The Secret to Riding The Volatility Wave With Steem, Bitcoin , Eos et al
Most People are worried of the volatile nature of cryptocurrencies which can be seen in coinmarket cap website . Conversely, however, smart investors are making supernormal profits because of knowing how to ride the volatility wave while fuders and emotional traders are the daily victims of the volatile crypto markets. Moreover, the interesting part of the crypto market is its volatile nature which makes it possible to make daily profits (for day traders) and ability to enter a top market during panic selling periods. The question, however : do we know how to ride the volatility wave? Or will we just give up the ghost to fuders? Here are some few point
Crytos are Not for faint hearted : Cryptocurrencies are not for faint hearted , therefore if you know that you easily panic / extreme stressful when steem or your coins/tokens are red then this industry is not for you because you can easily sell off all very low even the coins you bought high. The best thing to do is to forget checking the ups and downs of crypto markets on daily basis and target long term holding of some good coins/tokens-which will guarantee you a good profit.
Buy low , sell high: Day traders can always make some daily profits by buying low (during panic selling periods) and selling high – when markets recover. Never join fuders or emotional traders to sell off your investments due to bad news from governments, banks or any other entity that might want to create fear in order to buy cheap coins.
HODL: those who hodl (hold) in the long run always make supernormal profits because of the positive outlook of blockchain technology especially steem blockchain. Do you know that most whales bought steem at less than 10cent? Which means that they are currently on supernormal profits by holding (powering up their steem) and thus are enjoying the profits of being a whale -on daily basis.
Diversify Long Term: Holding long term is great however you have to diversify too by selecting steem plus some top undervalued coins/tokens especially now that they are cheap. See white list section of www.elyte.tech for an example. This strategy will guarantee you a positive ROI (return on investment) and being able to take advantage of the volatility nature of cryptocurrencies.
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Diversification is the key to success. If you are invested in just one coin then its alot of pressure to not sell at times of low. Diversification reduces volatility and panic attacks when others are fudding.
Good point...it helps you to spread the risk. Thanks for your comment
good site thank you.
Wow some whales bought at less than 10cent? how I wish I had such opportunity.. I agree with diversification of good coins/tokens and will look into this elyte. Moreover, Hodl is key because as the case of steem and bitcoin, you will always make supernormal profits...good post, 100% upped.
Diversification, Hodl and no panicking are some of the keys to success...thanks for your comment
yeah i bought my small stack when steem was around $0.15 or so, those were good times! :)
Of the myriad of possible combinations I suggest that it is not 100% HODL and not 100% of trading.
Why?
If only HODL, there is no action, just waiting (not too interesting).
If only trading, it's not for those of a weak heart (too jittery changes).
That's why it's a good mix.
1.) Select coins for HODL (see what old Wolves say about HODL - any good source of information),
2.) Choose money for daily trading (optional criteria should be oscillations in daily value during the last 30 or 90 days).
So you can be active.
Good luck in the crypto world.
Veyr good strategy indeed...thanks for your suggestion.
Haha , something I say all the time like you, "Buy Low Sell High " and ride that Volatile crypto wave ! HODL ! unless of course you have to sell to survive like me , something that I hate doing but have to . I would much rather be powering up my friend , and im hoping to be doing so soon , now that I just started back working more full time ! I just wish the price of steem would go back up so I can pay down my overdue bills sooner . Eigther way , thank goodness for steem and steemit !! Great post @charles1 , upped and resteemed !👍😀
Good news that you started working full time and thus will be growing your steem power and thanks for your good comments and support...more success to you
As soon as I can I will my friend ! thanks for your kind reply !👍👍👍
Hi @charles1 I think you want to add a disclaimer to this post that you are not giving investment advice to anyone. Thanks for these optimistic comments. They certainly are welcomed and needed at a time like this when volatility is reigning. Yes smart day traders are making a killing. I know a few in fact and the key is to understand the flow of the markets if you want to make some sure money of what is happening. Day traders in stocks or currencies look for moves in the less than 1% amounts cryptos can be 10x that amount. You do not get the same velocity of money and you have to be careful because some things can run away from you, but if you get the flow you can do well.
One final thing. We cannot expect all cryptos to do well. In fact the vast majority will crash and burn. So telling everyone to just hodl I do not think isa great idea. I think you have to be smart and careful and pay great attention to what is happening. This will tell you if you have a long term winner or a dud. Most are duds. Just my thoughts. Thanks
Very good point indeed , I agree. However I indicated that you should chose great coins , do your DD, diversify especially undervalued coins/tokens and HODL...still not a perfect recipy however it is a strategy that will help
Bitcoin and crypto are not an investment for people looking to preserve and slowly grow wealth they already have. It's a big risk yes but a big reward associated w it. It's not an investment for the faint-hearted but there's no reason to hate on people trying to make some money.
Good point...however haters will always be hating..LOl
It's really normal when you have a lot of cryptocurrencies in your hands but the price is very low. But this situation will pass soon. Just like the volatile nature of cryptos, market is also volatile. :D
Yes, there will always be ups and downs ...good point
there are some projects like Storj file sharing i genuinely want to see happen so i feel more secure about my data and stuff. Steem is something im getting to know and understand. This is how we should invest. Currencies are all about the tech behind the coin. Trickier to invest in because so many factors involved in currency. Adoption, partners, etc. Got to watch 'em and the news.
Point, thanks for your comment
Volitility is one of the first reason of not being able to attract commen people. Normal investors dont like uncertanities srounding around cryptocurrencies. They want it to be stable investment.
Currently cryptocurrencies are only for long term investors i saw many daily traders loosing thier money in recent three months.
I agree with you hence the need to chose with causion and Hodl .
Diversify in crypto is not truely diversity, you are still investing in the same category. Difference coins under the same father of bitcoin. Should be invest some fund into gold to counter with USD or Oil or vice versa. Just my 2 cents.
Very good point however those markets are not even better than cryptos...on the other hand if you have enough money then you can diversify to Gold , Real Estate and silver