As of this time last year, a bitcoin (BTC) was worth about 3000 dollars, as at the time of this article 1 BTC is 56000 dollars. This sudden boom in the BTC market brought a lot of limelight to the crypto world combined with the fact that alt coins like Ethereum (ETH) and Binance coin (BNB) also increased tremendously over the past year. There a lot of exchange platforms with which you can use to trade cryptocurrencies, platforms like Binance, Kucoin, Luno and Trustwallet can be used to store, buy and sell these coins. Crypto has made a lot of young individuals millionaires overnight and this hype has led a lot of people into the crypto market.
For a lot of newbies, the temptation to panic buy or panic sell is really high, take for instance buying BTC at 60000 dollars and going to bed, or going offline for just a day and then coming back to see it at 45000 dollars. You invested 2000 dollars into BTC and you discover you have lost about 300 dollars, the temptation to say no, let me just sell this is very high, this is how people accumulate losses. Cryptocurrencies are an investment and different people all over the world hold different amount of coins, as cryptocurrency continues to gain ground and more and more people trade with crypto, the probability of the coins continue to rise is very high, no matter how low it falls during a bullish market.
The deal is no one knows when a coin will dip or rise, we can only speculate according to trends and information we get online, information like a major BTC holder decides to sell most of his assets might most likely cause a dip in price. That is why monitoring trends and information is important as a crypto trader. this article is basically to give specific advice based on my experiences.
If you ask any major trader, you would always be advised to invest what you can afford to loose and what you might not necessarily be in need of for awhile. Cryptocurrencies can be highly volatile and you can lose money as fast as you gain. There is the normal buying coins and keeping them till you are ready to sell, then there is trading on futures and spots which are more volatile. Before your coin might gain significant profit it might take a long while, not all coins produce profits immediately. It is best to invest an amount you can make do without just in case.
Make sure you do what you understand and what works for you, do not jump into any coin or token just because you heard about it, make your own research, study the trend and don't be swayed by screenshots of profits. If you do not understand the basics of a coin or don't understand how to trade it, it is advisable not to do it till you learn more about it. Be patient, it might take a while to find an opportunity that will work for you.
Do not buy coins that have risen so much in value rapidly over a very short period of time, a coin that pumps fast will surely dip. Always wait for the dip before buying, do not jump into a trade, profits are made when you buy a cheaper coin and sell at a high price not when you buy at a high price and sell at a cheap price. The cheaper you get a coin, the more profits you make.
Recently people are investing more in alt coins, projects like doge which started at 0.0$ in 2013, it is currently at 0.6$, those who invested when the coin came out or was listed on popular exchange platforms and were patient enough to hold would have made a tonne of profit. New Projects like Solana, Cake, and FTM are promising projects too. This has led a lot of individuals to jump on every new coin or token with the hope of it making over a 100% profit, however, some times coins worth 1 $ when listed might end up falling back to cents after being listed and pumped because the probability of people to sell after gaining from a coin is very high, some times after a coin is being listed, it does not pump but continues to dip. therefore avoid jumping on a new coin or token that has just been listed on popular exchanges, the best time to get a coin is before listing or 3 months after listing, take enough time to study the coin and figure out if it works for you.
Learn to take profit, not everybody can be holders, do not wait for the coin to reach maximum price before you sell, pick a price you feel ok with and sell, do not worry if it goes beyond the price, you can always get an opportunity to buy later.
Basically, these are not financial advice or things set in stone, they are just things I have learned based on my experiences which have always worked for me. You can always join WhatsApp and telegram cryptocurrency groups to get more information, follow trends on twitter and read more about Crypto, I hope this helps. I will be talking about how to get free airdrops and the basic meaning of crypto terms in my next article.