How to Predict Movements in Cryptocurrency Values
If there was a sure-fire way for people to be able to correctly predict the way in which the values of cryptocurrencies would move, and when they would move, there would be plenty of very rich investors around.
Whilst there may be no sure-fire way currently of doing so, there are plenty of times when you will find cryptocurrencies do start to fall or rise in value, and as such it may be easier than you thought to place some well-thought-out buy and sell orders on your chosen digital currency exchange.
One time is in the run up to the end of the financial year and when people are required to pay their tax bill, over the last few years it has bene found at those times of years people start to sell rather than buy into cryptocurrencies, at least the major and better well-known ones such as Bitcoin and Ethereum.
The direct result of there being more sellers of those cryptocurrencies than there are buyers is that the price starts to fall. As such that is something to remember and keep in mind when you are next considering buying into any major cryptocurrencies.
It is often in the weeks after tax bills have bene paid that the value of cryptocurrencies then start to creep up in value too, and that is always worth remembering, for the art of making profits from cryptocurrencies is to buy them when the price is low and sell them when the price is high of course!
Try to Diversify Your Cryptocurrency Holdings
The often-made mistake and trap that most first time cryptocurrency investors will make and then fall into, is that they will pin their hopes on Bitcoin as the cryptocurrency they hope will give them the biggest returns on their investments, and whilst Bitcoin is certainly volatile the risks associated with that digital currency are huge.
Therefore, it could be a good strategy for you to diversify your cryptocurrency holdings, and by that, I mean simply look at websites such as Coin Market Cap and then peruse some or even all the listed coins and tokens on that site.
By doing so you are going to very quickly see that there are hundreds if not thousands of different coins and tokens that you an invest in and will also be able to see whether they have increased in value or have dropped in value over any time periods you choose.
There are always going to be some coins and tokens that will show some huge increases in profits and may do so consistently over both the long and short term, however conversely there are going to be some coins and tokens and cryptocurrencies that fall in value and rarely if ever recover.
So, whilst diversifying your cryptocurrency holdings is something you should consider doing, just be aware of the risks when you do so!
Shop Around for a Low Cost DEX
A DEX is you are blissfully unaware is simply a digital currency exchange, and for you to be in any position to be able to buy or sell digital currencies of any type you are going to have to open an account at one of them, and there are plenty of them to pick and choose from.
However, one of the major disadvantages of using some digital currency changes is that you are going to be faced with paying some rather high processing and transaction fees, and as such it could prove to be very expensive if you want to buy and sell cryptocurrencies at any time, much more so if you are buying and selling them regularly.
Therefore, if there is one piece of advice I would like to pass onto anyone who is new to the world of buying and selling cryptocurrencies that will be for you to ensure you are not using a DEX that has high processing and transaction fees associated with it.
Please spend some time doing your research to ensure that you keep those fees and charges down to an absolute minimum, if you do not you will end up seeing any profits you do make when investing in cryptocurrencies being eaten away in fees and charges!
Also, make sure you store your coins and tokens somewhere very safe and never rely on a digital wallet that is supplied by a DEX as the place your store them as they could be at risk when you do so!