Ultimate Short Term Investment Methodology
Updated
Hello, everyone!
As I can see, you like my series of articles about different coin’s trading plans. Today I’m glad to introduce the short methodology about how to choose the coins for short term investment. On the term “short term investing” I mean the trade with the duration from 1 to 5 months with the potential profit 3 to 6X from current price. Let’s go.
First of all you need to know that for short term investing you do not need to believe in project idea, just a big hype should be anticipated.
1 PRODUCT
The product is not the key point of my methodology. The best product is the blockchain because it is fundamental project, which can develop quickly in the future. Hype projects such as DeFi and NFTs are also allowed for our purpose. You should just avoid the scams and memecoins.
Good examples: DOT, NEO, FLM, ATOM, ADA
Bad examples: DOGE, SHIB, SAFEMOON, PRIZM
2 TEAM
For our aim this is the least important point. You can just check if the famous and successful people are creators of this project. It is an additional mark for the coin.
3 SOCIAL MEDIA
Check if the Twitter account is active or not, activity is high before the pump. The famous investor and other persons as the subscribers also is a good sign. Good and bad example see on the pic below.
As I can see, you like my series of articles about different coin’s trading plans. Today I’m glad to introduce the short methodology about how to choose the coins for short term investment. On the term “short term investing” I mean the trade with the duration from 1 to 5 months with the potential profit 3 to 6X from current price. Let’s go.
First of all you need to know that for short term investing you do not need to believe in project idea, just a big hype should be anticipated.
1 PRODUCT
The product is not the key point of my methodology. The best product is the blockchain because it is fundamental project, which can develop quickly in the future. Hype projects such as DeFi and NFTs are also allowed for our purpose. You should just avoid the scams and memecoins.
Good examples: DOT, NEO, FLM, ATOM, ADA
Bad examples: DOGE, SHIB, SAFEMOON, PRIZM
2 TEAM
For our aim this is the least important point. You can just check if the famous and successful people are creators of this project. It is an additional mark for the coin.
3 SOCIAL MEDIA
Check if the Twitter account is active or not, activity is high before the pump. The famous investor and other persons as the subscribers also is a good sign. Good and bad example see on the pic below.
Note
Note
4 EXCHANGES If the most of the largest exchanges listed the coin this is a good sign that the project is not the absolute scam. Binance and Coinbase are the most famous exchanges. You can open the Coinmarketcap and find the info about market to check it. See the pic below.
Note
5 PARTNERSHIPS Not so important point, but the famous projects in partnership increase the project’s reliability. But you should be very careful different scams can be based on the successful blockchains and add this blockchain’s domain project to it’s partnerships list. For example, the scam project IRON Titan, which was based on Polygon demonstrated the price crash to 0! Check the information in Google.
6 TOKENOMICS
Check the information about token emission on Coinmarketcap. The circulating supply should be above 75% of total supply, as the BIFI tokens has. The limited maximum supply is also a sign that there are no supply shocks and price drops anticipated. See examples on the pic below.
Note
7 MARKET INFORMATION I recommend use Bollinger Bands for the estimation of the price dips and rips. For example LUNA is next to upper Bollinger Band – in our methodology this is the bad short term investment. FLM is next to lower band, moreover it made just 4X for early investment, LUNA made more than 100X – this is very dangerous to invest in it.
You can also check the Coinmarketcap rank and trading volume but it is no matter if the price action is not suitable.
Note
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
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