So far, the cryptocurrency market has been in a wild ride from the open of 2018 until today. As of press time, bitcoin is sideways trading at the $6,800 level. As we saw the bubble burst in January, market players have definitely revamped their trading tactics to suit the current market status.
Here are four tips if you want to get into crypto trading this 2018:
- The market outlook and security. It is important to understand the current market outlook. As of today, the market is still generally immature, and technologies are still being tested. We have seen several market attacks, data breaches, and exchange hacks in 2017 and 2018. In line with this, the main point is that because of the market outlook, security is still a huge issue. You should include in your trading strategy the proper storage of your assets. While investing in cryptocurrencies, invest also on cold storages and secure hardware. Here are the three some of the best bitcoin wallets available:
- Nano Ledger S
This Bitcoin wallet is best for people wanting the security of a hardware wallet, but is also on a budget. The Nano Ledger S costs less than $100 online. You can simply connect the device through USB ports to execute transactions. Regarding features, the Nano Ledger S has 2-Factor Authentication, compatibility to bitcoin, litecoin, and ethereum, iOS app compatibility, Androidapp compatibility, and online interface.
• Trezor Hardware Wallet
This Bitcoin wallet is best for people wanting the most robust security offered in the hardware wallet category. The price is much higher compared the Nano Ledger S, but the Trezor Hardware Wallet has more features. It has 2-Factor Authentication, compatibility to Bitcoin, Litecoin, and Ethereum, Android App compatibility, online interface, password manager, passphrase support, and has the highest security rating.
• Coinbase Digital Wallet
Coinbase is the largest cryptocurrency exchange with over $150 Billion worth of digital currency exchanged, 32 countries supported, and over 20 million customers served. Coinbase also offers an online free software wallet. It has the same features as the Nano Ledger S, and same level of security rating. With the flexibility to buy and sell other cryptocurrencies and make transactions more efficiently, the Coinbase Digital Wallet ranks third on this list.
- Nano Ledger S
- Blockchain developments and innovations. Be updated on the blockchain developments and innovations. Because bitcoin and ethereum sparked a new way for companies to raise capital, ICOs have recently helped boost the technology industry. You can also consider investing in ICOs as a trading strategy. However, be mindful that not all ICOs are legitimate. You have to do thorough research, background checks, and whitepaper reviews. Some ICOs are really promising, while some ICOs only look to scam you out of your money. Be very diligent and responsible in investing your hard earned money. If you do well, you can possibly double or triple your investment capital.
- Understanding market fluctuations. Because of the cryptomarket’s immaturity, it is still very sensitive to negative news. This negative news often causes FUDs (Fear, Uncertainty, and Doubt). Once the FUD sets in, the cryptomarket tumbles down. Understand that it is part of the market behavior. We have seen this many times in the past four months. You can also expect that even peddling fake news has effects on market fluctuation. This leads us to hypothesize that the cryptomarket is hugely driven by emotional investors. But then again, this market has not yet fully matured. If you want to get in this 2018, expect high levels of market fluctuations.
- Participation in the blockchain community. If you want to get on the trends and developments on the Blockchain, then start participating in the Blockchain community. Sign up for reddit forums. Follow the official twitter accounts of crypto exchanges, traders, influencers, and analysts. There are many communities of serious traders. You can find useful insights when you join them. Follow the news from reputable sources. However, always do your own research as there are also fake news peddlers and pump and dump groups. You do not want to be influenced by them if you are a serious trader. This 2018, there will be many groundbreaking events on the Blockchain developments. Just always be updated.
The cryptocurrency market and the Blockchain technology are major innovations that are still immature but are very promising. You should regularly be updated and educated if you want to be successful in this venture.
Disclaimer: BitChikka does not provide financial advice. The price action analysis is solely based on the writer’s personal research and interpretation. Trade wisely!