Please be Cautious Trading Alts Currently - Advise from an "Experienced" Trader - Trading Guide Ep.??
As I'm writing this I realize some people may be confused. The BTC value (yellow line) is the only line I care about as I track my profits in BTC and not in USD.
Also, when I say alt I'm referring to any digital/cryptocurrency that isn't Bitcoin.
BTC = Bitcoin
XRP = Ripple
Below is the chart of Ripple over the last 6 months. I probably bought somewhere in the 2 - 3 or 3-4 range in June or July. I made some small profits trading the bounces and then watched over the next 6 months as the value of Ripple when to less than 80% what it was worth when I bought it. During that same time, I watched the value of Bitcoin rocket.
Above is the second option I can see happening and at this point may just be spreading FUD. Ripple and other alts could make a small correction and then make an even larger gain as it heads to the moon. At this point, I've taken my original BTC investment out of XRP so whether it goes up or down doesn't really matter to me. I've also sold off all my Lumens as I'm trying to reduce the number of coins I have.
The reason I'm watching Ethereum right now is because of the chart I have above showing Library Credits, but these are the coins I'm looking to buy. Coins that are starting to show strength, but have not yet rocketed to the moon. Coins that are still in the accumulation phase (ones that have yet to break long-term resistance from all-time lows). Before I buy any LBRY Credits, however, I'm going to see if they have any upcoming announcements or upgrades coming 1st half 2018 to help increase its strength.
Be watching the price of Bitcoin if you're trading alts! On the daily chart since the end of December Bitcoin has put in a new high low almost every day. If that trend line isn't broken in the next week we could see alts dump as Bitcoin will be testing the $20,000 mark again.
As always with crypto, anything could happen. Even the most experienced traders can be wrong more than they're right. Please don't invest more than you can afford to lose and as always if you have any questions or anything you'd like me to cover in my next post please feel free to share in the comments below, and remember if you bet against Bitcoin you're going to lose ;).
Great piece of information buddy. I think xrp is overpriced and should correct in time now. Better to move back to BTC which will soon trade above 20k. Regards Nainaz.
#thealliance
Agreed will be interesting to see if it bounces or shows power through.
Great info that needs to be shared. I find myself always looking at the dollar valuations and not BTC. I'll have to train myself to focus more on the BTC price relative to my holdings. Cheers.
Depends, what your end goal of trading is. Are you looking to gain more dollars or more BTC. If you're looking to gain more dollars trade based on USD (or your local currency) value.
If you're looking to grow BTC then focus on that.
Heck if you could even be focused on growing Steem. It all depends on what you're end goal of trading is.
So BTC is an indicator of what alts might do? Interesting stuff to a crypto noob.
Yes if BTC goes up Alts go down
If BTC goes down Alts go down
If BTC goes sideways alts moon.
Of course there are always exceptions to the rule.
Here's why if BTC goes up people sell alts to get back into BTC.
If BTC goes down people sell into BTC then BTC into fiat.
If BTC goes sideways people get bored and look for the next great crypto.
Not always true. There were some Alts that did go up when BTC shot up as well. Sometimes, the BTC tide rise other Coin Barges.
;)
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I do it all the time no worries!
BUY! BUY! BUY!
$17,217.10
$20k by Sunday?
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I hear all kinds of stuff about alt stuff.. i have ripple but i was told i couldnt withdrawl the last 20 of my statsh that they make you keep it as a reserve and it wont ever go over 10 usd in its lifetime because the banks created to get tge usd back into circulation etc...