You’ve just heard about bitcoin and the altcoin ecosystem and want to make some profits yourself. But you’re new to this market and don’t know how to start.
Questions such as — Is bitcoin really profitable? Is it too late to start investing? Is the market condition favourable? and How to manage my risks? Where can I find the research reports to get information about cryptocurrency projects? — are bothering you.
Fret not! TradeDOG understands the concerns of new investors and helps them make profitable investment decisions in the cryptocurrency trading markets.
We can not say this loudly enough that it is very important to keep a sound understanding of the crypto markets as they are susceptible to constant changes both high and low. Don’t fall prey to the FOMO and put your money at risk just because you read some news on social media or from your friend regarding a profitable coin. Sentiments such as markets are extremely bullish or a certain coin will spike in value this year and are floating around in the market. But the truth is that markets are full of such fears, uncertainties, and doubts. So how can you amplify your investment skills, avoid misconceptions and reinforce confidence? Let’s find out.
Rule 1
Keep bitcoins as your primary cryptocurrency
Bitcoin has a current market dominance of 64% and can be used to buy almost any other altcoin in the market. Bitcoin is easily available in pairs and can be traded likewise while other altcoins only have certain pairs.
Rule 2
HODL HODL HODL!
If you see price fluctuations do not panic, buy the dip and HODL. Crypto markets are highly influenced by prices that are going up and down constantly, you just need to hold your cool and HODL. Panic decisions are always regretted later.
Rule 3
Choose potential coins as primary investments
To capitalize on safe investments, it is of utmost importance to identify credible projects and steer clear of scams. There are more than 1600 coins on multiple exchanges and many of them do not even hold any value. But there are a few projects which have a potential idea and team behind it working for its growth. Read research reports by TradeDOG analysts to know about the project. Talk to expert advisors before investing.
Rule 4
Be wary of ‘Shitcoins’
‘Shitcoins’ aka the coins which don’t usually contribute anything to the markets and are quite abundantly found throughout the crypto ecosystem. They don’t have any credible roadmap and don’t bring innovation to the ecosystem. These coins thus cannot sustain themselves for long and go in the dead coins list.
Rule 5
Don’t Panic
If you see sudden price movements in altcoins do not panic at all, keep your cool and take decisions based on stats not your current feelings. Investing in volatile crypto markets requires extreme mental discipline and if you learn to control emotions you will become invincible to the volatility, fear and doubts.
Rule 6
Be attentive, alert and research!
Perform extensive due diligence of the team behinds each coin you are planning to invest in, and check their roadmap as well. Coins that have a great governance structure are likely to perform well and give a sound ROI overtime to their investors.
Rule 7
Do not Fear
Do not go head over heels while investing in an asset that you’ve mapped was going 100x or 200x in a short span of time. This could be caused by dishonest hype and could eat away your entire investment as a shady strategy. You shouldn’t fear missing out on the opportunity. It is a shady tactic to pump the price of coins nothing more. Invest not more than you can afford to lose.
Rule 8
Don’t average down
Do not buy more coins if its price is declining fast. This only applies if you’re investing for the long term, not to trading. If you average down on your investment, the dropping prices will invalidate your trade and affect your stop loss. With stop-loss, beginners can take the benefit of specifying a certain price at which they would want to sell or buy their assets. It is executed automatically and helps mitigate losses and risks.
Rule 9
Risk Management
Risk management is perhaps the most essential skill when trading in volatile markets. Planning how much to risk on a trade and properly balancing your portfolio is more important than the entries and exits itself. You should care more about position sizing, stop-loss and risk-reward ratio to begin safe crypto trading.
Rule 10
Don’t enter a position you can’t exit
Position sizing is how many coins or tokens traders want to buy. Many traders buy as much as their account allows them to, in other instances they can buy large positions if they are confident and smaller positions if they are sceptical. This is however not a good way of determining ideal position size. You should follow a conservative strategy while setting a position. Take the help of financial advisors to know what capital you should invest.
Charts speak out loud
There are many important Overlays and Indicators that can be used to judge market movements. These indicators are in the form of charts and can help you build a deep understanding of the trends at a given moment. Seasoned traders can speculate on future events by reading these charts and their predictions are accurate most of the time.
Some of the most important and major indicators are:
MACD: Moving Average Convergence Divergence (MACD) is a trend momentum indicator that depicts the relationship between two moving averages of a security’s price
RSI: The RSI or the Relative Strength Index is a momentum indicator that measures recent price changes to evaluate and understand if the current market has been oversold or overbought.
Stochastic RSI: The Stochastic RSI oscillator is a technical indicator that is used to identify if the market has been overbought or oversold. It works similarly to the RSI. Being an oscillator it fluctuates above and below a center point and helps define the current market.
Bollinger Bands
Bollinger bands are basically technical indicators that are used by traders to identify market opportunities, measure volatility and look for potential entry and exit points.
Don’t worry if you don’t understand the technical parameters, TradeDOG’s advisors will not only give you the best analysis but also help you in understanding these parameters if you wish to.
Conclusion
Now that we’ve learned about ten major factors to abide by, we will now walk you through the next steps such as buying your first cryptocurrency, exchanges to choose, wallets to store your coins and more. TradeDOG will always guide you with the most effective strategies to make sound profits in all market conditions. Keep following our telegram and medium for risk-free crypto trading.
