Top 10 Tips For New Cryptocurrency Investors

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  • 7. Make short term trading decisions based on news, as well as technical analysis

    If you do short term trading, do it when you have high certainty that a specific news will lead to an increase. Read in forums and communities about events like upcoming roadmap item releases, fork airdrops, exchange additions and partnerships. Combine this information with indicators to see if you’re getting in at a reasonable entry point. Good indicators are MACD (moving average convergence divergence), RSI (relative strength index), market depth and support-resistance lines.

    8. Diversify your portfolio

    There are many different coins you could own, but try to diversify by holding some core assets such as Bitcoin & Ethereum that are “safer”, some finance coins such as Ripple or Stellar, some tech coins like IOTA, privacy coins such as ZCash or Monero etc. By diversifying you reduce your risk of portfolio wipeout in the case your chosen asset dumps, as well as increasing your chances of landing that special coin that will significantly increase in value.

    9. Accept that it’s OK to miss out on a lot of great investments

    By taking your time to make your decisions you end up focusing on the fundamentals rather than short term movements.

    10. Use regulated platforms for short term trading

    There are easy to use platforms where you can trade a nice variety of cryptocurrencies and deposit using your credit card or Paypal. They are safe and regulated and even offer training accounts where you don’t have to risk any of your own money to learn the ropes.

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