Web3 has advanced rapidly in the past few years, and the most popular cryptocurrencies that have been seeing rapid rises and falls are Ripple, Ethereum, Litecoin, and Bitcoin. The classic trap of chasing the latest technology is a common occurrence among traders. However, many have found themselves struggling to enter a market while they are still in its infancy. This is because platforms like Coinbase only allow users to purchase certain crypto at a time which doesn’t allow for diversification of investments. There’s also often limited liquidity making it harder to sell off coins when you want or need them as well as forcing you into making trades using leverage when they might not be appropriate.
To gain an edge over the cryptocurrency market, you need to be able to have your finger on the pulse of new coins and exchanges. CryptoCompare is a great resource for this information as well as providing traders with insights into how certain coins are performing and how much volatility there is in the markets. They provide review breakdowns of different exchanges, a forum for community members to interact with each other, and plenty of excellent charts that help identify trends.
2. Research & Study: Read Whitepapers & Watch Webinars
Cryptocurrencies are open source software that is available publicly for anyone who wants to view their code. There are some well-known coins like Ripple, ZCash, and Monero that have ‘whitepapers’ written about their technology. These can be enormously helpful in understanding how the technology works, what problems it is meant to solve, and how it will give you a competitive advantage. They typically go over the technical aspects of the software as well as its uses and limitations.
In addition to whitepapers, webinars are available on most major cryptocurrency platforms (eg: CoinTelegraph) where developers and other industry leaders come together to discuss their projects and answer questions from investors. Both of these sources can provide you with a wealth of knowledge about specific cryptocurrencies that aren’t being provided publicly by exchanges or developers themselves. Know about guest posting sites.
3. Cryptocurrencies & Platforms to Invest in
Once you’ve made your decision on which cryptocurrency to invest in, you need to pick the right platform for you. It’s important that your investment is safe, secure and easy to trade so choose wisely. Some of the most popular exchanges are Binance and Bittrex due to their accessibility and security features.
Alternatively, some platforms offer digital wallets where you can keep your coins stored offline from hackers and other online threats making them safer than exchanges. These include Exodus wallets for Bitcoin, Bitpie for Litecoin, Coinbase for Bitcoin and Ethereum, and Electrum for Litecoin among others. Research your options before investing so you don’t end up with the wrong choice.
4. ERC-20 Tokens
One of the most popular ways for investors to diversify their portfolios is through the purchase of ERC-20 tokens on Ethereum. Since these tokens will be traded on the Ethereum blockchain, they are incredibly easy to transfer to other platforms if you ever decide to move them into an exchange at a later date. This can also help you get a hold of future currencies without making an investment in a specific platform (ie: Litecoin) if you decide that it might be right for you in the future.
5. ICOs: Initial Coin Offerings
ICO, or Initial Coin Offering, is a way for companies and investors to raise funds for a new cryptocurrency. These are similar to IPOs for stocks and allow people to invest early in a coin with the hope that it will be worth more in the future when it’s more widely adopted.
6. Trading & Arbitrage
The crypto promotion markets have been known to have low liquidity which means that there isn’t always enough buyers or sellers of certain assets at times which creates price discrepancies between exchanges that allow traders to take advantage of them through arbitrage opportunities. By using automated trading bots, you can rapidly execute trades and make money whenever price differences present themselves.
7. Trade on Margin
Margin trading is a technique that allows traders to take advantage of price discrepancies in the markets just by trading with money borrowed. This means that you don’t actually have to own the cryptocurrency you want to trade as long as you can borrow it and pay interest on it in the meantime. In order to benefit from this, you need a margin account which requires deposits in the amount of your total trade and will require you to pay interest on any debt left over at the end of each month.
8. Decentralized Exchanges
Decentralized exchanges allow for traders to sell or buy cryptocurrencies without needing a third party. These are safer than centralized exchanges because there is no single point of failure and you retain custody of your funds at all times. They’re also safer for investors because they don’t have to worry as much about their funds being stolen by hackers. There are a limited number of decentralized exchanges that are currently available, but they could see a boom in popularity if people continue to have problems with centralization in the coming years. And all the seo backlinks are here.