Research to learn, then you can make money

in #crypto7 years ago

"BTC up X"
"XRP up Y"
"LTC going to the mooon"
"...."

We have all seen these posts over the last few days and that is to be expected given the bullish market we are in. You could pick a random crypto and still have a good chance to profit these days. That is great, don't get me wrong, but is it sustainable? Of course not. Some will continue to rise, a lot will fail, others will stabilize. So what's left at the end of all that?

Your knowledge and your ability to do your own research!

You may have gotten in on LTC when it was <200$ because of some post on the internet. That's great. Count your lucky stars and now start researching why it rose in price. A lot of the times even that guy that helped you get into LTC had no idea why he thought it would rise. Don't be that guy. Everything is on the internet(altough not all of it is true; check your sources first), there is no excuse not to read as much as you can on a potential investment. Start reading about blockchain technology if you haven't already, that will lay a good foundation.

After reading about cryptocurrencies in general, pick a few cryptos and learn all you can about them. Look at their team(if its public), the market cap, is it mineable, etc. Analyze the price trends, look up why it rose in price in the past(or bottomed). Get to know the coin. After finding a few that you like, decide at which price you would like buy and be patient(this comes with experience, for starters, don't buy at the top!), also decide beforehand at what price would you be happy to sell( I don't suggest selling your whole postion if not daytrading) and stick to it.

Remember guys, these trading pros come and go, but what you learn( and you learn more by losing trades, so make sure to start out small) will make you money(or lose it if you are lazy).

To sum up,

Read the whitepaper, not the price!

I would love to hear your feedback, given I'm new to the steemit platform. If you liked the post and learned something new, please upvote. If not, please tell me why so I can improve. Thanks for reading !

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Sometimes buying at the top has its benefits (take bitcoin up until around, eh, $17,000 USD let's say), but it's few and far between.

It's hard to tell where the top is sometimes, especially as the market gets more saturated. Hardly anyone is into crypto, but now that it's becoming more mainstream, the inflow of mainstream money is pushing a lot of these coins up.

I think this is really due a lot to the buy-in structure. You don't need to buy a full "share" of a currency like you do with stocks. Why buy a share of TSLA when you have to pay over $300 for it, when you can buy $300 worth of ETH or LTC (both of which seem to be gaining much faster than Tesla or most other major Wall Street stocks)?

You're 100% right though: knowing the whitepaper and being able to tell the BS from the real deal is key. So many scams out there ...

I was talking more about the short term "top", not to buy-in at its 24h high for example, maybe I could have been clearer. Altough, like you said, there is a lot of money coming into crypto, I think that every day is a new ATH for a lot of coins.

You are right about the buy-in structure. Also, crypto is more newbie friendly. The whitepapers are on the website, bunch of youtube videos about every crypto, reddit communities. While on the other hand stocks are more investment bankers and a lot of paperwork.

And there will be more and more scams. While there are sheep, there will be wool.

Thanks a lot for reading and giving feedback, it means a lot!

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