Simple & Basic Strategy of Trading CryptoCurrency!

In this article, I am going to point out some simple & basic strategy of trading cryptocurrency, the art of buying low and selling high (or staying high).

First, let’s take a look at the biggest winners of bitcoins over the years. If you have bought $100 worth of bitcoin back in 2010, it would be worth around $75 million today. Now, that is if you held your coins for the last 7 years. If may seem like a long time but basically if you hold all your coins, you could have made a lot of money.

So, how can we repeat a similar process today? Certainly buying bitcoins right now will make you money in another 7 years but is it worth to hold bitcoins? The bitcoin world isn’t just bitcoins but full of other new coins with new features and some at very, very low prices.

Going back to our simple & basic strategy, you may want to actually find some new coins that have low prices and hodl(hold for dear life) for at least a few years. We will call these new coins “crapcoins” for the purpose of this article meaning they are relatively new coins(3-6 months old), with low volume, and have not spiked in price yet.

Most of these crapcoins can be found on Bittrex.com, a very good exchange platform where you can buy a lot of these newer coins. Now, how to find the right coin where you can buy low? Go look at the first 20 lowest volume coins and analyze the charts.

But how do you analyze the charts? Going back to our simple & basic strategy of buying low and selling high, we look at coins that have not gone up a lot ever and coins that have steady rise of prices over time. By doing that, eliminate any coins that have already jumped very high and any coins that are volatile(coins that jump up and down in value drastically). You will be able to buy low and eliminate the risk of buying high.

In the end, you should end up with a few good low volume, low price coins that are steadily increasing in price. Buy these and hodl them and when the volume picks up, the price can only go up. Likewise, if volume drops, you really can’t lose much money on these as you bought them very low.

And also, there are a lot of pump and dump going on and many pump and dump groups target these type of “sleeper” coins that have not been doing much. I would set a sell order for 10X so that if these crapcoins get pumps, you automatically sell them for 10X. Now, the main strategy is to buy low and sell high, which is low risk and high rewards. But we shouldn’t focus on trying to buy coins that could get pumped as pumpers pump random coins and you could lose out big by following a pump and dump group. I should have another article on that but these pump and dump groups are only out there to make money off people participating and you can easily lose 50% of your money within seconds as I have experienced by testing them out.

When should you sell these coins? Have a target profit goals. If you bought these crapcoins for very low price, I would sell half of them when it hits 2X so you can keep your initial investment and keep playing the market with your winnings. That’s a safe bet where you can keep some of your winnings and place them on other new crapcoins that may be low for that week. Remember to always sell of some of your winnings so you are slowly profiting and don’t get too greedy. Accumulating a little bit of 20% profit on each coin over time and reinvesting them again into more crapcoins could be a good deal.

And of course, if you think the fundamentals of the coin has good long-term outlook (such as masternodes, anonymous, etc…), it may be just good to hodl them for a long time. HODLing technique is the hardest to master as a cryptocurrency noob but look at the biggest bitcoin whales today, they did it by implementing basic strategy of buying low and selling high.

If you are new to cryptocurrency, try putting a $100 into the crapcoin market and test it out before you go all in. Think of it this way, if you just got your driver’s license, would you buy a nice car only to crash it? Get a used car and learn to drive or get some crapcoins and learn to trade.

That’s all for today and thanks for reading my first Steem article. Oh yeah, Steem coins also look great for long term but make sure to hodl for many years!

I also do a daily bitcoin live video over on my HighOnCoins YouTube channel, check that out for daily market updates. Also join my HighOnCoins slack team if you are interested in talking/sharing ideas with me and my crypto-friends.

HODL HODL HODL
Buy low stay HIGH!

Best,
Max Lee
Twitter @zedomax