People are always looking for a way to grow their wealth, which is by trading cryptocurrencies has become so popular these years. But in order to make significant profit in this ever-changing market, you need to develop an efficient strategy and base all your decisions on facts, rather than feelings.
One important aspect of being a good trader is always keeping yourself updated with the news and changes in the market. But how?
Read the news
First of all, make sure to always read reliable news regarding the crypto market. Don’t go out believing everything you read online. Before making any decision, you need to ensure that what you read is true. A good way to do so is to follow the number one rule for journalism: a piece of information is valid if you can back it up with at least three reliable sources.
Don’t just put your trust in those tips you found on an obscure forum. Do your research and make sure it is not just some information meant to throw you off. The market is volatile and pricing can be influenced by all sorts of factors.
Join forums and groups
The best way to learn about the recent news in the crypto field is to join forums and communities, such as https://de.thebitcoinscode.com. Those are places where traders discuss news, strategies and market changes. Be careful what information you follow from those forums, though, as you can’t always be sure a trader will genuinely share their strategy in good heart.
Look for reputable communities and forums, get in touch with fellow traders and always check sources. But, under no circumstances, should you make a decision solely based on what you read on forums. While some of them are true, others can be misleading, so always make sure you keep your mind clear and don’t act on impulse or greed.
Try to anticipate trends
Instead of just following trends, try to anticipate them, to stay on top of the market. This does, however, require you to have some experience and understand how various cryptocurrencies are evolving. Be familiar with the most common coins, such as Bitcoin, Ethereum and Litecoin, which have already been around for some time and are much easier to trade with. Also keep an eye on new or more volatile ones, such as Ethereum Classic and NEO. While those are more difficult to anticipate, if you do manage to, you can grow your investments quite considerably.
Always keep an eye on Bitcoin
While Bitcoin is not the only cryptocurrency available, it was the first and will always have leverage on the market. Altcoin prices rely quite a lot on bitcoin prices. For example, if bitcoin prices increase drastically, altcoin prices can go down, because traders are selling them to ride the bitcoin wave.
However, you should never invest in only one coin, as you need to have a diverse portfolio to ensure success. This way, if a coin drops all of a sudden, you will have other reliable opportunities in your portfolio.