I woke up in the middle of the night to pee. Just before going back to bed, I checked my crypto portfolio mobile. I found that one coin had sky-rocketed by 700%. I lost my sleep. I switched on the lights, dug out my laptop from the backpack and opened the exchange. In the few minutes it took to open the browser, enter the URL, login, enter the authentication code, the price of that coin had fallen back. I was disappointed. However, I know the high volatility and low liquidity of the crypto world. Anything can happen. A human like me can't keep track of it, not at least while sleeping. So, I decided to use computers.
I have most of my coins lying in exchanges, as withdrawal fees will cut significant portion of it. I don't like checking prices on CoinMarketCap regularly and haven't learnt enough of TA to start momentum trading. So I decided to test out a strategy I found on Twitter.Almost all exchanges have an option to set limit orders.
I have setup limit orders for all my coins at 4x price for 50% of the amount. That means, whenever the price (in ETH) becomes 4 times that of my buy price, exchange will automatically sell 50% of my coins. This move will recover my investment, with 100% profits. I hope one of them is triggered before end of this month.
I enjoying the holiday season from last few weeks, so I could invest my time in reading about crypto world and learning basics of trading. One thing I have realized that, cryptocurrency is going to stay. I don't need to leave everything (job, food, exercise) to start reading white-papers, follow people on Twitter, join Slack or Telegram channels, to maximize the profits. It's more than enough to recognize the potential of cryptocurrency (and blockchain in general) as the future. I am sure that 90% of world population has not invested any money into this space. So I can take my time, get organized, invest at regular intervals, book small profits, and chill out.
Limit orders won't guarantee your sell order to be executed. Depends on the volume of supply and demand at that price. I would stop using limit sell orders, as I think there is a bigger chance of you missing out on big gains using it. Just my humble opinion.
Agreed. In my case the amount is low, so I can try my luck. If there is a spike in the price, some portion of my order might be executed. Also, I can get first movers’ advantage as I set it up well in advance.
Agree. Best of luck to you :)
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