In this article, I am going to point out some simple & basic strategy of trading cryptocurrency, the art of buying low and selling high (or staying high).
First, let’s take a look at the biggest winners of bitcoins over the years. If you have bought $100 worth of bitcoin back in 2010, it would be worth around $75 million today. Now, that is if you held your coins for the last 7 years. If may seem like a long time but basically if you hold all your coins, you could have made a lot of money.
So, how can we repeat a similar process today? Certainly buying bitcoins right now will make you money in another 7 years but is it worth to hold bitcoins? The bitcoin world isn’t just bitcoins but full of other new coins with new features and some at very, very low prices.
Going back to our simple & basic strategy, you may want to actually find some new coins that have low prices and hodl(hold for dear life) for at least a few years. We will call these new coins “crapcoins” for the purpose of this article meaning they are relatively new coins(3-6 months old), with low volume, and have not spiked in price yet.
Most of these crapcoins can be found on Bittrex.com, a very good exchange platform where you can buy a lot of these newer coins. Now, how to find the right coin where you can buy low? Go look at the first 20 lowest volume coins and analyze the charts.
But how do you analyze the charts? Going back to our simple & basic strategy of buying low and selling high, we look at coins that have not gone up a lot ever and coins that have steady rise of prices over time. By doing that, eliminate any coins that have already jumped very high and any coins that are volatile(coins that jump up and down in value drastically). You will be able to buy low and eliminate the risk of buying high.
In the end, you should end up with a few good low volume, low price coins that are steadily increasing in price. Buy these and hodl them and when the volume picks up, the price can only go up. Likewise, if volume drops, you really can’t lose much money on these as you bought them very low.
And also, there are a lot of pump and dump going on and many pump and dump groups target these type of “sleeper” coins that have not been doing much. I would set a sell order for 10X so that if these crapcoins get pumps, you automatically sell them for 10X. Now, the main strategy is to buy low and sell high, which is low risk and high rewards. But we shouldn’t focus on trying to buy coins that could get pumped as pumpers pump random coins and you could lose out big by following a pump and dump group. I should have another article on that but these pump and dump groups are only out there to make money off people participating and you can easily lose 50% of your money within seconds as I have experienced by testing them out.
When should you sell these coins? Have a target profit goals. If you bought these crapcoins for very low price, I would sell half of them when it hits 2X so you can keep your initial investment and keep playing the market with your winnings. That’s a safe bet where you can keep some of your winnings and place them on other new crapcoins that may be low for that week. Remember to always sell of some of your winnings so you are slowly profiting and don’t get too greedy. Accumulating a little bit of 20% profit on each coin over time and reinvesting them again into more crapcoins could be a good deal.
And of course, if you think the fundamentals of the coin has good long-term outlook (such as masternodes, anonymous, etc…), it may be just good to hodl them for a long time. HODLing technique is the hardest to master as a cryptocurrency noob but look at the biggest bitcoin whales today, they did it by implementing basic strategy of buying low and selling high.
If you are new to cryptocurrency, try putting a $100 into the crapcoin market and test it out before you go all in. Think of it this way, if you just got your driver’s license, would you buy a nice car only to crash it? Get a used car and learn to drive or get some crapcoins and learn to trade.
That’s all for today and thanks for reading my first Steem article. Oh yeah, Steem coins also look great for long term but make sure to hodl for many years!
I also do a daily bitcoin live video over on my HighOnCoins YouTube channel, check that out for daily market updates. Also join my HighOnCoins slack team if you are interested in talking/sharing ideas with me and my crypto-friends.
HODL HODL HODL
Buy low stay HIGH!
Best,
Max Lee
Twitter @zedomax
G'day Max. I've been a big fan for a while. I was just watching your latest video where you said you were finally posting here. You said you wanted a rapper to do crypto raps?? We are making this video right now.
https://steemit.com/funny/@beachbuminvestor/breaking-news-jp-richardson-of-exodus-about-to-get-served-strong-language-warning-explicit-content
P.S since you are the only person who doesn't bore the SHIT out of me when doing my research, I have actually started my own Youtube channel to report on cryptos.
Thank you so much for the inspiration.
I would love to help you with your steemit.com strategy if you are interested? I've actually been trying to contact you but I suck with social media.... sorry.
Anyway, a huge welcome to steemit.com, I hope to hear from you soon.
Cheers,
Fish.
Been trying to get into the slack but the only link I can find doesn't work anymore...
Welcome Max! Looking forward to reading your content. 👊
Thx BRO!!!
What % of your portfolio is crapcoins?
Thanks for the info.
I would put 10-30% on your portfolio on crapcoins. To start out, just put maybe $100 to test out the market and see how you do. When you gain confidence, put more in.
nice man ill follow you.....buy low stay high
@zedomax Great first post :) its the bigman from your slack channel...
Everybody should check out Maxs Youtube channel https://www.youtube.com/user/HighOnCoins its full of great value content for Crypto traders plus a good luagh :)
Sup bigman! thanks for chiming in!
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Welcome Max! Let's get highhhhh on steemit.
Yes max! "Buy low, Stay Hiiiigh"
Great first article Max. I just started watching ur youtube channel 3 weeks ago (cryptonoob over here), and I got hooked as I found it interesting, with really good and honest content about crapcoins. Then I joined ur slack group and went through all the $CHC discussion. I wanted to get in but as I'm a noob I don't have any $BTC to trade for $CHC. I'm waiting for a good entry point in this bear market, maybe last days of July. Anyways, I'm unndecided about to buy bitcoin at these moment, or wait to go lower and then trade it for some $CHC. I'm stoked about getting a MN, and $CHC still is the cheapest to get as for now (?).
Just leaving my first comment to you.
Greetings from México!
BOOM !
Thanks for the article Zedomax, i already belong to a bunch of your groups on slack and watch your youtube channel daily
Happy to see you on Steemit Bro! Enjoy!
Great stuff Max keep it up #HomelessHODLCrew
#HODL for life!
Wow so i watch every high on coins everyday at work and home welcome to steemit and much success you helped me make alot of money in crypto your like a crypto god to me one love and steem on bro
damn, i remember you mentioning your steem name on youtube but i couldnt get it down. FInally found you, hell yeah.
Keep trolling into steem too man. You're hilarious af, im expecting another live stream today :O
I just watched your video on YouTube
Great Max Leader!!!! 🙌🙌🙌🙌 Thanks for share the strategy ...I am a firm believer in the power of the people ... not the people of "power" .... I love the Holdler movement AHUUUU AHUUUU AHUUUU
Hugs!!!!!
Just hope that the community does not grow to fast and then everyone targets you #chc
Hi Max great to see you here , i´m a huge follower and hope your crypto moves work out because I am sure it is going help you and all your comunity. Keep strong and possitive as always.