This five tactics will help you to be a better trader when you have learned to use them. It is what I primarily use most of the time to create an income from cryptocurrencies.
Holding the coin is sometimes good, but is to be done with care because some coins never recover after a downfall. But I often use the holding strategy on coins that have fallen below the price I have purchased it at, and I of cause still see a potential for the currency to rise again.
I determine the potential by looking at how much of adoption is there, how does the technical side of the coin look, and is there a continuous development in the core or around the coin. With this, in minded I determine if I am holding. There is no reason to hold coins were you don’t see a potential for a rise in price.
A tactic I use when I see a coin going towards the moon. You can either buy or do nothing but you need to act quickly, if there you should profit from the bull run, and it is not necessarily profitable to go in on all bull runs. Especially if you get caught in someone else’s “pump and dump,” so in short not giving in to your fear of missing out can sometimes be better than buy buy buy.
How I decide if I am going to invest or not is actually a simple process, when the coin goes on the quick bull run, I ask my self, does I know the currency well enough to invest, if no I stay away, if yes I move on. Is It a possible short “pump and dump” if yes stay away, if no I move on to the last question, did I consider to invest in the coin before the quick price rise if yes then buy buy buy
This is a simple starter buy-in option it has giving me profit over a 24 month period after I adopted this tactic, but it may not always provide a profit.
The method is to take 5 dollars every month and invest it in the coin at place 100 on the market capitalization chart. Some of the coins will never go up, but then again it is only 5 dollars.
A tactic I often use when I usually trade, I analyze the market look at what the overall trend has been over the last month watching for a sudden change, when you look in top 100 you will typically be able to see a pattern of the coin going up or down. And the trend will many times continue in the cryptocurrency market, but as all other markets trend’ can turn faster than we can react to, so make sure you keep an eye on the market, and when I trend spot I will never buy when price is on the way down I wait until it turns green for more than 24 hours, and if it goes quickly I look to the NO FOMO tactic
In no way a tactic that show good judgment, but I will at times invest in a coin just because I think the project looks promising, I have made good money on this tactic but it requires a great deal of research, and sometimes it is not the significant profit you receive, and you can get a wallet with useless coins. But I think with excellent knowledge about the project, you can form an informed opinion.
I have a background in cryptocurrencies I have been into the cryptocurrency game since 2011