- Patience is the best and most useful skill in trading
- Put your investments in large projects to increase chances of success
- Study ICOs closely before you invest in them to avoid fraud
If there is something every prospective cryptocurrency trader needs to learn about cryptosphere, it’s patience. Patience is best and most useful skill. If you expect to get in and find instant results, you will survive long as an investor; gamblers get mowed down – so says Hedge Fund owner Anatoly Radchenko, the CEO of United Traders who’s been named the Best Private Investor two times in a row.
Nobody can predict the short term
Radchenko gave Forbes magazine his unique perspective on cryptocurrency trading this week, emphasizing that patience was important as an entry and exit point in crypto space, as patience enables investors to be able to hit targets.
According to Radchenko, the appearance of ICOs on the crypto scene in 2016 and 2017 brought unrealistic expectations in a short time frame. He told Forbes that unlike the traditional financial markets where assets are not closely correlated, assets in the crypto market are, and it’s the reason they all succumbed to the ongoing crypto winter, which led to huge losses including the elimination of some positions, especially for those that intended to make some quick bucks.
Radchenko, who says it’s difficult for even the experts to predict what the market will bring tomorrow, looks at the drop in market value positively, saying the drop will ensure only a few large holders will eventually remain holding cryptos and the drop in value will finally reduce volatility. He stated:
“Now, though, most Bitcoins will once again belong to large holders. This will reduce the circulation of Bitcoins in the market, which in general should stabilize the markets a little bit. Such a strong drop also made investments possible for many serious players who were suddenly able to afford it.”
Diversify your investments
Radchenko advises any investor to put their investment in large projects to increase their chances of getting a return on investment since “money tends to go towards money.” He also says the better practice is to avoid putting all your eggs in one basked but instead allocate them “evenly and in equal parts” towards different projects.
The ICO (Initial Coin Offering) phenomenon is a billion-dollar juggernaut, through which dozens of cryptocurrency projects are launched. Many legitimate cryptocurrency projects and ICOs have given investors significant investment opportunities but the ICO fervor also brought scams and fraudulent projects where scam artists jumped on the train and hoodwinked investors to believe they were buying into the next Bitcoin project at discount. Radchenko urges investors to ensure they avoid investing in projects that are doomed to fail from the very start, especially where the organizers have shady backgrounds.