As a cryptocurrency trader, it sort of annoys me when people say that trading cryptocurrency is not profitable and the best way to gain value over your cryptocurrency is to hold them while in reality they have 0 experience with trading and frankly has no knowledge on this subject at all. Besides the big name crypto video guys, this includes the technical analysis guys as well.
Seriously, just cause you can draw some charts so what? SHOW me that you made money with your CHARTS! Be responsible with your work these so called "pros!"
Even though I don't disagree that holding cryptocurrency is a bad strategy in any means, I do believe that active trading if you know what you are doing gives you a significant advantage over others that don't. I have made a number of gains in Bitcoins through trading personally over a half a year period despite the market going down or up without any re-investments in USD. Below are the basics of how to start trading cryptocurrencies actively.
1. Watch all of the indicators and be a master at itRSI, MACD, MTM, fibonacci sequence, read about them and learn about them. They tell you a story of what's going on in the market.
2. Learn the latest news surrounding the cryptocurrency you are tradingIs there a breaking news or an incoming conference for the coin you are trading? What about technological advancements? How about their social media accounts such as Twitter or Youtube? These indicators tell you the activity of the company and how active they are with the community of believers surrounding them.
3. Where are the pumps and dumpsPay attention to the pumpers and dumpers, when a coin pumps or dumps without a reason behind it organically there is usually someone playing the market and you should pay close attention on whether to go in or out.
4. Just because it pumps or dips, it doesn't necessary mean it is the top or bottomThis is crypto, despite all indicators that may signal a buy or sell...always buy or sell conservatively so you have more firepower if it goes even lower or higher.
5. Selling coins impatiently will get you a "L"Trading is all about timing, and timing may mean days or weeks at times. Be sure to be prepared for that so you don't end up with a loss due to emotions.
6. The big idea is to accumulate coins and not USDDuring a drop in coin prices, you may want to sell immediately to take a small loss so you can accumulate more coins when it drops even lower. The thought process is that the coins you are involved with are "quality" projects. In those cases, these projects will always bounce back up and you don't want to trade irrationally and miss the boat.
No one always wins, but if you do them with a good discipline you will ALWAYS come out on top over time. Most people out there don't know anything about trading but believe me, there are a TON of money in trading. Why let the whale traders take all the profit? It is as simple as 1,2,3 and practice always make perfect!
Your Fellow Crypto-knight,
- mastaz -