Nowadays, it seems like no market is more successful and profitable than the one dealing in cryptocurrencies such as Bitcoin or Ethereum. More and more people are getting into it, and most of them don’t even have any prior trading experience. However, this by no means implies that cryptocurrency trading is easy, or that anyone can do it.
How to Succeed
Successful cryptocurrency transaction needs to follow a few rules. You need to learn how to manage your risks adequately and how to find the perfect combination between fundamental and technical analysis. And always keep in mind that quality comes first over quantity.
One last crucial step in becoming successful in this field is to make a strong trading platform comparison to decide what your options are. Where you choose to do this is important, so put your knowledge to good use.
The Perfect Trading Strategy
Here are three strategies employed by three different, yet equally successful names in the game to inspire you in achieving your goals.
1. Marc Andreessen
Marc Andreessen is a Silicon Valley entrepreneur and investor notorious for co-authoring Mosaic, the first popular web browser in Internet history. His venture capital firm, Andreessen Horowitz, has been investing in cryptocurrency since 2013, when Bitcoin was in its heyday.
Together with his business partner Ben Horowitz, he has made varied investments in start-ups in the field, following their established model of investing in promising ideas with breakthrough potential.
Although cryptocurrency is no longer something new with exciting prospects and anyone can seize the opportunity to invest in it, trade it and so on, what is fit to be followed from Andreessen’s model is seizing the opportunity when you see that a possibility presents itself. Analyze the market closely and be fast.
2. Tim Draper
Tim Draper is a seasoned venture capital investor who became notorious in the world of cryptocurrency by buying Bitcoin seized from Silk Road at a US Marshals auction in 2014. The 30,000 units he bought for under 20 million dollars back them are now worth ten times as much.
In a recent interview with Forbes Magazine, Draper predicted that five years from now, cryptocurrency will be more relevant than any other form of physical money. The reason behind his claim is the fact that Bitcoin, Ethereum and company don’t lose their value depending on geography and politics.
Furthermore, Draper was among the first to predict that Bitcoin will make a strong return after its initial decline at the beginning of the year. And he was right. The main idea that you can draw from his strategy is that investing in cryptocurrencies means investing in the future. However, possessing strong knowledge of the market and its inner working is the key to success here. If there is anyone’s word you take for this, let it be Draper’s.
3. Gavin Andresen
If you have minimal knowledge of the world of cryptocurrencies, then you recognize Gavin Andresen as being the face of Bitcoin for quite some time. Although he left the software development world in 2014 to focus on his role in the Bitcoin Foundation, Andresen is still a big name to follow in the field.
His optimal trading strategy touches on how important it is to make your own reasonable assumptions about what the demand curve is on any given day to achieve the best results. On top of that, block size limit is important whenever mining for cryptocurrencies.
However, there is no consensus on how these values should be determined or placed in to maximize profit. At the end of the day, what counts the most is knowing the trade game so well that you can make your own predictions on it.
In reality, there is no such thing as a ‘perfect trading strategy’ when it comes to cryptocurrency. However, a strong knowledge of the market paired with reasonable predictions of what the best possible situation is something that most people agree on in this field.
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Source: Business Start UP
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