It is safe to say that the cryptocurrency market is extremely hot right now and getting plenty of attention. With that being said, it can be very overwhelming and quite frankly dangerous for a new person.
This is why we are so adamant about education in the cryptocurrency space. Our motto of Education Comes Before Adoption is not just a comforting saying. It is at the core of your success or failure in your cryptocurrency journey. In a bullish market like we are experiencing now, many new people jumping in are taking risks that they should not, so we will look at a few tips to help you navigate what and how to do it using available resources and also Crypto communities.
One of the biggest questions I get asked everyday is “Should I buy X cryptocurrency at current price?”
For X, insert any number of different cryptocurrencies that may be getting hype and attention at the moment. No one can precisely predict the exact top of a market price structure and the same can be said for the bottom of a market price structure.
To answer this question properly, you should decide if you will be trading this cryptocurrency or looking at it as a long term hold. If you are looking at it as a long term hold, then the question you should ask yourself is if you know anything about it or are you just buying because of hype. Take the time to research more about the project. To learn more about how to do your own research, reference this past How-to Crypto blog.
Also, look at price history because if the one you are researching has just had a significant increase in price, you would not want to go all-in by making large purchases of it at current levels. For instance, I was asked when Bitcoin was at $55,000 if I thought that person should buy.
From a long term outlook, I said if you believe in the future potential of Bitcoin down the road, then it would not be a bad idea to buy. But I issued this disclaimer. If you are willing to buy Bitcoin at $55,000, also be prepared to buy it at $48,000, $42,000, and even in the $30,000 price range as well. Cryptucrrency can be very volatile in terms of market pricing. At the time of this writing, we have seen Bitcoin drop to both the $48,000 price level and the $42,000 price level and is currently back up to $50,000.
No market goes up forever without drops along the way. Retracements are healthy for a market. Take this same logic and also apply to any other cryptocurrency, as long as you have researched and believe in the long term future of it. Now if your strategy is to be a trader, then it is best to dig into the Newscrypto school and tutorials and learn how to read a chart, use certain indicators, and identify past market structures that could repeat.
This is a longer journey as no one profits from every trade you take. You will either earn or you will learn. Technical Analysis is not designed to predict the future. It is to do your best to identify your probability of the market moving in one direction over another and what risk you are willing to take on it. It is best to practice many times to refine your trading strategy and the best place to do that is the Trading Simulator on the Newscrypto platform.
The Newscrypto platform houses many other tools that will help the beginner traders and even those that are more advanced. I recommend you spend some time familiarizing yourself with all the tools available.
Another resource that people can use is the numerous cryptocurrency communities and groups on various platforms. Telegram is one place where you can see how active a project is and also how active the community is. The Newscrypto telegram chat is a great place to start as well, https://t.me/NWC_PublicChat.
There are also other general groups on Telegram and Facebook. Just beware of any groups that blindly tell people to buy and talk more about price than any other aspect of one or more cryptocurrencies. When you are researching a project and want to join any of their social channels, like Discord or Telegram, make sure to join from links provided on their official website. Many times searching in Telegram or Discord can lead you to fake groups designed to imitate the real one and scam its members.
Also, in terms of etiquette because we see it all the time across many groups, it is usually best not to ask strangers in a group what you should buy or when you should buy or sell. Leverage the tools within the Newscrypto platform and market news to determine your strategy. And remember never risk more than you're willing to either lose or have to hold for a period of time. The long term outlook on the cryptocurrency market is very bullish, but you have to learn to prepare for the extreme volatility in the short term. Leverage the tools and learn and you will never regret the time you spend on this. If you ever have any doubt and need to ask a question, head over to the tutorial section and hit the "Ask Crypto Coach" button.
Content written by Blockchain Wayne and NewsCrypto Team