As the market continues to heat up and also draw in new people, it is important to look at some basic strategies, whether it is for you or for you to help others as they ask questions.
We have given you some great tips in the past How-to Crypto reports, so be sure to go back and reference those when you have questions. The main thing we will look at in this report are how to safely enter the market, regardless of market conditions.
Every day on social media groups and forums, we see new people asking the groups blindly what to buy or how much to invest.
This strategy is not the best as you are asking strangers on the internet where to put your money. The only person that can make that decision is you and your investment level should match your level of understanding. Too many also jump into trading before they truly understand how to trade. Let’s now look at the 3 basic strategies that can help you progress in your investing and eventually trading in the cryptocurrency market.
BASIC TRADING STRATEGIES
Considering most people entering the market do not know the basics of trading, the best option for a beginner is to make small recurring purchases. Some apps even allow you to automate this process to set up these recurring buys on a weekly or monthly basis.
Many want to enter the market with thousands of dollars, usually when the market has already pumped quite a bit, but the best strategy is to dip your toe in before diving in head first. Sure there is potential to make profit, but the market is still very volatile and most that jump in blindly are not prepared when the market dips. People also underestimate the power of small recurring buys over time no matter what the price is. Many call this dollar cost average, or DCA.
This is a good strategy if you want to buy and hold or if you are not quite ready to trade. As someone who has been trading for years now, I still allocate a portion of my holdings to just accumulate weekly on these recurring buys.
A great example is with Bitcoin. If you started 3 years ago, buying $50 worth of Bitcoin, you would have invested $7850 and at current value would be worth over $60,000. This strategy will only work on projects that have established themselves for the long term. Some projects that launched 3 years ago peaked in 2018 and still have not returned to their previous all time high in price so dollar cost average would not have been an effective strategy. It has worked consistently for Bitcoin and Ethereum, and a select few others.
Another strategy to help you in your journey is to start trading with a trading simulator before you jump in with real money. Do not let your fear of missing out, or FOMO, cause you to jump into trading before you are ready. There will always be more opportunities in the future to make profit on trades.
Newscrypto has a trading simulator that allows you to test out trading in a simulation that doesn’t require you to risk any money. It is risk free trading that will allow you to identify and test your strategy. Current version allows you to trade on an interface that looks very similar to most trading exchanges you will use when you begin actual trading.
Future rollouts will allow you to simulate margin and leverage trading, which we encourage you to hold off from actual margin or leverage trading until you master regular trading and get a chance to practice with small amounts. As you move away from the trading simulator to make actual trades, make sure you start with small amounts as once you start making real trades with real money on the line, you will need to master your emotions as well to have success long term.
The last strategy is to have a daily plan to dig in and dedicate time to study what is happening in the market, not just by looking at daily price action on charts, but also what is happening in the news in the cryptocurrency market. A great place to check daily is the News section on the Newscrypto platform.
Keeping up with what happens in the news will allow you to make better decisions in your investing and trading. Will you always make the right decision? No, no one is 100% right all the time. But you have a better chance of long term success in your crypto journey if you use the tools at your disposal.
Each week we also share a short video of the top news headlines in the crypto space over the past week called the Weekly Crypto Report. This can be found on the main page of the Newscrypto site every week. It is important to look at what is happening and who is involved, and avoid the groups on social media that only talk about price action. Sure, we all want our crypto values to grow, but solid technical and fundamental progress is what will lead to long term growth.
We could easily make this report 2 or 3 times longer by going into detail of other tools you can utilize with Newscrypto, so I challenge each one reading this to dig in a check out all that Newscrypto has to offer in terms of education and tools. Like anyone who wants to be a professional, you have to study and practice to get there. This is a learning journey and we are here to help you every step of the way.
Content written by Blockchain Wayne and Newscrypto.io
