Buy The RUMOR, Sell The NEWS
Hello guys, its been few days since I wrote last. So here I am back again with my new post. As the title suggest buy the rumor, sell the news it is in relation to crypto trading. Lately we have been witnessing a lot of new investors in the crypto world which is a great news. It really shows how much really the crypto world is fascinating people around the world.
Now when we talk about the crypto world we certainly have to look in its monetary aspect. Doesn't matter how small or big the amount is, all of us at the end of the day are investors and are looking to get good returns from our investments as well. So I am going to talk about the few ways which I have learnt to earn money from crypto trading.
I am going to first talk about the categories of these investments. These are two categories basically known as long term and short term investments. These categories defined by the duration of your investments in the coins. Now the question arises, How you decide whether its a coin you should hold for long term or short term?, How to decide how much time is considered as long or short term? etc.
So I am going to answer all these questions for you guys today. So before we jump in to it just want to make it clear any coin you choose to invest is completely your choice so do you own research thoroughly.
To answer these questions again you have to do your market research with an exception to few coins like Bitcoin and Ethereum. When you start doing research the first thing is what you are looking for is the project. What exactly is the purpose of the company? Every company who is raising its capital through ICO's (Initial Coin Offering) is a business who is going to bring its product or service in the market very soon and needs money in order to achieve its goals. It is somewhat like IPO's in stock exchange. When you going do lend someone money for their business you should know what exactly the person is going to do with it. Does this business idea attracts you? If yes then you do further research about the team.
Let's say someone wants to start a online bank, which is an amazing idea but how much trust worthy the people in the team are to handle such a big business. To check the credibility of the people behind the product you have to see what are their individual achievements prior to starting the business. All this information what you are searching for is available on reddit, slack, coin market cap. You can also search information on google related to the team, product & services and business website. This research is not only necessary for ICO's but also for trading. Basis all this checks you can anticipate how much can market of the product grow in future and this will eventually help you making the decision whether you go for long term or short investment.
After doing all the necessary research while trading most of us get to hear updates related to many alt coins and then people usually invest. Now as I mentioned above long term investment and short term investment. No wonder long term investments will give you good returns as we are still in the early phase of crypto currencies, but you can certainly gain some profits in short term as well. This is what I call Buy the rumor, Sell the news.
At the moment when I am writing this there are more than 1000 alt coins in trading and many more anticipated to come. For trading there are many good coins priced between $1 to $10 some even higher price. While doing research you will certainly come across important dates and events related to these coins. To gain short term profits you can invest in these coins at a lower price and sell after the event at a higher price. During my research I have learnt that almost all coins are still in development mode with their projects and have a great potential of growing further. So start researching and start earning.
Lastly I would say that crypto currencies are highly volatile before you invest any money do your research.
Cheers
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Thank you. Content is also interesting... :-)
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