Tips on How to Minimize the Risks When Trading Cryptocurrencies

Tips on How to Minimize the Risks When Trading Cryptocurrencies

Trading cryptocurrencies is considered a risky investment. And for a good reason; crypto price values fluctuate very wildly, almost unpredictably, exchange fees can add up quickly, and there is als… Bitcoin has been trading sideways since its supply squeeze in early May—though many other smaller cryptocurrencies have surged during that time… Cryptocurrencies latest news and history organized by date that contains 1000000+ news archives. Click here to read what world was saying about cryptocurrencies. Polish Financial Supervision Authority (KNF), is now pondering on whether to regulate bitcoin (BTC) and other cryptocurrencies in the nation. The regulator is Bitcoin rose to its highest price in a month after weeks of stagnancy, but ether stole the headlines this week. Full list of stories by category Cryptocurrencies – 2020-07-26

Trading cryptocurrencies is considered a risky investment. And for a good reason; crypto price values fluctuate very wildly, almost unpredictably, exchange fees can add up quickly, and there is also the issue of security.

Even if you think you are a good trader, you still need to have a risk management strategy that will protect you from losses when dealing with cryptos.

In order to help you have as much revenue as possible, we have made a list with some useful risk-minimizing tips for crypto trading:

The most basic common-sense tip for effective trading is to know when to enter the market, and also when you should get out of it. The process of establishing your entry and exit points prior to the execution of any trades is of great importance.

You probably heard by now that in order to make a profit, you have to buy low and sell high. It, seems easy, but what low and high you establish before you enter the trade is the key to your success.

You first would have to study various buy and sell prices over a specific period of time and also take into account other factors that might affect prices, such as market sentiment, partnerships, developments, and other news.

Market trends should be keenly observed. For example, if you see mostly buy orders, you should also probably buy, as this might indicate that people are more willing to hold their crypto instead of selling. The same approach applies to lots of sell offers.

You should also look out for price manipulations, so you don’t end up making orders that have no supporting market sentiment.

Putting all your money in trading is not advisable, as you can stand to lose all your savings very quickly should the market go against your trading strategies.

It is wise to allocate a percentage of your capital to crypto trading, and from that amount, you should diversify your assets and trade on multiple exchanges and cryptos.

By executing trades on different exchanges, this minimizes the risk of losing all your funds in a hack.

Now that we are on the subject of hacking, we should mention the importance of having good security practices. Hackers are constantly looking for new ways of getting into your account or wallet, being very inventive when it comes to malware, keyloggers, and various phishing strategies.

When you receive new emails from unknown people and certainly don’t click on any weird links or download any materials that might come attached to it. Make sure that your antivirus system is up to date, and always use secure passwords for all accounts.

Before settling on an exchange, you should first thoroughly search the reputation of that company, if it is regulated by a proper financial authority so that in case of theft or hack, you will be restituted in some way. Also, verify if the exchange had any previous hacking incidents and look into how they handled the matter. Check their site’s URLs, which should always start with https and have a green padlock, but usually, most legitimate exchanges have all connections secured.

After you have completed your trading operations, always move your coins from your exchange to an external wallet. This wallet should be secure, and you must keep your private keys and seed phrases stored safely.

A good trader must be flexible and adapt to changing market conditions. For example, if there are strong trends, you can capitalize better using swing trading, but when the prices are stable, an automated scalping strategy is more effective.

Margin trading can bring huge profits, as you multiply your order size, and you can adopt long or short positions. But keep in mind that you are practically trading with borrowed money, and you can end up using more money than a regular trade.

If you overuse leverage, you can stand to lose your initial trading sum during forced liquidation. Holding your trade for long periods of time is risky with leverage, as even a price deviation of 1% can leave your account depleted.

As there are some exchanges that offer leverages of x100, you should stick to leverage around x3, as you can still increase your trading gains but have enough wiggle room in case you have to exit a bad trade.

Many traders have made bad decisions driven by fear of missing out. You have to control your emotions even though you see many following the hype. If you sell out of fear, then you might cash out your money at the bottom of a dump.

Media usually trails behind market trends, and often exaggerate the market’s movement. You should be one step ahead of those that only follow the media by relying on the order book and technical analysis.

Now that you have read our tips on how to trade cryptos but keep risks to a minimum, you are ready to start making some money from the cryptocurrency market.

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As Bitcoin Flounders, The Price Of These Smaller Cryptocurrencies Has Suddenly Soared

As Bitcoin Flounders, The Price Of These Smaller Cryptocurrencies Has Suddenly Soared

Bitcoin has been trading sideways since its supply squeeze in early May—though many other smaller cryptocurrencies have surged during that time.

The bitcoin price has remained firmly under $10,000 per bitcoin despite a raft of positive developments for bitcoin and the wider cryptocurrency space.

However, the likes of chainlink, cardano, tezos, stellar and ethereum have all soared—with some more than doubling in value in a matter of months.

MORE FROM FORBESVisa, Mastercard And PayPal Are Changing Their Tune On Bitcoin And CryptoBy Billy Bambrough

The bitcoin price rally has stalled over recent months even as some smaller cryptocurrencies have … [+] rocketed higher.

Bitcoin has been treading water since early May, despite repeatedly trying to break above the psychological $10,000 per bitcoin level.

Meanwhile, ethereum, the second largest cryptocurrency by value after bitcoin, has added almost 50% to its price during that time, pushed on due to a surge of interest in decentralized finance, sometimes known as DeFi—the idea that blockchain entrepreneurs can use bitcoin and crypto technology to recreate traditional financial instruments such as loans and insurance.

“Ethereum has been the main rails for some of the largest initial coin offerings and most recently been rails to the largest stablecoins that have unleashed the DeFi wave,” Philippe Bekhaz, the chief executive of Bermuda-based stablecoin platform Stablehouse, said via email.

Ethereum has been further boosted by the soaring price of chainlink, a token that powers a decentralized network designed to connect smart contracts to external data sources and is built on top of ethereum’s blockchain.

The value of chainlink’s link token has more than doubled since early May, adding to its already massive gains over the last year.

“Ethereum is one of those game-changing projects,” Adam Traidman, chief executive of cryptocurrency wallet BRD and maker of Blockset, an enterprise-grade blockchain data integration platform, said via email.

“I can tell you firsthand that ethereum is the most requested chain, right up there with bitcoin, that companies ask Blockset to support, likely due to its capabilities of building private chains.”

MORE FROM FORBESBlow To Bitcoin As Binance CEO Makes ‘Safe Haven’ Stock Market Crash WarningBy Billy Bambrough

The bitcoin price has declined over the last year, failing to rally after its closely watched supply … [+] squeeze in May.

Elsewhere, cardano’s ADA token has leaped by over 200% since early May as excitement swirls around an upgrade to the cardano blockchain that’s designed to improve the platform’s decentralization and scalability, and investors piled into DeFi projects.

“With cardano, we believe we can create a revolutionary solution which will be able to offer access to finance and investment to swathes of the population who have previously been shut out of the system,” the chief executive of cardano developer IOHK, Charles Hoskinson, said in a statement ahead of the update’s rollout this week.

Another minor cryptocurrency, tezos, styled as a “self-amending cryptographic ledger” that uses the so-called proof-of-stake consensus model as opposed to bitcoin’s proof-of-work, has emerged this year as a favourite blockchain and cryptocurrency for tokenized real-estate and security tokens.

Tezos, also benefiting from the DeFi rally, has added 22% to its price since May but has more than doubled its price over the last year.

Stellar, a formerly top-ten cryptocurrency that has been pushed down the rankings recently, has also rallied over the last few months, adding almost 50% to its price since early May.

“Will stellar be the next altcoin to pump,” asked closely-watched trader Peter Brandt via Twitter last week, pointing to a technical data chart.


Author: Billy Bambrough

Cryptocurrencies archive news by date

Cryptocurrencies archive news by date

  • Chainlink (LINK) taps South Korea’s biggest banks to bolster forex and DeFi
  • Put to Good Use: Ethereum Racks Up Serious Numbers to Set Benchmarks
  • Weiss Ratings Says One Crypto Will Become Centerpiece of Billion-Dollar Revolution – and It’s Not Bitcoin (BTC)
  • J. A. McDonald: The Longest Running Case of Mass Hysteria
  • Ethereum miners’ rising fees could be a security concern
  • Dash, Dogecoin, Bitcoin SV Price Analysis: 26 July
  • Bitcoin and Ethereum Surge to New Highs, Gold Almost at All-Time High
  • Ethereum Surpassing $300 As Bitcoin’s Dominance Records Yearly Low
  • Crypto Is Next Step in Currency Evolution but Must Adapt to Succeed
  • The Return of the King: Bitcoin Price Back Above $10,000
  • Bitcoin Breaks $10K and 3 Weeks Before One BTC Prediction
  • Bitcoin hits $10,000 for first time in seven weeks
  • Popular Indian Youtube Channel Hacked to Promote Bitcoin Giveaway Scam
  • Chinese Electric Vehicle Manufacturer Li Auto Set to Raise Up to $950 Million in IPO
  • Ethereum (ETH) Still Has More Room to Grow in the Crypto Markets
  • Why The Increasing Demand for Gold is a Bullish Signal for Bitcoin
  • DeFi Tokens Lead to Ethereum Price Rally, ETH Crosses $300 Mark Making New 2020 High
  • Bitcoin bursts past $10,000, marking coin’s first big-move since halving
  • Why Bitcoin Suddenly Spiked to $10,200, Instantly Liquidating $75M
  • Mining pool co-founder on Bitcoin mining centralization, ‘death spirals’, and money printing
  • Meghan Markle & Prince Harry Don’t Deserve This. Archie is Off-Limits
  • Bitcoin Falls Back Into The $9K Zone After Its Brief $10K Breach
  • Bitcoin Could Be Readying To Take Out All-Time Highs, Thanks To This One Simple Reason
  • Ethereum hits highest price since June 2019
  • Ethereum Still Has More Room to Grow in the Crypto Markets
  • EOS, BAT, Ethereum Classic Price Analysis: 26 July
  • Title Token for Blockchain Estate Registry, Part 1
  • Ethereum (ETH) Looking Overbought on Short Timeframe, After Taking $300
  • BSN ‘Split’ Can Stimulate China’s Blockchain Sector Toward Global Reach
  • Cardano’s Charles Hoskinson Goes After Tezos Community for Slandering ADA as ‘Worthless Former Casino Coin’
  • TRON Adopts Single Letter Domain, Withdraws $1M Twitter Hack Bounty
  • Binance and Helping Harry Return Stolen Crypto Worth $10K to Victim
  • Ripple Director or Product Launches XRP Payments and E-Commerce Platform
  • A new Ethereum DeFi token is literally up 100,000% in a week: VC
  • Bitcoin: Don’t believe everything crypto-indexes tell you
  • Bitcoin dominance slips, bringing memories of 2017 ‘alt season’
  • Ether Price Hits 2020 High: Key Reasons Why ETH Outperforms Others
  • Crypto exchange Coinbase discloses how many users it has
  • Ethereum Price Analysis: $300 Broken, What’s The Next Target For ETH?
  • Bitcoin in the darknet: Darker than you think
  • Is This China’s Century or the US’s? Maybe It’s Both
  • Clear Governance Key for Enterprise Blockchain to Move Forward
  • Scientology – And The Tom Cruise Connection – Is Hollywood’s Last Taboo
  • Ethereum price surpasses $300 as Bitcoin crosses $10K mark
  • Department of Justice unveils fraud charges against three people involved in PlexCoin ICO
  • As Bitcoin Dominance Continues to Drop, Altcoins Are Set to Blast Off
  • Cardano’s Highly Anticipated Shelley Upgrade Hits Launch Pad, Hard Fork Countdown Underway
  • Blockchain-Based Smart City Project LImestone Plans for Token Listing
  • Back from vacation? Bitcoin pushes through $10K, Ether through $300
  • Bitcoin fees pulled higher by DeFi-mania
  • Data: the Volume of BTC’s New Visitor Has Broken Through the Recent 3-month High
  • Report: Cryptojacking Attacks in Mexico On The Rise
  • Bitcoin Price Logs Two-Month High Above $10,000
  • How the ‘AntChain’ blockchain is taking China by storm
  • Visa Moving to Integrate With Digital Currency Platforms
  • The answer to ‘What is XRP?’ may decide its crypto-custody future
  • Cryptocurrency Making a Big Difference in the Lives of the Unbanked
  • Geopolitics Propels Bitcoin to $10,000
  • Charles Edwards: BTC Could Shoot Up with Banks’ Help
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  • Poloniex Adds DeFi Token Decentr
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  • Vitalik Buterin Pushes For Clients to Start Working on Phase 1
  • Filecoin Hype Returns as Mainnet Launch Nears
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  • Gaming Industry Use of Blockchain May Lead to Mass Adoption
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  • Decoupling: Bitcoin Spikes 8% Despite Nasdaq’s Horrible Week
  • Visa Claims It Will Support More Stable Currencies in the Future
  • Litecoin short-term price analysis: 26 July
  • Bitcoin Giveaway Scam Hits Popular Indian Youtuber
  • The Future for Unregulated Bitcoin Exchanges
  • Banks can push Bitcoin price to $20,000, says Charles Edwards
  • Visa advance crypto approach to back new form of commerce
  • What Elon Musk-Backed OpenAI’s GPT-3 System Says About Investing in Crypto
  • Bitcoin [BTC] Crosses $10,000 7th Time This Year, Is this the Real Deal?
  • Market Update: Crypto Cap Nears $300 Billion, BTC Hits $10K, ETH Rallies Hard
  • Cardano long-term price analysis: 26 July
  • Bitcoin has only 30 percent chance of breaking $17,000 this year, according to this “estimate”
  • Bakkt Hasn’t Experienced Any BTC Options Trading Since Mid-June
  • Bitcoin short-term price analysis: 26 July
  • Blockchain Can Help Find a Cure for COVID-19
  • Filecoin mainnet launch generates hype, again
  • Under the microscope: This week in Open Finance
  • Bitcoin Price Rally to $10K Has Not Shaken BTC Holders Yet — Data Shows
  • DeFi Is Testing Ethereum’s Transaction Limits, These Solutions Offer Hope for Scaling
  • Binance Reveals Five Most Heavily Traded Altcoins As XRP Makes Exchange’s List of Worst-Performers in Q2
  • Dash Core Group to Release Next Update, to Launch Testnet By Yearend
  • Crypto Long & Short: Where Fintech Ends and Crypto Begins
  • Exploring Decentraland: A Review of the Virtual World Built on Ethereum
  • Bitcoin Price Analysis: BTC/USD Towering Above $10,000 and The Grand Journey To $11,000
  • Hyperinflation Hits Lebanon: Food Prices Soar 200%, Biggest Crisis Since Civil War
  • Tether’s Gold-Backed Stablecoin in Demand as Commodity Hits ATH
  • Ethereum as Lifestyle Brand: What Unicorns and Rainbows Are Really About
  • Ripple (XRP) explains how crypto is more crucial in a post-pandemic world
  • Second Stimulus Check Coming, But Will Americans Use it on Crypto?
  • Bitcoin Price Soars on Strong Weekly Close Putting $10.5K Within Reach
  • Source:

    Poland’s Financial Watchdog Mulls Crypto Regulation

    Poland’s Financial Watchdog Mulls Crypto Regulation

    Everything You Need to Know About Cryptocurrency Regulations

    Polish Financial Supervision Authority (KNF), is now pondering on whether to regulate bitcoin (BTC) and other cryptocurrencies in the nation. The regulator is looking to formulae a uniform crypto regulatory framework that will govern crypto-linked businesses and is now seeking feedback from financial institutions and other stakeholders in ts cryptospace, according to reports on July

    During the last two weeks, I’ve been roaming around the virtual world Decentraland in order …


    Author: admin

    Ether Soars As Bitcoin Finally Rallies; Banks Get Green Light To Offer Crypto Custody

    Ether Soars As Bitcoin Finally Rallies; Banks Get Green Light To Offer Crypto Custody

    Get Forbes’ top crypto and blockchain stories delivered to your inbox every week for the latest news on bitcoin, other major cryptocurrencies and enterprise blockchain adoption.

    Ether rose more than 20% this week.

    Bitcoin rose to its highest price in a month after weeks of stagnancy, but ether stole the headlines this week, soaring more than 20% as the boom in DeFi applications began to pay dividends. After two years of disappointment relative to bitcoin since its early 2018 crash, ether may have found its next killer app. 

    Bitcoin’s gains were more modest after the European Union agreed to a coronavirus stimulus package early in the week, though its price has still plateaued below $10,000. But Binance CEO Changpeng Zhao told Bloomberg he worries bitcoin is still tied to the stock market and is vulnerable to another crash.

    Source: Messari. Prices as of 4:00 p.m. on July 24, 2020.

    The Office of the Comptroller of the Currency, now run by former Coinbase executive Brian Brooks, issued a letter this week allowing national banks to provide fiat bank accounts and cryptocurrency custodial services to cryptocurrency businesses. For an industry that often struggles to find access to traditional banking services, the stamp of approval from the federal government is a significant milestone.

    “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets,” Brooks said, “which today for tens of millions of Americans includes cryptocurrency.”

    France’s central bank said it will soon conduct a series of experiments whose lessons could be used to change the way money works, but bitcoin and blockchain were excluded from its statement and the list of eight participants, setting limits on what it envisions a central bank digital currency to look like.

    With Twitter still reeling from last week’s hack that took over several celebrities’ accounts and scammed people into sending them bitcoin, CEO Jack Dorsey apologized and said he felt “terrible” about the incident on the social media giant’s earnings call. The hackers stole a little over $100,000, but it could have been a lot more—Coinbase says it blocked 1,100 customers from sending almost $280,000 worth of bitcoin to the addresses in question.

    If bitcoin’s future plays out as its proponents envision, its partnerships and collaborations with incumbent institutions serves as a big step in the right direction.

    Bitcoin Daily Transaction Value Is Set to Fall Below Tether’s [Bloomberg]

    How Activist Investors Could Change The Crypto Landscape [Cointelegraph]

    Can Purpose-Built Equipment Bring Blockchain Back as a Tech Solution? [National Law Review]


    Author: Crypto Confidential

    Full list of stories by category Cryptocurrencies - 2020-07-26

    Full list of stories by category Cryptocurrencies – 2020-07-26

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    Tips on How to Minimize the Risks When Trading Cryptocurrencies

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