Tips for Analyzing the Market for CryptoCurrency

6 Amazing tips that will improve the profit you are making when selling Cryptocurrency 

The Cryptocurrency Market has captured the hearts of many small investors. This market made it possible for anyone to try their hand at investing – whether they had $1, $100, or $10,000. 

The market requires no middle man and anyone who has good instincts can earn a lot of money from buying and selling Cryptocurrency. 

If you are new to the Cryptocurrency market, or you want to start seeing a better turn on your investments then you have come to the right place. You will find 6 tips below that will help you to navigate and analyze the Cryptocurrency market. 

#1- Buy with the right currency 

As the Cryptocurrency market is all online it doesn’t trade in just one type of currency. This can be a great opportunity to get more coins for your money. 

Check the exchange rates for multiple currencies on each coin that you are trying to trade. You may find that you can get a much better deal using Euros than USD, or vice versa. 

Do the same when you are selling. For example, check that the USD to BTC conversion isn’t better than the Euro to BTC before selling. 

#2 – Keep up to date with the latest Cryptocurrency news 

As Cryptocurrency trading is becoming more normalized, it is getting covered a great deal more in the mainstream news. While many people may get annoyed by this – the extra coverage can turn into a gold mine for someone who knows how to use it. 

We tend to see big spikes in the value of the major coins when Cryptocurrency is in the news. But, these spikes don’t last forever and we often see a drop shortly after. By keeping track of what the world is talking about you may be able to predict drops before they happen. 

#3 – Assess the team behind the coin before you buy it 

Cryptocurrencies don’t just appear out of nowhere, they are made by someone. And not all Cryptocurrencies are made equally. When you are thinking about investing in a coin you should take some time to research the team that is behind it. 

Do they have a history of creating Cryptocurrency? If so, is it a good history? Or have they made coins that have lost people’s money? Do they seem to care about the longevity of their coin or are they looking to turn over money quickly? 

All of these answers will give you an idea of whether you want to trust these people with your money. 

#4 – Remember the market isn’t regulated 

The Cryptocurrency market is based online, so it is under the jurisdiction of no government. We mention this for two reasons. 

Firstly, if you are scammed there is very little you can do about it at the moment. We recommend only buying through larger trading platforms that vet their coins. 

Secondly, because the coins are not verified there are no ‘standard’ values for the coin. BTC may be selling for $1230 a coin on Website A and $1000 a coin on website B. If you spot a difference like this, buy from website B and sell straight away to Website A. That’s $230 instant profit. 

#5 – Stay away from ‘Pump and Dump’ schemes 

We mentioned above that if you get scammed on the Cryptocurrency market then there is very little you can do about it. Sadly, there are many people taking advantage of this, so you have to make sure you are making smart choices. 

‘Pump and Dump’ schemes are when someone buys a lot of a coin, then promotes it to a big group of people, who buy the coin and raise its price. The original person then sells their massive share and the coin drops in value. Everyone who listened to them has lost money, and they have walked away with a huge profit. 

If you see influencers advertising Cryptocurrency, stay well away. 

#6 – Invest in more than one coin 

Our final tip is to put your money into more than one coin. This will decrease your chances of losing everything if the market plummets. 

It can be really tempting to put everything into something like BTC when you see how well it’s doing, but if that tanks then you have lost all your money. So spread your investment around. Invest in big and small coins. But never in just one Cryptocurrency.