We are seeing 10-20% gains in almost all cryptocurrencies this is mainly due to the bitcoin dominance i have been trading cryptocurrencies for a couple months and i have observed many people loosing money due to the high volatality and i want to help some people who are new to the cryptocurrency market and i want them not to make a few mistakes that i did as a newcomer back in the days.
As i read a couple articles about buying and holding bitcoin ripple and ethereum i thought wow this is an amazing opportunity so i deposited money via my debit cards turned them into bitcoins and ethereums and put them in a cryptocurrency wallet well let me tell you what happened i brought in ethereums at 160 usd and when it hit 240 usd i sold them so i made around 60% profit in a couple of weeks and thought wow thats insane but later i realized that this is not the truth.
then i saw the price of ethereum dip from 400usd to 200 dollars within 2 weeks what ever my buy and hold investment was say i had 1000 usd invested in etherum at a price of 400 dollars per ether would mean i will own ether 2.5 then the price drops to 200 usd per ether i will panic and sell my 2.5 ether which leaves me with 500 usd which is a loss of 500 usd
So then i did a lot of research as to why this happens its mainly to panic selloffs and single investors who have large volumes of s and how they manipulate the market.
so then i watched some videos on YouTube of how some people buy low and sell high and make money while other people are loosing money due to panic selling.
How Bitcoin drags down the whole cryptocurrency market when it's price drops
If you notice on major exchanges like poloniex bitfinex etc ethereum ripple and all other cryptocurrencies are traded against bitcoin and if the price of bitcoin drops that is why all other cryptocurrencies drop just like we saw in the last week.
So what Was The strategy I used to earn money after my new understanding of Of The cryptocurrency market
Well it's simple if you want to earn money then join an exchange like bitfinex or poloniex or any exchange you like but do your research and make sure that it's a ligit exchange.
Then Make your deposit hold your money In USD value and don't Exchange it into cryptocurrency until you You See bitcoin drop 20% from whatever it's current value is this happens ounce a month or ounce in 2 weeks and when that happens you will see all other cryptocurrency prices drop along with it.
Then buy eg we saw the price of ehtereum drop to 200 USD that would be our buy point and today it's trading 309 USD we can hold this coin till it reaches it's 400 dollar price which it was at and then sell it at a 100% profit on your investment within weeks
