Best practices when trading cryptocurrencies (AltCoins)
Twitter : @BluesCrypto
*Disclaimer: This is not financial advice, this is solely my opinion and perspective of the market. As always, DYOR before investing.
Hi everyone, through this article i will talk about some tips/advices i wanted to give to the community when trading/swinging/scalping or investing in alts. I don’t cover every aspect but i tried to pin-point the most important details.
1- Mistakes that happen often are : over-diversifying.
(Not applying to low cap coins)
Majority of the time if you pick 5–10 coins and hold/trade them is way better than having 40 coins and losing track of them, and by the way losing focus which leads to missing on profits.
Example :
— You only hold LEND, it goes up 40%.
— You hold LEND, Tron, OST, one goes 10, the other 20% and the last is up 40%.
The result can be pretty much the same but you have exhausted yourself looking after 3 coins instead of only one coin.
1A. Stop chasing pumps
this can ruin you.
2- Always leave a moon bag for projects that have solid FA.
Feel free to do it for every coin if you want to.
3- How to enter markets.
There is no problem market buying when the market is liquid. But for illiquid markets never market buy/sell , always put an order and wait for it to get filled, if it’s filled: awesome, if not : you still have Bitcoin (awesome too).
4- {Risky} You want to make considerable gains (life-changing money)?
Focus on 1 or 2 low cap coins, target returns of 100x. This is highly risky but also rewarding and the money can be life changing. Don’t be afraid to take risks when you feel it. (Don’t just say :”Hey this one is cheap i might throw 0.1 btc on it” This is 100% gambling, do some research at least)
5- try to have a bigger picture.
Before thinking of taking profits always zoom out on the chart, Don’t FOMO, if you see a spike up/down, go first and check social media to see if there was a catalyst. It can change the view and the sentiment on certain coins ( we saw it recently with BAT announcement).
6- Twitter over-shilling
Don’t listen to Twitter over-shilling, it can kill your portfolio hard earned gains.
7- Always keep updated with BTC situation.
Follow Bitcoin price, sentiment and market domination. Stay ahead of the game.
8- A solid diversification plan
A good diversification in my opinion is picking 1–2 high cap coins, 3–5 mid cap coins and a few low cap coins (no need to chart these).
