It seems like Bitcoin rose from relative obscurity to front-page news overnight. Although it was created over a decade ago, Bitcoin hadn’t seen such huge headlines until it began to explode in price last year. The price of one Bitcoin increased exponentially, and last year it hit an all-time high price of over $68,000 per coin.
With huge amounts of money flowing into the space, there was an explosion of all things cryptocurrency related. NFTs became a huge hit and cryptocurrency exchanges seemed to be popping up everywhere.
In addition, celebrities began to endorse the space and promote their tokens and NFTs. A huge number of A-listers seemed to be getting involved with NFTs or telling people to invest in different coins. However, some were more prominent in highlighting the utility of these assets and not just using their huge following to make a quick dollar.
Following the expansion of the digital asset space, many bloggers and YouTube vloggers began to post trading tips to help traders invest their money. You should always be careful when investing in cryptocurrency, as digital assets are considered the most volatile investment. This is highlighted by the price of Luna, which hit the news following a huge dip. It has since made a resurgence and saw investors putting their money back into cryptocurrency.
The potential advantages of using blockchain technology are huge. When Bitcoin was first devised in 2008, it was limited to a small number of enthusiasts who were extremely excited about the innovative technology that underpinned it. It has since grown to a massive number of millions of investors from all over the globe.
If you do not understand how it works, you should not be investing. This should go without saying and applies to any other field, be it stocks or foreign currency exchange.
Ensure you are researching properly and only investing money you can afford to lose. Today, we will discuss where you can find the best crypto trading tips online that can supplement your research and help you to hopefully make a profit from your investment.
One of the main places to start is social media, whether it be Facebook, Twitter, Instagram or YouTube. You need to gather information from a wide variety of sources to be aware of all of the facts before you look to get involved in cryptocurrency. Several influencers have a serious knowledge of cryptocurrency and have been huge advocates of the space for the best part of a decade. They will also use their social media to give you trading tips, and to watch out for the most profitable tokens.
However, do approach this with some caution. As we have already touched on, not all influencers in the space are equally knowledgeable, and some may use their influence to promote the price of a coin they hold in order to inflate their profits. The best advice usually comes from impartial cryptocurrency influencers who promote strategy instead of coins. These types of investors tend to have large followings on social media and will highlight the positives and negatives of a cryptocurrency. This is important, as any expert or website that claims to be promoting astronomical gains will not be impartial.
For instance, one of the best tips is to manage your investment as cost-effectively as possible. You can do this by setting up automatic buy and sell orders or employing a dollar cost-averaging technique. This is where you continue to purchase your cryptocurrency even when it drops in price, so your average accumulation price is lower.
You must be cautious when employing this strategy, though, and include other factors, such as overall market sentiment or finding the root cause of why a price drops. If it is a simple market correction, cryptocurrency traders will use the opportunity to buy back in. However, if it is a total drop, such as what happened with the price of Luna earlier this year, you could lose large sums of money. Your capital is always at risk when trading cryptocurrency, so you should be aware that there’s always a chance you could lose money, despite how much research you perform.
Reputable cryptocurrency websites
This may seem fairly obvious but always ensure that any trading tips you get are from websites or traders in the space who know what they are talking about. It’s really not advisable to follow celebrities who blindly promote meme coins with no utility, or that have websites that have only recently been launched.
If a cryptocurrency analyst is using their Twitter account to do a 10-tweet thread about the price of Luna, they are clearly more knowledgeable on the topic than most – especially a celebrity who never talks about cryptocurrency but is suddenly telling you to invest in a token.
Websites that have been established for a number of years and have a global presence are usually the ones you should look out for. They usually provide the fairest and most balanced opinion regarding digital assets. This includes topics such as which cryptocurrencies you should look for and which you should avoid.
As with any investment, the beginning stages should include learning everything about your chosen asset. It would be best to put yourself in a position where you completely understand the market, what to look for and how to benefit from price action.
Getting crypto trading tips online is a good start. It is important to hear other people’s opinions on cryptocurrency and weigh them up with your own. It would be also best if you employed the strategies we mentioned earlier to mitigate your risk effectively. If you combine these things and look to implement them in any trade moving forward, you’ll be on a good footing to enter the market in the best possible position.
As previously mentioned in this article, you can do all these things and still lose your money. This is because the market is extremely unpredictable, and you must ensure you are aware of the risk before you enter the market.