What is worth trading on cryptopoly?
There are a number of factors that determine who should trade what on crypto. The primary one is your knowledge of the market and trading in general. If you are new to this activity, it is a good idea to start with the larger, more stable cryptocurrencies such as bitcoin or ether.
Our risk tolerance should also be taken into account when deciding which cryptocurrency we want to deal with. Even though a significantly higher return can be achieved with an altcoin in many cases, their volatility can be correspondingly much higher.
Once we have a rough idea of what we want to trade, it may be worthwhile to introduce automated forms of trading alongside the manual solution. These allow us to eliminate the monotonous part of trading and be present in the market 24/7. Our spot bot, as the name suggests, facilitates spot trading by allowing you to pre-set the parameters of your choice and the bot will execute the trade automatically.
Bitcoin, the safe spot
Since its birth in the summer of 2008, bitcoin has held a steady first place among cryptocurrencies, both in value and market capitalisation. In the crypto world, bitcoin is almost regarded as gold in traditional investment circles. This comparison is an excellent description of the crypto market, as a currency that can move by tens of percent in value in just a few months is anything but stable in traditional terms.
It also has the potential to be traded in the short term, as its movements are more predictable compared to smaller coins. There are a good number of pre-defined zones that can provide stable support for the exchange rate if necessary. And in case it breaks down, there is a good opportunity for short selling. For information on how to find these zones and identify trends, our previous blog posts on trading tricks, among other things, can help.
Ethereum, the stable second
The Ethereum network has made a name for itself in crypto circles by allowing anyone to create a new application on their decentralised open source blockchain. While only bitcoin transactions run on the Bitcoin network, Ethereum is a minority of ether-related financial transactions, with a larger share of different software running on the blockchain.
Ethereum is also fairly stable among cryptocurrencies and has well-detectable and tradable zones. Those who may not be satisfied with small movements can consider trading with leverage.
Which altcoins are worth trading?
As Binance is currently the largest crypto exchange in the world, BNB is also quite popular. The stable backing also ensures the stability of the coin, making it suitable for longer-term trading. But of course, depending on the news of the day, it may also be suitable for day trading.
Although XRP and Solana have recently lost a lot of value compared to ATH, they are coins with a solid backing and can be traded with relatively little risk over shorter and longer time frames.
New coins with a smaller market capitalisation always carry the potential for huge profits, but typically there is a much greater chance that their value will eventually approach zero. If you have any questions about anything related to this article or anything else in the world of crypto, feel free to contact us at one of our contact numbers!