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Trading Altcoins on Crypto Market: A complete Guide!

Trading altcoins are really popular right now, and it is assisting folks in becoming millions. Do you have any plans to join the millionaire's club? You must be prepared since this is not a simple assignment!

Because altcoin trading is a dangerous endeavor, you must understand the dynamics of crypto markets in order to trade altcoins profitably. You may read stories of people making millions trading cryptos, but there are also stories about people losing a lot of money.

Trading altcoins is really popular right now, and it is assisting folks in becoming millions. Do you have any plans to join the millionaire's club? You must be prepared since this is not a simple assignment!

A More In More Detail At Altcoin Trading 

It's important to understand the term "altcoin" before diving into the details of altcoin trading. This word refers to cryptocurrencies that are considered alternatives to Bitcoin, such as Ethereum, Loopring, and Ripple.

Cryptocurrency trading entails swapping one of the top cryptocurrency for another on exchanges like Bittrex and Binance. Users must pay a fee to access an exchange's platform to trade cryptocurrencies. Exchanges give extensive market analytics on listed cryptocurrency pairs to help customers make better trading decisions. There are two major tactics you can use to begin trading cryptos.

Trading Strategy for the Short-Term

This is a trading strategy -  investing in altcoins but only keeping them for a few minutes, hours, days, or weeks. Short-term trading also includes holding cryptocurrencies for a few months.

Day trading tokens is an example of this method. This is a type of trading in which people keep cryptocurrencies for a brief length of time, such as a few seconds, minutes, or hours, before selling them for a profit, as the name implies.

Here are some advantages and disadvantages of day trading cryptos.

Trading Strategy for Short-Term Profits

The main advantage of short-term altcoin trading is the possibility of making large profits. Unlike traditional currencies, whose price variations rarely exceed 1%, cryptocurrencies can see large swings in price very quickly. Prices can easily quadruple in a matter of hours or even overnight.

Another advantage of short-term trading is that it is not subject to the Pattern Day Trading Rule. This is a rule that prohibits anyone with less than $25,000 in their trading account from making more than three day transactions each week in the United States. You can exchange altcoins with any amount at any time throughout the week.

Short-Term Trading Altcoins' Benefits

The price of digital currency might swing dramatically due to the extreme volatility of the crypto markets. This means that in order to earn from short-cycle trading, a significant amount of time will be spent analyzing the market.

Another key disadvantage of short-term crypto trading is that considerable returns need a hefty investment. Many beginners, on the other hand, lack this financial muscle or lack the confidence to invest large sums of money in cryptocurrency trading.

Short-Term Crypto Trading's Biggest Drawbacks

Long-term cryptocurrency trading is purchasing altcoins and keeping them for at least a year. An excellent example would be someone who purchased a Bitcoin Wallet in 2009 at a price of roughly $1 and sold it in December 2017 at a price of more than $19,000.

Trading Strategy for the Long Term

Long-term cryptocurrency trading has a number of advantages, the most important of which is that it is simple and takes little time. All you have to do is keep the digital currency for a long time.

Unlike day traders who must devote a significant amount of time to tracking price changes, long-term crypto traders can do it in their leisure time. It's just a matter of holding and waiting once you've got the coin.

Another significant benefit of long-term trading is that it does not require a large sum of money to trade cryptos. When you wish to diversify your portfolio, you can buy altcoins one at a time and add them to your bitcoin wallet.

Long-Term Altcoin Trading's Biggest Potential problem

The primary disadvantage of long-term altcoin trading is that you may miss out on possibilities for quick gains when values increase and fall rapidly. In some cases, the price of a cryptocurrency responds to market forces and then falls back to the same level.

What You Should Know About Cryptocurrency Trading

The market volatility of altcoins can help you gain money, but it can also cause you to lose money. As a result, it's critical to understand the fundamentals of cryptocurrencies and blockchain technology. Before you begin crypto trading in the market, there are a few more things you should be aware of.

  • When trading cryptos, avoid being influenced by others

One thing to keep in mind when it comes to crypto trading is that you are not the only one attempting to make money. As a result, you should strive to avoid being swayed by others, particularly non-experts who provide content illustrating how the price will perform at different times.

The majority of these videos and commenters are traffic generators who have no knowledge of altcoin trading. The ideal technique is to conduct your own research and only trade when you are certain in the projected price change.

  • Invest just what you have and are willing to lose

When it comes to crypto trading, this is a crucial rule of thumb. Because market swings could put you in debt, you should not borrow money to invest in crypto trading.

You should not utilize money set aside for other things like rent, medical bills, or school. Instead, consider properly planning by setting aside funds to invest in cryptocurrency trading.

  • Do not put all of your money into one portfolio

Even if you have a favorite coin on the market, it is unwise to invest all of your money in it. Instead, diversify your holdings by focusing on a variety of altcoins available and based on their performance and predicted gains. It’s better to follow all market updates before you invest.

  • When trading tokens, make sure to effectively manage risks

To make money trading cryptos, you must first understand the dangers involved and then employ effective tactics to mitigate them. For example, even if you expect the price of the chosen altcoin to rise, you should utilize the stop loss tool to avoid an unexpected movement in the opposite way.

What Is The Best Way To Start Trading Altcoins?

To begin trading cryptos, you must first choose a suitable exchange and fund it. Bittrex, Binance, Kraken, and KuCoin are some of the exchanges to consider. This post will use Binance for demonstration purposes. Binance is the world's biggest Bitcoin exchange and altcoin crypto exchange in the world by volume. To trade at Binance, follow the steps outlined below:

  • Because Binance is a crypto-only trading site, you'll need to start by converting fiat money to popular altcoins, such as Ethereum (where Shiba Inu is based), on another platform like Kraken or Coinmama.
  • Register for a trading account on Binance's website. Make sure you use a strong password that hackers will find difficult to guess.
  • Two-factor authentication should be enabled. This will entail downloading the two-factor authenticator app so that whenever someone tries to access your account, a pop-up asking for your permission will show on your phone.
  • Make a deposit into your Binance account. Navigate to the "Deposits/Withdrawals'' section on the main Binance account page and generate a public address to send altcoins to from your wallet.
  • Take a purchase or sell transaction and extract it. Visit the "Exchange" section of your Binance account page and pick "Basic Exchange" from the menu. You can now choose your preferred trading pair. STEEM/ETH, XEM/ETH, and WABI/ETH are some of the trading pairs available on Binance.
  • The order book is displayed on the left pane of the Binance platform, while the last item is displayed in the middle part. The "Buy/Sell" buttons are situated beneath the trading chart in the middle.

To place a buy order, you must first determine the price or amount of the desired coin. The method for placing a sell ETH order is similar, but in reverse.

The Last Word

Because of the rapidly expanding popularity of cryptos, trading altcoins has become the new cash cow in the business. Although it resembles forex trading in many ways, digital currency trading is more difficult due to the risks connected with its extreme volatility.

People interested in cryptocurrency trading should begin by studying how to trade altcoins. It's also critical to know how to monitor market trends and stick to tried-and-true techniques.

Finally, it's a good idea to keep track of industry leaders and events, such as partnerships, that influence altcoin price movement.