Some altcoins coins, coins other than Bitcoin, are giving a Bitcoin a good run and challenging strongly for dominance. If you have Apple as the leading stock in the market, the digital currency world is equally awake and giving a good chase to leading financial assets. Already on record are over 1,200 digital currencies that are up for trading.
There are different choices to make in the market, making things a bit difficult. If you’re gunning trading cryptocurrency, you need adequate knowledge and to be well equipped with requisite knowledge on the trade pattern that will be good for you.
That’s why we’ve made steps to establish the Top10BitcoinRobots community. That said, here are five solid cryptocurrency trading strategies you can adopt for your trading.
1. The Initial Coin Offering (ICO) Strategy
Should investing in ICO not be a good one to take advantage of? You should do it. It stands as one of the best ways to get your hands on a cryptocurrency at its early stage of birth when the price is extremely low.
This is the starting stage of life of the coin. To anyone, this should be a good bonus having to purchase the coin at a much cheaper price value.
The potential of it turning out good profit at the time of its introduction to the public is to your advantage in this case. You can sell and make a profit in a matter of a few days if the digital asset is well accepted.
Don’t underestimate the profit level you can expect. Some have given over 300% in profits. Make sure to do proper research on any coin you’re interested in before buying into the ICO. Let it be a promising one having the potential to yield profit.
Don’t just be satisfied with only one ICO. Plan to buy into many ICOs when you have the funds to spare. It is safer that way. This is good in the event that one doesn’t perform as expected.
If after purchase and release to the public, the price spike fails to come up, be patient and allow some time. You may sell when it about a 50% to 100% rise is experienced.
2. Acquire at the Cheapest Price
A good move you can make is to stay on with a cryptocurrency asset and acquire it when the price is lowest as the price drops.
The predominantly situation sometimes can be that some investors are in need of fiat currency and so withdraw a significant amount of their assets if not all in some situation. This drives the price of the coin down.
A good move you can make as a smart investor is to buy a digital asset when the price dips for the first time. Usually, in this case, you may find the coin selling at even a much lower price to the ICO offer.
A typical reason why this dip happens can be traced to the presale investors, the developers and the initial team who are given the coin at no charge when it gets to the exchange.
Similarly, if a coin is promising with a good future ahead, the advice is to hold, that is, holding the coin when the price drops believing it will come up again in no time.
3. Trading with Robots
Cryptocurrency bots are beginning to get popular by the day. This is the use of automation to trade on your behalf. A robot does the trading for you. If you’re yet to get to terms with the frenzy about blockchain technology, you’re not alone in this.
So many people are yet to fully understand what the technology is all about. You should adopt the use of trading bots like the Bitcoin Trader that are API enabled to assist you with the trading. Newbie traders particularly will find this type of trading option a good help to start with.
Make sure to research well on the trading bot you go with. There are many scam bots out there than you have legit bots, beware!
To be sure you’re dealing with a legit trading bot, have some factors in mind to consider seriously so you don’t fall prey to the criminals:
Get detailed information about the trading platform, the founder and the reliability of its use. The functionality is a must inquire about. Security is as important as anything else. See to this.
What security and safety measures are put in place for your funds? Some to consider are:
- 2-factor authentication
- Email and SMS alert
- An SSL certification
- Cold storage system
- Wallet monitoring service
4. The Balanced and Unbalanced Portfolio Strategy
Your cryptocurrency portfolio is the number of digital assets you own.
The balanced portfolio strategy is a trading strategy you adopt to purchase all cryptocurrency assets with the same equal amount across all boards. Let’s assume you plan on investing in Bitcoin, Etherium, and Ripple.
If you are on a budget of $1,200 for this, trading using the balanced portfolio strategy here means you are going to share the total sum equally among the three assets. This would give a $400 each to every coin, an even distribution. The risk is shared among all you own in this case.
This type of trading strategy is particularly good if you’re not sure what asset to invest into or which one will be good to invest in. With this approach, you’re trying to see how each of the coins turns out eventually well. This will direct your steps in investment to stick in the future.
The unbalanced portfolio strategy, on the other hand, is different. Here you invest based on how well you think a cryptocurrency will do in the future. The highest percentage will be given to the coin you feel will do significantly well later on.
Take, for instance, if Ripple has shown to have good promise, it should be the coin to invest a large chunk of your money on. Something like this:
- Ripple – 70%
- Etherium – 15%
- Dash – 15%
Going with the unbalanced portfolio cryptocurrency trading strategy is particularly good for investors who have done their research well on each of the coins to make this buying decision.
You don’t have to stick to a given percentage, be flexible and make changes where you need to. Don’t miss out on a good profit. Make sure your prediction is right and correct to decide on the percentage you choose to go with.
5. Reinvesting your Gains into other Coins
One of the best cryptocurrency trading strategies is to reinvest a part of your profit into other promising coins with very good profit margins. Going with this option will help to leverage your investment for more profit.
You’ll be creating a well-diversified cryptocurrency portfolio in the process. Look for the period you experience a spike in a currency. A parabolic spike shows the currency price won’t be sustainable and sell order will be right at this time.
Get this money out and reinvest into a different coin before the price eventually drops. Reinvestment is a good cryptocurrency trading strategy many have consistently used to make a good profit.
What Strategy Suits You the Most?
You have a choice from five strategies to make. But there are even more. Every strategy is good to adopt but you can’t go with all at a time. It is advisable you go with one that suits you the most and stick with it for the period.
You can add others to it later on once you have the experience backing you up. You can try other strategies as you go along in your cryptocurrency trading.
And Now What?
We suggest you check our team top pick for August! Check This Bitcoin Trading Robot official website to learn more.
|Official Website URL||www.bitcoinloophole.com|
|Support Types||Email, Chat
|Minimum 1st Deposit||$250|
|Open FREE Demo||Open FREE Demo|
|Deposit & Withdrawal Methods||Credit Card, Neteller, Web Money, BitCoin, eWallet|
|Number of Assets||60+|
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