Jubilee Ace - Crypto trading strategy basics

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Jubilee Ace - Crypto trading strategy basics Investing in cryptocurrency is unlike investing in any other asset. It’s new, fresh and exciting. With the right trading strategy you stand a much better change of generating a return on your investment. First, to get started: Choose a reliable crypto exchange: A crypto exchange is where you will buy, sell and trade cryptocurrencies – Liquid offers all that and more. Choose a currency: Or even better, currencies. If you’re new to the market, you may want to invest in one of the better-known currencies with a high market cap, such as Bitcoin, Ethereum, Bitcoin Cash or XRP. Blockchain technology is new and evolving A factor that drives the volatility of the crypto market is the fact that the technology behind it – blockchain – is new and changing. As the value of the technology to industries outside of the cryptocurrency marketplace increases, so does the value of currency.

Getting started Only invest money you can afford to lose Currency values go up and down quickly. Blockchains and cryptocurrencies can be affected by hacks and bugs that decrease in value in unforeseen ways. The traditional stock market has swings, but if you hold your positions and make good decisions, it is rare to see major losses over time. But with cryptocurrency, the risk of losing money is much higher. Play it safe. Take profits at intervals If you watch the cryptocurrency market closely, you’ll see that values can increase and decrease at any time. If you’re doing short-term trading and see a large increase in value, you might want to see if the value will increase even more. But what goes up must come down. So by setting up a strategy where you’re taking profits at regular intervals, you increase your likelihood that you’ll see steady returns. Trading points Long-term trading When using a long-term trading strategy for investing in the stock market, a person can rely on the historical data to make a decision. That’s not always the case for cryptocurrency as there is only a limited amount of data available. Yet still, people who prefer to do long-term trading assess that data along with more recent and current activity in the market to forecast how a cryptocurrency might perform in the long-run. The strategy could prove particularly beneficial to investing in cryptocurrencies that have been around for a few years. Short-term trading Short-term trading takes the opposite approach to long-term trading. It aims to generate a return on an investment in a short period of time. Ideally, you invest, the price goes up, you sell for profit.

Technical analysis Technical Analysis is a method of analyzing a currency by researching factors related to values of similar assets in the past and current marketplace by historical volume and price data. Basically, it’s an approach built on the idea that the past will predict the future, so it uses past performances of an asset to predict how a stock will perform in the future. Fundamental analysis Fundamental analysis aims to identify the value of a currency based on fundamentals of the project. The challenge with applying fundamental analysis to cryptocurrencies is that cryptocurrencies are not corporations. They do not have public financial statements. Their viability depends on the strength of the community in the network. You can begin fundamental analysis by seeking our a projects whitepaper, which will outline goals and functionality. You can also look for content on the cryptocurrency’s blog or other community forums, like Reddit. Developing a strategy for investing in cryptocurrency does not guarantee success. You need to stay up-to-date on the changing market and any relevant news, implement your strategy on a regular basis, and be sure you make the best, most informed decisions possible.

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