For newcomers into the cryptocurrency market trading, it can be really hectic and stressful to monitor price movements and news events until late into the night. The problem is that if you are not careful, you may end up losing a huge chunk of your invested capital or even all of it.
Therefore, this article will explain a strategy that will not require you to stay awake throughout the night… plus it will also remove the need to follow each and every price movement and news release – some of which you don’t even know their implication to the Crypto market.
Research the Technology
First, you should look for a cryptocurrency with a technology that has a promising practical use in the coming years. For instance, there are coins, like the anticipated OilCoin, which are normally developed just for the sake of having a cryptocurrency coin with members but without having other practical uses.
The cryptocurrency of your choice should have something new to offer and not just the usual blockchain technology; the developers should have come up with something special.
Examine the Team
Then, you should look for a crypto team which is led by a business-savvy leader rather than a guru in software engineer or a veteran from Wall Street.
With someone who is well versed with sales and business, you will be sure that the coin will improve in the long run since the leader will be looking to have as many businesses linked to it as possible.
Again, with an experienced business leader, you will be sure that they have managed several projects and at times even brought new products to the market. Therefore, you have a better chance that the new product (in this case the cryptocurrency coin) will do great.
Factor in Stability Factor
Then, the most important one of all is that the cryptocurrency should have a history of stability in its prices. You should look for a coin with a stable past with no fears of crashing in the future. For example, it took some time to come closer to the understanding of advantages and disadvantages of bitcoin It should also be free from cartel manipulation and external hacks.
After doing all of the above, you should avoid panic if you see the prices dropping. Markets never lack pullbacks. Price movements always tend to move up and down, which can be considered a natural cycle. The exception is when the price falls with very strong bearish momentum, which could be considered a crash.
The most important is that you have done your homework and chosen a sturdy cryptocurrency pair. This should remove any worry about future retracements and install some confidence that the cryptopair will end up rising in time.
Article prepared by Nikita Barabanov from Elite Currensea