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RE: Crypto Markets Investment Strategy- minimize risk and leverage crashes!

in #crypto7 years ago (edited)

Hi galingv,
important insights!
There are sites where you find similar advise, but it's always good to repeat :). Here are my humble quick two cents:

  • a possibly good one from a known Dutch trader-investor: avoid ICO's...but invest (prior) in the coins of the platforms on which the largest-hyped upcoming ico's are built upon...as those joining the ICO's often must pay exactly with this 'underlying' coin (*)

  • regarding diversification: this one supports the advise to certainly choose a couple of well researched small coins (too) because of their small market cap ... backed by a google spreadsheet with data from his own trading
    https://medium.com/@shanif/crypto-diversification-believe-it-or-not-you-actually-make-the-most-money-in-cryptos-when-you-29972f5141b

  • regarding your fiat reserve... as far as my limited experience goes, if your exchange supports no fiat, you can use USDT instead of fiat too. As such, you don't need to "bring it over" from an exchange or wallet everytime. [Curious what others have to say...]

  • often heard advise: choose coins with a project...and avoid getting trapped in pump&dumps. More like this, you can read in this cool trading strategy tips longlist:
    https://chrisdunn.com/50-crypto-trading-investing-lessons/

  • ...all the best :)

Hasse
#crypto #portfolio #investing

(*)

(in Dutch)

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Good point on the USDT! I totally forgot to mention that since yes the USDT is thethered to the $ and can be used as a local alternative and is great to park your 30% reserves. Yet, for cashing out your profits my recommendation is transfer these from the exchange and get them in real $. This way if the exchange implodes you are not stuck with the USDT bag.

When thinking about strategies...
Two more thing come to my mind:

  • after another post: some mention a time lag in the trends of the 'following' altcoins vs bitcoin... which could be helpful. I can see that as a theoretical possibility...but not how to use it exactly...For future research :-)
  • maybe the logic itself but: don't judge a coins +/- trends on the trading pairs in your exchange (as the paired currency's trend can create a false impression) but on their absolute value on coinmarketcap...

[Edit: learning as I speak... I just saw JK mentioning in his videoblog there's a hughe risk of USDT collapsing... endorsing your last point :) !
https://steemit.com/cryptocurrency/@jeffreykirdeikis/the-great-crypto-correction-of-2018-what-does-the-future-have-in-store ]

Very good points as well! The laggging trend is interesting one and worth exploring more. As for the true gains and losses of an alrcoin, that is absolutely true! I wrote about this exact thing few weeks ago when ETH was having a bull run and made all ALT coins to drop in price. You can read more on this here.

https://steemit.com/crypto/@galingv/crypto-investors-beware-of-what-does-alt-coins-true-gains-really-mean

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