I have been buying and selling BTC and Cryptocurrency for approx 2 1/2 years and my main area of interest has been day trading. I only ever invest what I can afford to loose.
My advice when starting out would be to learn the basics. How to use your chosen exchange and keep your costs as low as possible. I started trading on HitBTC (sadly not currently available in the US) and now trade on Binance. HitBTC is a really fun platform and a great place to learn. So if you live outside the US then I would give them the thumbs up. The charts are good and community is strong.
Binance US is how I choose to trade today and I do not see any changes happening soon. Right now I am only day trading in BTC with a small long term investment in Litecoin. Bitcoin as I write this blog is trading about 30-40% below it’s high early this year. Just because it is lower does not mean it is a good investment as there are lots of outside forces at play.
My experience of trading in Cryptocurrencies has been very hit or miss. The prices are pretty much tied up with the change in Bitcoin. Investing in top tear cryptocurrencies is always best as the volume is enough for you to unload them even in a falling market. When I was trading them daily the rule of thumb was to stick to lower priced top tear cryptocurrencies and only invest after a sharp fall. Trying to catch close to the bottom, watching historical charts to see likely price action and investing wisely.
Did it work… well no! I managed to get as much as a 1% profit per trade though the average was closer to 0.6%. The best run I had was 16 wins in a row and at one point had doubled my money. My undoing was not knowing how to secure my profits and sitting too long on a falling price.
The temptation to invest too often is a fatal flaw. With such a volatile market it is much better to wait for clear opportunities. Reduce your risk and exposure. If you can see a 60+% chance then take it rather than wait for a 80+% chance. Also watch the big traders. If a currency has been dropping over a few days and broken several support lines then keep a keen eye and look for the moment the larger investors both sell and buy.
Auto Bots are part of any trading exchange. Never try to beat them as most are AI’s and adjust to your bidding behavior. There are so many factors that effect the prices for both buying and selling.
Try not to be distracted by your emotions or listen to too much social media. If the charts indicate the is a good chance then take it. Google trends can be a useful tool. If there seems to be various factors invest a smaller amount and adjust your purchases and selling points accordingly.
Investing long term makes a lot of sense but still has it’s risks.
If you have any questions then please do contact us.
Author: Ivan Golden
Owner/Founder of SubBTC.com
Disclaimer: Please be advised that Cryptocurrencies are a high risk investments! They may not be suitable for all members of the public and all types of investor. Before you make a purchase of any investment product it is best to do your own research. Please do not rely on others even if it is tempting. Bitcoin and cryptocurrency are not stable and prices can change rapidly. My advice is just that… Advice.