An exception for opening a transaction maybe, if, for example, a strategy involves trading at a breakdown level. However, for beginners, it is best at first to follow a simple principle bought cheaper, sold more expensive. Even if you observe only this rule and adhere to the elementary principles of risk management, you can get a more or less stable profit. Experts say buy when blood is pouring in the streets. The solutions come perfectly now with Trustedbrokerz .
Many buy and sell, looking at the crowd and reading the troll box. A successful trader should not go after the crowd, but against it, selling an asset when the bulk of not very experienced players experience euphoria and continue to make purchases. It’s better to buy when the hamsters are just starting to feel excruciating annoyance. In other words, always buy from pessimists, and sell to optimists.
Choose liquid cryptocurrencies
Many investors recommend releasing a significant part of the crypto portfolio for bitcoin. This is not just a tribute to the first cryptocurrency there is certain logic here. First, bitcoin is the least volatile, steadily growing crypto asset.
In other words, the first cryptocurrency usually has a higher Sharpe ratio than most altcoins. Secondly, often many altcoins lose value over time especially in relation to bitcoin. To date, the assertion that Bitcoin has crazy volatility has already lost its former relevance. So, at the end of last year, the daily volatility of bitcoin for some time was comparable with the range of fluctuations in oil prices and was lower than that of Twitter stocks.
To finally verify the relatively low volatility of the bitcoin price, you can compare it with liquid altcoins, including Litecoin and Ethereum (ETH). In addition, according to Terry Duffy, the head of CME Group, the integration of cryptocurrencies with the traditional financial market will help reduce their volatility.
Another argument in favor of highly liquid cryptocurrencies is the fact that they are less exposed to the risk of scam. So, behind the top altcoins, as a rule, there is a serious development team. They are also more likely to be included in the list of the largest crypto-exchanges, which pay attention, in particular, to capitalization, transaction volume, project reputation, etc. Liquid altcoins attract crypto-investors from all over the world, if only because they are at the top of ratings, such as Coin market cap, and therefore, more often than others, cryptocurrencies catch everyone’s eye.
Altcoins with a high capitalization and a large trading volume are much less exposed to the risk of delisting and they have relatively low volatility. Among other things, cryptocurrencies such as Ethereum, DASH, Litecoin, etc., support many multicurrency cryptocurrency wallets, which means that traders do not have to think long about where to get profit from trading or roll fishing rods in time in case of exchange scam threat. It is much better and even more pleasant to trade with something that you know something about and the success of which you least doubt. The coin of the project, which is being actively and fruitfully worked on, has a less inherent risk of a sharp dump.