The current electronic money market (coin) has more than 1000 different copper coins, so it is necessary to know the rules of coin selection for investing, especially for new members. I would like to share some experience in choosing investment coin through different stages.
1 Select to invest
1.1 Overview of coin groups
1.2 How to choose the coin to invest?
1.3 Choose the right time to choose the right coin
1.3.1 At the exploration stage
1.3.2 The market is beginning to show signs of increasing
1.3.3 Market segment is vibrant
Overview of coin groups
Similar to stock, coin is also divided into three main groups:
Coin top is equivalent to Blue Chip shares on the floor. These are good stability, high safety, long life and can dig. However, it will increase relatively slowly over time. This group includes BTC brother, ETH brother, and younger siblings including LTC, ETC, XMR, Zec, ETC, Dash and more recently BCH.
Some of the names in this group are: XRP, NEM, STR, BTS, LSK, STRAT, FCT, GNT, Maid, REP, DGB, SC etc. Here are the IOT, EOS, OMG, PAY, NEO, QTUM, MCO and HSR.
Minority Coins: Most capitalized under $ 100 million, most of which are in the tens of millions of falls, with very low and dull trading volatility, unless volatility is strong.
How to choose the coin to invest?
For new traders, the investment goes through two phases: the new phase of the market, the suspense, and the fear that they often choose the group 1. After seeing the divine growth x3, x5 or less Also, a few dozen of them started to become impatient and greedy so they quickly switched to groups 2 and 3, usually resulting in losses by these two groups.
Investment Situation Analysis:
Choosing Group 2 3 can bring you big and quick profits, but you also risk a huge loss like chance of winning, even bigger.
For group 1, you almost always have a chance to take back the capital by waiting. In fact, over time, the long-term trends of coin group 1 have increased many times or at least very well.
Choose the right time to choose the right coin
This is a basic experience, but many real traders do not grasp the loss is not worth it. So I share some personal experiences:
Buy coin in order of 1 -> 2
At the exploration stage
Obviously, choose to buy coin group 1. In fact, I rarely invest when there are no obvious signs, however I know many always have feelings of thirst, need to invest something, choose Group 1 when such market. More secure, choose only BTC. If the storm arrives, you will be less damaging than holding any Altcoin, the discount rate of the BTC is almost 100% lower than the Altcoin discount rate during storms. If the trend is up, BTC is still the first coin in that trend. Of course, like the blue chips, you can not earn much, but you have the safest. The option to buy this BTC also means that you can exit from Altcoin to BTC in these stages if you do not want to stay out of the game (Exit to USD).
At the beginning of the market there are signs of an uptrend
Often this stage is dragged by BTC in two situations: stable BTC or BTC boosts the confidence boost. Therefore, buying BTC at this stage will be the least profitable. In fact, if each board increases, this does not mean that the market is going up, it is clear through the BTC from 3K to 4k5, Altcoin increased negligible. To pull the whole market up the trend, usually the BTC will go first and then the coin group 1 then the second group. At this stage, you need to observe the coin group 1, if all in bulk up signs up. These include: Rapid price increases, increased buying volume, you can start buying into these groups. Normally, each time the price increase is high, there will be 01 – 02 coin to lead the market, it is always strong and weak. As the month of May is ETH, this September is the pair of LTC and XMR. This is also the reason for the double XRP, XMR triple of themselves gave advice to buy ETC and LTC then did not increase prices. Or see the whole group 1 has a very strong, except Zec, I will buy more Zec. When the overall market signal is clear, the unconverted coins will in turn increase, which is the opportunity for you.
The market is vibrant
After both the BTC and the top coin group broke up, plus some of the 2 groups also increased strongly, the confidence of the market will be high. At this time you can buy coin group 2, preferably the coin the more famous, the more interested as possible (Since Group 1 has already increased, buy also no significant profit). Just now: News will be a good excuse to push the price of coin, you can apply this way of hunting. As most of the bulls in group 2 and 3 are up, that is the end of each bull run, so you need to quickly take profit and exit to the BTC / USD to preserve your assets. The coin group 2 has a very spectacular speed increase, this is also a great opportunity to improve your account number. At this point you can also pay attention to some coin group 3 if you want to adventure. Never put too much trust in groups 2 and 3.
In this stage and the above phase you may be interested in coin pairs (Coins that have increased the coin will increase, not equal will also be dark soon after shortly): DGB / SC, BTS / FCT, XRP / STR, or more recently NEO / QTUM and PAY, the larger pairs may be ETH / ZEC. Or group coin tend to go together STRAT, GNT and Game.
Finally, in order to trade in the medium and long term, simply and leisurely, you should concentrate on the group 1 and especially the group 3. And even more so before the overthrow of the throne (at least see in the near future), trade only BTC / USD. It’s the only coincidence even if the price drops, you have the power to shutdown and go to sleep, a little less is the remaining coin in group 1. For groups 2 and 3, should not be so adventurous.
ICO is a long story and not easy to explain so I have not mentioned in this article, the content is just a selection of coin was available on the floor. Each person has different views on investment and coin selection, I only give advice to people from personal experience to limit losses, then calculate interest, simply we are trader, not a gambler.
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