Hi guys, today I wanted to let you in on how I am investing/trading the cryptocurrency market currently. First of all, there are four cryptos that I believe have some of the biggest potentials for the year of 2018 and these are; Ethereum, Ripple, Monero and IOTA. I will give a quick run down on why I have chosen to invest in these before I go into how I am investing in them.
Ethereum: I believe that Ethereum can only go from strength to strength because it has it's own network and all of the new business start-ups who require you to buy Ethereum in order to purchase their Inital Coin Offering (ICO) tokens. I also believe that Ethereum has the potential to become bigger than Bitcoin in terms of Market Capitalization. I say this because it has much lower transaction fees than Bitcoin and as long as the issues of the network being backed up with pending transactions is improved upon, I am certainly bullish Ethereum long-term.
Ripple: With all of the large banks backing this cryptocurrency I cannot overlook it. I know that some people are against it because the decentralized blockchain revolution is meant to take down the big banks, however, if big banks do fully adopt Ripple world-wide, the market cap will grow so much to make the current $100 billion market cap look like peanuts in comparison. To say Ripple's market cap could reach 1 trillion dollars would be an understatement, in my opinion.
Monero: Again, not everyone will believe in Monero because of the massive potential to use it for the use of criminal activity and rich people storing their money away from the prying eyes of the IRS. I understand this, and I am not making this post to debate that point, only whether the market cap and price of Monero will go up substantially in 2018! I am invested in Monero simply because I do not think unethical and even unlawful individuals will pass up the opportunity to make use of this coin and while I do not endorse any illegal activity, I certainly want to own some Monero to gain financially from selling it at a later time.
IOTA: Finally, I invested in IOTA because when there are massive companies like Microsoft, Bosch, Samsung, Cisco, etc. willing to partner up with a cryptocurrency and believe it has a legitimate use in the future, it can only be great for increasing it's market cap and price in the future. The industry of the Internet of Things, which IOTA could dominate a large portion of the market in my opinion, has massive future potential because as I see it, everyday objects will only get more and more linked through the internet.
So now I have outlined which cryptocurrencies I have invested in and why, I will now go over generally the method I have been using, and plan to continue using, to invest/trade the cryptocurrency market.
As I have outlined, I have four coins I am focused on that I truly believe to be potential big movers this year, and my investment plan is simple:
- Put a larger percentage of my crypto portfolio in each of these coins when they have retraced substantially after a big move.
- Move more of my crypto out of a coin when it has went up substantially and is near vertical, and therefore must retrace substantially fairly soon. I of course do not want to be holding onto a coin when it falls 30-70% of the preceding up move!
My investment plan is that simple, I have a bigger percentage of my crypto based in coins when I view them to be cheap at the moment (have dropped 30-70% of the preceding strong up move), and less of a stake in coins when they are currently at where I view to be the top of a near vertical up-movement.
Some people suggest to just HODL and that is certainly a decent investment plan as well because I'm sure most if not all strong coins will be above the price they are currently, by the end of 2018. My investment plan is more geared towards extracting as much profit from the market as is humanly possible.
So, remember guys, when a cryptocurrency that you believe is strong makes a strong downward move, don't panic! Every financial asset retraces and if it is a truly solid crypto it will recover. Buying these coins when everyone is panicking is a great way to get them for cheap!
Anyway, thank you guys for reading and as always if you liked the post please up-vote and follow me for more tutorials and for more of my views on the financial markets.