Trading Against Rising Bitcoin Price: A Short Term Trader's Perspective
Introduction
If you have been trading on cryptocurrency for a while, you probably would have noticed that most times bitcoin price starts going into new highs, most altcoins lose value. This has repeated severally that it can no longer be a coincidence.
A lot of reasons can be advanced for this phenomenon but no one can say with certainty why this happens. It could be as a result of people holding on their bitcoin believing that since the rise is sure, no need to try altcoin at that moment.
Another reason could be that people do not want to buy bitcoins when the price is rising; and since you need bitcoins most times to trade altcoin, then it can lead to altcoin losing value. It is also possible that people just dump their altcoin and use it to buy bitcoin that is the grand master of coins whenever bitcoin is going high.
Maximizing Bitcoin Rising Price
Instead of crying because of dwindling fortune of altcoins whenever bitcoin price is going up, a smart investor can plan for such season.
One method I have used now that is effective is to try and buy altcoins at cheap prices whenever bitcoin is on rampage. At these times, altcoins come cheap. If you buy at these times, chances are that you will make your quick gain when things stabilize.
If you observe bitcoin price surging up with speed, it might be the perfect time to sell all your altcoins so that you can buy them back cheaper when other people dump theirs as a result of surging bitcoin price.
This is a strategy I believe will help you make more cash as an altcoin trader. This view is only smart for short term traders. If your investment goal in altcoin is long term, there may not be any need for this. The reason is that at the long run, what goes down will go up so long as they are valuable coins.
If you have any other technique you have successfully used to make money during bitcoin price upsurge, I will appreciate if you can share it here using the comment section.
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Thank you for reading!
Disclaimer: These views are my views and not necessarily a call for action. Investing in cryptocurrency is risky therefore make sure you do not invest more than you can let go. Do your own research and let it guide you towards your set goal.
I have simple strategies.
When Bitcoin rise and ETH/USD price is not moving for a day, then it's time to buy ETH
When ETH/ETC price is below 0.08, it's time to buy ETC, it's always at least 10% of ETH
When ETH and ETC keep rising and REP is not moving or falling, it's time to buy REP, it always follow ETH movement but delay.
If Steem is rising and BTS is not, buy BTS it follows Steem movement and vise-versa.
Disclaimer: Not an expect just my personal observation.
Great update. I will watch out too to observe this. Thanks for sharing.
I like your post.
Voted, followed and resteemed.
Thank you very much and I am gona follow you back right away because you didnt ask back.
Thank you all for the upvote. I am trying to follow u all. I like nice people. Lols
As a matter of interest, everyone who upvoted this content who needs my follow should alert me. I have followed as much as I can already. I want to have more network of like minds.
Good advice I think (though I'm no expert!). I've been buying some altcoins that went down these last few days. Pretty sure they'll go back up eventually.
Yes they will surely go back up. However, I will advise you to buy only quality altcoins. Check out this article for a guide. https://steemit.com/cryptocurrency/@richguy/winning-cryptocurrency-picking-principles-and-guideline-for-cryptocurrency-investors
Thank you for the advice! Yeah, at the start, I traded... well... everything! Whatever felt good. Made some mistakes, but won some aswell. Now, I'm trying to cut back on the amount of altcoins I have. It's been a few months now and just spending time on Steemit has given me an idea of what coins people have faith in, so I'm just trying to follow the experts now :-)
perfect
I'm not sure this is true: "most times bitcoin price starts going into new highs, most altcoins lose value". Good post!! Thnks
Thanks for commenting.