Crypto Trading 101 - My Personal Method

in #steem6 years ago

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I recommend for you noobs (new traders), who own just a small amount of Bitcoin,but want more, to seriously considering trading Cryptocurrencies (altcoins), and to do so on exchanges like Bittrex, Cryptopia or Binance. The volatility on these exchange's is off the charts and this volatility equates to potential! My personal strategy is to accumulate more Bitcoin to hold longterm(HODL), lol that's BTC to be clear.
These crypto markets are currently like the "Crypto Wild West" with a lot of amateurs and probably not too many professionals. This is good though because that equals real opportunity for gains if you are serious. Join Coinbase and buy what amount you can weekly, monthly, or whenever you can, with what you can afford to lose, haha, for real though. Sign up for these free coins I post about on here https://steemit.com/airdrops/@pipertomcat/join-my-private-facebook-group-crypto-airdrop-club and then sell them for Bitcoin and buy Steem or other coins you have studied and chosen after doing thorough research! Find interesting projects/altcoins that have just hit exchanges and have a great looking website, a whitepaper and a development team who's working on a roadmap. I go as far as to download their wallet and see if it works. See if they have positive responses on their original ANN(announcement) on Bitcointalk.org and try to determine if the Developer is still active with the community. Go to Coinmarketcap and look up the coin and check for a working "block explorer" and look at the historical data and see how it's price has fluctuated. Look at their coin count(Circulating Supply is the best approximation of the number of coins that are circulating in the market (in the general public's hands) or in existence right now minus any coins that have been verifiably burned(destroyed).
Also consider the Max Supply which is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the altcoin. *A coin with a max supply of 500 billion coins will likely never be worth as much as say Bitcoin that has a max supply of 21 million coins.
Look at it's Market Capitalization, which is the value of all the units of an altcoin that are for sale on the market right now. It is a strong indicator of demand because it shows you how much money has been invested in that particular altcoin. Basically, market cap is the estimated net worth of a cryptocurrency. Now, keep in mind that the marketcap, as given by coinmarketcap.com(the website that the entire crypto world follows) ONLY calculates circulating supply. This is a bit deceptive because the circulating supply is NOT equal to the total distributed supply, which is almost always higher than the circulating supply, as it includes the company’s share of coins, extra coins from mining, and other coins not released into the supply. An accurate method to estimate ‘how much’ a cryptocurrency is worth is to take the total distributed supply, which is the value of the market cap of the Total Supply and multiply it by the altcoin's price. This will always be MUCH higher. *A good rule of thumb is "the lower the Market Cap, the higher the potential return on equity of that altcoin". In other words, you can make more money by investing in coins with a lower market capitalization because there is more room for a market cap increase. Boom! You're ready to trade and earn some Bitcoin $!🚀

photo source: bittrex.com

#cryptocurrency
#altcoin
#bitcoin
#trading