How to be successful on the cryptocurrency market, even though you are an absolute beginner
In order to trade successfully on the crypto market in the long term, you need knowledge and experience. However, this profound crypto market knowledge is not absolutely necessary in order to start trading Bitcoin and altcoins. All you need is a smart trading approach. How you can start your first cryptocurrency market success is described in the following instructions.
Excellent tips for beginners to learn crypto trading efficiently are also shared on http://www.bitcointradingsites.net/learn-trading/beginners-tips/ for free.
A Simple Crypto Trading Strategy for Newcomers:
1. The Most Important Thing Is The Coin Selection
Since you have no previous knowledge, the easiest way to get some insights fast is by buying one of the major coin exchange magazines. A coin exchange magazine works like a promotion tour for a cryptocurrency. In most cases, several coins are recommended in the crypto exchange magazine. It will surprise you, but it is not important which of these tokens you choose (exception see point 3).
Only the circulation of this newspaper is important. The trading approach works best when the magazine has a large readership.
2. The Token Must Be In The Sample Portfolio Of The Magazine
It is unlikely that you will be able to keep an eye on the coin or examine it fundamentally. It is therefore of great advantage if the share belongs to the model portfolio of the magazine. There the share is constantly monitored and evaluated by the magazine. You will also find out as soon as there is news or special information about this share.
3. Beware Of Small Altcoins With Small Market Capitalisation
Often a share experiences a short-term boost because it was included in the model portfolio of the magazine.
Attention! In the past, editors-in-chief were legally convicted for manipulating the price of shares in this way. In each case, small companies with low market capitalisation had been recommended.
The fraud consisted in the fact that the recommended share was entered by intermediaries before the magazine was published. The injured were the readers of the magazine, who after the recommendation dared to enter the market and thereby gave the share price a considerable boost, but also bought too dearly. For this reason, you should choose coins that are listed on a well-known platform (Bitfinex, Binance, Cryptopia).
4. The Entry And Exit From The Coin
To make sure you don’t buy too expensive, it is advisable to plan your entry well-founded. In principle, an upward trend of the share is advantageous.
For example, you can use a technical indicator to determine when you want to start. I recommend MACD (Moving-Average-Convergence-Divergence). This simple indicator can be found in every crypto chart program. There are also many ways to study the indicator on the Internet. The MACD is primarily a trend indicator and allows you the timing of entry and exit. (see below for concrete trading instructions)
5. Do Not Risk Too Much
If you make a wrong decision, it is not dramatic if you keep your risk of loss low. A potential loss should be so small that it can be recovered within the normal scope of possibilities. It is well calculated if you lose only between 0.4 and 4% of your capital in the event of a loss. So if you have 10,000 Euros of capital, in the worst case a trade should result in 250 Euros loss.
Trade Instruction To The MACD:
- Select a coin from the portfolio of a crypto exchange magazine.
- Find a chart program (for example tradesignalonline.com or prorealtime.com). Set the MACD indicator for a long observation period (13-89-8). This means that you can stay in a trend movement for a long time.
- Watch the coin until the MACD gives a long signal. In the chart above, the thick black line crosses the narrow red line from bottom to top. The zero line distinguishes the upward trend from the downward trend. Go long when the MACD is above the zero line (= uptrend). In practice, a slight fall below the MACD is also tolerable.
- Sell your position when the MACD (red) signal line is crossed from top to bottom.
Crypto Exchange Is Both Simple And Difficult
This simple trading strategy is very suitable for beginners. However, they must show discipline. Profits will come if you stick to the strategy for at least a whole year. There is an enormous profit boost when the crypto markets are in a bullish mode. You only have to be careful in bear markets. Sometimes the best coins fall when fear and panic reign. Hold on to the MACD. As soon as a downward trend occurs, the indicator will protect you from large losses.