Cryptocurrency Trading Hacks: For Newbies & Pros Alike
Cryptocurrency is the bipolar of the trading world. The volatility is insane; you’ll see major swings from 12% to 300% in a single day! With movement like this, it can be hard for anyone, let alone a newcomer to the cryptocurrency exchange, to make heads or tails of the market. Good news is there are a lot of people doing research on this exact topic (like us!) who can help you figure out the best way to turn a profit when cryptocurrency trading.
So, if you’re in the mood to make some money but can’t make sense of all the cryptomarket lingo, check out some of these cryptocurrency trading hacks (spoiler, there are hacks for novices and experienced traders, so skip the first few if this isn’t your first rodeo).
Cryptocurrency Trading Hack #1: Start at the beginning
If you’re a newbie to the world of cryptocurrency trading, then the first and most important hack you can hear about is to learn! Jumping in without knowing what you’re talking about is a guaranteed recipe for disaster. So, before you put your money where your mouth is, get educated. Understand the market, terms, and trends. Know what terms like falls, rises, volatility, and swing trading mean. Understand what blockchain is and how it helps. Learn the different trading strategies and when to use which.
Dylan from Six-Figure Marketers Club put out one of the best beginner’s cryptocurrency trading strategy videos. It starts at the beginning and proceeds to walk you through all the basics you’ll need to start trading bitcoin. The best part of this video (and all his videos, really) is that he speaks English clearly! You’d be surprised how difficult it is to find a good cryptocurrency video tutorial by a native English-speaker, so Dylan’s stuff is really golden.
What’s more, Dylan explains everything clearly, so you will really walk away from this video understanding the ABC’s of cryptocurrency trading. As they say, knowledge is power!
Cryptocurrency Trading Hack #2: Only invest what you can afford to lose
Ok, this one doesn’t seem like a pro tip, but if you’ve ever lost money in any investment platform, you know that sticking to this rule is key. Picture this: You invest a large sum of money, probably more than you can really afford, but it’s ok because your broker ensures you that this is a solid bet. Lo and behold, the market swings the other way, and you lose everything you’ve invested.
You’re devastated, heartbroken, and what’s more, you’re broke. Now, what do you do? The smart investor walks away, but that’s not everyone. Too many people get the itch. I’ve come this far, I’ve invested so much. I can’t turn back now. So, they invest more and more and keep sinking in deeper and deeper.
This is a dangerous game you don’t ever want to play, so make sure you don’t even start your game strategy this way. Set a certain amount of money you’re willing to invest, and make sure that is only money you can responsibly afford to lose. This way, if you lose it all, you’ll still be able to pay your bills, make rent, and take care of your regular obligations without feeling any pressure. If you make a profit, that’s great! Go ahead and invest some of that too.
Cryptocurrency Trading Hack #3: Use the right software/tool/trading platform
Up there with knowing what you’re doing is knowing which platform to do it on. The right platform will give you the best advantages when trading cryptocurrencies. You’d be amazed at what a difference a convenient and smooth mobile app makes. Other features to look out for when scouting platforms include what type of security the exchange offers, the exchange, trade, and deposit-withdrawal fees charged.
Cryptocurrency Trading Hack #4: Using the MACD Indicator for buy and sell signs
I think this is one of the best beginner’s strategies. MACD aka moving average convergence divergence scale is an indicator that follows the momentum of an asset based on the movement of two averages of the security’s price. It sounds much more complicated than it really is (and if you’ve never used it before, let B from Your Altcoins show you exactly how it’s done), but once you play around with it, you’ll see just how simple it is.
Basically, following the MACD indicator will show you when is the best time to sell your investments (it can also show you when is a good time to enter or not enter into an investment). There are different settings like you can micromanage down to every five minutes or let it go for days, so play around with it to see which ones you like best and which are most successful for you. Toggle the different timeframes, how often it displays, etc. until you find the groove that works for you.
Regardless of which settings you use, the MACD indicator will show you two lines, one showing rise and one showing fall. If you follow these two trends, you’ll be able to see clearly when to sell to make the most profit. Try it out, you’ll be amazed at how easy this one is.
Cryptocurrency Trading Hack #5: Use Momentum
Momentum is a pretty simple concept: if things start going up, they keep going up. And when things start going down, they continue in that direction too. In general, the strategy works using this logic. Momentum says to buy a week after a currency experiences an upward trend (20% or more), and then sell a week or so later.
Of course, this isn’t always the case (see the next few hacks for a solution to this strategy loophole), there are plenty of times that assets will keep climbing and you’ll kick yourself for having sold, but at least you’ll make some profit off of the currency using this strategy. Plus, you’ll be really happy if the asset drops suddenly since you won’t have lost everything in one fell swoop.
I thought this was a great video for clarifying momentum. It’s only 15 minutes, but it explains the strategy pretty clearly. What’s more, this video is solidly backed by real research done by Yale University studies and findings. So, the information is really something you can take to the bank.
