After many different kind of strategies I was desperately searching on the internet, I've discovered there is no holy grail in trading. There is no way to become an instant millionaire without taking a huge risk. Of course I trade with money I can afford to lose, but I would be far from happy if that would happen.
So I changed my focus to slower, but less risky approaches to trade the market. And finally, I found a way of trading that gives me long-term profits as long as the assets i'm trading won't die anywhere soon.
The conditions required for this strategy:
- The coins you're trading don't die within the time you are actively using this strategy
- You need daily access to your exchange account and time to trade if necessary
- The coins you trade have enough volume
- I would say volatility, but in the crypto world nearly every coin is volatile.
Prerequisites
Please make sure to have an account on a reliable exchange.
Personally, I am using Binance for this strategy, as it is currently the most reliable exchange with the highest volume.
To make an account, simply click here and register.
The strategy
As you see in the screenshot below, I have bought a couple of (in my opinion) reliable cryptocurrencies:
Notice the "#BTC value" column. All currencies I have are roughly worth 0.024 #BTC. What I have done is I have balanced the values of all my assets equally.
What will happen over time is that some of these cryptocurrencies will increase in value, while others will decrease in value. This is where the action begins.
Now, this is what you are going to do each day:
- Log in to your exchange account
- Look at the #BTC value of your coins.
- Check if there is a big difference in value between the highest and the lowest coin. Example scenario: Your #DASH is worth 0.026 #BTC and your #XRP is worth 0.022 #BTC. The difference in value between these coins is 0.004 #BTC.
- Take half of this difference from your highest coin and put it in your lowest coin. In above example scenario, you transfer 0.002 #BTC worth of #DASH into #XRP.
- Repeat step 2 to 4 until all coins are balanced out nicely. (don't worry about small value differences between some coins. You only need to smooth out the big differences.)
What makes this strategy so easy?
You don't need any skills for technical analysis, and you don't need to constantly watch the news. Just a daily routine is enough to earn money!
Why is this strategy so profitable?
The basic principle about earning money from trading is buying low and selling high. That's exactly what this strategy is making you do: You sell your high coins, and use these profits to purchase your lower coins.
What is the worst-case scenario for this strategy?
Like mentioned earlier, the only way you can lose money with this strategy is when you have a coin in it that is dying out. You should try to prevent using uncertain coins, because you might be needlessly pumping money in a dead coin.
To counter this problem, only use already established and reliable coins. Picking from the top-10 of #coinmarketcap is one way to do this, but make sure you do your research for anything you invest in. Be safe!
Final word
Thank you for reading this article. I hope it will help you earn some money in the long term! If you like this strategy, please consider leaving a tip in the tip jar below, or use my referral link to sign up for #Binance. It will be greatly appreciated, and would motivate me for writing more articles in the future. Thank you!
DISCLAIMER: I am only trying to help you earn money by writing this article. I am not responsible in any way for anything you do. Anything you trade is fully your own responsibility. This article is only informative.
Tip jar
#ETH or any #ERC20 token:
0x214A81b54a1539Bc9f4Cb7C112b2E6d7EE16650E
#BTC
3N9xg5WnXK1CNbk56FULHNtjFr5L5TPKEb
#DASH
XdxAatS5a1MK7VcZegi2kL2bngHjfbQCEj
#XRB
xrb_1zeu15meyuuor1m91u7ghasmgor5gw9n3hmj4t8ukzxhskh9a6gkokn7k9fp