How to Rightly Trade in Bitcoin or Altcoins
The advent of Bitcoin is a breakthrough in the world of currency. It is a digital currency (called cryptocurrency) that is precisely similar to the real money Fiat currencies). Though the structure and working of this latest form of money are quite different from real money, yet it can function more or less in the same manner as real money. Currently, people are not taking cryptocurrency seriously, but it could bring a drastic change in the world when it gets it worldwide acceptance. The primary element of cryptocurrency is its high potential for a broad spectrum of applications.
Important information for crypto-traders
Cryptocurrency inhabits in the virtual world, but it’s designed for the performance in the real world. So far, a lot of controversies have existed about the role of cryptocurrencies in worldwide activities. Over five thousand crypto coins (altcoins) have made their entry into this world after Bitcoin. Still, very few of them have been able to maintain their impressive status among cryptocurrency enthusiasts. Here is the list of top ten crypto coins by market capitalization.
- Bitcoin (BTC) $128bn
- Ethereum (ETH) $19.4bn
- XRP (XRP) $8.22bn
- Tether (USDT) $6.4bn
- Bitcoin Cash (BCH) $4.1bn
- Bitcoin SV (BSV) $3.4bn
- Litecoin (LTC) $2.6bn
- EOS (EOS) $2.4bn
- Binance Coin (BNB) $2.4bn
- Tezos (XTZ) $1.5bn
Bitcoin remained on the top among all leading crypto coins without a change in its rank in the decade of its existence. The ups and downs in the crypto price are a natural phenomenon, but Bitcoin has ever remained the first preference of the investors. One cannot predict the future trends in crypto trade, but one can trust on Bitcoin from the investment perspective. The primary objective of this discussion is to provide useful information to new crypto enthusiasts about the right way to invest in the cryptocurrency through profitable crypto trade. You can visit websites like big monsh rush can obtain more information on this topic.
Types of short-term crypto trading
Bitcoin trading is neither too simple nor complicated. It can be done using the following methods:
Day trading: This method is suitable to derive profits from short-term priced movements. In this method of trading, traders conduct multiple trades throughout the entire day. They spend a lot of time, from the beginning of the day until close, sticking to their computer screens, watching the market movements, and taking their actions. They usually close all of their trades by the end of each day.
Scalping: Scalping is suitable for traders focusing on extremely short-term trading. Scalping is based on the notion that focuses on small profits limit risks. Scalpers can make dozens, or even hundreds of trades, in one day. Scalping is extremely useful for traders who don’t want to take high risks in short-term trading.
Swing trading: Traders who can’t monitor their computer screen constantly throughout the day use this method of trading. They see a big picture but by limiting their efforts. They try to spot the beginning of a specific price movement, enter the trade then. A swing trader usually opens a trading position and holds it open for weeks or even month until desired results are obtained. He tries to take advantage of the natural swing of the price cycles.
How to make predictions
Short-term crypto or Bitcoin traders must watch the price movements in the market regularly. They are supposed to analyze the situation for the right predictions. Though many automated trading platforms provide analysis assistance, yet it is desired of a trader to apply his own mind in comparing the analytical results of the trading platforms. There are two types of analysis – Fundamental and Technical.
- Fundamental analysis evaluates Bitcoin’s industry, news about the currency, technical developments of Bitcoin (such as the lightning network), regulations around the world, and any other news or issues that can affect the success of Bitcoin.
- Technical analysis tries to predict the price by studying market statistics, such as past price movements and trading volumes. The core assumption behind technical analysis is this: regardless of what’s currently happening in the world.
Wrap up
A crypto or Bitcoin trader can achieve success by selecting the right method of trading, and by making nearly correct predictions using the trading platform and analysis methods.
