It is been a bit more than one month that I have been actively trading crypto on a daily basis and what a steep learning curve it's been.
Firstly I want to mention that the time I have spent in the Crypto industry, which started in June 2016, is probably the most exciting time I had since the dotcom boom way back in the early stages of the internet. I just love the people, the way they think, and the brotherhood of the traders. It is difficult to find your way in, but when you find the appropriate slack group and make some friends it is just wonderful, which brings me to some more lessons I've learnt over the past few weeks.
Stay where the volumes are
As I learnt more about the various exchanges, chatting to guys in Slack groups, it is clear that your safest bet is to trade where the largest volumes are. If we look at the image below, we can see that the column indicating the volume, and ETH, DASH, STR and BCH are clearly the highest volume trades in the past 24 hours. The volume is important to ensure that there is liquidity and a lot of traders buying and selling the specific crypto coin. This means that there is usually good fluctuation in the price, which means you can easily make between 3-7% on a trade.
Do your research well.
In my opinion the Crypto Trading industry is maturing every day. More and more people are joining the industry, which means that more real world money is being invested in the crypto world. This means the overall market cap of crypto is growing and there is more money to be made or lost unfortunately. I have learnt that there are two specific things which will attract the volumes to the specific coin.
News about the coin
I am following various Crypto News bulletins which helps me to identify, which coins will attract more volume of trading. When any news is released about a specific coin, this will attract the volumes in either or a good way. Bad news, will attract many sellers, and good news will obviously attract many buyers.Project releases and upgrades
When a project release new features or upgrade their platform, this is usually a good indicator that the volumes will come to trade the specific coin. When a project delivers specific features as per the roadmap on time, it usually have a positive effect on the purchase volumes just before the announcement.
General
The past week saw Bitcoin get to new all-time highs going for around $11 000 across exchanges across the world. This is a massively positive thing for the crypto world in general as more real-world money is entering the crypto world. It did influence the trading scene a lot as it currently feels like a lot of people are holding more Bitcoin and less alts, which in turn ensured that there is not that massive volumes in Alt Coins at the moment. The past few days, was therefore very boring to say the least. I am currently holding a range of Coins, but all the alts I am in is struggling to raise to the levels I purchased.
