Three Tips For When Trading Crypto
"Give a man a fish you feed him for a day, teach a man to fish..."
It recently dawned on me that, although I post a lot of content regarding speculation and predictions, I have never posted anything regarding how to speculate and make predictions.
Now, a lot of making predictions really just comes down to knowing the market and going with your gut to make a calculated risk. However, when trading crypto, there are three things that I have noticed generally hold true and can be a good way to nudge you in the right direction. So today I am going to share with you three generalities to help when you trade crypto.
What goes up must come down (and vice versa). "Ever heard of the dead cat bounce?"
I'm not saying Bitcoin will always return to the price it is at now, however, when a healthy market (and most often unhealthy as well) has a sudden turn up or down it will usually correct in the opposite direction a bit soon after.
Hype v Utility. "Man that Bitcoin clone is doing great, I should invest. Oh look, it crashed..."
Avoid anything that offers no benefit to it's users and is only backed by it's hype. Coins like that are often at the mercy of the market and have been known to disappear overnight from superficial reasons.
And yes, I know hype is a big portion of Bitcoin's market too, but I'm talking coins solely backed by hype.
Ride the wave/Avoid herd mentality. "If your friends were jumping off a bridge...?"
Finally, it's important to look past the short term and what everybody else is doing. People may be panic selling at a low value but remember that the coin is at a low value because everyone is panic selling. In all cases it is important to not panic sell and instead think it through, then in most cases it is beneficial to ride the wave and wait out your bad luck.
I hope you found this info useful, even if it is just basic tips.
As always though, trade responsibly, don't invest more then you can lose, and don't hold me responsible since I'm wrong sometimes too.
Posted from my blog with SteemPress : http://t4ch.top/three-tips-for-when-trading-crypto/