Trading cryptocurrency has become popular over recent years, with something that would once have been reserved solely for the experienced investors of this world going decidedly mainstream. When Bitcoin made a host of overnight millionaires back in its early days, when what was widely believed to be little more than a passing fad turned out to be quite the opposite, it sparked an interest that was set to grow and grow, with other major coins like Ethereum soon emerging and showing similar promise.
In fact, Ethereum has sparked even greater interest than its predecessor, owing, in part, to the innovative and advanced blockchain technology on which it is based. Thought to be far superior to that of Bitcoin and having recently undergone a major upgrade, the possible applications of this technology are still beginning to be understood, but it’s already playing a major part in the development of the Metaverse.
So exciting are these developments thought to be that Ethereum is quickly becoming one of the most highly sought-after cryptocurrencies for investors, and thanks to a new breed of online trading and signalling platforms like ethereum-code.me making buying and trading crypto more accessible than ever before, now, anybody with an interest can get started with relative ease.
If you’re one of the many who have sat on the fence thus far, eager to dip your toe in the water but not quite sure where to begin, then you might be wondering if, given the current climate, 2023 is really an advisable time to start. Thanks to the lasting impact of the global pandemic and ongoing pressures caused by the Russian invasion of Ukraine, not to mention rising inflation and the fact that many countries have now dipped into a recession, the crypto market, like all markets, has certainly taken a hit. And, the collapse of prominent crypto exchange FTX back in November of last year has understandably left would-be investors nervous.
But the good news is that trading Ethereum and other cryptocurrencies is still a viable option this year – as long as you go into it armed with the right knowledge and tools you need for success. Here, we take a look at the key tips to getting your trading journey off the ground.
Learn the basics
Whilst it’s true that, nowadays, there are no restrictions to who can trade Ethereum, Bitcoin and the like, having a solid understanding of the basics is key to long-term success and will stand you in good stead to get started on the right track without making any costly mistakes. Learning about the market, the blockchain technology that underpins cryptocurrencies and getting a good grasp of the fundamental value each different coin holds will protect you from making any rash or impulsive decisions as you’ll have a far better idea of the potential repercussions if you do.
Get to grips with the tech
Signalling technology is one of the major reasons trading digital assets like these has become so accessible, and allows even inexperienced traders to take advantage of software that is able to analyse market movements and make predictions on price fluctuations in order to advise on potentially profitable trades.
If you’re new to trading, then it’s highly advisable to use this type of software to support you – but don’t be tempted to rely on it completely. Those who do often don’t learn enough about the process, which means that they may well miss out on longer-term opportunities to make returns – so instead, use your knowledge and the available tools in tandem for the best possible results.
Avoid making impulsive decisions
On that note, avoiding making impulsive decisions is key, as you could stand to make some considerable losses if you make the wrong move without thoroughly thinking it through. The crypto market is notoriously volatile, so it’s wise to consider what your risk tolerance is before choosing which assets to spend your money on.
It’s not just a case of whether your signalling software has highlighted an opportunity, but whether it’s right for you, your long-term strategy and ultimately, the goals you’re hoping to achieve through trading. If a move isn’t in alignment with these, then find some willpower and hold your nerve – and never make trades using money you can’t afford to lose.
Think long-term
Whilst it can be tempting to snap up hundreds of the latest low-priced alt-coins or be influenced by passing fads, focusing on only quick, short-term gains will rarely get you far. Whilst it’s true that some cheap coins can offer some good opportunities for growth, it’s important to take the time to research the technology behind them and gain a thorough understanding of their potential before going all-in.
Coins like Dogecoin might seem exciting at first, but often lack the right technology or strategy for long-term success, which means any gains you do make will likely be short-lived. Instead, look at the bigger picture, and choose opportunities that are likely to offer slow and steady returns over the next few years. Coins like Ethereum have shown continued promise, and with such huge prospects surrounding its blockchain, it remains one of the best choices in 2023.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
