Get To Know Blockchain And Cryptocurrency With Their Usefulness.Part 3

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Cryptocurrency trading is also known as bitcoin trading, as we all know this is trending a lot in the world now. Hardly you get to some countries now without some of their citizens being a bitcoin adopter. Some people obtain bitcoin just to hold for long periods of time. However, some trade theirs using different strategies, day trading, leverage trading and more. Frequently, trading can sometimes be confusing, and there are many things to look into when participating in the exchange environment.
So as not make it bore with lot stories, we will jump straight to the point.

Image from coinmarketcap.com.

That's how cryptocurrency trading chart looks like.

Let me break it down for you, as I already know some of us don't understand anything on this chart.

Credit to @cryptobash for the image.
Your cryptocurrency trading charts consist of collections of candlestick

What is candlestick?

According to Wiktionary;-

Candlestick is a style of financial chart used to describe price movement of a security, derivative or currency.

The chart is also used in forex trading and national fiat currencies. This style of charting is very popular but can also be confusing to understand. There are different way that look at the short and long-term outlooks differently. Candlesticks tell you the relation between the price of each trading session’s open, high, low, and closing positions. As the crypto trader and chart analyst can apply different trend lines and try to predict price movement but in the trading sphere, nothing is sure.

Now that we understand what a chart and candlesticks are, let's now move to learning about cryptocurrency's abbreviations.

As a cryptocurrency trader, it is very important you identify each cryptocurrency by looking at its abbreviation.

Bitcoin is popularly known as BTC, I hope we all know that?. It is a must to understand and know other cryptocurrencies too when we see their abbreviation.

There are over 1,400 cryptocurrencies currently on coinmarmarketcap.com and they are all declaring to be the best in the world.

Follow me as I share with you names and abbreviations of the top 50 cryptocurrencies based on Volume and market cap.

Top 50 Cryptocurrency And Their Abbreviations.

All those images you are seeing shows the top 50 cryptocurrencies and their abbreviation. I am sure we should be ready and motivated to start crypto-trading.

Tips: https://Coinmarketcap.com is the standard archive of cryptocurrencies in the cryptocurrency world, it consist all recognized cryptocurrencies, markets, abbreviation, price, coins media, volume etc

This site will also help you know between real cryptocurrencies and scam or MLM coins, Coins like TBC ,one-coin, Swisscoin are not listed on this site which simply means they are scam coins and shouldn't be invested in.

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Now that we have a little and brief understanding of cryptocurrency, we are moving closer to trading step by step.

Altcoins: The Penny Stocks of the 21st Century

In many ways, trading altcoins is similar to investing in pennystocks, and evaluation of this similar has been made many times in the past by other authors. But in other ways, they are very different.

Penny stock is a highly speculative stock selling for less than one dollar per share and quoted in cents. From Wiktionary

It can be annoying, frequently experiencing profits of more than 100% in a single day also all can disappear overnight.

Let us bring some important lessons that can be taken from penny-stock trading and applied to altcoins trading:

• Don’t put all of your eggs in one basket: One of those things you should learn from penny stocks is that you should spread your capital on different shares, this will reduce the chances that you will lose all your capital. Most new business will fail in their first few years, which means all fund shares price will go from cent to zero. Same happen in altcoin trading too, as if enough information wasn't gathered before putting money into it, one can lose it all at once meanwhile, it can also yield you 1000% profit within some view day but remember nothing is certain in crypto.

• Don’t believe in Fear, Uncertainty, Doubt (FUD) or hype: It is easier to manipulate smaller project. This is certainly true for cryptocurrency as well. Professional promoters hype a coin through any media means to make sure price goes up. Some developers will pay for advertisement just to increase in other to increase the value of their holdings, or they may wish to increase the value of their own holdings. In either case, this kind of artificial pump is for those behind it to increase there profit at the high price and at the end, the price will dump back down. This is what will call ‘Pump and Dump’ or just ‘P&D’. In a similar way, FUD can also be used to artificially drive down the price of coin so that people behind it can buy the coin when the price goes down, but doppelt true when doing research about altcoins for trading, you should always be careful of what you read, remember DYOR (do your own research) and should your way.

• Be Quick to Take Losses, Slow to Take Profits: One of the biggest mistakes that happen in penny stock is for a holder to be too quick to take profit while the price keeps going up and keep holding when the price is going down till it all dump on them. Same happen in cryptocurrency trading as well. In both sides, it is very common for the majority of all your picks lose money. After when a trader is in about 40%-100% or more he will be so happy. This may feel like a great profit, while fearing of losing it, you will want to lock it up and faoww!, the price keep going up and at the same time if you want to leave to grow more it might start coming down and finally lose alot again. Buh in pennystock and altcoin there is a lot of lose, it will be nice having even more 100% profits for one to have a very good out from the trade – Even more than 100% profit on a winning pick may not be as great as it might seem. Some traders are emotionally invested in what they buy, to the extend that they will find it difficult to stepout of trade even if they see the price going down. At the end they lose it all just because they couldn't see what they should bbe seeing, they believe so much.

One very difference between penny stocks and altcoins is that penny stock may take years before one realize what his profit is, while crytptocurrencies is very fast.
Penny stock traders may not even check or there might be no news from company for trader to reconsider his trade but in crypto trading one need to get involved if you ready to spend more time your trading devices i.e Phone, Pc, etc, to always check price, news and all trending about the coin you are holding.

Now, we're just going through the theoretical aspects of trading. We'll get more practical soon

Remember;

Always feel free to ask questions in the comment section.

Before we go into trading fully, let's try and understand what /who cryptocurrency trading platform are.

Next Topic :Cryptocurrency trading platform

Note;- Any information you get from this article is not advisable to use as an investment tip. Also, I stand to be corrected if there is any error or mistake in any of the tutorials.

Thanks for reading and be expecting the next part of this. Don't forget it will be coming part by part till it get to how to make some cash with crypto. Watch out for the next part.

You can click Here if you missed the part 1.

And Here for Part 2

Thanks and keep Steeming.