If you want to make a quick profit from cryptocurrency, then you need to apply a different strategy from investing.
Investing is about picking a coin or token and holding your stake in the technology for the long term.
Investing is about saving for retirement or a big ticket purchase some time in the future.
Traders must apply a different mid-set.
Trading is about nipping in and out of the market, almost betting against gains and losses.
Cryptocurrency is loved by traders because the peaks and troughs tend to be greater than those on the stock markets because coins are more volatile, meaning they have a chance to make bigger profits – and risk larger losses.
Experienced traders have an arsenal of tools at their fingertips to help them track their holdings and make sensible decisions.
Choosing an exchange
Exchanges are the interface between real money and virtual currency. They can be centralised or decentralised, which explains how they store cryptocurrency.
Centralised exchanges are more numerous and are prone to hacks, which is why many traders choose to keep their cryptocurrency in a wallet separate from an exchange.
Managing your assets
A portfolio manager tracks your cryptocurrency and how much your stake is worth. Some wallets come with these trackers. One of the most popular standalone trackers is LiveMarketCap
A tracker is vital if you have several different cryptocurrency holdings. A more sophisticated monitor is CoinTracking
Analysing your holding
Picking the tool that suits you is difficult. You need to know what you are analysing and why rather than losing yourself in streams of senseless data.
Analysis is not for starters in trading. It’s a mix of crunching numbers, watching trends and keeping an eye on what’s hot and what’s not on social media.
Hot to the market is Roninai– at a cost of $50 or $199 a month with a special early access offer.
Market monitor
As you are unlikely to sit in front of your laptop 24/7, you need to know when the market changes. Some analysis tools offer this service, but setting up your own notifications is better.
You can tap in to a news aggregator – and there are a lot to choose from. They come as market-specific like CoinBuzz or more general news sources, such as Google News or NewsNow.