Over the last few years I've made incredible profits by trading cryptocurrencies. In this post you can read about my strategy. Follow these six simple steps and have six figure profits yourself!
Step 1: Do your research
Doing good research before investing in any given cryptocurrency is extremely important. First of all there are many scams out there. Be aware of that and try to find out beforehand if you are dealing with a possible scam. If you are convinced it's not a scam you should try to get the following information:
- How is the cryptocurrency doing in the market at the moment? This is a key element to get in at the right time, as you can read further in step two.
- What is the circulating supply of the given coin? When the circulating supply is low, the price is more likely to go up in the future.
- What is the cryptocurrency trying to achieve? Does it have a great innovative concept with basically no competition at the moment, or does it have a good possibility to compete with the others? I usually tend to go for the ones that have something new to offer. The likelihood of growing in price is much higher when a cryptocurrency has something new to offer compared to just another Bitcoin clone.
- How does the team look? Try to investigate as much as you can on this. Questions you can ask yourself during this process are: How skilled are the developers, and what are their backgrounds? How does the management team look? Are they not linked to any schemes in the past?
- How big and active is the community? An active community is essential to the success of any cryptocurrency. Things like the amount of followers on social media and the amount of posts on their forums are good indicators of the size and activity of the community.
Try to get the above information by visiting their website, linkedin profiles of staff members and by visiting a website like coinmarketcap.com to get information about the current market value and the circulating supply.
Step 2: Get in at the right time
Stepping in at the right time is essential. Always try to buy when the price is low. Try to make good calls by looking ahead for key events in the near future for the given cryptocurrency. If for example a partnership or a new release is coming up, there's a good chance the price will go up. Stay focussed, make good calls and pat yourself on the back afterwards!
Step 3: Diversy
It almost goes without saying that you shouldn't bet on one horse. Try to diversify by putting small amounts of money into different cryptocurrencies. This way you will reduce the risk of losing everything at once. Furthermore your portfolio value wil basically grow whenever the market grows. Believe me when I say there's still a lot of room for growth in the cryptocurrency space. It's still just getting started!
Step 4: Take profit, but not too much at once!
Of course it's a great feeling to finally cash out on your investments. I encourage you to take profit from time to time, but keep this in mind: The more money you take out of it, the less profit's you'll make afterwards. Let's say you will have and average of 3% growth on you portfolio every week. You have a portfolio value of $100,000 at the moment and take out $90,0000. Just run the numbers: If you would have just taken out $10,000 instead of $90,000 you would have made a lot more profit in the coming weeks!
Step 5: DON'T panic!
The ones that are patient are the ones that get rewarded the most! There are so many stories out there of people (myself included) that would have made big profits if they would have just held on! Take note that the cryptocurrency market is extremely volatile, and big price drops will happen. Whenever this happens, by any means don't panic! Just hold on and see the price shoot right back up. And if you have more money to spend whenever a big drop in price occurs: Take advantage and get in more!
I hope this will help you find your way into the cryptocurrency market! If you have any questions just reply below.