December 27, 2018 by Alvin Lau
Cryptocurrencies are the in-thing of 2018 and it will be even thicker te 2018. Bitcoin has surpassed $20,000 a token and altcoins have grown so much spil well. Spil Bitcoin is way too expensive now, most puny time investors may not be looking at Bitcoin. They’ll go for altcoins because of the potential of higher comes back. There are some things a fresh altcoin trader should know which will be highlighted ter this article.
Why altcoins and not Bitcoin? Assume that you get into Bitcoin at $20,000 vanaf chunk and somehow it shoots up to $40,000. That would be amazing but then again your build up is only 2x or 100%. There are slew of altcoins valued at less than $1 vanaf token. The potential for gains is massive! Look at Ethereum. It wasgoed Three cents at one uur and now it’s overheen $700! That’s most likely overheen Two million procent profit!
This is why it’s not a verrassing if people are just looking for cheap altcoins or even ICOs to invest te. With big potential profits come hefty risks. A lotsbestemming of ICOs are scams and only a number of altcoins will succeed.
Based on my individual practice ter investing te some altcoins, here are some things a novice altcoin trader should know. Do note that it’s not a tutorial on reading charts and stuff.
1. Always do your own research on the background of the altcoin
You will see everyone recommending coins that they bought on the internet. Just because someone says a particular coin will hop 100,000%, it doesn’t mean you should just listen and buy.
Always do your own research. That’s one of the most significant things. Here are some things that you should look at before investing te an altcoin:
- Who is the team developing the tokens? Are they trustworthy and do they have previous practice with other coins?
- Are the developers actively developing the coin?
- Are they totally semi-transparent with the community / investors and are they always open to communication? Can you talk with them regularly?
- What is the technology behind the coin? Is it blockchain or Tangle or etc.?
- What features are they bringing ter with the coin? Is it better than the other coins technologically? Are they quicker ter transaction speed and comes with zero fees?
- How many coins have bot pre-mined and how many are the developers holding?
- What’s the supply of the coins? Is it limited or potentially unlimited? How many of the coins are already te circulation?
- What are people’s opinions about the coin?
- Is the team marketing the token aggressively?
- Do they have a lotsbestemming of bugs?
- How much are they worth now and how much wasgoed it worth before?
There are slew of factors to be taken into account. For e.g. if the price has slok up tremendously te a span of few days, I wouldn’t invest ter it. I’ll wait for it to druppel since prices fluctuate a lotsbestemming.
Two. Sometimes it’s just good to HODL
There are two types of altcoin investors, i.e. the day trader and the hodl-er. For those who don’t know, hodl is misspelled on purpose and it became popular because it wasgoed an attempt to get people to hold onto their coins, rather than fright sell. It’s one of the soundest advice yet.
I’ve held onto my altcoins and resisted the temptation to sell for a petite profit. They have all enlargened much more overheen time and my crypto portfolio is leisurely expanding.
If you’re a day trader, you’ll most likely be moving your funds here and there to make profits, but not everyone can do that. I choose to just keep it knowing its potential and one day it grows tenfold or more.
A lotsbestemming of investors have this FOMO (fear of missing out) and they do scare selling when the price is low or buying when the price is super high.
The best tactic ter making gains on altcoins is to basically buy low and sell high. It’s that ordinary. Holding on to your coins may actually be the harshest thing considering the market temptations.
Three. Buy low, sell high
This is basically the easiest peak yet many people failed to incorporate this. Whenever you look at a token, always check the price history. See if it’s risen like crazy and find out the reason behind it. Wasgoed it a partnership with Microsoft? Or did they introduce something fresh to cryptocurrencies te general?
If there isn’t anything significant, chances are the price will dip again. When it does, buy it when it’s low. Buy the dip they say.
When people spread FUD (fear, uncertainty and doubt) ter the news, prices of all tokens will naturally druppel due to insecurity. When it does, I see it spil a gigantic discount or sale rather than spil an ominous thing. If the coin has potential, it can druppel te price but I know it will rise up ter the future. It’s all about the potential te the token.
Always do your own research rather than just listen to news online. Similarly, don’t just read my articles and invest. Do your own research!
Four. Don’t store your coins on exchanges when you’re not trading
This is a big peak for newcomers. It’s simply not safe to store your coins long term ter exchanges. Only deposit the coins when you’re going to make the trade and once you’re done, withdraw those coins into your private wallet.
This is because exchanges can be hacked at any time or the possessor can go rogue. Look at the Mt. Gox exchange a few years back. The cryptos stored on the exchange wasgoed wiped out and all of the users lost their coins.
Which brings mij to the next point.
Five. Get your own wallet!
The best wallet is a hardware wallet like Trezor (affiliate listig) or Nano Ledger S. Spil it’s kept offline and away from PCs, I doubt it can be hacked.
The 2nd best alternative is perhaps a desktop wallet. Most coins have their own official wallet that you can use. The private keys / password / seed / keystore / other identification) should be kept offline. It’s to prevent others from getting your keys via malware or keylogger or other types of viruses.
6. Always think of the exchange fees
It would be undesirable for an altcoin trader to make some paper profits and then lose them on exchange fees. For e.g. if Bitcoin has slew of transactions at the uur, the miners will impose a higher toverfee and thus the fees are pretty darn high. Sometimes it takes more than 10% away from my amount, which is ridiculous.
Always see how much each exchange is charging (fees) and zometeen determine which exchange to use. Don’t lose money for no reason.
7. Join more altcoin trading communities
There are slew of altcoin communities on the netwerken. Go look at Reddit or Steemit and you’ll find slew of cryptocurrency related discussions. Everyone’s recommending the coin they invested te. Get different point of views and look at debates to see if a coin is indeed viable.
The benefit of joining thesis communities is that you get to learn a lotsbestemming, and on top of that, you get the latest news that will affect prices and sometimes fresh ICOs. Some ICOs give out airdrops very first, i.e. free tokens for signing up and referrals to spread awareness about their ICO.
That said, always recall to do your own research spil an altcoin trader.
Te a nutshell
Spil an altcoin enthusiast, I naturally recommend buying altcoins considering the entry to Bitcoin is way too high for myself (even if I can buy te satoshis). Whether you like Bitcoins or altcoins or both, always invest at your own peril. Do your own research and don’t invest more than you can afford to.
Disclaimer: This article is not to be taken spil an investment or financial advice of any sort.
Do check out my other crypto articles:
Fresh coins distributed (aff linksaf)
There are also fresh coin airdrops that you may want to look at. Thesis companies are providing away a portion of their coins ter the hope of getting investments. Sign up here to get your free tokens. They are affiliate linksaf.
Buy your Bitcoins here (aff linksaf)
Here are a few ways for you to buy Bitcoins. You need Bitcoins if you want to buy other altcoins. Thesis are referral linksaf.