Now, more than ever, our inboxes and news feeds are full of out-of-the-ordinary, interesting pieces of news. Most of this has to do with crypto. Trading crypto especially is quite intimidating in the current times.
BTC price fluctuations have given most of us a rollercoaster ride all through the year. Recently, the increase in outflows of BTC from centralized exchanges has sent traders on alert mode. Interesting trends were notable all through the last few days. The rise of altcoins while Bitcoin slumps was another interesting thing to note. Seriously underestimated altcoins like XLM and SOLO have become stellar performers.
Needless to say, while trading crypto is becoming quite the it-thing, things are certainly getting more…interesting. It might just be the right time to jump in and contribute.
Recent Media View: The Humanitarian Angle To Trading Crypto
Recently, cryptocurrency has found new advocates. While it has always caught the fancy of the biggest names in the business, there are some fresh angles that the world is now looking at it from. In fact, journalists and crypto enthusiasts alike are vouching for this new money to become a liberator for many of the world’s markets. As financial markets become more overbearing, several critical discussions are currently going on – in the regard for a greener solution and the need to look at crypto as a saviour for the succumbing economies around the world.
People are being more open minded towards the possibility of cryptocurrencies play an important role in the larger humanitarian efforts.
In October, 2020 Nigeria’s The Feminist Coalition’s bank accounts were frozen so they began accepting money in Bitcoin. (source)
In Belarus and Russia, people are re-establishing their belief that Bitcoin is a fair form of money, the one that can’t be controlled by external forces. A Belarusian NGO raised around $2Million in Bitcoin.
Similar trends were noted in Russia. (source)
A coin-shaped disruption in the way the world works
Tech entrepreneur Naval Ravikant famously called cryptocurrency “a tool for freeing humanity from oligarchs and tyrants, dressed up as a get-rich-quick scheme.” So when the believers of traditional money look at it as a rather untrustworthy money source because it doesn’t come from the government, the crypto brigade says that is exactly the reason why it is so reliable.
The Human Rights Foundation in fact says that cryptocurrency could be the much needed break from the legacy arrangement on which the world works right now.
Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, has in fact recently pointed out 3 prime reasons why cryptocurrency is so important even in terms of human rights, validating it’s future use. He says it’s because:
1. Crytpo is deflationary, preventing the government from printing more and debasing its value.
2. It is censorship-resistant, even the most ‘powerful’ people cannot stop the transaction.
3. You are not being surveilled. It is permission-less and paperless, you can use it without an ID but the transaction is recorded all the same.
Why Is It All Important For The Quintessential Crypto Trader?
Since it is a peer-to-peer, decentralised network, it largely depends on some fundamental things. The average crypto trader has to be aware about the world around her. This means that she will:
- have to understand how the supply/demand of the cryptocurrencies work.
- research and update herself about what the media is saying about the cryptocurrencies of her interest.
- have to build the ability to analyse and predict the future of her currencies.
A seasoned trader would know that there is a possibility to turn it all around any second – the way the world sees things is just as important as the way you see things. Cryptocurrencies are more volatile than anything – it is a feature that comes with being such an outspoken peer network. While it is quite a rollercoaster ride in terms of what happens to your money while it sits in a crypto wallet, it is definitely much more adventurous. Risk appetite has grown over the crypto market – based on recent events such as the Bitcoin low and the pump into altcoins and even newer currencies like Axie Infinity Shards (AXS).
This means that traders are becoming aware of the risks of trading crypto and yet contributing to its growth. As a newbie trader, it is easy to get intimidated by the volatility of the crypto market. However, no matter what the market sentiment, there are some rules to always stick by.
#1 Know What You Are Looking For With Each Investment
A consistent performer works on calculated actions. Build a reasoning about why you choose a particular coin at a particular price on a particular day. This would make you feel more relieved even through the volatile times. You did your research, now just hold on and wait for things to turn your way.
#2. Resist Temptations
Don’t just buy because the prices are low, and don’t just sell because the green candles are lighting up. For the wise trader, the decision to invest in a crypto coin is not based on affordability but on market cap.
#3. Altcoins Need More Attention
If you have decided to invest in altcoins and are wondering whether there is a right strategy to think of. There is only one thing to know – you have to pay attention. Many altcoins are subjective to lose market value, stablecoins are a bit less risky in that regard. However, owing to the peer-to-peer networks that all cryptos are, everything is more or less volatile.
When it comes to altcoins, quicker decisions help. Don’t hold on so long that your investment loses value. Here are a few trading pairs that you can start trading crypto in right way.
#4. When In Doubt, Diversify!
Don’t put all your eggs in the same basket.
We know this is getting a bit repetitive but we have to say it again (yikes) – the profits may come quick, but so do the losses. So the key mantra is to diversify your portfolio. Find options that are viable and may carry you even through dips and falls.
#5. Quickest Practice To Adopt
Limit and Stop Limit options can help you create an extra layer of protection and make a predicted trade. There is the added concern that your prediction may go wrong. CoinField lets you cancel your limit orders right away though, in case you have second thoughts.
That said, every trader has the unique ability to influence the market in their own little way. Trading cryptocurrencies can be quite an adventure. DeFi, or decentralised finance, is a pretty unpredictable world to be in. A dog meme creating millionaires, a singer establishing his own currency, an anonymous character bringing about a revolution.
Things move fast here, and they may get intense. It is definitely worth being a part of a great story though.
Cryptocurrencies are definitely evolving every day, new dimensions get added and the present way of looking at things changes. If you have decided to start trading crypto, it is not only important to get it right from the beginning but be prepared for what comes next. We hope the tips above really help you find you in your journey. It will surely be an interesting one.
Interested in joining the crypto community?