What Crypto Should I Trade? How to Pick the Right One

What Crypto Should I Trade? How to Pick the Right One

When you start to research the crypto market, it’s easy to get overwhelmed by the number of coins out there. You see this term all over the place, but what does it mean? ICO stands for Initial Coin Offering and refers to when a new coin is first sold to investors before its public release. 

Basically, an ICO investor buys the coin at a reduced price in hopes that it will grow in value as it becomes more popular, like buying shares in a company.

Crypto is an umbrella term

Photo by Brian Tromp on Unsplash

There are many types of cryptocurrency out there, but it’s important not to confuse them. Bitcoin is one example and Ethereum is another, but there are hundreds of options, with different pros and cons. 

Some might be better suited for trading, while others are better suited for long-term holding. Some use proof-of-work; others use proof-of-stake. It all depends on what you’re looking for in a coin. 

Before deciding which crypto coin you want to trade or hold (or both!), it’s important that you get familiar with these categories

Study your target market

Photo by Ricardo Arce on Unsplash

Since you’re taking steps towards a career in trading, chances are good that you want to trade cryptocurrency. But which currency should you start with? With over 700 available today, it can be hard to know where to begin. 

Before jumping into any market head first, it’s important that you understand what makes each currency unique and how they differ from one another. By studying your target market and doing some research, you can make sure that your picks aren’t just random; they were chosen for a reason.

Beware of ICO scams

Photo by André François McKenzie on Unsplash

It’s probably not a surprise that many scam artists are attracted to cryptocurrencies, but it is surprising just how much of a problem it is. Some fraudulent parties have devised elaborate schemes designed to deceive investors and steal money from them. 

Make sure you do your research before you start trading in Bitcoin or other cryptocurrencies so that you don’t lose all your hard-earned money. Here are some ways you can protect yourself from falling victim to an ICO scam.

Look at price histories

Photo by Sajad Nori on Unsplash

Before you buy any coin, it’s a good idea to have an understanding of its market history. Check out CoinMarketCap for price histories on all active coins and pick one with a strong track record. 

When looking at a particular coin’s price history, be sure to pay attention to how much volatility there was and look for low spots that might be great points in which to take profit in case your trade doesn’t go as planned. The same goes for trading Bitcoin or any other cryptocurrency: knowing when and where you should buy and sell is vital when it comes down to turning a profit.

Identify Quality Coins

In traditional investing, diversification is a strategy that ensures that if one of your stocks declines in value, you’ll still have others performing well. Because cryptocurrencies are still very new and fragile, they don’t offer much opportunity for diversification. 

Only invest money you can afford to lose on crypto. Don’t put all your eggs in one basket! Even if they succeed, it may not matter if you only own a small portion of them.

Don’t put all your eggs in one basket!

When first venturing into trading cryptocurrency, it can be tempting to put all your money into one coin. When that happens, you’re much more exposed if something goes wrong than if you’d spread your investment over several coins. 

Each asset has its own idiosyncrasies and strengths and will react differently in a bull or bear market. Try being diversified don’t risk everything on one currency!

Last but not least — do your own research

Always do your own research before trading. There are so many resources out there that can help you learn what it takes to trade professionally. 

Here at Trading Strategy Guides, we have live trade rooms, daily publications of trading education articles, and a very active community of traders who are ready to answer any question you may have. 

In addition, get yourself a good crypto broker and make sure you’re comfortable with their platform, deposit/withdrawal options, and fees before you start trading.

check my other post from here.

A tech blog author and superhero who writes about technology and its impact on society, business, and everyday life

Related Posts

How to Make Money While You Sleep: The Power of Passive Income in 2022

Passive Income: Have you ever thought about how nice it would be to make money while you sleep? It sounds like a dream come true, right?

Read more
hands holding us dollar bills

8 Ways to Earn Passive Income This Year

Earn Passive Income: While the idea of earning money while you sleep may seem like an impossible dream, it’s actually a lot easier than you think.

Read more
hard cash on a briefcase

Can You Really Make Money in Cryptocurrency or Stock Marketing?

Make Money in Cryptocurrency or Stock Marketing: If you’ve been looking into making money online, then you may have come across various opportunities…

Read more
magnifying glass on top of document

5 Tips for Succeeding in the Stock Market NOW

Succeeding in the Stock Market: If you’re looking to make the most of your money in the stock market, you’ll need to avoid making these five mistakes

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *