Cryptocurrencies are very volatile assets. It is most suitable for those traders who either hold them for long periods of time or give full-time to trading cryptos. In the last 10-years, investment and trading in digital currencies have given a much higher return on investment (ROI) than any other asset, be it stocks, golds, or others.
If you trade your digital coins actively, there is a risk of losing them to the market, especially due to volatility. The traders of the traditional markets may find this kind of price volatility uncommon. That’s why many cryptocurrency enthusiasts, traders, and newbies just HODL their Bitcoin.
What is Cryptocurrency?
Cryptocurrencies operate on blockchain technology and that’s why all of them are decentralized in nature. One of the most well-known cryptos is Bitcoin. There are many kinds of other cryptocurrencies, generally called altcoins. Some of them are Ethereum (ETH), Chainlink (LINK), Cardano (ADA), Dogecoin (DOGE), Ripple XRP, and many more.
There are many advantages of decentralizing financial operations through cryptocurrencies over traditional ones. Some of the most important ones are:
- All the overhead costs associated with the banks can be curtailed.
- The transactions are less expensive, making it easier to send and receive internationally.
- Bitcoin is inherently anti-inflationary because there is a cap on the maximum supply. The maximum number of coins that can be there in the network is 21 million. Due to this reason, more and more institutional investors are investing in it as the geopolitical scenario remain uncertain, the inflation remains high, and interest rate fall.
In cryptocurrency, financial derivatives can be coded directly into the blockchain. Therefore, there is no need for any kind of financial intermediary.
- Bitcoin is the largest digital currency in terms of market capitalization. Its market share is around 50%. It is used as a “digital gold”. Many Wall Street analysts believe that the store value of BTC is similar to that of gold. In the coming future, a portion of the gold investment will be diverted to Bitcoin and other cryptos in search of better returns and the store of value.
- Ethereum is the second-largest digital coin and is denoted by ETH. Its market cap is US$295 billion and holds a market share of over 14%. Developers can develop smart contracts on the blockchain of Ethereum for creating decentralized alternatives to traditional banking functions including trading and lending.
Which Crypto Should you Choose for Trading?
There are many cryptocurrencies available. The largest digital currencies are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Ripple XRP (XRP)
- Tether (USDT)
- Cardano (ADA)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Uniswap (UNI)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- VeChain (VET)
- Solana (SOL)
- Stellar (XLM)
- THETA (THETA), and many more
There are around 5,000 cryptos available in the digital currency market currently. Which one should you choose to trade or invest in?
Bitcoin is definitely the most popular choice because it is the most adopted of them all, has finite supply (making them inherently anti-inflationary), and largest market cap (of over US$1 billion). In the last 10 years, the price has increased from nil to US$54,000 currently with an all-time high (ATH) of nearly US$65,000. If you consider the ROI from BTC investment, you’ll see that the price has increased by +7,728% in the last 5-years.
If you want to diversify your cryptocurrency portfolio, you can invest in any of the top-50 digital coins, in terms of market cap. However, it must be said here that the small-cap altcoins have a much higher risk than that of the larger market cap digital currencies such as Bitcoin (BTC) and Ethereum (ETH). The main reason why small caps are riskier because they have either underdelivered on their promises or questionable use cases.
When you invest in a crypto, always check its whitepaper, the team working behind it, how the cryptocurrency works, and other intended use cases. You can have a look at the Decentralized finance (DeFi) digital currencies. They are the hottest ones. These DeFo coins are usually created from the blockchain of Ethereum. They help in replacing traditional banking functions with codes. With solid fundamentals, some of these Defi tokens including yearn.finance, Compound, and Uniswap have grown by more than 500% in the last sic months.
In terms of market cap, the leading 5 DeFi tokens are:
- Uniswap (UNI)
- Aave (AAVE)
- Synthetix (SNX)
- Maker (MKR)
- Solana (SOL)
In the last 1-year, non-Defi currencies have also increased significantly. One of the leading examples being Ethereum. Its price has increased from a mere US$90 per coin to US$2500 in the last 1-year. The main reason behind its meteoric rise is the fact that its blockchain can be used for creating a wide range of financial applications.
How to Trade Cryptocurrencies?
5 steps are involved in trading cryptocurrencies:
Step 1: Create an Account on a Reliable Cryptocurrency Exchange
You can buy cryptos easily and securely through a crypto exchange. So, open an account at any reliable exchange such as Gemini, Coinbase, Binance, eToro, or others. You can open an account by providing your personal identification information. Some of the basic information that you may need to set up an account on any of these exchanges are Social Security number, email address, physical address, and Date of Birth (DOB).
Step 2: Fund Your Brokerage or Exchange Account
Once the account has been opened, you can connect your crypto exchange account with that of your bank account. Most of these exchanges provide their customers with bank account funding, wire transfer, and debit/credit card facilities. These accounts are free to open on both Coinbase and Gemini.
Step 3: Choose a Cryptocurrency to Invest In
You can invest most of your available funds in the most popular digital currencies, Bitcoin (BTC) and Ethereum (ETH). One of the major reasons why most people invest in these two coins is the fact that their movement is more predictable than the smaller ones. That’s why it is easier to trade on both BTC and ETH with the help of technical indicators.
Step 4: Choose a Crypto Trading Strategy
You can choose any or multiple indicators for successful crypto trading. There are many technical factors including Elliott Wave Theory. Some of the technical aspects that you must know are:
1/ Reversal Patterns
- Double Top Pattern
- Triple Top Pattern
- Double Bottom Pattern
- Head and Shoulders Pattern
- Reversed Head and Shoulders
- Falling Wedge Pattern
- Rising Wedge Pattern
- Symmetrical Triangle Pattern
2/ Continuation Patterns
- Flag and Pennant (and Wedge) Patterns
- Ascending Triangle Pattern
- Descending Triangle Pattern
- Symmetrical Triangle Pattern
- Rectangle pattern
- Price Channel
If you’re an experienced trader, you must have a foolproof strategy for trading cryptos.
Step 5: Store Your Cryptocurrency
If you are trading digital coins actively, you must store your funds on exchanges only because they are easy and fast to store and use. However, if you are willing to hodl for a longer period of time then it is more secure for you to store your bough coins on cold wallets, especially hardware wallets. You can also use software wallets including Android, Google Chrome, and iOS-based models. While the software wallets are free, the hardware wallets come at a price ranging anywhere from US$60 to US$200.
Top 8 Best Cryptocurrency Exchanges for crypto trading are:
Choose Cryptocurrency Copy-Trading Bots to Increase ROI
Cryptocurrency Trading Robots (such as NapBots.com) automatically scan the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.
The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.
You may also check “Napbots Review – Simple Way To Increase Your Crypto Returns” before taking the plunge.
What’s so special about NapBots?
NapBots crypto trading software is special because it comes with:
- A unique trading algorithm that processes market data for you
- A unique crypto trading bot library so that you can create your own mix of trading strategies
- Autopilot mode that enables you to automate trading 24×7
- An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money
How does NapBots help you to Make Money?
Step #1: Connect to one of the available trust exchanges.
Step #2: Select from the unique list of performing Bots of NapBots
Step #3: Choose a plan that suits your investment style
Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!
Why Choose NapBots?
- NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
- The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
- The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.
Our pricing is simple and there are no setup fees. 7 days free trial is also available.
Are You Ready To Start Automating Your Passive Income Now?
If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods: