The present market is a lot more volatile than it used to be. You can make a lot of money trading, but it’s also hard to keep your portfolio balanced when everything is going haywire.
It’s best to look at the market over the long term and track cryptocurrency prices (AUD) to ensure you get the highest returns. There are four main reasons why you should invest in the top five cryptocurrencies for the long term:
Their Market Cap Has Increased Drastically
Bitcoins market cap has increased from less than a billion in 2013 to over $40 billion. Ethereum has increased from under $1 million in 2016 to over $20 billion by the end of 2017.
They Are Now Considered Stable Investment Options
The top five cryptocurrencies have been around for a while, and there is still a lot of potential left for them to grow further. Once considered as unsteady and unsafe investment items, they are now considered stable and going to grow in popularity with time.
They Are Big Companies with Experienced Developers
Each cryptocurrency has been created by developers who already had experience working with cryptos and blockchains before starting their projects. This is why people trust these currencies more than newly created ones.
They Have No Competition
Litecoin doesn’t need Ripple, Dash doesn’t need Monero, and neither coin needs the other as they all operate individually. The cryptocurrency market in Australia is still very young, and it’s possible that there are a lot of coins yet to be discovered.
Still, by the time they grow big enough to compete with the top five cryptocurrencies, it will be hard to catch up with these leading currencies as they have a market cap of many billions of dollars.
The next few years should be interesting for the crypto market, especially if more countries start creating their cryptocurrencies or build upon what is already in the market. There could even be a possibility that one day every country has its own crypto.
How to Start Trading Cryptocurrencies?
If you want to start trading cryptocurrencies in Australia, you should learn about the three basic rules that every trader must follow:
If you put your eggs in one basket and it breaks, you will probably lose all your money. You may lose a little bit of money as long as you learn from your mistakes and improve your trading strategy.
Set reasonable goals and try not to overtrade your account. Take small steps, and don’t let ambition or fear cloud your judgment.
Stick To the Plan
Your plan is what keeps you going when market factors no longer work in your favour. It’s essential to write down everything before you start executing trades because you want to keep track of your submissions and analyse how well you are doing daily, weekly, and monthly.
Be Practical and Realistic
If investment fluctuations make you panic, then trading is not for you. Markets can move quickly, and traders often have to face the temptation of closing their positions too early or letting an opportunity pass by because they are afraid of losing money.
You should always check out financial resources and cryptocurrency prices (AUD) before you start trading cryptocurrencies. Study the market well and invest prudently in different cryptocurrencies.