Yesterday I was asked by a member on Steemit to give some trading advice
Yesterday I was asked by a member on Steemit to give some trading advice on Steemspeak chat. He was wondering if this was a good time to buy alt coins.
I don't have a crystal ball. But this is how I see it. And it's pretty simple.
I'm holders of coins, I don't day trade (anymore).
Again these are more own thoughts.
Also, but this should be pretty clear to everyone right now, please never invest more than you are willing to lose.
For as long as the Bitcoin uptrend remains the alt coins will be in the red. The Bitcoin uptrend is very strong and we are in unknown waters.
Everybody who says they know where Bitcoin is going this time doesn't know.
The longer this uptrend lasts the redder the alts will become as more and more alt holders move into Bitcoin to ride the uptrend.
Nobody knows where the Bitcoin top will be this time. Could be now, could be in weeks (or more)
Once the reversal comes it won't be you who is out the door the fastest. (or who is buying alts the fastest)
Never try to guess the top or the bottom.
Take some Bitcoin profits in this uptrend.
Alts
Never invest in something you don't understand.
If you think you can make easy money (buying low, selling high) in crypto markets you will get burned. (emphasis on easy)
If you want to invest in alt coins this is a good time. Red is good when you want to invest and hold for a long time.
Select projects you think have good fundamentals. Do your own research ALWAYS. Never listen to others. Including me.
You can't mix day trading with long-term holding with the same coin. Pick one or the other. The mindset that is required for day trading (no emotions) doesn't mix with long-term holding (believing in a project).
I wouldn't buy the alt coins you want all at once. I would buy them gradually. It adverts risk. This is how I always did it. It also prevents you from having to guess a bottom/top.
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Excellent and sage advice. I believe it was one of the Rothschild's that said, "Buy when there's blood in the streets, even if it's your own." Simple meaning, the best time to buy is when everyone else is selling. Even if your personal investments are taking on water, but you believe in it long term, adding to your position is the smart long term play.
Being pretty new to crypto, but long in the tooth in the stock market, I've seen some pretty crazy moves over the years, (namely Netflix and Amazon) where all the fundamentals went out the window and your entry points on a correction just didn't materialize and you missed out on big gains, but the volatility was nothing like what I've been seeing with BTC. Your advice on gradual buying and just dollar cost averaging into any coin is excellent advice.
If I've learned one thing about markets, anything that can happen will happen. I have a feeling it's going to be one helluva ride and hopefully Steem is right in the thick of it! Have a great day man!
2017 has been a crazy ride in crypto. I'm sure there is more to come!
Most of the time I invest for the long term now. Day trading is just too stressful for me and I'd rather make a couple of investments, sit back and relax rather than constantly looking at graphs and waiting for the next dip.
It seems like despite the fact people are dumping bitcoin they are converting it to fiat rather than putting it into altcoins. It may just be a matter of time but it seems like we may have a bloodbath for a couple of days.
Bitcoin may have reached its new ATH and roof and now let's see what the new floor for bitcoin will be as people start to drain it. Some people are saying it may drop back to around $2500
I invested in PAY since I thought it was a bargain at $4.30 but if I waited a little longer I could've got it for around $4. Well I'll just have to hold but I'm sure the coin will do well.
Thanks for your tips and suggestions @exyle. It is always a good idea to know before hand about a coin and decide whether you are going to invest for the long term or just day trade.
From my experience, it's usually better not to trade. Crypto in general seems to have slightly higher trading expenses compared to stocks. I believe the longer that BTC goes up without a correction the larger the correction will be when it comes. It would be a good idea to take some profits from BTC while the market is still rising.
Good advice! I agree on the day trading, it can be both time consuming (life consuming!) and risky especially in this BTC bear market.
For the moment I have been taking some funds out and holding in bitcoin because for the moment at least it is on the seemingly never ending up. It will be harder and harder to hold a significant amount the bigger it goes. Of course, if a correction comes as it no doubt we'll it will be a nasty surprise for some. I do like to think that even after a correction the general position will be up.
Hopefully!
I do think the general direction is up. But it will be bumpy.
I agree, speaking of which, it took a bit of a dive today!
I am in total agreement with your great advice...
Never invest more than you are willing to lose, buy them gradually and store for long term while taking profits in uptrend. Thanks @exyle ....
Very sound advice. My take on BTC and alts is 3-fold. 1. BTC goes up a lot and alts go down (everyone rushing to BTC) 2. BTC is steady or goes up a bit, alts often go up a lot more (people are feeling confident in crypto and looking for value). 3. BTC goes down and alts go down more (flight to safety).
So the best time to invest in alts is when BTC is steady or rising gradually. We seem to be in a phase now like #1 where people are rushing back into BTC due to optimism over SegWit / scalability / conflict resolved.
Very nice tips and suggestions @exyle sir, you are absolutely spot on that when the bitcoin is moving in the uptrend all the alts are in red and it's great time to buy some and hold them for a long term. i like to add one more trading tip into this article and that is "don't put all your eggs in one basket".
Nice! You should contact @wolfofpoloniex He's a boss when it comes to trading. I love following him on Twitter.
Good advice! I also think people are overoptimistic about their ability to analyse the markets. Most people are wrong most of the time:)
Very good advice @exyle but best of all never invest more than you can lose. I no longer trade I am not worth for that, whenever I bought something it went down and whenever I sold it went up, only some times perhaps by divine force I made something from trading. :P
The best profit I made was investing in hardware mostly GPU and Hard disc but electricity price and taxes are insane, also some PoS coins did very well for me.
Now I only hold a very small number of coins just because I think they will do well in the long run.