Have you finally made the jump to the cryptocurrency market? After all the news surrounding Bitcoin and digital assets, you may have decided that it is time to start your own cryptocurrency trading venture. As a beginner, however, it proves difficult to learn the market and the daily price fluctuations not seen in other investment channels. Even if you have experience in the stock market or the for an exchange market, you still need to start with the basics if you want to earn money on cryptocurrencies. These strategies should help you get started.
1) Use predictive analysis
By now, you should already know that the cryptocurrency market is volatile in nature. It is not uncommon to see the price of a coin increase twofold in a matter of a few hours. Similarly, the price can get cut in half seemingly in a blink of an eye. The prices of digital assets are significantly influenced by the news hitting the public. Even so, you should learn how to use predictive analysis, so you can make informed trading decisions backed up by real data.
Predictive analysis is the process of procuring data and analyzing it as you look for the right time to buy or sell your digital coins. There are plenty of advanced tools that allow you to do everything yourself. But if you don’t know what you’re doing, you might end up damaging your financial health. It’s recommended to start with a cryptocurrency trading platform such as QProfit System that relies on big data and predictive analysis. Through this, you will have a better chance of making money on every trade you make.
2) Research about ICOs
In 2017, ICOs were the center of attention for most cryptocurrency investors. It stands for initial coin offering. During an ICO, a cryptocurrency project aims to amass capital by offering their coins to investors at an attractive starting price. Many investors jumped on this opportunity, especially if the coin shows a huge potential in disrupting its industry.
Clearly, there’s a good chance of making a lot of money by investing in ICOs. But not all ICOs are created equal. Some projects take advantage of this opportunity to get people to invest in their coin and then run away with the money. This is precisely the reason why governments in different countries have regulated ICOs. Before investing, be sure to do your research and try to learn as much about the coin as well as its developers.
3) Store your coins for the long-term
Early investors of Bitcoin have already enjoyed massive gains on their investment. Even if the current price is already in the several thousands of dollars, it’s never too late to start holding for the long term. Of course, this requires a good amount of research. Pick what coins you trust the most and show the biggest growth potential in the future. And despite the price fluctuations, resist the temptation of selling quickly and think about how much more you can make if you keep your coins stored in a safe digital wallet for at least a year.
