Do you Trade or Hold Altcoins?

in bitcoin •  7 years ago 

Do You Trade or Hold Altcoins?

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Just curious what your guys investment strategy is. Early on I was taking some profits from Bitcoin and dumping them into altcoins on Bittrex with a plan to buy and hold.

A couple buddies of mine were making money trading on the swings and as I watched my holdings, maybe that's part of my problem is I shouldn't be watching daily if I'm a long term holder, but part of my problem is I would for example buy Lisk at say 0.50 cents, watch it go up to $1.50, and then watch it come back down to 0.50 or lower. After watching things like this happen a few times I got to thinking man, I could be doubling or even tripling up on my investments and holding even more if I was playing these swings and making money rather than just sitting on the sidelines holding. Obviously this assumes your timing things correctly which we all know rarely happens, rarely can someone call the top and the bottom.

I started utilizing that strategy of trading more so than holding trying to up the amount of Bitcoin I have with each trade. I noticed there were many coins that I had been sitting on for months that never moved and I was down or even on. As soon as they would get back to even money I'd sell them and say I'm going to get into something with more movement and more volatility, then to my shagrin something I sat on for say 3-4 months at maybe 0.12 cents winds up shooting up to $1.50 and I'm kicking myself for not being patient.

I'm still trying to figure out my strategy as well as what I think is a better and more profitable long term plan. Trading or holding. Curious to hear where you guys stand or what your strategy is as well as the logic or thinking behind it?

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It is a tough thing to figure out what to do a lot of times because is is almost impossible not to look at CoinMarketCap and see where stuff is at.

This depends on how much money you have to invest in this space and if it won't affect your life if you don't see any of this money for several years but if you look at it like this. Keep taking bits of money and putting it into these projects you believe in and when they shoot up then take some earnings and take a position in another project you believe in with those earnings but you always maintain a position in all these projects you believe in. That way if they really shoot up like crazy you will still have a hand in it.

If a person can do it it makes sense to always maintain some level of position in crypto because we don't know how high these runs are going to go.

What I'm trying to do is go balls deep on some investments that I believe the strongest in and then keep my toes in the water in several others that I think are solid projects as well.

It is hard to do but I'm just going to say I'm ultimately going to go Balls Deep in EOS. It will likely keep sinking as more of it gets pumped in but I'm cost averaging in and will like to at least get 10,000+ of them. That way when it gets rolled out and everyone realizes it is the most badass thing since Apollo 17 it should be a 10 banger, then a 100 banger and then maybe even a 1000 banger.

But be ready for 90% of the stuff out there to basically be a scam and never come up with anything.

If we experience crypto nuclear winter again like we did in 2015 it will be mentally tough but that is when I'm going to absolutely go all in. Like run up every credit card possible with crypto purchases. Either I get rich or go bankrupt. Don't follow my advice. I'm wreckless but I think we all know this tech is the future.

I've been hearing a lot about eos. I just went to try to grab some and saw its only on Kracken not bittrex. Debating whether I feel like opening up an account just to buy that coin. I probably will as occasionally you find arbitrage opportunities between exchanges so can't hurt to have another account on one.

Yeah, I was going to open a Kraken account just for that reason but they have it on HitBTC which is less involved. You can just create a burner account. Also there is a way to get ERC20 tokens onto hardware wallets and onto wallets on your computer.

That is just one video but I haven't used the Mist wallet.

You might want to check out @quickfingersluc here on Steemit. He has a healthy group of newbie traders on his blog and has answered many of your questions in his videos as well.

Hey thanks for the suggestions, just follwed him and going to start going through some of his previous content. Appreciate it. :)

Glad I could help!

Its always hard for me to tell if I am winning or lose since the funding currencies BTC and ETH are always moving as well.

Yeah I kind of prefer trading on GDAX because you can trade against USD so its really straightforward ie if I buy at $80 and sell at $90 I made $10. I get confused as hell when Bitcoin is moving and your trying to figure out if you have a profit or loss.

BIttrex shows USD however it can look like your up $10 per coin but in reality your at a loss if Bitcoin has increased in value more than your coin. The only way I've found to really track whether I'm making money is to sell in even blocks ie if I buy 100 I sell 100. I look at the total BTC price I paid against what I would get on a potential sale and if I have more BTC than when I started I'm up. If you want to figure out USD profit figure out how much BTC you made on the trade and then plug that inot a bitcoin converter.

I agree though super confusing.

Yea, I have been using Bittrex. Will have to check out GDAX again. Thanks for the insight.

me i just putting my trust in the project and i keep joining on active trading competition like on DAI, just you know to earn extra profit. How about you did you try to join on something like this?

You got your answers right on your finger tips. Invest, watch them grow, sell. Don't wait till an Altcoins goes back to square one and say " I wish I....! I have also learned one or two tips from your trading experience.

  ·  7 years ago (edited)

Trading is knife with two edges. As long as you know what are you are doing, it could be a very good strategy to multiply BTC. However, you need to investigate carefully the alt in which you are entering. Timing is essential - buy at the dip not at the peak is a must. Last but not least you need to convert your profit, not to wait too much because you could get greedy and the coin may return to the original state and never come back. The truth is you need experience which will you have with time.