Top 4 Tips for Cryptocurrency Trading with which You can Expect to be Wealthy
Cryptocurrencies have made people very wealthy, very soon. And they could make several other people wealthy too, provided that they continue to rise at the recent excited pace that equivalents huge lottery jackpots.
But the chances for this are low, since these investments cannot challenge the number game. The meaning of this is that prospective wealthy investors should find the next lucky coin at some other point on the cryptocurrency list, till the hype for the cryptocurrencies last.
However, choosing the next winners in the digital currency space is quite hard for a few reasons, one of them being that there are over 1,000 digital currencies from which you’ve to choose. Another reason is that no “fundamental” metrics are available to appraise the “intrinsic” value of every coin, like conventional assets.
Still, there are certain behavioral analyses that offer a few tips to scrutinize through the digital currency mess for lucky coins. Here are a few.
1. Cryptocurrencies Trading at Less than a Dollar
Look for digital currencies that are trading at less than a dollar. There are a couple of reasons behind this. Firstly, a price less than a dollar creates an illusion that the digital currency is cheap, particularly for investors having small funds to invest. Secondly, smaller numbers can double and triple more easily than larger numbers, adding the hype that could cause a cascade. This is consistent with the previous astronomical gains the world has seen in digital currencies trading a few decimals behind zero.
2. Find Which Coins are the Most Favorable
Visit cryptocurrency websites like Coinmarkets to evaluate which coins are the most favorable in terms of their power to be adopted as a currency. Actually this technique can be utilized to assess the “intrinsic” value of every coin, once it attains a particular level of adoption by making use of the quantity theory of money.
3. Look for Cryptocurrencies that are Likelier to Rise in Price
Look for digital currencies that have a high circulated supply versus the maximum supply. The reason for this is obvious: these cryptocurrencies have higher chances to rise in price with growing demands, as supply is short to match it.
4. Volume and Price Charts of Cryptocurrencies
Go through the volume and price charts of the cryptocurrencies. You want to choose cryptocurrencies having a chart of quickening price and volume growth, since this type of chart is an assurance of momentum of these currencies.
While following these tips remember to follow extreme caution because investing on hype instead of basics is extremely risky because it’s difficult to predict when the hype will wilt and the worth of coins will become zero. But with proper caution, you can expect to be a wealthy cryptocurrency trader.