High Risk, High Reward Cryptocurrency Trading


Recent studieshave shown that “Buy bitcoin” is searched more than, “Buy gold.” There are also thousands of people a month searching, “Bitcoin Jobs.” An entire market has formed around these cryptocurrencies. This has created a great opportunity to win or lose money trading cryptocurrencies. You trade cryptocurrencies against USD, Bitcoin, Ethereum, and other currencies. Trading these assets is kind of like if you mixed stock trading with Forex.

The difference is that the crypto space is loaded with volatility. It’s definitely unwise to invest money you’re not willing to potentially lose all of tomorrow. All the time there are cases where an asset loses 80+ percent of its value in one day. Another way to look at it though is that there is often an opportunity to get an 80+ percent increase on your chosen coin in one day or less!

Trading crypto is highly technical and tends to be very random. What also influences the market is the number of people and trading robots who are buying and selling said coin at this moment in time. Some coins are a constant bull market slowly rising. Some are super volatile rising and dropping dozens of percent a day. When F1Pro.Market‏ looks for a promising trade we weigh multiple factors before investing.

Fundamental in trading cryptocurrencies isn’t the fundamentals you would trade in forex. It isn’t economic indicators that are pushing the prices of these currencies up. What is fueling the market is often really brilliant technology. All the tradeable coins have a website. You need to audit each ICOs website. It can tell you a whole lot about the project you’re considering investing in. When you’re looking through the site and information, determine if you believe that the company has a real-world use case. If you think that what the company has is useful in the real world, read the whitepaper.

Really if you’re serious about investing in crypto you shouldn’t read just one whitepaper, you should read about 10. You’ll probably also have to do quite a bit of research on various technologies. It’s a steep learning curve but if you view a few white papers from very good projects like Litecoin, or Ethereum you can see the makeup of a very successful project. This will give you a good understanding of what type of companies are seeing the most success. This isn’t always enough to nail the best crypto trade but it is certainly helping you move towards great investment choices.

For most of these cryptocurrencies, there isn’t a lot of technical data to look back on. Sometimes new coins launch and there isn’t even a week of data to study. That’s why reading these white papers is so important. If the charts look promising and technically under the hood the coin is transparent, innovative, and has a great development team, it’s probably worth investing in. It might be fantastic technology that will solve a real-world problem and make you very wealthy.