3 Off-the-Charts Tips to Ride the Latest Bitcoin Trends
Staying informed with the latest developments in the bitcoin market comes down to utilizing one of the most useful tools in your possession
12:36 05 October 2018
While Bitcoin investing can be an intimidating proposition ever for those who have dabbled with the market before, there are several ways for both getting started properly, and staying up to date with the newest market realities. It all comes down to staying informed, using the right tools and being wary about the fact that things can always change. Here are three off-the-charts tips to ride the latest bitcoin trends.
Use Apps and Gadgets to Your Advantage
Staying informed with the latest developments in the bitcoin market comes down to utilizing one of the most useful tools in your possession – we are talking about your smartphone. Whether we are talking about apps, cryptorobots for automating the trading process, or specialized online portals, make sure to add the following information sources to your repertoire:
- Bitcoin Ticker – a free app for MAC OSX bar that shows prices from 7 different exchanges. It is a useful tool that you can use to determine when it is a good time to buy bitcoin or sell.
- r/Bitcoin – more of an aggregate of websites and discussions rather than an information source per se, you can use this subreddit to find out the latest changes in the bitcoin market and how traders are reacting to them. Moreover, the most interesting ‘’back scene’’ news and informal stories can be found
- Bitcoin Checker – this app will not only show the latest prices but also trigger alarms in certain predetermined conditions – like if the prices drop by a certain percentile.
Learn How to Read Charts
Even though technical analysis can be a true headache for all traders, having at least a basic understanding on how to read charts and how they work is an essential step to stay updated with the latest trends. The most common charting tool used by traders, according to this piece published by Medium, is Bitcoin Wisdom.
It might look intimidating at first, but it becomes very easy to use once you get used to the terminology:
- Candlesticks – shows how the price evolved in a certain time interval. Candlesticks show closing and opening prices, price direction, highest price, trading range and other relevant information related to the price evolution of bitcoin.
- Order Book -the prices and quantities that traders have put up for sale.
Diversify As Much As Possible
As is the case with every business, the key to success is diversification. By diversifying your activity you will not only increase your chances of establishing a regular source of revenue, but also spot every incoming trend, because you will always be with your ear on the ground.
The idea behind diversification is creating a vast portfolio wherein a decline in one component (say, in Bitcoin) will be automatically compensated with an equal gain in another. Say you are an investor with a simple portfolio that includes Ether, Litecoin, Ripple, and Bitcoin.
Due to the high volatility of the market, one of them will inevitably suffer a price drop sooner rather than later. So, if one currency experiences a 5 % or 10 % drop, another digital coin will respond to this phenomenon and rise in value. But do not take our word for it – Oliver Isaacs, a successful tech entrepreneur, said that even if Bitcoin fell to 0 %, an investor with a diversified portfolio would still be able to invest because the altcoins would retain their value.
So, how does this exactly relate to the subject of the article? It is simple – by smartly investing in as many areas as possible, you will gain an edge over other traders because you would naturally have a more encompassing knowledge of the market than others.
With all the shifts and fluctuations that the Bitcoin market experiences, staying up to date with the latest trends can be a hard task. However, it is not as hard as one might believe as long as you follow the steps presented in this article. By learning how to read charts, diversifying your portfolio and using crypto-specific apps and tools, you will certainly gain an edge over other traders.
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