Altcoin Trading Tips – Advice from Cryptocurrency Trader
Altcoin short term and long-term investments gained in popularity although it represents quite a new phenomenon. Crypto trading is very dynamic. This instigates the necessity of reliable altcoin trading tips encompassing the best trading strategies in a highly volatile cryptocurrency market.
Veteran traders have a significant advantage over newbies since they know all the ins and outs of the crypto markets. They know all the perks and the downsides regarding trading altcoins.
So, if you want to jump into the crypto wagon and start trading cryptocurrency, we have compiled several altcoin trading strategies picked up from the most experienced traders.
Whether you aim to venture into short-term or long-term trades, do yourself a favor by taking the time to read these helpful altcoin trading tips.
The Best Altcoin Trading Tips – Experts’ Advice for Trading Cryptocurrency
Scalping Small Price Movements
Trading Bitcoin or altcoins is neither too simple nor too complicated. You can do it by using various cryptocurrency trading strategies. Scalping is one of the best since it emphasizes small profits with limiting risk. It’s suitable for traders who focus on a very short time frame for placing trading orders.
Scalpers can do dozens, if not hundreds, of trades in a day. And with leveraged trading, you can make substantial gains on small price movements.
Scalping requires following the trading signals closely. For doing this, most cryptocurrency retail investors use TradingView. It’s a website abundant in trading indicators and data such as altcoins price, reputation level, trading volumes, and many more.
Finding Profitable Trading Signals
Short-term altcoin or Bitcoin traders should regularly monitor price movements in the market. They are supposed to analyze the situation for the correct predictions.
Even though many automated trading platforms provide analytical tools, it is nevertheless desirable that traders apply their own common sense when comparing the analytical results of trading platforms. There are two types of analysis: fundamental and technical.
The fundamental analysis assesses the Bitcoin industry, currency news, technical developments in Bitcoin. Technical analysis makes it possible to determine the price considering the evolution of the market, market volatility, price predictions, support, and resistance levels.
Define your cryptocurrency trading goals, always use the Stop Loss order
For each trade, you should set a winnings goal, more importantly, a loss threshold to minimize losses. A loss threshold is a level at which the transaction will be blocked.
Again, there are many factors to consider when choosing a loss threshold correctly. Most bull-headed traders fail when they fall in love with a currency and its characteristics itself. They can say, “Now it’s going to work, and I’m going to exit this trade with minimal losses, I’m sure.”
But, they let their ego take control of them. Unlike the traditional stock market, where daily fluctuations of 2-3% are considered extreme, crypto transactions are much riskier: it’s not an uncommon story of traders who have seen dumping of 80% of their crypto assets in a few hours! And no one wants to be the one who collects the crumbs. Therefore, putting the stop loss is one of the crucial altcoin trading tips to follow.
Protect your Investments
When it comes to altcoin trading tips, the following may sound obvious, but you must protect your funds in every possible way! Before funding your digital wallet, crypto brokers account do your due diligence. Keep a close eye on the news and the latest developments in the crypto sector, especially paying attention to security concerns related to exchanges you put your money into.
When it comes to storing your assets on a crypto exchange, it’s recommendable only if the platform is reputable. However, it’s always advisable to keep your coins in cold wallets.
Beyond that, regarding protecting your investments, don’t neglect the importance of the stop-loss order. Using a stop-loss function is absolutely required when you are day trading cryptocurrency.
Stay away from the pump and dump signals
When searching for buy-sell signals, avoid publicly posted signals from Telegram, Reddit, and Telegram groups. Avoid getting into the trap of crazy hype for particular altcoins.
At first glance, it might seem like a great signal. But there is a high probability that these bots hold bags before selling you the signal to buy.
The truth is that they are selling their altcoins at the moment when the buying signal has already faded away, leaving many people with depreciating altcoins.
Find Altcoin Trading Tips from Good Trading Advisors
As we could see from previous advice, some technical analysts have their hidden agenda. They use their marketing skills to promote low market cap altcoins.
However, there are many excellent crypto trading advisers, and it would be a shame not to use their quality service. Many of them live to stream their trades and can jump into any analytics chart and explain everything to you without hesitation.
Watching these trading experts in action is a valuable opportunity for learning the altcoin trading tactics.
Follow Cryptocurrency Media Sources
Prices of every financial market are tightly linked to official political and economic announcements, as well as tweets. Just look at the latest events regarding Elon Musk’s tweet that boosted the Doge altcoin price and made Bitcoin plunge. So, you must already be clued-up on the importance of keeping up with the latest news.
But beware that there are so many sources that you can easily find yourself lost without knowing what is happening. If you want to stay on top of events, we won’t tell what media to follow but rather follow the most prominent and most influential ones.
Also, make sure you regularly check the site CoinMarketCap to compare the trading volumes, market caps, and historical data. There you will find a listing of different offers on many listed exchanges for whatever coin interests you to invest in.
Altcoin Trading Tips: Avoid the trap of FOMO
Finally, to conclude our list of altcoin trading tips, we cannot forget to remind you of the harmful effect of FOMO. Fear of missing out can be incredibly harmful to your trades when the speculative bubble swells like huge double-digit gains in just a few minutes. This beautiful green light seems to speak to you: “You are the only one not to hold me in your arms.”
At this exact moment, you will notice unscrupulous people flooding cryptocurrency forums and trolling forex platforms to talk about the new wave that is sweeping. But what are you going to do then? Quite simple, keep moving forward. It’s possible that many of them took advantage of the expected rise, and it may continue. But keep in mind that predators are sometimes only waiting for small buyers on their way to sell them the currency they bought at lower prices.
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