Trading Altcoins for Maximum Profits · StrategyIt is a tricky market. How are you going to trade the altcoins to maximize profits? What's your plan?
Everyday there is always some odd pair that grows 100%+, and we feel attracted to this kind of action. We want to be in and we want to hold those pairs. But, there are hundreds of choices on each exchange and only 1-2 pairs breakup this strongly every few days. Quietly, behind the scenes, everything grows but slowly.
Three months down the road the entire market will be 2-3 levels up, minimum. Some pairs will be up five levels and some even more.
If we fall for the trap of trying to catch the next big move, we can miss the real bullish action that is happening every day. I mean, it is better to buy and hold 5-10 strong good pairs rather than chasing around the dream of big wins. A dream that most often than not never comes.
If you look at 22-June or 7-April, it takes months for a bullish wave to develop. All across, marketwide, it happens step by step. Every day altcoins are growing 2-3%, 5-10%, over and over, again and again.
When we jump around trying to catch the next sudden jump, we miss the safe and secure sustained daily growth. When we finally make the right move and buy the pair that is breaking up strong, there is a 50% bullish breakout but somehow this isn't enough, we want more, more, more. 50%, 70% up and yet, we do not sell, we wait for more. But the entire bullish wave, regardless of how you slice it, takes a minimum of 3 months. Then comes a retrace, fast, or a strong correction, and we sell when prices are low. A strong rise at first and we might end up with just 20-30% gains. And in this way we end up wasting months and months.
Three months later, we do have some gains; it is a bull market after all, but total growth is nothing compared to holding a strong pair long-term. The strong pairs, most of them, end up growing 700%, 800%, 1,000%. When you look at your capital and you are moving around, you see only 100 or 200% total growth. What is happening here?
If you have 2-3 years of spot trading experience, then you can definitely choose 20 good pairs and sell the few that breakup weekly, hold the rest. Each time several pairs breakup strong, collect profits and find the ones trading low. But, if you have less than 2 years experience trading spot, you are better off buying low and holding long-term. You will end up with bigger profits in the end.
There are many ways to approach the market, make no mistake, but a plan is needed to maximize profits. I will continue to share my experience so you can avoid making the same mistake I made back in the days.
I've been trading Bitcoin since 2013, altcoins starting 2015; full time Cryptocurrency since 2017 through present day.
The market is a school and will you give tons of lessons, experience is needed for success. If experience is lacking, planing ahead of time will produce the best results.
To plan, just ask yourself the following questions:
1) How long am I willing to wait after buying a pair?
2) If prices rise, will I sell? If yes, when and by how much?
3) If prices drop, will I close the position at a loss? If no, how long are you willing to wait with a losing pair? If yes, when will you close? At -10%, -20%, -50%?
Answering these questions ahead of time can help you avoid anxiety and stress. The more you prepare, the more you read; higher profits.
Namaste.
