It would be true to say that Bitcoin has enjoyed a real burst of popularity when it comes to cryptocurrencies. This very popular cryptocurrency has hit among investors, traders and consumers and everyone is working to do a bitcoin crash test. It has so much to offer in terms of lower fees, speed of transactions, and increased value that could be the reason why most people choose it for their trading.
This is, however, a hectic market and to make it big you have to be a very smart trader when you sell and buy it. With dedication and discipline, you can turn Bitcoin volatility to your advantage. Here are simple but effective ways you can do just that.
Keep up with the latest Bitcoin news
News items may not affect all that currency, but the truth is that there are some items that could significantly affect its value. By gaining access to Bitcoin-related news and live news for regular news, you could understand something in time to make decisions that will benefit you with your transactions. It helps keep up to date with Bitcoin news and other unexpected news that could impact its performance.
Use the loss of attitude to your advantage
Whether you are just starting out with your deal or have been around for a while, you need to be prepared for times when losses are inevitable. No one trades in waiting for damage, but the chances are always there, therefore, of the need to implement a credible loss stoppage plan. Valuations fluctuate regularly and you need to be prepared for bad days. The market offers tools that you can automatically set to stop losses before they have a serious impact on your profits. Whether you are investing in Bitcoin, CFD or cash futures, make sure you use the stop loss to keep reserves open.
Understand technical analysis from within
This is very important before joining the trade. Given that there is no governing body or bank that influences the valuation of Bitcoin, you need to be your own judge in more ways than one. If you do not understand the fundamentals of the market and do not even know how to analyze price charts or read price actions and apply indicators, you are doomed to make the wrong moves. Remember that pricing models are speculative making it important for you to know all the technical details that really matter.
Be prudent with your leverage
Leverage has the potential to increase your profits or increase your losses as well. If you are overly leveraged, then you will tend to be a little reckless with managing your money and this will blow out the trading account in the end. On the other hand, being very careful with your leverage can hinder performance given the premiums that may not work at full capacity as expected. When it comes to Bitcoin trading, you need to do a balancing act in order to enjoy good returns.
For any reporter, getting a story wrong or a fact is a disaster. It damages your credibility and forces you to issue an update or withdrawal. I’ve gone through this humbling experience before.
Whether considering a new consensus algorithm or executive control moves, cryptocurrency media faces a unique challenge. Informal communication channels (eg Reddit, Telegram, Medium) preferred by crypto projects make it difficult to remove misinformation. Thousands of investors who speak to parrot companies make it challenging to determine if a project is truly delivering on its promises. Some companies, like Ripple, have rewritten stories seemingly to avoid regulatory issues.
Unlike companies in the S&P 500, crypto projects often publish blog posts and tweets, not press releases. Defining what’s happening with non-English-speaking crypto companies adds another layer of complexity.
It is probably indicative of 2019. We are living in an age when foreign policy decisions and tariffs are also announced on Twitter. So maybe cryptocurrency companies are just ahead of the curve. However, the informality and bias of investors or reporters can lead to errors.