Best Short Term Crypto Investment – Financial trading is a dream career for people all over the world. Many of us dream of getting ahead of the market and achieving financial freedom.
Crypto allows anyone to become a trader. There is no need to register with a brokerage, pay expensive commissions, qualify for trading status, or any of these with crypto trading. Just create an account on another exchange and start trading. It is more affordable and attractive than trading stocks, gold or soybean futures.
Best Short Term Crypto Investment
This guide will help you navigate the exciting but risky world of cryptocurrency trading. Our goal is to provide you with an insightful perspective on crypto trading that most traders only learn after months or years of trial and error.
Crypto Investing 101
First things first: trading is not a consistent or reliable way to make money. In fact, the rule of thumb is that most traders lose money – despite what trading platform ads might lead you to believe.
This guide does not provide any financial advice. Trading is entirely at your own risk. This manual is provided for educational purposes only. We hope it will help you manage your risks and make better choices if you decide to trade cryptocurrencies.
Crypto trading means buying and selling digital assets (tokens, coins, NFTs) as described on our Cryptocurrency Prices page.
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For purposes of this discussion, a trader is not an investor. Investors set goals and build portfolios for long-term returns. Traders are now focused on profit. The goal is to get in and out quickly, pocketing the profits. It’s all about cryptocurrency trading.
Coins rise and fall based on the market’s perception of their value. These assumptions are based on traders looking at price chart patterns (technical analysis) and other market participants looking at news for project updates (fundamental analysis).
Choosing what to buy and when to buy depends on a lot of research and lucky timing that depends on market cycles.
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Investing is both a skill and an art. Below, we outline some important considerations when learning to trade cryptocurrencies and how to trade cryptocurrencies.
One of the most popular ideas in the crypto space is the “boom and bust” market cycle, which is described in this cheat sheet:
Bitcoin is notoriously volatile, meaning it rises and falls in price quickly. The last Bitcoin rally was in January 2018, when Bitcoin reached a price of €15,000.
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Your cryptocurrency trading platform should give you plenty of data to watch market cycles – especially if you’re trading Bitcoin. Visit our Bitcoin Prices page to see the current BTC price chart.
This pattern is essentially fractal, meaning it repeats itself over time frames. A small boom/bust cycle in a medium-sized boom/bust cycle in a large boom/bust cycle. They don’t always show the exact same pattern, but the basic shape of the wheel becomes clear when you zoom in.
These fractal dynamics allow the savvy trader to detect cycles in different time frames (hourly, daily, weekly, monthly) and then take advantage of the opportune moment to enter and exit positions accordingly.
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The best way to trade crypto is to do a lot of research and preparation. This danger is caused by the daily, hour-to-hour, and minute-to-minute volatility of the markets, which prompts new traders to over-trade based on the heat of the moment.
Learning technical and fundamental analysis definitely takes some time. But this is not the most difficult part of trading. The most difficult task for traders is to manage their emotions and be disciplined enough to stick to their strategy instead of acting on impulses based on emotions.
All traders struggle with emotional trading. The temptation to trade is almost overwhelming. We see huge profit potential. Coins would jump 5% here, 8% there, then back again. If only we could catch that price jump! Can you trade cryptocurrency to capitalize on market volatility?
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Yes – if you are disciplined about it. Analyzing trades requires a ton of discipline. Most people see a little hype in a particular stock or crypto coin, see that the price has already started to rise and don’t want to be left behind, so they buy too many at once. FOMO – fear of missing out – plays a role. Then the market cycle reverses and prices begin to fall. Traders sweat anxiously until their bullish position is restored and a profit is made, or they sell at a loss.
Effective traders know that they must overcome natural emotions such as hope, greed, panic, guilt and excitement. Traders are not intended for gambling. They must be strategic, objective, rational planners.
Unfortunately, unscrupulous individuals or groups try to take advantage of the excitement and greed of trading to get buyers to invest in a particular crypto that does not have much trading volume.
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This leads to a spike in the token price, in which fraudsters sell their own tokens – making huge profits – while other investors grab the coins they bought at a premium and walk away. The price returns to its natural market position.
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To avoid these schemes, consider trading volume when choosing coins or tokens to trade. And avoid the temptation of fear of missing out. FOMO can lead you to make a lot of bad decisions if you’re not careful. When you’re trading cryptocurrencies for profit, it’s important to stay level and fully assess the opportunities.
Here’s an easy way to get started with technical analysis. You can find market correlations by comparing the price charts of different coins.
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For example, check if the coin you want to trade is positively or negatively correlated with Bitcoin. That is, determine whether its price moves in the same direction as Bitcoin in different trading periods.
As you can see, the price of propion has fluctuated, but at the time of writing it is about the same as it was a year ago. From this perspective, it would be more profitable to hold Bitcoin for that year. (Unless you bought low and took advantage of the sudden spike, as shown by the green arrow.)
This type of analysis can help you decide whether to keep more of your portfolio in BTC or branch out into coins that generally gain or lose relative to Bitcoin.
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This text is informative and should not be considered investment advice. It does not reflect the personal opinion of the author or the service. Any investment or trading is risky and past performance is no guarantee of future returns. Only risk assets you are willing to lose. Whether you’ve just started your crypto investment journey or have been going for quite some time, it’s always good to learn about the different investment strategies available to crypto investors.
In this article, we have selected twelve of the most popular crypto investment strategies that you can implement at any stage of your crypto journey.
With many becoming instant millionaires investing in Bitcoin and other cryptocurrencies over the years, it’s no wonder that more and more investors are turning to crypto as a viable investment option. That said, financial gain isn’t the only reason many people consider investing in crypto. Other reasons to invest in crypto include:
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The technology behind blockchain, bitcoin, and other cryptocurrencies has the potential to disrupt many industries, such as shipping, supply chains, and banking. This potential alone makes for an attractive investment – especially for those who believe in the future of digital assets.
Many people invest in cryptocurrencies because they serve as a reliable and safe store of value. Unlike fiat currency, most cryptocurrencies have a limited supply. This means that it will be difficult for cryptocurrencies to depreciate due to inflation. You may send them to anyone, anywhere in the world, without obtaining the third party’s permission.
Bitcoin, for example, has a limited supply of 21 million and has attracted many investors due to its deflationary and censorship-resistant properties.
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Crypto is relatively easy to access. All you need to start investing in crypto is a laptop (or mobile phone) and an internet connection.
Given that there are many crypto investment strategies to choose from, the process of identifying the right one for you can be difficult. However, this process can be simplified by asking one question: are you a short-term investor or a long-term investor?
What is crypto trading? Simply put, crypto trading is the act of buying and selling cryptocurrency for short-term profit. The most common methods or types of trading are:
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Regardless of which crypto investment you choose to make, it’s a good rule of thumb to always do your research and understand the potential risks before investing in cryptocurrency.
Also, it is always beneficial to focus on long-term results and avoid short-term thinking. Legendary investor Warren Buffett once said: “Don’t take annual results too seriously. Instead, focus on averaging over four or five years.
Short-term results are rarely a good measure of investment success. On the other hand, the long-term results are good