Being in hive ecosystem, you can trade many coins and earn good income. Do you mean trading in #hive and #hbd? No,rather I am talking about #hive tokens. Inside the #hive-engine DEC you can trade as many tokens you can. Are they profitable? Yes, there is alwasy profit in trading these tokens. Lets understand the strategy I am talking about and if you follow, you will surely gain good income.
What tokens you must trade? There are more then 50 tokens in the #hive-engine, can we pick any of the token for trading? No, rather we will select only those tokens which we are already invested in. Before this, I discussed about the passive income ways from investing in tokens mainly, #colony, #script, #hbd, #leo.
I have discussed the two platforms for generating passive income from these tokens. One that you invest in liquidity pool, where you simply have to select the pair of 2 tokens and earn different APR profits depending on your token selection. The other I told about staking #Colony and #Script token in #arcadecolony where you will earn 15% APR.
Rebalancing between your already invested tokens
Other then these, I have another idea where you can earn profit from your investment. That is a coin rotation (a kind of trading). You need to concentrate on this content because I am sharing the very best strategy which you will love it. Coin rotation is mainly used by large investors who have huge amount invested already.
It is mainly done in #binance other centralized exchanges. What large investors do? Example, They already have huge amount invested in 10 coins. They monitor their coins, they will find the coin which is at 70 RSI or at resistance level. Lets say coin "A" reached the 70 RSI, they will simply sell that coin and will invest in the coin which is sitting at 30 RSI. Did you get? No? Lets explore more.
If I say, I have invested in Bitcoin and Hive. I will check the chart of these two coins. If I see that #hive is at its peak or above 70 RSI, I will simply sell my 50% of hive and will buy #bitcoin which is at support level or RSI 30. Will wait and see. If now, hive price drops and Bitcoin rises or stays at its initial level then in that case I will move that amount again in #hive.
In this case, my quantity of coin will keep on increasring regardless of what are th price of coins. It does not matter whether your coin price is at your buying level, pumped or dumped. You will only focus on these 2 coins and will keep on checking the important levels for rotating your coins.
The same is the case in #hive-engine. Right now, I am invested in #Colony, #Script, #HBD and #Hive. I will check the price of these tokens on daily basis, if possible after every 4 hours. When I see any the four tokens rises in price and reaches RSI 70 or the resistance leve, I will sell 50% of the token and will move into the token which is already at low or RSI 30.
Sell at RSI 70 and buy at RSI 30
I will keep on doing this practive and will increase the quanitity of my tokens. A time will come that number of tokens had increased which will bring low my buying average. This is known as coin rotation or rebalancing. Both are almost same with only slight different. In rebalancing, you will rotate between the tokens but in rotation you will rotate in the same token.
It depends on the market scenario, there are sometimes when markets goes upside, all the tokens follow the trend. In this case, all tokens will reach the 70 RSI and you dont need to switch among other tokens rather you will apply rotation in the same token. Similarly, if the price dumps, all the tokens will follow, in this case you also will go for rotation plan.
But there are some times when tokens have different price movements. In this case you will go for rebalancing. You will keep on selling at high and buy the other low token. Keep on doing this practice which will increase the quantity of your tokens. You can then either sell the extra quantity or reinvest to bring down your buying average.
This is how token rotation plan works. This is more good for the investors who are already invested in the tokens. I will never recommend to start the rotation plan in the newly tokens. Rather its better to apply this plan in the already invested tokens.
How did you find the strategy? Do you want to earn income through rebalancing? Express your review in the comment section.
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Best Wishes.