Even if the crypto trading seems to be simple, it becomes challenging to find the proven cryptocurrency to invest in, according to the high volatility of the crypto market.
According to the hype around Bitcoin and other cryptocurrencies, trading activity still attracts much attention, almost like in 2018.
By following proper risk management, it is essential to diversify your portfolio.
What does diversification mean?
Diversification is a risk management strategy that combines a wide variety of investments within a portfolio. It is necessary not to keep all eggs in one basket. For example, if one token in your wallet will drop, other cryptocurrencies may cover losses.
Let’s discover how to determine the best cryptocurrency to invest in and discuss the possible solutions for newbies, including crypto signals.
You would better invest in something popular and trusted crypto to prevent you from being a part of a scam project with a pump and dump scheme.
What does a scam project mean? It is a cryptocurrency, which firstly attracts a lot of attention and money, which leads to its sudden pump and dump.
What does a “pump and dump” mean? Pump-and-dump (P&D) schemes are a type of price manipulation in which an asset’s price is artificially inflated so that a cheaply purchased asset can be sold at a higher price. Once dumped, prices quickly fall, and investors lose money.
On the other hand, such cryptocurrencies can make you rich, but investments like that require 24/7 monitoring. Also, we don’t recommend holding questionable altcoins for a long time.
Every investor should always be aware and updated about the freshest cryptocurrency news. For instance, it is a great opportunity to learn about a listing of one or another coin.
What does listing mean in cryptocurrency? Listing is a process of adding a token to the cryptocurrency exchange platform, after which its price can be doubled or tripled. Buying a coin before the listing can make you rich.
While looking for cryptocurrencies to buy, pay attention to the markets where they are traded. Prefer choosing tokens available on platforms like Binance, Coinbase Pro, Bittrex and KuCoin. These markets are high liquidity, where it is easy to execute a trade quickly and at a desirable price because there are numerous buyers and sellers, and the product being exchanged is standardised and in high demand.
For you, as a trader, it is essential to check out the cryptocurrency prices all the time to know when it is time to enter and exit the trade.
Remember about two rules while looking for something to buy:
Today crypto is something more than only a virtual token trusted only by mad enthusiasts. Now the world of Bitcoin is forced by major funds and large investors. What does it mean?
You can surely trust coins, in which were invested a lot of money by popular celebrities and authoritative people like, for example, Elon Musk.
A list of highly trusted coins:
Just for the record, it is almost impossible to lose your money on the spot while investing in proven cryptocurrencies on the condition that you have an opportunity to get in on the low price. Even though investing in new altcoins can make you rich faster, it will be safer to buy Bitcoin according to its dominant position on the market and its large capitalisation.
We can recommend crypto trading signals for traders with no experience, info about which you can learn below.
If you have no trading experience, but don’t want to miss successful trades anymore, here comes a solution – crypto signals. Being armed with proven trading signals will let you trade like a king, regardless of the market situation. With our crypto signals, you will know what to buy, when to buy, and when to sell. Simplify your life with sublime trading signals.
Don’t trust free crypto signals groups at the Telegram, as there is free cheese only in the mousetrap. You can check out our Telegram channel with our trading statistics and results to be confident about our service’s truth.