How to Profit with CryptoSpotlight: A Beginner-Friendly Guide
Does this sound like you?
You are receiving these CryptoSpotlight text messages to your phone…
you know that 90% of these alerts go on to produce a profit…
But you’re not capturing these profits consistently…
And you’re not a professional trader. In fact, you’re a bit of an amateur.
If that’s you, you are in the right place.
If you allow it to, this guide will increase your chances of trading profitably so you’ll have a story like these people.
Let’s get started!
Assumptions and Setup Requirements
Here are a few assumptions we’ll make before starting:
- You are new to crypto trading
- You are not a professional trader
- You do not have a technical analysis skillset
- You do not and can not watch prices and trade 24/7
- You have a job and life obligations that require your time and attention
- You are willing and able to login to your exchange accounts at least once per day (most of the time)
First, we have to make sure you own some Bitcoin.
If you don’t, go on www.coinbase.com and buy some Bitcoin first. If it’s your first time, this should take less than 30 minutes and is something you will want to know how to do again for the future.
Second, you will want to have multiple exchange accounts set up, not just one.
Why? Because not all coins that get alerted by CryptoSpotlight are available on every exchange.
In fact, many of the alerts are triggered by a sudden increase in interest once the news comes out that a token will become traded on a new exchange — ex. a coin that is only on a small exchange is about to be listed on a much bigger exchange. These events increase the price of a coin dramatically — +30% on the low end and +350% on the high end.
Want to catch these? Then you *must* setup access to multiple exchanges.
We recommend you get accounts setup on the following 3 exchanges:
- Binance (Required)
- #1 cryptocurrency exchange by 24h volume ($1.8B+)
- 365 cryptoassets available as of today and growing
- Great security reputation
- Should be 1st choice place to purchase from
- Carries about 60% of the coins that get alerted
- Cryptopia (Required)
- 82nd largest cryptocurrency exchange by 24h volume ($4.5M+)
- 602 cryptoassets available as of today and growing
- Final choice to purchase asset from if Binance doesn’t have it
- Tends to carry many of the smaller market cap assets that few others have
- Carries about 40% of the coins that get alerted
- HitBTC (Required)
- 8th largest cryptocurrency exchange by 24h volume ($270M+)
- 723 cryptoassets available as of today and growing
- 2nd choice to purchase asset from if Binance doesn’t have it
- Tends to carry many of the smaller market cap assets that few others have
- Carries many of the coins that are not on Binance or Cryptopia
Ideally, you will want each exchange account to have some amount of Bitcoin funded and ready to go right away when an alert comes in.
It may take an hour or two to get everything set-up, and there may be some wait time of a few days with some exchanges to get your account approved.
Don’t rush this process.
Take your time and set yourself up for success and cover all the bases.
If you don’t, you’ll pay for it later by missing on a lucrative alert.
Lastly, before we move any further, please remember that CryptoSpotlight is not a registered investment advisor or broker/dealer. It is possible to lose money when trading coins, so rather than following alerts blindly, you should conduct your own research and due diligence and consider obtaining professional advice before making any investment decisions. CryptoSpotlight will not be liable for any loss or damage caused by information from our alerts. We hope our service will be useful in your trading endeavors but you are solely responsible for all your own investment decisions and outcomes.
What We’ll Cover
Part 1: What is CryptoSpotlight and how does it actually work?
- What the CryptoSpotlight signals are (and what they are not)
- What causes these alerts to go off?
Part 2: The Most Important Realization
- The Data — Analyzing all the alerts to date
- The Realization — The truth in the data
Part 3: The Simple Way
- Stop Losses
- Limit Sells
Part 4: Putting it All Together
- What to do when an alert comes in
Part 5: The Actual Buttons to Press and Where They Are
Part 6: FAQ
Part 1: Definition and Interpretation
OK — so, first of all, let’s understand what these alerts are.
What causes one of these SMS messages to get sent to your phone?
Let us describe CryptoSpotlight to you simply as possible:
- it’s a piece of software code running on a cloud server somewhere
- 24 hour a day, it monitors a set of data points that we defined in its code
- this data it gathers and interprets is it’s way of performing a constant pulse-check on the crypto market— for example, what’s being discussed on social media platforms like Twitter, what’s being typed into search engines, what sites are being visited, etc.
- when it detects that there is an unusual amount of buzz and interest being demonstrated around a specific crypto asset, it sends you a text message
- when these spikes in interest happen, it means there are more people paying attention to the asset, which, ~85% of the time, means more people are interested in buying the asset than selling it — and when more people are buying than selling a coin, it causes the price to go up
- As a rule of thumb, the signal is considered most relevant within the first 72 hours, and should be considered null after approximately 5–7 days
If you’ve understood this, you might have questions now rising in your mind about specifics of how it works— that’s a great sign. Feel free to leave a question in the comments below this post and we’ll add an FAQ section where we gradually update with answers so this guide becomes better over time with your participation.
So, what causes these spikes in interest that trigger the alerts?
- Positive news — Everyday, hundreds of crypto companies in the world all work on developing a wide range of potentially disruptive technologies. Everyday, billions of dollars are on the sidelines ready to move in and out of positions in these assets based on any information they receive. So when a company in the space announces a major product release (a new feature, the launch of a beta test, a new partnership with a major corporation, etc.) this often projects an increase in value of the asset into the market and that tends to move the price of the asset up, sometimes very dramatically.
- Negative news — Once in a while, a coin will have a negative news event that causes the market to give it attention. For example, a coin might experience a hack. Once the word gets out, it will often get some attention from the crypto news outlets, causing more people to pay attention to it. This can trigger an alert. These often result in a short-term decrease in price, which either offers you a great opportunity to either buy a coin when it is at an unusually discounted price and benefit later once the price has corrected back upwards or is a great reason to stay far away from the coin.
- Exchange listing — There are over 200 cryptocurrency exchanges around the world, each varying in which assets they carry, the volume of daily trading, total number of users, the demographic of users, etc. When a coin that only exists, say, on Cryptopia, the 82nd largest exchange, then gets added to the #1 largest exchange, Binance, that opens up a massive new base of customers who can buy and sell, which alone raises its value (because now its more liquid). This is the #1 price booster we have seen.
- Price action — Sometimes a dramatic price change can be news in itself. If some asset goes up 500% in one day, this may cause the rest of the market to notice and buzz about this crypto asset, with curiosity, criticism, whatever — all of it only generates more conversation and attention for the project, and our software may detect and identify it.
There are many other reasons why attention might spike on a coin, but those are some of the common ones.
Part 2: The Most Important Thing to Realize
First, let’s look at the track record of CryptoSpotlight alers.
Click below and take a look at this spreadsheet with all CryptoSpotlight alerts performance data:
Sheet1 Alert#, Crypto, Alert Date, Time( PST), Alert Price( USD), Peak Price( USD), ROI( USD), Hours to Max ROI, Alert…docs.google.com
What do you notice?
- 85% of alerts assets saw some price increase (214 out of 250)
- 74% went up in price by at least 5% (174 out of 250)
- 16% have gone up in price between 1–5% (39 out of 250)
- 1 in 5 have gone up by 30% or more
- 14% of the time, the price went sideways or downwards
- Average 30–60 alerts per month or 10-12 per week
What does this mean?
As long as this continues to hold true, you could, in theory, enter every single CryptoSpotlight alert and as long as the majority of alerts continue to produce these outcomes, you would end up with a profit.
Of course, you still have to do your part to limit your potential losses and capture as much of the upside as you can.
We’re about to show you a few very simple ways to do that.
Part 3: The Simple Way
Let’s say you just bought 1 Bitcoin because you think it’s going up.
Stop Losses are a feature on every exchange that lets you set a hard cut-off limit on the amount of money you can possibly lose. You can basically press a few buttons and tell that exchange to sell your 1 Bitcoin if the price drops to a certain price. You can define the quantity and the price yourself.
So it’s like saying “Binance, I want to make it impossible for me to lose anything more than 10% on this, so if the price does drop 10% (say, while I’m sleeping), then I want you to automatically sell the 1 Bitcoin I have so I don’t end up losing a bunch of money here. Thanks.”
Limit Sells are similar, except you will use these to capture your profit.
It’s like saying “Binance, since I won’t be at my computer the next couple of days, if the price goes up by 10% at any point on this, I want you to automatically sell the 1 Bitcoin so I can guarantee that I make 10%”
Using just these two features, you can limit your potential loss to something you’re comfortable with losing and/or guarantee that you don’t miss out on an opportunity to profit.
Want to know something sad but true?
Exchanges do not allow you to set a Stop Loss and a Limit Sell on the same coin at the same time 😞
So ideally, you will want to plan to check on your portfolio at least once a day and setup price alerts and notifications.
Price Alerts, as the name suggests, provide a way for you to know when a coin you are interested in reaches a certain price — one you may want to sell at or buy at.
There are many ways to set price alerts and notifications (feel free to do your own research), but here is a popular one many people use:
cryptocurrency market price increase, decrease, percentage alerts, notifications, reminders, bitcoin alerts…coinmarketalert.com
Part 4: Putting It All Together
So what exact steps should you take the next time an alert comes in?
First, open up your browser and go to whatever you like to use for your pricing charts.
You will load a page like this which gives you a link to their website, a price chart, and other information. Take it all in. Get to know this asset.
Second, let’s try to see what might have caused this alert.
Did they announce some big news? Is there a buzz going on over anything?
We go on Twitter and see something like this — Edgeless is being listed on a new exchange, an event we know stimulates price growth.
Having more information can only help you make a better decision.
What comes next?
We decide we like the chart and the news and the project itself. We make some guess at what we think it could gain and deem it to be a worthwhile risk for the potential reward.
Third, you go and purchase the asset from an exchange.
Fourth, you set a stop loss order OR a limit sell order.
Fifth, you set any price alerts you want.
Now, you simply wait for the trade to play out!
Part 5: The Actual Buttons to Press
So you’ve decided to step into the world of cryptocurrency. You’ve bought your first Bitcoin (BTC), Ethereum (ETH) or…medium.com
Most people begin with trading Market orders or by setting Limit Orders where you can buy for market price or set up a…steemit.com
A stop-limit order will be executed at a specified (or potentially better) price, after a given stop price has been…support.binance.com
1. Transfer your funds to trading account. To start trading, you would need transfer funds from your Main account to…support.hitbtc.com
Market order: buy or sell a given instrument at the market price. The price for this type of orders is defined as the…support.hitbtc.com
Limit order: execute a trade at a specified price or better (limit price). A limit order to buy would be at the limit…support.hitbtc.com
Unfortunately, Cryptopia does not have a Stop-Loss capability at this time, so you will want to factor this into your strategy and practice extra caution!
Conclusion and Next Steps
To recap, you’ve now learned:
- what our alerts measure and what causes them
- what typically happens to coin prices after the alerts go out
- how to set yourself up for maximum success
- three simple tools you can use to limit your losses and secure the profits
As a next step, we suggest making a personal to-do list so you can begin to work towards setting yourself up for success in time for the next alert.
With all that said, we wish you great success! Please let us know how things go — we love hearing back from our customers.
Have a question? Request? Suggestion? Tips? Leave a comment below.