Sure, many lose a lot of money during the panic of a cryptocurrency crash or sell off. But, those that know what they are doing have the range of tools needed to make big profits during this time. Here are five of the best ways to turn a profit during cryptocurrency market turbulence, and how you can easily leverage all of them at once in order to make the most out of the current market opportunities.
Good traders acknowledge their mistakes, and more importantly – analyze and learn from them, thus improving their skills for understanding the market. So which kind of trader are you? Did you find yourself somewhere in the article? We would love to hear on the comments section below, and you are welcome to share this article with whoever you see as relevant.
Categorize your investments and look at the long picture. In the process of your research, you’ll eventually realize you’re coming across a few different categories of coins. For some of them, you believe they have good teams, great vision, amazing publicity and a track record for successful execution. Great! Put these into medium or long-term holds and let them marinate into a delicious tenderloin. When the price dips, don’t even consider panic selling because anything in your medium or long-term portfolio should remain untouched for a set amount of time. BNB is a good example of a coin Miles considers a long hold. Recently, it dipped 20% for a while, and within our community, we witnessed some sell-offs to preserve investments. A week later, it jumped up almost 3x for a period of time.
Then there are the fundamental strategies. Some people say that fundamentals are the valuation of crypto, but it is challenging to value a cryptocurrency as there is no chart giving the earnings and the assets to derive a valuation from. Cryptocurrency is all about speculation, with one guy saying it’s worth a high price that reaches into the stratosphere while another says it’s worth squat.
In stocks, it makes sense to sell losers, but that isn’t always true in crypto. In stock trading, if a company is not doing well, it can be smarter to sell their stock and buy a stock that is doing well. In crypto, big changes can happen quickly. A bearish coin can make a turnaround at any support level or based on some good news or rumors and make 100% gains in a matter of hours. If you aren’t trading frequently and aren’t at a computer 24/7, it can be a solid move to slowly build a position in a coin that isn’t doing well, but that you think is a good long-term bet. The only exception to this rule is this, if you understand TA, it is generally wise to ladder out when all the short term averages have fully crossed under the long term and in when they have crossed over. Your goal is still the same, to build a position low and hold until highs, you are just practicing some risk management in between. This added measure helps protect you from long bear markets. In other words, only sell losers if you have a logical reason and trust yourself to buy back in. If not, focus on building average positions (but plan for the worst before it gets better). Bottomline on this: Stocks move much slower than cryptos. So a loser sold now and shifted to a winner can mean months upon months of rewards. Cryptos tend to move fast and go into bear and bull mode in groups and go on runs at the blink of an eye. Sell a loser today and shift it to a winner, and trends could be changing by the time you wake up. It isn’t that you should never sell the losers and buy the winners, it is that it is trickier in crypto than it is in stocks and the same logic doesn’t apply exactly.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Founded in 2011, Kraken is the largest Bitcoin exchange in euro volume and liquidity and is a partner in the first cryptocurrency bank. Kraken lets you buy and sell bitcoins and trade between bitcoins and euros, US Dollars, Canadian Dollars, British Pounds and Japanese Yen. It’s also possible to trade digital currencies other than Bitcoin like Ethereum, Monero, Ethereum Classic, Augur REP tokens, ICONOMI, Zcash, Litecoin, Dogecoin, Ripple and Stellar/Lumens. For more experienced users, Kraken offers margin trading and a host of other trading features. Kraken is a great choice for more experienced traders. Check out the Kraken FAQ
We are still seeing the bulls grind EMA 4 hour support, but they have to break the lower highs to see continuation and shift momentum. The bears continue to hold the upper paw as long as the lower highs remain. The daily chart continues to tighten and this weekend it will be worth watching other alt coins in daily equilibriums to see if we have any initial ...
The motivation for the investors is that the token will be traded from day one on the exchanges and would yield a nice profit to the ICO participants. In recent years, there have been many successful ICOs, both the project itself and especially in measuring the yield for investors. Coins doubled, or tripled, their value and much more in relation to their value on the crowd sale. Augur’s preliminary crowd-sale (we reported on it previously here) yielded investors a phenomenal 1,000% for their investment. Okay, but what’s the catch here? Not all the projects benefit their investors. Many ICOs proved to be complete scams, not only were they not being traded at all but some projects disappeared with the money and we have not heard from them right up to this day.
Consider seeking out opportunities to practice and master using the lingo. It might not suffice to idly read terms like ‘MA’ or ‘DCA’: many new day traders get their feet wet by using these terms in conversations, in real life and public forums like Reddit. People often find that they learn better when they actively discuss the things they’re learning, finding the best ways to explain it to others.
If you choose to keep some stored on an exchange or a website such as Coinbase, then ensure you complete a full security setup and ALWAYS setup Two Factor Authentication, I recommend using Google Authenticator for this and not SMS Two Factor Authentication as your phone can be compromised by hackers. Google Authenticator creates a random number string each time you log in to protect yourself in case someone can get hold of your username and password.
How can you test the strategy that you have built to see if it is right for you and your purposes? The best way to do so is testing your strategy against the market. Kryll allows you to safely execute your strategy before using it in the real world. Using the test environment in the platform, you’ll be able to test over the previous six months of recorded data.
On the contrary, bitcoin has been widely used for international payments and is way more efficient compared to traditional cross-border remittance. According to Mr. Smith, “They use Western Union, traditional banks; It is slow and it is expensive. And there are people that can stop you from sending that money, whether that’s good or bad. With bitcoin, I can send money. It’s fast. It’s cheap. And frankly, no one can stop me.“
With the KuCoin exchange, you’ll also get an is an easy, hassle-free experience along with different popular as well as rare cryptocurrencies such as DragonChain, IOTA, etc. If mobile apps are your preference, you can trade on KuCoin easily as it has apps for both Android and iOS. In order to go ahead with trading in KuCoin, you can deposit any crypto initially and start immediately. In terms of fee, KuCoin also takes 0.1% per transaction, half of which can be taken by you through the unique dividend system offered by the exchange.
Needless to say, Bitcoin’s place as an alternative digital asset among cryptocurrencies has become entrenched, despite likely headwinds it will continue to face as it evolves further. The U.S. Securities and Exchange Commission (SEC) announced in early August 2017 that certain Initial Coin Offerings (ICOs) – which use cryptocurrencies for financing – would be regulated as securities.
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If you are a big player, keep in mind you can distort the price (thus, you might actually want to margin trade… or like, spot trade and help us lift the market 😀 ). Volume is decent on any given crypto exchange, but this isn’t like trading the S&P. If you are playing with 50BTC, and you try to buy or sell that much at once, you can distort the market temporarily. When you watch buy and sell orders in an exchange, you’ll notice that when sells ball up the price tends to drop and when buys ball up the price tends to go up. If you try to buy or sell too hard, you can drag the price up or down a little. If you have insanely deep pockets, you can accidentally be dipping your toes in at-best-grey-area behavior. It is much better etiquette to buy and sell in amounts that are average for the book you are buying on. When a high-level investor buys ten billion worth of a stock or sells, they do it in chunks (to avoid dropping or spiking the price of the asset). TIP: Also watch out for shady people pumping or dumping a coin by doing this. What looks like a lot of buyers could be one person or a group messing with the price. The lack of regulation is a blessing and a curse with crypto, as is the relatively low volume compared to other asset types.
Speaking to CNBC, the crypto trader claimed that other coins might have been overhyped as the progress in distributed ledger technology is slower than people expected. Smith said that, “They got really excited about all these other tokens and use cases. And all of the sudden you saw all of these smaller tokens, as people got excited about them, massively outperform. We got way ahead of ourselves.“
Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when demand for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.
The other major risk to be aware of is that hackers are always looking for vulnerabilities to exploit. One example is the more than $30 million worth of Tether coins that were stolen. The most surefire way to ensure the safety of your coins is by using a hardware wallet such as these by Ledger. Keep in mind that this will slow down your ability to trade those coins, as you will be transferring them between the device and your exchange accounts (more on wallets and exchanges soon).
Almost everyone joins Telegram groups and follows Twitter traders for signals, and there is nothing wrong with that, as long as you do your own research. There is no shortage of ‘shilling’ (promoting coins and market moves for personal gain) across all social mediums, and you will come across tons of people claiming that a particular coin is going to ‘moon’ soon or give 10x gains.
Ideally, a rookie trader should start by choosing a reliable exchange and playing with popular coins, such as Bitcoin or Ethereum. However, the learning by doing approach is too slow for those who want to succeed fast. Joining a community of like-minded traders could be one of the best decisions to make: there are plenty of groups on Telegram or regular meetups in the US and other countries.
The natural inclination for crypto investors is to identify a new altcoin with the potential for growth, invest heavily when it's still inexpensive to do so, and then reap the rewards when the value increases. That being said, the altcoin market is growing so quickly that many new digital currencies hitting the market might not be good long-term investments.
Hey Will. Thanks for the helpful guide! I’ve just gotten into crypto and found this info extremely useful. Just a question regarding how you keep your alt coins safe. As far as I can tell, you can’t keep many of these alt coins on a Trezor hard wallet, so do you just use something like My Ether Wallet instead? Cheers mate! Here’s to a cracking 2018!!
So, how we can avoid those mistakes in our trading? How to be mostly on the green side? First, it is important to note that to trade right requires attention and your one hundred percent focus. Secondly, trading is not for everyone. The following tips are easy to internalize because these tips were “written in blood” (my own blood). However, it’s still difficult to apply them in real-time. After all, we are not rational human beings.
All the same, you should be careful where you put your money. Many HYIPs out there are simply scams. You might end up losing all your investment. Before you put money in any program, it is advisable to gather as much information as possible to know whether the company pays. As for this company, we strongly recommend that you get more information about it from a reliable HYIP monitor, before you take that bold step invest.
In other words, buy low and sell high via an exchange using limit orders, dollar cost average, set stops if you aren’t in front of a computer, ladder buy and sell orders, use TA, manage risk, preserve capital, watch out for scams, know the tax implications, and consider being conservative in general and not spending your life savings on digital assets.
Don’t get itchy fingers (AKA be wary of FOMO buying). As noted above, if you have a strategy, stick with it. Sometimes the market will go nuts, and you’ll see epic gains, and you’ll get FOMO (all humans get FOMO, it takes discipline not to react to it). Selling or buying at that time may make sense, but don’t get nervous and switch up your whole strategy without thinking about it. That is often when bad moves are made. If you are going to buy heavily or sell heavily on a whim, consider taking a step back first.
I’m not going to lie and say I didn’t want the job anyway. I did want it. But I also feared losing my freedom. I’d be working more for less money and less flexibility than I had while running Bitfountain. Gone would be the days where I could spontaneously book a flight to India with no return date. No more of the four hour lunch breaks that I’ve come to cherish over the years.
Yes! With a minimum investment of $250, you can expect to make between $50-$100 per day, depending on the currency and volatility. You won't become a millionaire overnight, but you WILL earn a healthy side income. Once you have funded your account, contact your account manager to discover the best trading settings. Our account managers are experienced in the best time of the day to buy and sell crypto currency.
Weather you are youngster or an experienced lad, the popularity of cryptocurrencies along with their hefty returns will make you curious to try your luck in the markets. However, buying and selling of these digital currencies often brings you to ponder upon questions like- How do I start earning money? Which is the best cryptocurrency exchange platform for trading? Well, if there’s a will, there’s a way. There are many options when it comes to crypto exchanges, all of which have their specific pros and cons.
If you are doing any active trading, set stop losses. For any coins not in your medium or long-term holds, always set stop losses. This is important for several reasons — the most obvious is mitigating your losses. But more importantly, you force yourself to decide on a point of acceptable loss, and because you now have a reference point, you are able to measure your effectiveness to keep or adjust for future trades. Sometimes, during a market dip, altcoins can plummet, and stop losses can lead to profitability by automatically selling for fiat that you can use to re-enter at lower prices.