When the crypto markets go into decline, most people seem to loose their minds and start "panic selling" often at a loss!
I've never understood that mindset, partially because I don't allow my emotions to dictate my trading decisions, but mostly because I have always made MORE profit when values decrease!
For example: If I bought 100,000 Mooncoin (MOON) for 0.00000004 BTC each, at a cost of 0.00400000 BTC expecting the value to rise, I wouldn't just sit there if the value started going down! I would place a sell order using another coin pair (eg: ETH/MOON) and trade them a couple of times too.
For example, I place a sell order say for 0.00000018 ETH (Totalling 0.018 ETH), and then place a buy (back) order for 0.0000009 ETH (Totalling 0.009 ETH) making me a total profit of 0.009 ETH for this one trade. (excluding fees for ease of understanding!)
Now obviously, those 100,000 Mooncoin would still have cost me 0.00000004 Satoshi each, by using a different trading pair, I would still have my 100,000 MOON for long-term holding, but now I would have a bonus 0.009 ETH, to either cash out (take profit), or buy more crypto with it (reinvest).
I have a bit more than 100,000 Mooncoin, and a few different coins to trade with of course, but you get the idea! And the plus side is, I can trade this way with ALL my HODL coins, since every coin exchange has at least two markets, some even have three!!!
Now obviously there is always the risk that the values could rise before my buy (back) order has been completed, if that happens, I just leave the buy order in place until the next time the market takes a tumble. To minimize the risk of having to leave ALL my coins on buy (back) orders, I only trade a few coins at a time until the trades (sell & buy back) have been completed!
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DISCLAIMER: I am not a financial advisor, and the information contained in this post is not meant to be used as investment advice! Please conduct your own research and speak to a qualified financial professional BEFORE making any investments!
Hey there! Discovered your post via the Crypto Goddesses fb group & just dropping a comment here to let you know I stopped by. Would love to read more investment tidbits like this :)
Hi, and welcome to my blog crypropolechix!
Thank you for your feedback! I'll definitely add more "investment tidbits" in the future as I really enjoyed writing this post in particular.
I'm glad you like the post!
Hi @cryptomurray
Excellent article. I subscribed to your blog. I will follow your news.
I will be grateful if you subscribe to my blog @user2627
Good luck to you!
Thank you for your feedback! I've followed you too!
Thanks for this! I’m not sure I understand why you are using a different trading pair for this, though... The basic idea is to buy back at a lower price than you sold it for, right? Couldn’t you do the same with BTC? I think I’m missing something ;)
Sometimes when there isn't a lot of price movement trading against one pair, you might find that there is movement trading against a different pair.
I was really just trying to highlight that, and also show that profit can be made when the value of a coin is decreasing too, as I've noticed a lot of new comers to trading start panic selling when the market goes into decline.
Ah OK! I've never really looked into that since I only use BTC as a base currency, but this is good to know. Thank you!
You're welcome.