Tips for Trading Efficiently in Bitcoins & Altcoins

[akhjob]

Tips for Trading Efficiently in Bitcoins & Altcoins

Being efficient at trading is essential for booking profits in the long term. The goal is to remain on the positive side of the market. But how to make the right trading moves in a volatile cryptocurrency market? By avoiding silly trading mistakes and staying focused, trading is not quite hard. Remember, if you are a passive trader, you should not shoot for the stars right away. Make a consistent schedule and be attentive to the market before jumping in on a trade that appears lucrative.

Of course, you must avoid tip-offs but should adhere to some trading rules that we are writing below if you want to achieve your goal in the long term from cryptocurrency trading. Here we reveal some tips for efficient trading:


Back your trades by a solid reason every time
Trading haphazardly will never lead you anywhere. Only enter a trade when you have a clear picture in mind and a strategy in action. It is not essential that you book profits from each trade and every time, but when you do, the profits should be worthwhile. In order to improve your profits, your trading decision must be backed by a prudent research instead of rumours. Rather than making a mistake and regretting it later, it is important to study and analyze the patterns and trade only when you have a reason to do so.

Create a target and stop-loss level
It is important to set a clear target level to achieve while starting to trade. Also, set a stop-loss level to limit your loss in case the market tumbles. It is important to set the stop loss level correctly. Instead of being emotional, be rational and keep your ego aside when you are in the market. Unlike traditional financial market movements, the crypto market movement is not particularly stable but highly volatile. This makes crypto trades riskier than conventional stock market trades. Your investment value can corrode enormously in a matter of few hours if you do not create a set target/stop loss level and adhere to it religiously.

Stop worrying about fear of missing out
Instead of rushing to enter a trade instantly when you see a green signal and growth patterns, you should wait for a while. As Bitcoin and other altcoins sometimes rise crazily in a matter of minutes, the green gains can tempt you to start trading right away. Instead of suffering from the fear of missing out, you should not carelessly enter a cycle that you do not understand. Sometimes, the market can rise without any visible reason, making you regret the decision of not starting a trade. But the opposite can also be true. When the trade volumes are high and everyone is buying, a large investor can shed his load and can make that profits vanish away in a matter of seconds, making you regret entering the rally.

Value of an altcoin is relative to Bitcoin value
You must know that bitcoin is a very volatile currency and value of other altcoins depends on its value. So, while entering a trade in altcoins, keep the value of bitcoin in mind, always.

Bitcoin Rise  -  Altcoin Fall
Bitcoin Fall    -   Altcoin Fall
Bitcoin Stable - Altcoin Rise

In case bitcoin prices are moving sharply in one direction, keep your trade targets tight or completely avoid trading in altcoins for the time being.

Manage risks by diversifying your portfolio
It is important to manage risk and avoid putting all your eggs in one basket. In order to be a profitable crypto trade, you need to stop being emotionally attached to a single coin and instead diversify your portfolio among major cryptocurrencies. Also, avoid looking for peaks and grab small profits at regular intervals to stay away from large-scale market dips. This will help you manage risk in an efficient way.

Don’t just throw away money in ICOs
ICOs might appear lucrative from a point of investor, but if you want to be a profitable trader, avoid the temptation of investing in every ICO you come across. They might promise cheap coins and an instant profit on hitting the exchange, but there can be some serious ramifications, if a solid team does not back an ICO. Generally, an ICO succeeds if the project is trying to solve a problem that others have not thought about. At the same time, the team behind ICO must be technically sound and knowledgeable. You can check the same at cryptocurrency forums where the ICO team is active. If the whole crypto community at large is enthusiastic about a particular ICO, you can consider investing prudently, instead of throwing a large sum.

Being a disciplined trader requires a commitment to be active at most of the times. If you are looking at the long-term prospects and have entered trading, then it is better to listen to a word or two of caution to avoid silly mistakes. In order to get the best out of a trading platform, you must start trading wisely and regularize your trades while keeping in mind the above tips. The market will surely reward you for wise moves and you will not regret investing in cryptocurrencies.

Keep trading and building a portfolio to achieve your financial goals. All the best 

[jayson1993]

Good  tips sir thank you

[owmivmen]

thanks for the information. I want to learn to read the movement in trading where I can get the information?

[ALEXJAMES_1]

How To Protect Your Crypto Holdings With A Private Wallet:

With Bitcoin, Litecoin, and other cryptocurrencies hogging the headlines almost every day, crypto security has never been more important. At this rate, it is extremely vital for cryptocurrency investors (many of them testing the waters for the first time), merchants and users to learn and protect their holdings with a private wallet.

Unfortunately, many seem to be unaware of the concept, since most exchanges tend to hold your coins for you, instead of giving you complete access. Let’s understand a private wallet better first.
What is a private cryptocurrency wallet?
A private wallet is one that you get to control your funds, unlike the wallets of exchanges where you transact. A private wallet works like any other cryptocurrency wallet — it is used to store, send and accept cryptocurrencies.
Fundamentally, every cryptocurrency wallet contains (and lets you access) a public and private keys, which are used to send and receive your coins.
What’s a public key, you ask?
A public key can be thought of as an equivalent to your bank account number. A public key is the address by which others can transfer funds to your wallet. It’s also the address by which others can see the source of the funds they receive. It’s perfectly safe to share your public key with others — as it’s essential to complete a transaction.

(Source: 99bitcoins.com)
On the other hand, a private key is different. Think of it like your banking PIN. It is used along with the public key to create a permanent unique message signature when executing transactions. The private key must be kept secret; otherwise, anyone can access the money in your wallet. These public and private keys are mathematically linked when creating identities, signing messages, and validating signatures. Losing the private key can lead to loss of funds, access to unauthorized hacking and many other mishaps.
Ever noticed how you don’t need to enter a private key when transacting on exchanges? It’s because they hold the private key to these wallets, not you. The wallet belongs to them, and so do the funds in it.
Exchange wallets are of two types: hot wallets and cold wallets. Think of hot storage as carrying money in your wallet everyday, whereas cold storage refers to your savings in your bank account. Hot wallets are therefore faster and easier for exchanges to access — like taking out notes from your wallet. Cold storage would involve additional steps before moving your funds.
Exchanges keep a certain portion of their (i.e their users’) coins in hot storage for quick transfers and withdrawals. These wallets are connected to the internet and can be used to move funds quickly. On the other hand, a cold storage is meant for long term holdings. They are the most secure forms of crypto storage and include wallets like hardware wallets and paper wallets.
The Importance of private wallets
With all the hype building up around cryptocurrencies, there’s real danger building up around illegal hacking and thievery on wallets. Many exchanges across the globe have been victims to stolen funds — some as high as $400 million only recently.
Why does this happen? Because you’re never truly owning your coins when you leave them at the exchange. The security here is only as strong as the exchange’s best practice.
Let’s understand this with an example. Say you move 1 BTC to an exchange, to sell it and buy another cryptocurrency of your choice — such as Monero, or Ripple. Once you’ve completed the trade — your coins rely on the exchange’s wallet. If this exchange were to be hacked or shut down, you’d lose your coins with it. There’s no recourse in such scenarios.
It is therefore extremely important to ensure that your money is safe, secure and avoids falling into the wrong hands — and an exchange — where you do not have access to your private key — isn’t the best place.

Opting for offline methods of storage (cold storage: hardware wallets, paper wallets etc.) can serve to be more useful when it comes to cryptocurrency safety. You can get a hold of a private wallet depending on the cryptocurrency you hold. For many — a hardware wallet like Trezor or Ledger is ideal, as it can hold a large number of cryptocurrencies in one unit. For software wallets — it is best to locate them from their official websites — such as Bitcoin’s or Ethereum’s. Here are a few reasons why you must own a private wallets for your cryptocurrencies:
Only you have the control over the private keys.
They provide you access to your money, anytime and anywhere.
Cold storage wallets prevent illegal hacks into your currencies.
They are user-friendly and even portable.
Introducing CoinSwitch
While cryptocurrency exchanges offer users the option to move coins to their own wallets, security is best achieved when it isn’t optional. This is where CoinSwitch comes in. CoinSwitch mandates that all transactions users perform on its platform involve a their own wallet address. This ensures that your coins are in your wallet at the end of every transaction. It’s mandatory security with no workaround to it.
Additionally, with the increasing number of cryptocurrencies hitting the markets, many are understandably interested in coins that may not be traded directly on their preferred exchanges. There is then a need for a tool like CoinSwitch, which allows users to trade multiple cryptocurrencies for another in a reliable way.
CoinSwitch is an aggregator for cryptocurrency exchanges. It aggregates and lists more than 250 cryptocurrencies trading across the best exchanges. Of course, this includes Bitcoin, Litecoin, Ethereum, Bitcoin Cash and more. And it solves multiple user problems at once:
Security: At CoinSwitch, you can complete your trade by sending coins from one wallet and receiving them back in your own wallet. At no point do you have to leave your coins on the exchange. Instead, you get to keep them in your own private wallet.
Rates: With access to multiple exchanges across the world — include major ones such as Shapeshift and Changelly, Cryptopia, Bittrex you’re guaranteed the best rates at any given point of time. Forget having to check multiple exchanges to get the best deal.
The best part is that your funds do not suffer any kind of custodial risks because you don’t need to keep the coins at the exchange.
These trades can be done in easy, simple steps. All you will have to do is:
Enter your wallet address
Enter the exact amount of cryptocurrency to convert
Select the exchange type
Convert
Track your conversion
Here is the step by step guide to exchange coins from CoinSwitch: https://blog[dot]coinswitch [dot] co/coin switch-exchange-tutorial-274acaca10a9
You’re not only converting your cryptocurrencies easily, but also moving them into your own wallet — even those that aren’t available on your exchanges.
Protect your coins with the right wallets and avoid situations of money losses and its misfortunes.