These days, no one’s satisfied with just holding a cryptocurrency. Most experienced people in crypto will tell you that trading is where the money’s at. But, one of the most important decisions you will make is selecting which cryptocurrency to trade. Below, we have some pointers to help you out:
1. Look Beyond Just Bitcoin
When picking which cryptocurrency to trade, you’re free to cast a wide net. There are a lot more top performing coins apart from Bitcoin. While it is the most popular and valuable cryptocurrency, it isn’t the only option that you can trade with and make money.
Also, since Bitcoin’s value has grown so much, it is rare to see days where its price will change substantially and give you huge gains. So, unless you’re the type of trader who plays the long game and is making bets for weeks, Bitcoin might not be so profitable. Some other currencies that have been profitable in the past include ETH, BNB, Polkadot, Cardano, and even XRP.
2. Determine Your Risk Level
There’s always a risk in any type of money transaction. But the good thing is that this risk varies and you can find a crypto trading strategy that works well for you. If you’re not fine with too much risk, you can trade big coins like Bitcoin and Ethereum whose prices are relatively more stable.
If you have a bigger appetite for risk, then you can check even more coin options to see which are available and trade those. Remember to do whatever you need to protect yourself. It’s better not to make profit than to lose your capital.
3. Do Your Research
Nothing gives you more confidence when trading than knowing what you’re doing. Before you pick which cryptocurrency to trade, you need to do some homework.
When researching, check out the coin’s price movements. You can do that on resources like CoinMarketCap or TradingView.
Apart from checking its price, you should also check:
- What people are saying about the coin on Twitter, Reddit, Telegram groups, and more. If everyone is bashing a coin, it’s probably a no-go area.
- The latest news about the coin.
4. Look Out for New Coin Listings
Another interesting trick is to watch out for coin listings. Companies can offer tokens for different reasons, and you have the opportunity to buy them. The idea is to invest in these tokens at an early stage and profit from their price gains.
Here are some of the things to consider before investing in a new token:
- The company’s reputation
- The goal and potential of the coin
- The roadmap: Other updates the company plans to release.
- General information about the coin, including how the company plans to maintain its price. You can find this information in the coin’s whitepaper, which is usually on the website’s homepage.
Generally, company tokens are a great opportunity for you to get in on something potentially big in its early stages. You just need to do some research to ensure that you’re investing in something solid.
5. Remember to Stay Vigilant
Even after doing your homework and selecting which cryptocurrency to trade, you’re not done. You need to be as watchful as possible. Check out news regularly so you can stay on top of updates concerning the coins you invested in. You will also need to continue conducting the same research you were doing before you made your investment.
Choosing the right cryptocurrency to invest in will earn you a whole lot. Just remember to stay woke ?.
