Best cryptocurrency trading strategy that makes you millions 0/0
Cryptocurrency trading strategy
Considering the best cryptocurrency trading strategy that suite you may be somewhat challenging.The advent of Bitcoin and its unprecedented rise over the last few years has investors pouring their money into cryptocurrencies by the millions. In what can only be described as the biggest investment opportunity since the dot com boom, cryptocurrencies and blockchain projects are achieving sky-high valuations in droves.The market capitalization of Bitcoin and Altcoin is Skyrocketing by the day.While this trend is largely speculative, it shows no signs of stopping and has made many people extremely wealthy.
Now, others who seek to emulate the returns of their peers are looking for the next big thing in the market. Bitcoin is still a great investment, but there are currently hundreds of alternate cryptocurrencies, referred to as “altcoins,” that achieve greater percentage gains. Often the newest ICO, or initial coin offering, represents an opportunity to multiply one’s investment by a factor of ten or more. However, it’s hard to predict which coins will receive the most attention and why. With the right recipe, a cryptocurrency can achieve sustainable growth and keep it once the bubble pops.
Since there are over one thousand two hundred cryptocurrencies(1,200) people tend to find it difficult to make the right choice of investing and what strategy to apply in-order to achieve success.
Investing in an altcoin while it is still in its ICO phase guarantees the cheapest possible coin. While there are so many ICO poping out daily you will have to do your due deligence on any of them that interest you.Some of the criteria to take into consideration before investing in an ICO Are;
1-Does the Project of Have an Economic Value Backed by Real Product?
2-What industry Are the project taping Into And what is the demand to Supply Ratio in that industry?
3-Who are the team behind the Project? Do they Have An Entrepreneurial background? What is the Team Project mission?
4-Do they have A Growing Die hard community Members? and so on.
if you are venturing into the murky world of altcoin investing the ICO phase is the best start.
Coins literally only have one way to go, and that is up, after the ICO but they can also tumble very quickly and fall to zero. As the coin hits the market though, it can spike and that is your cue to sell. In this way, you can easily profit between 100 and 500 percent.
If there is no immediate spike, aim to get between 50 and 100 percent return before selling.
This strategy works well if you hedge your bets and buy into a few ICOs, don’t put all your money into one basket/ICO.
Accomulate The Lows
Accumulating the lows as a coin keeps dropping in value is another good strategy.In some cases after an ICO of a particular project traders/investors tends to withdraw some if not all of their investment thereby driving the price of the coin down.
At that point You can also accumulate and hold for some time if you believe in the project. Look for a coin that hits its first dip on the market and take aim at buying; this can even lead to a cheaper buy than the ICO sale price.
You still need to be very cautious of this strategy to avoid your money being stock in a project that was over dumped.
Buying The Breakouts
Breakout trading strategy is used by active investors to take a position within a trend’s early stages. Generally speaking, this strategy can be the starting point for major price moves, expansions in volatility and, when managed properly, can offer limited downside risk.
A breakout is a cryptocurrency price that moves outside a defined support or resistance level with increased volume.
A breakout trader enters a long position after the cryptocurrency price breaks above resistance or enters a short position(for margin traders) after the cryptocurrency price breaks below support. Once the cryptocurrency trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout’s direction. The reason breakouts are such an important trading strategy is because these setups are the starting point for future volatility increases and large price movement. In many circumstances, breakouts are the starting point for major price trends.
Breakouts occur in all types of market environments. Typically, the most explosive price movements are a result of channel breakouts and price pattern breakouts such as triangles, flags or head and shoulders patterns. For you to be able to maximize these strategy you will have to learn how to analyse the market technically.(technical analysis)