Reasonable Bitcoin Price Predictions — You Decide – Hacker Noon

Understanding The Cryptocurrency Exchange Market

All disciplines have their set of unwritten rules and the variables allowed in their guidelines. The cryptocurrency exchange market also has its own set of unwritten rules that experienced traders follow to determine the trading patterns of specific cryptocurrencies listed on the exchange. Some traders have analytical minds that can efficiently study data and come up with a set of data that determines a pattern in trading variables of various coins listed on exchanges. Getting this analytical eye only requires a trader to follow specific steps in the analysis of a potential investable asset. Here are some of the steps traders need to develop.

Plan Your Trades

All journeys involve serious planning to avoid any mishaps along the way and to prepare for any unforeseen circumstance that may arise. Investment in cryptocurrency is also a journey, a long one in fact, especially if a trader would want good returns. “Buy low, sell high” should always be the key to your cryptocurrency investment plan.

Planning involves researching every cryptocurrency a trader plans on investing in. For new traders, they have to learn what they are doing. It starts with understanding what cryptocurrencies are and how they work. The roadmaps and possibility of the success of these projects should also be considered. For example, a firm such as Aelf, when reviewed, checks out most of the boxes that a new investor may have such as a potential future and a unique service to the market. Investors also have to know their purpose and target for trading in the cryptocurrency exchange. Investors should set their targets realistically after understanding how the cryptocurrency market works. The set goals would help define the volume an investor will be aiming to trade daily and the risks that are involved.

Contingency plans are also important. Investing blindly in anything is not advisable. Understanding that there are risks involved while investing, it is crucial that traders plan for any scenario that may arise.

In planning, the source of funds also has to be taken into account. The outcome of participating in cryptocurrency trading is never assured; when purchasing cryptocurrency, responsible financial judgment is advised. Purchase what is within your financial reach and only grow as you grow. This is essential for surviving in the crypto exchange industry.

Trade Responsibly

It is common to find many traders over-trading. This is how losses are easily made. Over trading results in loss of revenue through multiple transaction fees plus other charges that traders may have to part with. Experienced traders will advise that trading only after huge market movements is likely to be more profitable. However, these movements would require patience as some of the cryptocurrency markets build up at a slower rate compared to other stock options. It is more profitable to trade over big price movements than it is over small changes.

One way to ensure that your trading is responsible is by setting trading goals. Set price markers for the coin you have purchased; whenever the coin hits that market, sell a predetermined volume. This will help keep the discipline in trading.

Trade With No Regrets

Most traders usually enter the cryptocurrency exchange market with only one goal, to make profits out of the price movements. This isn’t bad; however, keeping an open mind is likely to lead to a more positive trading experience.

Markets cannot be controlled by our will. Other factors play against our will while trading. Being able to accept that you cannot control the value of a cryptocurrency or an altcoin will make it easier to handle whatever the market throws at you. For example, bitcoin had a tremendous high; then it started going down, it may have gone lower than what analysts had predicted, however, keeping an open mind that it is possible creates a mental cushion for traders. This helps in the overall trading mentality in the exchange market.

Trading with no regrets also means accepting that better deals are possible even after you make what may seem to be the best deals in the market.

Never Chase Hype

Chasing hype may lead you blindly to severe losses in the crypto exchange market. Experienced or smart traders would instead anticipate the hype that follows it. Traders need to analyze market trends to determine which coin is likely to be the next hype train and hop on before that moment arrives. Anticipating hype puts a trader at a better position of gaining from the hype that is to come. Joining the hype train too late may result in buying high and not selling at a considerable profit. This especially applies to new traders who, in most cases, purchase the most noticeable coin. These are usually excited at the time and are the easiest ways to lose money in the market.

Avoid Picking Tops

These are those coins that have already made substantial gains and are sitting comfortably at the top of exchanges. They may seem appealing in terms of where they have come from and possibly where they are heading to, however, for a new trader or any trader who wants to make significant profits, avoiding such coins would be best. Going for coins with the lower rating but with a promising growth would likely lead to more profits in a much shorter time. The coin at the bottom is likely to make gains that the coin at the top has already made.

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