(Newswire.net — February 27, 2018) — Trading cryptos is one of the best ways to make money in the financial markets. But trading in this market needs some level of understanding of financial strategies. Otherwise, you might end up losing money, considering the volatility that characterizes this market. To help you gain an edge trading cryptos in 2018, here are 5 things you need to know.
1. You can trade using robots
Artificial intelligence took over stock and Forex trading a long time ago. It is now taking root in crypto trading too. There are different robots in the market that you can customize according to your trading strategy and make money. Some of the best trading robots in the market such as the Crypto CFD trader have a high win rate, making them a great source of passive income for crypto traders.
2. You can now make money under any market conditions
Before the crypto market was fully established, you could only make money by going long (buying with the expectation that the price will rise). This is no longer the case. Many crypto platforms now allow you to make money, by betting against the market. It’s definitely a good time for crypto traders given that there is an increased chance to profit in times of market volatility. For instance, by using a platform that allows for short orders, anyone who bet against bitcoin in January has made good money. That’s because bitcoin fell from $19,000 to lows of $5000.
3. You need to understand market fundamentals
Unlike in the past, it is now hard to make money in the crypto market by just buying and holding. The market has changed a lot, and you need to have a fundamental understanding of a coin before putting your money on it. Some of the things you need to look out for before investing in a crypto right now is its market cap, as well as its defining features. For instance, when investing in a coin like Ripple (XRP), an issue like the rate of adoption by the banking sector that should inform your decision to trade.
4. Technical analysis works in cryptos
Technical analysis has always been used by traders in the stock and forex markets. It is usually a good strategy for defining entry and exit points in financial markets. You can make use of technical analysis to do the same in the crypto market. Before you trade in a cryptocurrency, you should make use of technical analysis strategies to define a good entry point that has the highest potential for profit.
5. Keep abreast with the news
The crypto market is always full of news that have an impact on the market. For you to trade profitably in 2018, you need to ensure that you are up to date with market news. A good example of how news impact the market is when South Korea announced that it would be banning anonymous trading, and sent the market tumbling. Anyone who entered the market at that point without this information lost money.