
So we come back to our main discussion of cryptocurrency trading: the crypto market is moving sideways instead of bullish or bearish run. The sideway moment allows many to buy cryptos that are within their reach.
Strategies- more like game-changers
Since many wish to trade cryptos, this is an ideal time for day trading or scalping. While some may indulge in trading cryptos daily, consider trading cryptos for a long time. Hodling on to the cryptos and waiting for them to appreciate is a good sign of being a crypto trader since you are also creating your crypto portfolio.
As a thumb rule for any investing strategy, invest 10% to 20% of your total income after tax. As a crypto trader, you must always have two plans, one for the short term and the other for the long term.
You can always use the Dollar-Cost-Averaging, where you spread your investment capital over a while, irrespective of the price trend of the underlying asset in the crypto market.
Take for example..
Suppose the 20% of the income after tax is $700, and now you wish to spread it across eight months, then divide $700 by the number of months that is eight, and you get $87.5, so you invest $87.5 over eight months instead of investing all $700 in a single go. This takes care of the long-term investment.
If you wish to increase your profit margin further, then out of your $700, invest 2% to 5% on each trade. So 2% of $700 comes to around $14, and for 5%, it comes to about $35.
Final thoughts.
Trading is simple and fun if you know what you are doing. However, it is not wise to wait for a specific price trend to cross before you begin investing; otherwise, you are bound to miss the bandwagon and end up with FOMO or Fear of Missing out.
You must learn to control your emotions and refrain from greed and anxiety since they are the major downfall of cryptocurrency trading. It would help if you always trust your research.
Significant signs of a good crypto trader are that they always carry out their trades based on their research and strategize to maximize their profits. When they make a loss, they immediately stop trading any. Further, they will try to understand why their trade failed by evaluating their research. This is also true when they make a profit; by taking such steps, they can eliminate the “Luck” factor.
If you are a newbie to cryptos and wish to enter the market, you can start trading for as little as $100. It would help if you searched for a good, reputed cryptocurrency broker or a brokerage firm. They offer online crypto trading courses; enrolling in such a program will benefit you as they will also teach you how to research cryptos.
