Top 10 Tips to Master Your Crypto Investment Game In 2023
The widespread use of the technology that underpins cryptocurrencies, known as the blockchain, has led to the emergence of a new type of investment: cryptocurrencies. The use of blockchain technology is revolutionizing how businesses function on a global scale. Technology is being embraced by every significant sector of the economy to make business operations more effective.
The market for cryptocurrencies is notoriously unpredictable. In 2021, the total value of the cryptocurrency market reached $3 trillion. Nevertheless, as of right now, it is close to $1.98 trillion.
The extreme volatility of the cryptocurrency market is reflected in the significant shift that took place in the total net market cap only a few months apart. Before putting their money into cryptocurrency, an investor needs to have a clear understanding of the high-risk, high-reward nature of the market. Throughout the past few years, virtual currencies have become a viable alternative to traditional forms of investment, as well as the number of individuals investing in the market, is increasing at an astoundingly rapid rate.
10 vital pieces of tips to help you dominate the cryptocurrency investment in gaming
Here are the top 10 crypto trading techniques you must master in 2023:
Obtain your education
If you want to make money investing in cryptocurrency gaming, you need to be aware of what you are getting into first. Blockchain technology is what underpins Bitcoin, which is currently the cryptocurrency with the largest market capitalization. The underlying technology, known as the blockchain, is a distributed ledger that has applications in the real world. According to one study, as many as 58 major industries have the potential to transform their business processes by using blockchain technology in the future. Research the underlying technologies that have use cases in the real world to find investments that will be profitable.
Prepare for extreme volatility
Extreme volatility is one characteristic that distinguishes the cryptocurrency market from all other markets. Due to the volatility of the market, crypto is considered to be a “high-risk, high-reward” investment. In May 2021, the value of Bitcoin experienced a drop of nearly 30 percent in a single day. You should brace yourself for exponential price increases and decreases in various cryptocurrencies. The previous year, investors received returns of 4,300 percent from Matic (which was formerly known as Polygon). There have been other cryptocurrencies that have seen price increases of up to 50,000 percent in just one year. As an investor, you need to ensure that you are prepared for both bull markets and bear markets. Stay calm and focused on cryptocurrencies that have solid fundamentals rather than getting distracted by the market’s volatility.
Buy low, sell high
The key to maximizing your profits is to buy the dip when it occurs. Stay away from investing in cryptocurrencies that are already on the rise. Think of any decline in the value of your investment as a chance to make it bigger. But how does one recognize a dip in the market? Examine the price action as well as the price history over the past six months to a year, and make a note of the average entry points.
Try not to put all of your money into one investment at once. Invest a portion of your funds at a single entry point and then focus on dollar-cost averaging (DCA) as the price continues to drop. A direct cost approach, also known as DCA, is a straightforward investment strategy in which an investor splits the total amount to be invested across several different entry points.
Maintain your concentration on tokens that have found use in the real world and prioritize their utility. For instance, the government of Ukraine has chosen Stellar ($XLM) as the platform upon which to base the development of their national digital currency.
Choose a reputable market to trade on
A crypto exchange is an online marketplace that allows users to buy, sell, and trade cryptocurrencies. There is a glut of cryptocurrency exchanges on the market, each of which asserts that they offer superior services. The question now is, how do you determine whether or not a transaction is legitimate? Go to their website to check out the composition of their team and verify the information using the internet.
In addition to this, check the volume of trading that occurs on the exchange. Consider the length of time that the business has been in operation. Check to see if the exchange you are using is regulated in the country in which you are located.
The cryptocurrency exchanges Binance (28.5M+ users), FTX (10B+ daily trading volume), Huobi (operating in 170+ countries), Kucoin (10M+ users, 207+ countries), and WazirX (10M+ users, India-based, backed by Binance) are among the most reliable and widely used in the industry.
When you sign up for an account on a cryptocurrency exchange, it is your responsibility to keep your investment safe. Protect your online presence by enabling two-factor authentication on your account. Never let anyone else have access to your Bitcoin, private keys, or verification code. Try to avoid logging into your account while connected to a public network, such as those found in hotels or offices. Never log into your account while you’re connected to a public WiFi network. You should try to avoid keeping all of your money on a single exchange. Keep your money in several different accounts and divide it up. Make frequent changes to your login credentials.
Stay with the blue-chip companies
There are over 10,000 different cryptocurrencies currently in circulation; however, only a select few have applications in the real world and a significant trading volume. The utility of the token, adoption in the real world, significant trading volume, and consistent growth over the years are the things that you, as a beginner, need to concentrate on.
Instead of focusing on hype, you should concentrate on technology and innovation. The cryptocurrency industry is experiencing constant change as a result of the emergence of new trends such as DeFi, Metaverse, NFTs, and Web3.
Research the underlying principles of these movements and examine their rates of adoption to locate tokens that have practical applications in the real world. A few examples of blue-chip cryptocurrencies include Bitcoin, Ethereum, Solana, BNB, Cardano, and Chainlink.
The abbreviation for “fear of missing out” is “FOMO.” The cryptocurrency market is ripe with opportunities, and unexpected price increases are a normal part of the competition. Instead of chasing after every pumping token, you should concentrate on finding some good investment opportunities.
Always maintain a safe distance from people who try to predict the future of tokens. Always keep your attention on both the high points and low points of the market cycle. Define your objectives for your investments, and then set your goals following those objectives.
You can easily increase the value of your investment by concentrating on tokens that have applications in the real world and the capitalization of the cryptocurrency market grew by 187.5 percent in 2021 alone.
Be wary of con artists
Con artists never stop looking for new ways to steal money from investors and their portfolios. Be wary of scams involving pump-and-dump strategies, fake airdrops, and signals coming from social media handles. Swindlers will also use fake websites to steal money from investors. Before you enter your information, you should verify that the URL of the exchange is correct. Always ensure that the trading apps you download come from reputable sources such as the Google Play Store or the Apple App Store. Even though it’s a good idea to connect with other crypto enthusiasts and influencers on social media, you should never base your investments on their recommendations.
Moving Average Crossovers
Moving average (MA) crossover trading necessitates familiarity with MA trading strategies as well as the crossover trading strategy. Let’s begin at the very beginning: a moving average is a type of lagging technical indicator that creates a single trend line by combining the price points of a financial instrument over a certain period of time and dividing the total number of price points by the total number of price points. It is one of the top 10 strategies for trading cryptocurrencies that you need to master by 2023.
Trading with a High Frequency (HFT)
Quant traders employ a form of algorithmic trading strategy known as high-frequency trading (HFT). Developing algorithms and trading bots that enable a quick entry into and exit from a cryptocurrency asset is required for this step. To develop these bots, one needs a deep understanding of intricate market concepts in addition to a solid foundation in mathematics and computer science. As a result, it is better suited for experienced traders than it is for newcomers.
Cryptocurrency investment in gaming is made possible by more than one hundred different exchanges and brokers that can be found in the online sphere. When considering where to put your money in cryptocurrency, we recommend going with a provider that is regulated. This will ensure that your money is kept secure while it is being invested.
Selecting a platform that supports the cryptocurrencies you favor, in addition to providing low transaction fees, is another important consideration to make.