• About
  • Contact
  • Our Team
  • Privacy Policy
Newsletter
Crypto Recorder
Advertisement
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Litecoin
  • Investing
  • Ripple XRP
  • Education
  • Contact Us
    • Become a Contributor
  • Advertise With Us
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Litecoin
  • Investing
  • Ripple XRP
  • Education
  • Contact Us
    • Become a Contributor
  • Advertise With Us
No Result
View All Result
Crypto Recorder
No Result
View All Result
Home Education

4 Tips For Profitable Cryptocurrency Trading

Nicholas by Nicholas
February 17, 2018
in Education, Investing
6
SHARES
Share on FacebookShare on Twitter

Four Tips For Profitable Cryptocurrency Trading

As the number of cryptocurrencies increase and more complex instruments like futures enter the crypto space, making money in this market is going to get harder. Simply buying and holding without some solid backing to such as a decision, is no longer a smart strategy.

Related articles

Funding

The Top 7 Sources of Startup Business Funding

February 18, 2019
Bitcoin

Things You Want to Know Before Buying Bitcoins from A P2P Marketplace

February 8, 2019

It’s even crazier that traditional strategies that are used in valuing stocks don’t exactly apply to the crypto market. For instance, when valuing stocks, one can do a fundamental analysis by using ratios such as the price to earnings ratio P/E, debt ratios among others. These are concepts that don’t apply to the crypto markets. So can you value cryptos and make money in this highly volatile, but lucrative market? The answer is YES. Here are 4 tips on how to do so.

  1. Analyze the trading volumes

The first thing you need to do before you invest in a crypto is to analyze its trading volumes. As a rule, always go for cryptos that have high daily trading volumes, unless there are some big upcoming news about a low volume crypto. High volumes signal to a Crypto’s liquidity, and the presence of an active community. The problem with low volume cryptos is that in most cases, they lack a strong community backing them, and they can easily get delisted from exchanges, leading to losses.

  1. Make use of the Sharpe ratio

Once you have narrowed down on cryptos with high daily trading volumes, focus on their historical price movements. The best way to do this is to use a financial ratio known as the Sharpe ratio.  Don’t worry about calculating it, since you can easily find it online.  The Sharpe ratio measures the potential return of an asset based on its volatility.  Figures higher than 1 are usually a sign of an asset with high potential returns. Given that cryptos had a stellar year in 2017, most of them have a Sharpe ratio of higher than 1.  Therefore, for you to make use of this ratio, narrow down on cryptos that have the highest Sharpe ratio relative to the rest of the market to Profitable Cryptocurrency Trading

  1. Stay updated on the news

At this point, you have narrowed down your list to a few cryptos that have a good potential for profitability. But you need to narrow down further and find the ones that have the potential to take-off faster than the rest. That’s why you need to keep in touch with the news.  Check out crypto news from different sources to determine, which of the cryptos you have in your bucket-list have some interesting news coming up.

For instance, ZClassic will be forked to create bitcoin private, and all holders of ZClassic will be rewarded with bitcoin private on a one-to-one ratio.  This is big news and if ZClassic already meets the rest of the other criteria discussed above, then this news would be guaranteed to earn it a place as the crypto to invest in right now. That’s because the demand for ZClassic will most likely grow in coming days as people seek to earn some free coins.

  1. Find an entry point

Now that you have identified the coins to invest in, you need to find an entry point for your investment.  Technical analysis has always been the best strategy for finding an entry point when investing in financial assets. The best way to use technical analysis in finding an entry point is to understand candle stick patterns. For instance, if you are looking to buy Bitcoin, then a bullish engulfing candle stick pattern on the weekly chart would be a good indicator that it is time to enter the market.

Follow these steps and chances are that you will do Profitable Cryptocurrency Trading in this market. Don’t just buy based on online FOMO that is in most cases not based on market realities.

Tags: cryptocurrencyProfitable Cryptocurrency Trading
Share6TweetShare
Previous Post

Bitcoin Gold (BTG) offers hope for the much feared BTC bubble burst

Next Post

This new product will push Lisk (LSK) to above $100 in 2018

Related Posts

Funding
Education

The Top 7 Sources of Startup Business Funding

February 18, 2019
Bitcoin
Education

Things You Want to Know Before Buying Bitcoins from A P2P Marketplace

February 8, 2019
Zilliqa
Featured

Investor Insight: It’s Not All Gloom And Sorrow, Dentacoin (DCN) And Waves (WAVES) Spike In Double-DigitGains

December 14, 2018
bitcoin
Education

How to accept bitcoin in your store

December 7, 2018
Digibyte
Featured

Investor Insight: Bitcoin SV (BSV) Goes Ballistic – Investor Confidence on the Rise

December 7, 2018
Dogecoin, Bitcoin and Ripple
Investing

Bitcoin (BTC), Vechain (VET) and Dogecoin (DOGE) Price Analysis: Can the Yearly Lows Hold?

December 6, 2018

Leave a Reply Cancel reply

Your email address will not be published.

No Result
View All Result





Latest News

  • Trending
  • Comments
  • Latest
Cardano

Cardano (ADA) has proven it’s a resilient project: Good times ahead

February 21, 2019
Digibyte vs Litecoin

Digibyte (DGB) v Litecoin (LTC) – Which one is a better investment in 2019?

February 20, 2019
Dogecoin (DOGE)

Dogecoin (DOGE) – One of the most practical cryptos in the market

February 22, 2019

Cardano (ADA) to hit $10 within the next one year!

January 19, 2018
Cardano

Cardano (ADA) – 4 Dlab/Emurgo projects that instill faith in Cardano: The future is bright!

February 15, 2019
Digibyte

Digibyte (DGB) – Digiassets testing on-going: Bright future ahead for Digibyte

February 16, 2019
Dogecoin (DOGE)

Dogecoin (DOGE) – One of the most practical cryptos in the market

February 22, 2019
Cardano

Cardano (ADA) has proven it’s a resilient project: Good times ahead

February 21, 2019
Digibyte vs Litecoin

Digibyte (DGB) v Litecoin (LTC) – Which one is a better investment in 2019?

February 20, 2019
Cardano

Ethereum (ETH) could keep rising in anticipation of ETH staking

February 18, 2019
Funding

The Top 7 Sources of Startup Business Funding

February 18, 2019
Dogecoin

Dogecoin (DOGE) – Tinder could be a big deal for Dogecoin: Is this the beginning of a bull run?

February 17, 2019



Crypto Recorder

CryptoRecorder.com is a Dedicated Cryptocurrency news website and writes a variety of educational articles related to smart crypto trading, bitcoin and altcoins. You will find a details article on almost every hot altcoin and unbiased analysis of coins.

Recent Posts

  • Dogecoin (DOGE) – One of the most practical cryptos in the market
  • Cardano (ADA) has proven it’s a resilient project: Good times ahead
  • Digibyte (DGB) v Litecoin (LTC) – Which one is a better investment in 2019?

Follow Us

Facebook Twitter Google+ RSS

Newsletter

© 2017 JNews – Premium WordPress news & magazine theme by Jegtheme.

  • About
  • Contact
  • Our Team
  • Privacy Policy
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Litecoin
  • Investing
  • Ripple XRP
  • Education
  • Contact Us
    • Become a Contributor
  • Advertise With Us

© 2018 Copyright CryptoRecorder.