Low Chances To Profit On Bitcoin
Arthur Azizov | Jul 21, 2017 09:32AM ET
I have to disappoint you – you have little chances to earn maximum profit on crypto currency. Just because the most popular of them have already made from 300% to 5,500% since the start of the year. And it looks like the market took a pause.
However, it doesn’t mean this asset class has no potential to add another $5,500. Just back in January I remember the widespread opinion about bitcoin – it peaked at $945, and hardly had a chance to break above $1,000.
Then there was another splash of disappointment in March, when it reached $1,270, but later had three weeks of selloff falling to $905. But since that time we saw bitcoin touching $2,889, meaning that if you bought it even at March peaks, you would have more than doubled your investments.
You can surely earn on crypto market, but you need to follow some rules of trading.
1. Stay away from less popular crypto currencies. About 90% of the trading volumes are made by top-10 most popular digital assets, meaning that market trusts it, and it’s less volatile and risky than the rest 1,000 colleagues.
2. Diversify it. Yes, you need to trust only top-10, but it’s not necessary to choose only one. Pick a portfolio including the mature bitcoin and youngsters like ethereum.
3. Don’t panic. Crypto currencies are well-known of its volatile nature. However, it has bright future, and is becoming more and more widespread all over the world meaning the demand will grow constantly. And this is a real reason to buy and hold.
4. Catch retracements. The history shows that there is always a correction after huge bullish trend, and in most cases it amounts up to 50% of the uptrend. And these retracements offer perfect opportunities to enter the market at very attractive levels.
5. Choose the right one. Since crypto market has long been perceived as a risky and unpredictable, there are few companies offering liquidity for more than 2 crypto currencies. Choose the one, that has at least 5 in its collection, otherwise, you have high chances to miss some interesting moves.
And always watch the market and read the news. It really helps!
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