Selecting the best digital asset is a very challenging task. The majority of crypto traders fail to make money because they chose the wrong asset. Even after having strong technical knowledge, they fail to find profitable trade setups as they don’t have strong knowledge of the fundamentals of the market. But news factors are not the only thing you need to assess while trading the digital asset. In order to trade like a professional trader at bigX, you must develop some unique skills which are critical to your success. Only then will you be able to select the best digital asset. It’s like filtering out the best potential opportunity in the market while taking trades.
In this article, we are going to learn about some of the key steps we can focus on when trading cryptocurrency. Follow the tips and you will be able to secure good trades by choosing a stable asset.
The volatility of the market
The majority of the traders think volatility is the only thing that they need to consider. In fact, most people think taking trades in the most volatile asset is the best way to earn money. But think about Bitcoin where the price fluctuated by more than $1000. So, in a single day, you might have to face a $1000 (approximately) loss or profit when the market was extremely volatile. Trading in such a market condition always seems like lucrative deal. But do you have any secret formula that can help you to predict the direction perfectly? The obvious answer is no. Moreover, such massive swings in the price clearly shows that the buyers and sellers are confused.
Anything can happen in such a market and you should not take trades in such an asset. Instead of focusing on the insane volatility market, choosing an asset which has a low level of volatility is wise. This will help you reduce the risk in trading and make you a better trader.
Use the news factors
If you are good at analyzing the news, you will know what cryptocurrency to buy. Before the massive price movement, the news talks a lot about that particular asset. Those who can relate the news data with the technical factor can easily scale up the trade and make some serious profit from this market. Though it will be a tough task at the initial stage, once you learn to take the trades by assessing the news, you will say that riding the big trade is not so hard. In fact, it will make things easier and help you to trade like a professional.
So, if you find regular news on Ripple or Dash, then you don’t need to focus on Bitcoin. Focus on Ripple and Dash as you are going to experience massive swing in price. By predicting the news data perfectly, you have a decent chance to win big trades.
Use the indicators
Indicators can be a great tool for taking trades in the market. Those who fail to use the indicators in a perfect way always lose money because they don’t know the importance of taking a managed risk in trading. If you are good at technical analysis, you may think taking the reading from the indicators is nothing but a waste of time. But by analyzing the critical data in the market, you will be able to take some of the best trades. While you use these indicators, focus on the higher time frame.
Taking a reading from the lower time frame always result in false signals and make things harder. Get used to the indicators in the demo account and it will help you to filter the asset. At times, you might be confused about which asset to trade as both of them might offer equal probability. In such a case, you can always use the indicators to eliminate confusion.