Bitcoin today is 1,000% up on prices first set in early 2017. Because of this, more new to market investors are entering the digital currency trading arena than at any point previously. The only question is, can even a novice altcoin trader really expect to make a substantial profit?
Simple Altcoin Trader Mistakes to Avoid in 2018
If you are like millions of other new cryptocurrency enthusiasts, you might be guilty of believing that trading and investing in cryptocurrency is altogether easy. Sadly, nothing could be further from the truth.
Thankfully, a new to the market altcoin trader can still stand to make significant cryptocurrency profits in 2018. The trick is to formulate an informed trading strategy.
How to Trade Cryptocurrency Successfully in 2018
Over 80% of new to market altcoin traders lose everything in just a few short months after starting trading.
Given the pitfalls associated with cryptocurrency trading, new traders need to set a fixed amount of capital aside which they can afford to lose without there being serious repercussions. Traders then need to shortlist different altcoin offerings on the basis of which have the most realistic potential.
Using Past Price Data to Predict Future Growth Potential
As a basic rule, reputable altcoins like Litecoin often retest previous price highs. This means that an altcoin trader who buys Litecoin today at $120, can expect Litecoin prices to eventually recover all the way back up to $300 in future.
Of course, no altcoin trader can ever be 100% assured that coins will retest past price highs. However, investing in such tokens does help traders limit the underlying risk involved with trading.
Knowing When to Buy & When to Sell
The ultimate prerogative of an altcoin trader is to buy cryptocurrency low, before selling high. This and knowing when to exit the market prior to cryptocurrency prices correcting.
With the above in mind, it is imperative for traders never to buy and sell on impulse. Instead, when investing in a coin like DigiByte at an entry price of $0.01, an altcoin trader needs to decide what price they intend to sell at and stick to this strategy no matter what.
If an altcoin trader plans to sell DigiByte when the price rises to $0.03, they need to sell at this price, even if prices look set to climb higher. In like regard, traders should never panic sell should cryptocurrency prices start sliding.
Is It Possible to Get Rich Trading Altcoins?
If an altcoin trader is able to invest a sizable about of capital in trading, it is possible to double, triple, and even quadruple that capital in a relatively short period. Doing so, however, is only possible when traders are equipped with steel like trading discipline. If a trader or investor doesn’t have this, it is much safer by far, simply to buy cryptocurrency and HODL long-term rather than risk everything for the sake instant profit.