If you’re looking for a new investment this year, one of your choices should be cryptocurrency exchange. Cryptocurrency is digital currencies like Bitcoin, Ethereum, and many more. Just like fiat currencies, you can trade and invest in such. However, cryptos are more volatile than fiat currencies meaning that their value could wildly vary within a day. Unlike fiat currencies or stocks, you can buy or sell cryptos at any time of the day and the night.
From experience brokers, following these tips can help you earn as much as you want in cryptocurrency exchange or trading:
1. Set Profit Targets
One of the good things you should do is set up your profit target, which means you should have a definite number when to sell your cryptos. Before doing so, you may need to research your target cryptos and crypto exchange platforms before buying and using them. According to this list of the top cryptocurrency exchanges, there are many factors you also need to consider before using a crypto exchange platform.
When you’ve set up your crypto exchange platform, you should also understand the crypto’s history, its founding members, daily trading volume, circulating supply, the price per coin, and their market caps. This basic information can help you determine whether the crypto is worth investing or it’ll easily crumble. That’s why you should read the crypto’s Whitepaper, so you’ll understand what their roadmap is, the vision behind it, and the like. Without such, you should be wary of buying the crypto.
After your thorough research, you can then set the number of coins or cryptos to buy. Depending on your budget, it’s best if you wouldn’t put all your money into one type of coin. It’s best if you’ll buy two or more coins as long as you can still manage them.
2. Use Stop Losses
In cryptocurrency exchange platforms like CoinSwitch, they’ve got a stop-loss feature that you should use. Also, according to this review of CoinSwitch, many traders use this…