Maintaining your altcoin worth is important in the ever-changing world of cryptocurrency. Especially right now with the worry of COVID-19 and the state of the economy. Making a trading mistake could cost you your expensive bitcoins. While trading is not for everyone, here are some tips to make sure your cryptocurrency safe.
Have a Clear Strategy in Mind
To keep your altcoin worth stable or gaining, have a clear trading strategy in mind. Entering into a trade without a clear plan of action could be devastating. There are traders out there waiting for you to make a mistake. Known as “whales,” they drive the altcoin trading market. They will take advantage of your mistake and expose you to substantial losses.
When you are preparing to do some trading, consider the maximum amount of losses your altcoin worth can afford. Then set up your stop-loss so that you know exactly when to close your trading for the day. Take the small gains that your altcoin earns as they will eventually turn into a big one. Make sure you managed your risk wisely throughout your portfolio. Plus, keep an eye on how Bitcoin is trading. Your altcoin worth is correlated directly to Bitcoins. If Bitcoin is volatile, avoid the trade.
Study Altcoin Worth Carefully
Because altcoin worth decreases over time, you need to study how they are trading carefully. If you are planning to hold onto a large amount of altcoin for the medium and long term, choose them wisely. The value changes rapidly. They could bleed slowly or rapidly. The market changes daily. Altcoins with a higher daily trading volume and significant crypto-community backing tend to be more stable. Watch the trading chart of each altcoin in your portfolio to identify the stable periods. When this happens, be wary of whales selling their altcoin for a profit.
Practical Tips for Trading
Here are a few practical tips to keep in mind when you plan on trading your altcoin:
• Multiple trades mean paying more fees. Always try to post a new order in the order book as a market maker. Don’t buy from the order book.
• Make sure the conditions for your trading are optimal. Have a trading plan in place so that you don’t make a trade under pressure. When it comes to altcoin trading, patience is a virtue.
• Set your targets based on placing sell orders. This will help you keep fees down when a whale pumps up the altcoin worth. Placing low buy orders has proven to be a successful strategy.
• Don’t worry about proving whether you should’ve entered a specific position. Your goal in trading your altcoin is to gain a profit. Check your ego at the door.
• Research bear markets. They tend to be good for making a profit in the cryptocurrency industry.
• Stop reading the news and other trade analysis published by the traditional press. If you’re reading it, so are others. Instead, do your research by reading financial pieces written by experts.
• Concentrate on your own trading and not what your friends or other traders are doing.
• Have a long-term end goal so that you know why you are investing in altcoins and why altcoin worth is important to you. Then set your short-term goals accordingly.
• Learn how to identify crypto-currency scams and avoid them like the plague.
Final Thoughts About Your Altcoin Worth Portfolio
When it comes to your altcoin worth, remember that only a few cryptocurrencies will survive. Invest in the ones that will last in your long-term portfolio and what percentage will be altcoins. The market is always changing. Keep an eye on it and trade when the time is right.