Hold some coins, range trade some coins, keep money on hand for a dip, and set some high-ball and low-ball orders. If you want to ensure you are happy no matter which direction the winds blow, then be set-up to benefit from whatever comes next. If you have some coins you hold, some coins you trade daily or weekly, some money set aside for a dip, and some high-ball and low-ball orders set, then you stand to benefit regardless of what happens. It can be tempting to cash out of crypto or go all in, but both of those can be disappointing if the market goes in the opposite direction you were hoping for. It isn’t always the most profitable move to run a strategy like this, but it can help you to gain experience and have something to be excited about in almost any market. TIP: Note that diversifying your strategy and holdings eats into profits, but offers flexibility. It is a trade-off.
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.
Payment Methods – What payment methods are available on the exchange? Credit & debit card? wire transfer? PayPal? If an exchange has limited payment options then it may not be convenient for you to use it. Remember that purchasing cryptocurrencies with a credit card will always require identity verification and come with a premium price as there is a higher risk of fraud and higher transaction and processing fees. Purchasing cryptocurrency via wire transfer will take significantly longer as it takes time for banks to process.
It does not matter at what point you enter the market for a coin if you believe in the long-term. Bitcoin was once expensive at $1; it was then expensive at $10; people could not believe it when it hit $100; people could not believe it when it hit $1,000 and when it hit $10,000 they called it a bubble. It could be $25,000 next year or drop back below $5,000. My only advice here is not to chase something during a parabolic upwards move because it will almost certainly come back down.
Take this into account when holding Alts for the medium and long term, and of course choose them carefully. What kind of Alts are recommended for the long term? Remember, this is only when there is a reason for making a trade. The projects/coins that have a higher daily trading volume and which have a widespread community behind them, with continuous development, are here to stay with us:
In 2015 and the beginning of 2016, when Bitcoin held solid – as solid as Bitcoin can be – shuffling around $300 per one BTC, the game was trading Altcoins in order to gain more Bitcoin. It was expected that Bitcoin would grow higher in the future (the Pygmalion effect). Having a rather volatile base asset, such as Bitcoin, raises our need to compare our portfolio performance both in terms of its Bitcoin’s value and its dollar’s value. Many traders decreased the number of Bitcoin they are holding during the past year (hey, and it wasn’t hard when Ethereum got cut 70% from its Bitcoin all-time high…) although it had a nice dollar yield. Bitcoin’s growth made a lot of money for the crypto market, causing its total market cap to increase 30 times during the last year! As traders, it is important to keep Bitcoin as your base asset, but also not to forget the dollar value, and to take profit sometimes. You should always see the bigger picture – crypto is only one tier of your investment options. There are also the stock markets, real estate, bonds and many more investment opportunities. It is important to spread the risks among the crypto portfolio, as well as in the whole household investment portfolio.
Trading strategies are there to provide objectives for traders to earn more with lesser capital; just like how a successful business should operate. There are a lot of trading strategies that are being written all over the internet today, but what we’ve noticed is that most of these so-called “strategies” are just plain common sense; something that is hard to come by nowadays.
I’m a nomad from The States, currently residing in Indonesia. Can you suggest the best global service for wallets/exchanges? In The States it’s Coinbase but its supported countries are extremely limited for my needs limited. I need something I can access in basically any country without issue. I know there are a options out there, but I wanted to get you opinion of how other travelers have gotten past this.
Investing and especially trading, is a highly skilled task. You need the best equipment, execution and tools. When the market is only going up any fool can make money but that blessed state never lasts long and what is left is an environment requiring focus, skill and discipline. To succeed unlike the devastated cohorts of dotcom and the real estate bubble, you have to work hard at it.
The market is so volatile that big movements up and down are pretty common and you can capitalise on this through swing trading. I recommend choosing a group of coins to be in and then sticking to swing trading in those coins rather than jumping constantly between different cryptocurrencies – it does help to have an understanding of what different coins do and how much volatility can be expected and you will gain that understanding with time. Good luck!
No one actually knows how long this whole crypto thing will last but instead of losing sleep at night constantly checking token prices which have zero fundamentals behind them, I’d much rather invest in a real business that will make money whether Bitcoin prices go up or down. (Full disclosure: To satisfy my own curiosity, I do own a tiny amount of Bitcoin which won’t make me rich nor will it affect me if the whole space goes to zero).
TIP: The tips and tricks below shouldn’t be mistaken for professional investment advice; instead this is basic friendly advice to mull over. If you want professional investment advice, consult a fiduciary. For a shorter list that zeros in on some key points, see: 5 Tips for New Crypto Traders. See also, how to trade and invest in cryptocurrency and our crypto investing / trading starter kit.
Tokenized crypto funds such as PentaFund are a way to benefit from all of these and more, without the legwork. Simply buying a token is enough to gain exposure to the awesome gains of the blockchain industry with the guidance and protection from the pros. Tokenized funds are one of the key products that will bring cryptocurrency into the mainstream, and the best time to get in is right now.
I’ve met so many people that are speculating in crypto these days that have never even read Satoshi’s white paper on Bitcoin. Not only are they not practitioners (tech experts), they even are too lazy or too blinded by greed to even do a baseline level of work. There are many easy ways to quickly get up to speed on crypto and educate oneself you just have to do the work (one of my go-to resources is a company called Oddup which is an ICO/Crypto rating company used by all the major crypto hedge funds and institutional players).
The problem with this approach is that once you sell, you’ve actually lost money (you don’t lose until you sell), and while in some cases, cutting your losses does make sense, most coins will bounce back in days, if not hours, and then the same people, seeing a surge, buy back at higher prices, only to repeat the cycle. Buying high and selling low is a one-way ticket to going broke.
For instance, you might have a day trading strategy that exploits differentials in tightly correlated cryptocurrencies: BTC and ETH, for example. If you think that BTC and ETH are tightly correlated and you see that ETH is disproportionately low, you might buy ETH with the expectation that ETH will rise up again to restore its typical relationship with BTC. However, this might be a case of contagion: the whole market is going down. In this case, your technical analysis could be your downfall: you’ve just bought into a position that’s still going down.
When buying coins, and especially with Bitcoin, you will notice that your purchase is in decimal. A Bitcoin itself is relatively expensive, around $10,000 at the moment (as of 15th Feb '18). If you were to purchase say $5,000 of Bitcoin, you would at today's rate be purchasing around 0.5 of Bitcoin. Do not ever worry about this; Bitcoin operates at eight decimals places. You do not need to own a whole Bitcoin or any coin for that matter. Consider it like pence in the pound or cents in the dollar, but with more decimal places.
Before buying into a position on an exchange, it’s probably prudent to consider whether there’s enough liquidity to make a well-timed exit. Day trading is all about timing one’s trades, and many cryptoassets and exchanges don’t have the liquidity to support the near-instant trades an experienced trader might be accustomed to in trading stocks or forex. Consider checking the 24-hour volume of the asset, and verifying that the exchange allows you to both buy and sell the asset — some only allow you to buy, and some that allow you to sell might temporarily turn off selling at times of high volatility.
Let’s say on your cryptocurrency chart at 250-minute candles, you see 25 candles where the price stays within a 100 point range. If the price contracted to a daily move of just 20 points, you’d be seriously interested and alert. You should see lots of overlap. This tells you there is a substantial chance the price is going to continue into the trend.