Hi everyone! I'm really excited to be using Steemit for the first time ever. The reason that I want to start this series is because I have found some success over the past few weeks investing in masternodes and I really want to accomplish a couple of things through my writing on this platform.
- Engage the community and raise awareness about digital assets and how compounding gains can really affect your income.
- Get community input on different projects and perhaps the masternode space as a whole. Investing in cryptocurrency can be perilous, but if we work together we can make it safer for each other by maybe spotting things that others don't.
- I want to share my strategy! I really enjoy what I do, and I want other people to feel confident when investing in projects. Developing a trading strategy is really important and if I can help even a little with that, that would make me very happy.
First, I would like to introduce myself. I have been a full-time day trader for a little over a year. This means that I was here for the massive BTC bull run as well as the last seven months of bear market activity. I have my sea legs and I am confident in my ability to make money with cryptocurrency. A couple of months ago I started experimenting with masternodes. I was originally drawn to masternodes because they are a way to make cryptocurrency without actively trading or doing other tasks. They make money while you sleep. Unfortunately, the problem with some masternodes is that they might not produce rewards fast enough to offset the potential depreciation of the actual token. I quickly developed a simple strategy that has performed really well, outperforming my day-trading profits pretty handily. Fast forward to today, I'm ready to share my journey with whoever will listen. I want to make a passive full-time income by investing in masternodes.
Before we begin, I want to make some disclosures. Firstly, I began this journey with a set amount of BTC that I gave myself as an allowance to play around with masternodes. While I consider myself to be good at these investments, they can still be incredibly high risk. I have lost entire investments before. I started with .1 BTC and promised myself I would not go over that amount, no matter the outcome. Next, I want to tell you that in my daily updates I will mention projects and coins that I am either invested in, passed up on, or considering investing in. I have not been paid for any of the words that I type and I am not on the team of any project. I know there is a lot of distrust out there for crypto personalities and I want to ensure you that my praise or criticism will never be based on whether or not a project is paying me. Finally, I don't want you to take anything that I say as investment or financial advice. My strategy works for me because I manage my risk effectively and I adhere strictly to that strategy. Investing in crypto is risky enough, but when you add in that you are investing in coins that have a high masternode ROI and shady, anonymous teams, you definitely amplify that risk. Never invest more than you are willing to lose. That being said, let's dive in.
So, the first thing I do is hop on masternodes.online and sort by ROI. I try to find coins that have a nice ROI and a cheap $$$ cost. This means that from the start your investments are low risk, high reward. Your $20 masternode can go to $0, but it can also go to $200 or more. Obviously the most often outcome will be $0, but you get the point I'm trying to make. You're risking a little for a high potential gain. The other thing that makes these high ROI masternodes profitable is that you can often recoup your investment just by selling the masternode rewards within 2 weeks or so. I aim to get my investment back within 7 days and then sell the rest in perpetuity for as long as the project lasts. This can be anywhere from days to months and rarely, years.
When I find a coin that fits my metrics well, I do some more research. The first thing I look at is the Discord channel. What I'm looking for is not necessarily a use-case or anything that would ensure the coin stick around for years, but simply for an active team, community, and some regular development progress. Nice-looking website, wallet, etc. I know what you are thinking. Fundamentals are important in cryptos, right? Not here. This is the wild west of crypto. You get in, get your profit out, and then you stick around for either moon or death. That's the nature of this type of crypto investing. Yes, you can hop on binance and invest in coins that could change the way the world does business and I encourage you to explore those options as well, but this strategy is more for someone who is strictly in it for the money and perhaps for someone that doesn't have the time to learn in-depth technical analysis.
If the coin team checks out, the metrics look fine, and the Discord is active, I take a look at the exchanges its listed on. The order book can tell you a lot about the sentiment surrounding the project. What I look for here is a lot of bids on the way down and a thin order book on the ask side. This is a fairly easy concept to understand. More bids means more resistance to drops, less asks means less resistance to increases.
When everything looks good and I think I have a good masternode on my hands, I place a BID order to acquire the amount needed for a masternode. I never market buy. You need to preserve every percentage point possible to protect your investment. If the price takes off and you miss your bid, so be it. On to the next investment. Patience is incredibly important here. You need to let the trade come to you and not force it.
I know that I am being a little bit broad when I talk about these concepts, but hopefully if you follow along, you'll catch on a little more each day as I publish more content. Tomorrow I'm going to walk you through one of my recent investments that has already paid me back my original investment. I'll go through each of the factors that led me to invest and how those can be applied to future investments.
I apologize for the wall of text! Hopefully tomorrow I'll have some images to spruce things up for you to keep your attention a little bit more. If you have any questions or comments I'd really be happy to see them!
Until tomorrow,
itawyola