There has been a lot of talk about whether or not the recent upsurge in cryptocurrencies is good for the economy. There are a lot of people on the internet that feel that because there are so many buyers and sellers, currencies will inevitably go down in value. The truth is that if you know how to trade Cryptocurrencies like ether and do it strategically you can make a fortune with them. I’m going to give you some tips on when it’s best to buy, sell, or just hold onto your ether (or any other coin). Here they are!
The most bullish time to buy was right before the Dogecoin bubble popped. If you remember at the time there were literally thousands of everyday people owning a ton of doges but no one was considering investing in anything other than Cryptocurrencies. This is actually good for the economy because people who had money were using it to purchase good things like computers and gadgets. When the bubble popped the value of the doges dropped dramatically. Since then, there hasn’t been a good period where the price of any single cryptocoin has gone down more than 24 hours.
Keep an eye on your favorite news websites. Every day there is usually news on the rise of a new cryptocoin. You can quickly look for news of significant value and invest in that same coin when the prices are increasing. If you notice that there aren’t any large increases in the value of the doges but that there are several small increases, that is a good sign that people are trying to get in before the price goes up even further. Watch the trends for a period of about a week and you should have a pretty good idea of what the future holds for Cryptocurrencies around the world.
The next step is to look at the market capitalization of each coin. The market capitalization of a coin is simply the total amount of money invested by people in the overall value of the coin. If a currency has a large market capitalization, that means that there are a lot of people who are investing in it. This implies that the value is rising because a lot of people are buying into the coin. Keep track of the dogecoin prices and you should be able to get a fairly accurate picture of the value and the market cap of each coin.
The next thing you should be doing is familiarizing yourself with the different cryptos. There are currently five popular currencies out there, which include bitcoin, litecoin, dogecoin, peercoin, and pyrrhaphos. All of these are easy to understand and trade, so don’t worry too much about learning the ropes with the first couple of currencies. Focus your attention instead on learning about the most successful ones. Doing this will allow you to develop a strategy for trading when you become more experienced in the market.
Also keep an eye out for cryptos that have been known to have done pump and dump schemes. A typical example of this is when a particular currency takes a big jump in value, like say from $5.00 to over $1000. Often times, traders who are involved in these types of trades will quickly sell their coins in order to get out before the value bounces back. If you see several of these occurring, you may want to consider avoiding trading this type of currency altogether. Even though it can be profitable, there are just too many risks involved.
A final thing to watch out for in the future is the rise of cryptocoins like litecoin, dogecoin, and etc. These newer currencies are less reliable than their older counterparts, so if one does go through a major pump and dump scheme, it’s probably because the developers behind the project made a bad decision to invest a lot of money into the new venture. You should also stay away from the older coins, as they aren’t as reliable as the newer currencies. However, there are some bright spots in the market for these kinds of coins, so they aren’t completely worth dropping everything for just one bad coin.
As you can see, there are several things you should watch out for in the world of cryptosystems. Some of these will be good in the long run, while others will only cause short-term problems for you. In the end, you need to be very vigilant in deciding which currencies you’re going to trade. This way you can maximize your profits, and reduce the risk of getting stuck in the middle of a “scam” or “anomality detection” scheme.