I am not much of a trader, but I do have a winning strategy - are you ready?
Buy low - sell high
I know, right? I should write a book.
However, at times like these where the markets are pumping, it is pretty easy to do if you follow my expert guide on how to effectively trade crypto. As I have said before, there is very little actually backing any of these pumps other than speculation and even "hype" doesn't account for much, as most people trading don't really know what the projects do, they just buy and sell in and out of them to increase their Bitcoin portfolio.
Just so you know - this isn't any kind of advice, but it is how I have traded since I don't have the foggiest about how to read charts to predict pumps. A lot of people buy what others are buying however, which is probably why this works in small volumes. However, there is so much bot and wash trading going on, that the entire market system is a bit of a joke in my opinion - not that my opinion counts for much.
Ok, so here is the "trick" I use to make massive gains!
Note, I don't trade large amounts, but have grown my stack over the years
I started doing this back in 2017 when things were starting to kick off around September or October and was able to add a bit to my holdings. I then went pretty quiet on the trading front during the bear for several reasons, one of them being that I needed to get a little more rest as I only average about 5 hours sleep as it is and I was spending a huge amount of time on Hive.
Oh yeah - the trick.
So, buy low, sell high is a great message, but what is low and what is high? Buying Bitcoin low in 2011 is different to 2018 and 2020. Holders from 2011 are pretty bloody happy the Bitcoin project survived, but with so many projects out there now, how many really will make it another ten years? I am hoping Hive is one of those, so I am slowly (rapidly) extending my position for numerous reasons, including that it is a socially powered token, unlike Bitcoin that is far more individualistic. Getting rich on BTC doesn't have to benefit anyone else in the process, but I think the community aspect of the HIVE token means that it is possible to have many people work together to add value to each other.
So, what is low, what is high?
Well, what I do with small amounts of value is look for the flattest token trends I can find that haven't been pumped for awhile,have low volumes - and buy those. Then, I set some sells between 30 and 150% up and wait. Pretty much eventually, the bots and speculators come along and pump the tokens up and I take what I get. Some of these projects might be great projects and will last the distance and go far, far higher, but there is no guarantee in this - not all are going to be the next Ethereum and as I see it, most are going to fade to zero.
The most recent example of this is that I have been trading Holo (HOT) for the last couple months and bought a bit between 5 and 6 satoshis and the trading volumes were around 7BTC a day on Binance. Currently, that trading volume is 100x that with 780 BTC trading there in the last 24 hours. It is very possible that it goes far higher than it is today, but I am happy taking 40-60% profits on it.
Even though the amounts I am trading aren't huge, they are significant for me if in 5 years Bitcoin or Hive (that I buy also) do what I and many others hope they will. This method is about as unscientific as one can get, but I think that it has a level of risk that I am comfortable with. A big problem that I had back in 2017 however, was that I held a lot of shitcoin bags all the way down, and I still have many of these tokens that have turned "penny coin" since the start of 2018. But, this is the risk with it all.
Back then, my STEEM holding value was worth far more than my total holdings now, but that is part of the trading life. A lot of people who sold, never bought back either and while I was unable to buy BTC when it hit 3500, a lot of people who sold at the highs were too shy to return to the markets and instead, took their profits and enjoyed life.
The problem is that in order to increase values again, one has to have Available resources to invest and many don't. Since I also don't have available resources these days, I have bags of shitcoins that I can play with, buying and selling what once had far more value to perhaps build up that value again. I still buy what I can with fiat - as I am trying to move away from the centralized currencies and support the future - as I have no confidence in the traditional structure and believe it needs to be replaced.
While I do want to one day be able to use this value for some kind of personal benefit, currently it is more like a game for me, my way of entertaining my mind whilst still doing something productive (in my head at least) that could lead onto other things. Some people watch a lot of internet stuff, some people play in other areas of life - I enjoy playing with these kinds of things too.
Buy low, sell high - have fun.
Your money, your responsibility
Again, I do not recommend this as a trading strategy to live by, but it is interesting to observe just how ridiculous some of these pumps are in regards to the projects themselves. I also recommend, holding a few small bags after taking some profits - just in case ;D
Taraz
[ Gen1: Hive ]