ICO Traders – The New Way Of Money Making

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Outline:

1. Cryptocurrency market cap

2. Cryptocurrency trading

3. Altcoin trading tips

4. Trade statistics sources

Every revolutionary technology opens new opportunities to earn, and blockchain is no exception. Despite being relatively young, the crypto world has created professions which had never existed before. One of the most popular ways of gaining extra income is by becoming an ICO trader. Professional ICO traders (or crypto traders) work for crypto-funds and other fintech companies. In addition, there are thousands of home-based enthusiasts achieving great results in cryptocurrency trading without having to leave their lounge rooms.

Cryptocurrency Market Cap

Nearly every news post about Bitcoin’s price movement is accompanied by information about the total cryptocurrency market capitalization. This number is important because it’s a quick and easy tool for estimating the total market size. With the cryptocurrency market, the market cap is not the total amount of money spent on the purchase of all cryptocurrencies, rather, it is the total sum of all cryptocurrency supplies multiplied by their current prices. Therefore, the amount of ‘real’ money inside the market is less than the number we are discussing. The relative and absolute total market cap change is also a very important indicator in showing the current market trend and its speed.

Cryptocurrency trading

Crypto trading is a very risky activity. Market volatility is incredibly high and every move must be carefully thought through. You should without a doubt avoid margin trading at the start, or at all for that matter unless you are extremely experienced. Recently, a crypto-exchange CEO remarked in his speech that the only purpose of margin trading is to take money from traders, nothing more. Remember the BTE.TOP founder, who killed himself after an unsuccessful trade (according to some sources).

Altcoin trading tips

Follow professionals

If you don’t have a lot of time for altcoin analysis and you aren’t targeting significantly above-the-market profits you can duplicate your favourite index portfolio strategy.

Some portfolios examples:

LYCI by lykke.com – they have three different funds at the time of writing

Crypto Funds by iconomi.com – there are more than 30 different portfolios with up to date structure information

If your time is very limited, you can use the above services, however your assets will be stored and managed by a centralized third party service, meaning you won’t have your own private keys.

Diversify your risks

If you are planning to participate in an ICO or an IEO, be ready for a price drop after the offering. Split your deposit amount into two parts – one for the ICO (IEO) and another for the later time, after the token listing. Your total profit may be lower at the end, but you are successfully hedging your bets if losses occur. 

Trade statistics sources

Of course the following website must be mentioned – coinmarketcap.com.

Other useful resources for an altcoin trader include: Reddit, Bitcointalk, Cointelegraph, CoinDesk

 

Disclaimer:

This article is not intended as investment advice.

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