Cryptocurrency trading may sound intimidating but it’s really simple. However, unlike other traditional assets, cryptocurrencies in diesem Artikel are highly volatile and therefore risky investments. So, you have to learn to manage your risks and spread it effectively.
Diversifying your investment portfolio with cryptocurrencies make it an exciting venture. This is how you generally take your trading adventure to another level. You have to start small yet play it by ear. So, if you are still new at crypto trading then you have to scale it on safe mode until you’re more confident with your maneuvers.
Keep an Eye on Your Investments
You have to keep your eye on your assets. If you plan to day trade or buy, sell, and trade the same day then you need to take a careful watch of your investments. It would really depend on the kind of investor you are – whether you are an active trader or a hodler.
Hodlers are people who buy and hold on to their cryptocurrencies no matter how the price fluctuates. They don’t panic and sell when the prices go down. They believe in the long-term gains that their assets have in store for them so they hodl for as long as they can.
You can track your investments with portfolio apps or use something more advanced, like the API portfolio tracker. With these apps, you get to keep track of your trading activities while also making real-time updates of your hodlings. Some of the popular tools that you can use for tracking your investments are the following:
If you are an investor, the recommended apps would be Cryptocompare and Blockfolio because it keeps you up-to-date with the market movements of your coins as well as the real-time performance of your assets.
For traders, you can easily connect to your chosen exchange account with trackers tools that use API. Recommeded trackers would be Coinstats, Delta, and Cointracking. You get to control permissions in the API and also monitor your balances while controlling other activities such as withdrawals and trades; among ohers. You also have the freedom to connect other exchange accounts if necessary. It’s very automated and user-friendly so it fits busy day traders who are also engaged in other businesses or activities.
When is the Right Time to Buy and Sell Cryptocurrencies?
There are different trading strategies that you can try and decide which one works like a gem. You can take cue on signals or look at the charts to see if it’s the right time to buy or sell. You can’t just rely on other traders but have to check the demand signals by yourself.
There are key trading indicators that would tell you how you should interpret candlesticks and charts.
When you check the price charts, you would see an area where you can verify that the price level or buying pressure is robust enough to overcome the current selling pressure which could trigger either an increase in price or price stability.
Support could really pull the prices up, but knowing how volatile cryptocurrencies are, breaking down that support is common and could indicate a downtrend.
This is quite the opposite of what Support is. With resistance, the selling pressure is much stronger compared to the buying pressure which causes a price drop. So, when this happens, it could stall or slow down the movement or prevent any upward strokes. However, if there is a much greater movement that will break through the resistance, then that could be a good sign for traders. You will know when is the time to enter and exit trades using these indicators.
Support and Resistance levels are very important in know changes in market sentiment which affects price momentum so you would know if your coins are either leading or lagging and what strategy button you need to push to pull it all to your advantage.