by Susan Paige
How hard can it be to get rich off of cryptocurrency?
Deposit your cash in any of the most popular crypto trading platforms, sit back, and watch the number go up, right?
Well, not exactly.
While it’s probably wise to invest long-term in BTC, ETH, and other stalwarts of the market, you’ll have to wait a long time before you get your money.
If you want more immediate trading results, and the chance to make staggering amounts of cash, you’ll need to learn to trade.
Begin With Technical Analysis
To succeed at the trading game, you’ll first need to learn how to read some graphs. Fear not! Analyzing the graphs of prices over time—commonly known as “technical analysis”—is nowhere near as hard as it looks.
First, you should get familiar with “candlestick graphs,” which map out a coin’s price range over a span of time. It’s simple: when the candle is green, the price has gone up. When the candle is red, the price has gone down.
The “wicks” at the very end of each candle are the maximum and minimum prices during the trading session. The starts and stops of the candle itself (colored either red or green) are the opening and closing prices of the currency.
So how do you analyze these graphs? It’s a mixture of fortune telling and meteorology.
The main assumption is that the future will resemble the past. In other words, patterns that appear in the price’s history are likely to repeat themselves in the future.
So if you see a cycle of gain and loss repeating itself, try and predict where the price will be if that cycle continues. Invest accordingly and see where it takes you!
Monitor Public Sentiments
While decentralized finance is largely a game of numbers and probabilities, the market is also an intensely personal, emotional place. The psychologies of investors determine who buys and sells at what time.
For instance, check out this bot that buys BTC whenever Elon Musk tweets about it.
The developer would not have gone through all that trouble if it didn’t make him money. When the world’s richest man talks about Bitcoin, people buy Bitcoin, which makes the price go up.
Understanding mass psychologies and current events can go a long way in helping an investor predict crypto prices.
Here’s an easy example: nearly 7% of Americans used their most recent stimulus check to buy crypto. That’s not too hard to see coming, right? If you knew the $1400 checks were coming, and you knew that the headlines were announcing the legendary 2021 crypto bull run, you might predict the price of crypto was going to surge upward.
You would’ve been right. Since the latest round of checks were passed out, the price of crypto has continued to rise.
Try Out a Crypto Trading Bot
But maybe you don’t want to be the next Whale Shark or Warren Buffet. Maybe you’re just a regular person that wants to make some extra money without much work.
These days there are plenty of robots that can do the hard work of analysis for you, as well as buying and selling your coins based on thresholds that you define.
One large benefit is that you don’t need to watch the prices of your crypto day and night. Imagine wanting to buy the dip and staying up until the wee hours of the morning, waiting for a coin to bottom out before purchasing. Bummer!
Instead, tell a bot that you want to “buy low” on a given coin, and sleep soundly!
However, it’s important to make sure you understand some of the math and economics behind these bots before you hand over your wallet to them. While they’re very powerful, if you don’t know how to use them you won’t get far.
As always, do your own research.
Signals Provider: The Middle Path of Trading Results
There is wisdom in the ancient saying, “Everything in moderation.”
Doing your own full-time technical analysis requires an incredible amount of time and energy. Paying a robot to do your analysis and trades for you requires a great deal of trust in the robot and its algorithms.
What if you were looking for something in between? This is where signals providers come in.
A signals provider is essentially a group chat, often found on Telegram, that sends out messages to its followers when there’s an attractive chance to buy or sell a cryptocurrency and make some money.
When you follow a signals provider, you’re joining a community where everyone involved is committed to making legitimate returns.
In 2021, community is king, and businesses on the internet that offer users a way to connect to one another are projected to succeed.
Research Proven Providers
Signals providers have their predictions documented, so you’ll know whether or not the provider you’re looking at has actually made winning predictions that make its followers money.
For instance, websites like Smart Options offer detailed rundowns of a variety of signals providers’ results. Do your own research on these claims and you’ll have a good idea of what signal provider is worth your time and money.
Knowledge Is Power
Deciding to trade cryptocurrency is a bold decision that may very well change your life—but to do it well, you need the knowledge. Successful trading results require skill and practice.
By realizing that cryptocurrency is the future of money, you’ve already taken the biggest step.
The cornerstone of successful investment is making a commitment to educate yourself and never invest more than you can afford to lose.
Beyond that, don’t be afraid of reaching out to companies and communities online. A quality Telegram groupchat is worth its weight in gold. Knowledge is power, and apes together are strong.