Welcome to another episode of Coinhub’s cryptocurrency trading awareness series. Today we will share a guide on Strategies that will guarantee profit when trading Cryptocurrency.
For those who are yet to get the hang off Bitcoin, cryptocurrency and how you can trade it for profit. Some of these previous articles will be a starting point and will offer great help.
- Bitcoin – The new Money
- Accessing Bitcoin Today
- How to start trading Cryptocurrency , Bitcoin & Altcoins
When trading cryptocurrencies, there are really no “one size fits all method”. However there are some strategies when imbibed correctly with discipline, you stand a chance of being in the positive side of every trade you make.
In the time I have been trading cryptocurrencies, I have found these strategies to stand the test of time. However there are deviations here and there but ultimately they always win at the end.
Find a Good Project, Accumulate Low, Sell High into FOMO
This strategy may seem very basic at first glance but I guarantee you it takes a lot of discipline to maintain especially if you are a day trader and work with hype and emotion otherwise called FOMO (Fear Of Missing Out). FOMO is the number one “death trap” for many undisciplined crypto traders.
Typically in the cryptocurrency market, it is very common to see price swings of 50%, 100% and even 120% daily. With so many coins available it always important to carry out thorough research first before investing or making a trade.
A good example to this is my experience with Stratis coin. I started accumulating Stratis in early 2017 after researching the project.
Stratis is a simple and affordable platform that offers end-to-end solutions for development, testing and deployment of native C# Blockchain applications on the .Net framework. Just like the Ethereum blockchain, however it differs by the simple fact that is allows applications to be built with the more familiar programming language C#. You can learn more about the project on the Stratis website.
At the time Stratis was just starting off with low volume, price and recognition. A few months later, sometime around June when the project got more recognition and awareness, the price rocketed to all-time highs and I sold into the frenzy with very good profits. At this point I would also recommend that selling into parabolic moves is usually the best exit strategy as shown in the “Take Profit” region of the chart below.
Buying at Pre –Pump Prices and Riding the Waves
Buying at pre pump prices also known as breakout points typically means going into trades when the pattern is a very bearish. This strategy is something I have mastered over time while trading Cryptocurrency. The trends are almost always similar for most coins because it satisfies the idea of buying when people are scared and selling when they are greedy.
To master this strategy you need to have access to some historic data. This is usually the tricky part, largely due to the fact that some coins are relatively new with little or no previous market data. However, the idea is to study and understand chart patterns and lock in trades at break out points.
The breakout point strategy offers significant “Risk to Reward” ratio and is usually the best for new traders in the market.
There you have it guys, these are two really interesting strategies if used with discipline, would guarantee nice profits and ROI on your investments.
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I have been in the Cryptocurrency ecosystem for about three years. My passion for this niche of financial tech space inspires me to share with you all I can in the world of Cryptocurrency, Blockchain and financial technology.