So you want to start trading cryptocurrency (or you're already trading it), but you don't know how or you're not doing very well. That's okay, the cryptocurrency market is complicated stuff, however in this post I will show you exactly how you can earn the most money on any cryptocurrency. I will not share any specific cryptocurrencies in this post, as I don't want to be accused of trying to pump coins which I have investments in, which would make my post less credible and I will try to keep the post as short as possible. Anyway, there are basically 2 ways you can make money out of trading cryptocurrencies - let's start with the easier but riskier one.
- WAY 1 - The LONG Hold
This way involves holding one or multiple coins for long periods of time (1-2 years) while expecting 100-1000x gains. This method is riskier than the other method, however it can earn you much more money if you're successful.First thing you have to do is find a coin with small enough market cap which has a serious developer team behind it and good technology. Don't just find your average altcoin with single developer and 10 different marketing guys that brings nothing new to the table. Look at whitepaper and roadmaps of different coins and figure out which one has actual purpose behind it that can not be replaced by another coin already on the market.When you find one, it is important that the market share of the coin is low enough. Don't buy coins that have over $20,000,000 market share, as their potential growth is too small to make decent profit out of them in the long run (although profit can still be made, just don't expect 1000x gains). It is important to look at the total supply of the coin as well - if a coin has 10 quadrillion coin supply and it's already at $0.1 per coin, the chance is it will not go above that and you will only lose money with the coin. Best is to find a coin under $1 that has a 100,000,000 maximum amount of coins. These will give you the biggest profit.After that all you have to do is just hold the coin. It is extremely important not to sell the coin when the value goes down - remember, you are in this for the long run. The coin will go up and down in value, sometimes significantly, but selling at a loss is the worst thing you can do. If the coin rises in value significantly enough where you feel like you made your profit, feel free to cash out, however remember that it CAN always go higher (just look at bitcoin's path of up and downs).The reason why this is riskier than the second method is because there are so many coins and not all of them will rise. In fact, majority of them will not rise in value and some will even dip. That's why it's so important to do your research, pick the correct coin and continue holding for as long as possible.
- WAY 2 - Day Trading
Day trading is a little bit more complicated, however there is a smaller risk associated if you do it correctly. In principle it's pretty easy - buy low, sell high. The issue is figuring out when is low and when is high.First step is finding a cryptocurrency that is in the top 100. Do NOT trade cryptocurrencies that aren't in the top 100 in terms of market share. They're mostly unprofitable for day trading as they don't get enough "public" attention. Cryptocurrencies out of the top 100 are better for long hold. It is important to find a currency that went down in value in the last 24 hours and a currency which has potential good news coming and not many people are talking about it yet. Good news meaning that the cryptocurrency team will have new board members, will host conferences or announce services and other things - anything that will attract more people to put their money into the coin. Buy that currency before any rumors start spreading about it and hold it until the news (this method is called buy the rumor, sell the news). When the news get announced, sell any coins you have as the news are almost guaranteed to tank the value down.Chance is that when you bought the coin, value was pretty low and as the rumors started spreading, the value went up and you earned money. You sell it at the news at high price with nice 40-100% profit and the value of the coin will go down. Then you move onto the next coin to earn more money.Well, these are just 2 ways of making good profit out of trading cryptocurrencies. Remember that you will not always succeed. Sometimes you can do everything correctly, pick a good coin with promising technology and make no money on it. That's fine, it happens to everyone. That's why it's so important not to invest into just a single coin - invest into 5 different coins at a time (not counting BTC and ETH) and the risk gets significantly lower as even if a single coin goes up 1000x, it will make up for the money lost on the other coins.