6 WAYS TO BUILD YOUR SHITCOIN PORTFOLIO!! FIND LOWCAP GEMS AND PROFIT!!!
I did a video a few days ago ranting about setting up your altcoin portfolio. You can find it here https://steemit.com/cryptocurrency/@ddepalma/managing-your-cryptocurrency-profile-in-2018
One of the main points of that video is to allocate a little bit of your portfolio for low caps and trading. I group them together to limit my exposure to emotional trades, but if you want to be a little risky, there are ways to be profitable.
The main goal I'm trying to accomplish is to educate people that don't really know how to navigate through the SHITCOIN storm.
Here is what I look at when I dig deep into the toilet to find a golden shit:
- Mining:
-There are many coins that have huge "super" block rewards during the beginning stages of a coin. STEEM itself has done this, and has proven to be very profitable for miners.
-DON'T DUMP YOUR MINING BAGS AT A LOSS. Your mining bags should be like your children. You take care of them until one of you dies. If you don't like where a coin is headed, stop mining it. Mine something else.
2). RESEARCH!!!!
-First thing I look at is the team. Are they involved in the commmunity? Are they anonomous?(not always bad) Is there community involvement? Future plans? Are they professional?
-Next thing I look at is, obviously the tech. Does it run smoothly? Are there any major bugs, or have there been in the past? Is there anything that seperates it from pretty much EVERYTHING else?
-Scan charts on Cryptopia, HitBTC, CryptoBridge, among other notorious shitcoin exchanges. Bittrex has been known to have a few, but you risk a possible future delisting.
-Look for historic bottoms/tops, current market cycle, accumulation zones.
-Look at variables such as market cap, circulating/total coin supply, volume, liquidity, transaction volume, masternodes/staking etc. There are many variables to look into, these are just a few.
-Consider real world value, economic structure (inflation, distribution, etc), past/future announcements.
These will help you find flaws in coins you like and find the good in coins you may not have liked before. Less objectivity helps control emotions during trades.
3.) Risk Management:
-BUY IN CHUNKS
- Only allocate enough money you can afford to take a possible 70% loss on, or even 100%!! These coins are speculative guys, you can't just blindly throw an entire months rent at something if you can't afford to get dumped on. That's just the reality. Everyone in this game has been dumped on at some point in time. We know the pain.
-Stick to your portfolio allocation plan and you will more than likely be able to control your risk.
4.) Diversification
-First rule of shitcoin trading is NEVER GO ALL IN ON A SHITCOIN. BitConnect just taught you why. Satoshi giveth and Satoshi taketh away.
-Don't dump entire bags to chase another bag, ESPECIALLY in a loss. If you are in gain it is ok to take a little bit off the top, or take out your initial investment even, but wait for the moonshot pump until you decide to make any moves (recommended).
5.) HODL!!!
-This is my least favorite strategy, and I only hold shitcoins for long term if I REALLY believe in the investment. In that case I will try to accumulate more at lower prices, but like I said this is rare. Only coin I've ever held through 70% dips is NEO and that turned out to be totally worth it.
6.) Think of gains/losses in BTC instead of USD/EUR
-At the end of the day we all believe in crypto currence and Bitcoin is still, and IMO will probably always be, the King of Crypto. Most shitcoins are only paired to BTC on shaky/risky exchanges such as HitBTC so it is best to measure your gains and losses that way.
That's all!! Hope you found this helpful, leave comments, ideas, opposing viewpoints, etc in the discussion area. Peace!!
TWITTER: twitter.com/southparkcrypts
YOUTUBE: @cryptojimmy
https://www.youtube.com/channel/UC4iKbpD8ciEiN46AcGajUvA
BTC TIP JAR:
14soFE4yTKHZTE1aRUcXmTTeRmN3RLba4j
LTC TIP JAR:
LP5x8JpLYHratX6LVNY9sNUnUy3SL57CqN
ETH TIP JAR:
0x359637a4197D7ec9787DFaAE2316C55b943C3ECF
****NOT FINANCIAL ADVICE ONLY OPINIONS BASED ON TECHNICAL AND FUNAMENTAL ANALYSIS!!!!****