Bitcoin Forum

Hey guys,

I am new in the crypto trading and i was analyzing the biggest currencies and I had the following strategy:

Buy 5 coins for 1000EUR each => wait till each of them grows 10% => sell.
If it went down, I still wait until it will go back up +10%. It's ok if it will take weeks.

From my analysis (correct me if I am wrong) it almost always does after a while.
If one of them didn't after a long time, the other 4 should compensate for the loss.

I can imagine it sounds like a basic strategy for experienced traders.. :)

Please share your thoughts!

Thanks

This "strategy" of yours will completely depend on if you can actually pick the right coins to buy; which is like 90% of the challenge. It might sound easy on the surface, but it's definitely going to be a lot harder than it seems.

Waiting weeks won't even be your problem as a lot of existing coins don't even go back up in price after crashing.

This analysis will not applicable in some scenario since we have to consider many things before buying some coins, but you will have a greater chance to get a profit if you buy those top coins and not those hyped coins which is just newly pump and have a questionable growth. And if you fall for bad coins in the market provably you will end up bag holding those shit coins and lose your capital.

And what if let's say the compensation amount wasn't enough? Like, 2 or 3 coins didn't go up above 10 in a long time, and the others barely went up 10 at that time, what would you do? Numbers are easy to write ngl, its easy to analyze, choosing what coins to put those numbers is the challenge. It's not enough to know the numbers, any one with a bit of knowledge would know that trading is to buy low sell high. The problem is in knowing "what" to buy low and sell high. Not everything goes according to plan, and im pretty sure every trader out there experience profits and losses always.

This strategy doesn't work. You could as well just use all the 5000 EUR to buy bitcoin. I mean when bitcoin drops all the other coins drop, when bitcoin grows in price all the other coins grow.

Imagine someone  bought the coins at the all-time high of most coins in 2017, someone would have to wait for close to 3 years and still be in losses. As of today, a person who bought on BTC would have the least amount of loss among the top crypto coins/tokens

https://i.imgur.com/B8V6XDf.png

Best strategy how do you earn profit with trading without all in on one coin only, I think this have apply for all trader is not look expert how to read chart and know with good news because when allot money or investment in several coins kind give chance when some coin have loss still get chance profit with other coin, but you should choose with potential coin only like top ten on coinmarket cap, never buy new coin without good reputation and little exchange for listing. I have try this method when I have 1 btc I will buy 10 coins and purchase 0.1 btc for each coin investment, maybe have one coin or five coins will give me profit than have put all money in one coin.

Sounds pretty risky. But the odds of winning and losing will be dependent on the coins you are gonna choose. Anyway I am thinking the same too as part of my strategy but of course will pick those top 5 that worth my time and money. Also gonna used some fundamental and even trading entry point for it.

Good tokens has its advantages and potential concept, you just need to buy it and believe with it. Trading is a gamble so still this process is risky and can turn your money into nothing.

You thinking is not good. First you need select some good coin that price don't drop in a day. If you buy 5 coin that you don't know her future. You make loss all money.

Dividing a few coins in trading activities can be good, but in trading every strategy there will be times when it doesn't work properly according to the plan.

Although it could wait for weeks, but in cryptos drop 10% or more can happen over a long period even months.

You can make a bot of this. Obviously it would take a lot of knowledge to know which 5 coins you should buy, and when to buy. However if you take the face value and pick 5 coins that are best in market, coins like bitcoin, ethereum, ripple, bnb and litecoin for example (not that others can't be better, these are just known and trusted) you could simple say to a bot "buy when it drops more than 10% and sell when it grows more than 10% from buying price" and just let it be.

If you allow a trading bot to constantly do this non-stop, it could potentially make a lot of money and even though it would also miss out on many opportunities, you could chase them with another account somewhere else if you want to.

For that strategy to work Bitcoin and the whole crypto market should be on upside movement and you should be at least 70-80% confident that market is going to stay this way for 1 month or even more, don't get me wrong, this strategy is still better than most other strategies that often traders use and it could work smoothly if the market behaves since you are diversifying your capital and when the market is green altcoins once in a while experience 10-20% pump rather easily.

But the problem here is that in crypto everything is strongly tied to bitcoin and if bitcoin decides to go down hard one day altcoins would do the same thing only worse, so if that happens your whole strategy will be ruined, so even though it's not a bad trading strategy to use you better be prepared for worst case scenario too and keep your stop-losses on point.

You should take those 5 x 1000 Euro bets to a derivatives exchange and trade an index on the price of BTC.

if your goal is 10% of 5000, one 1000 Euro trade at 50% profit would hit that. You could learn some skills and trade like ITF Scalping


146% in an hour speaks for itself.

https://youtu.be/RlzeLc6foyk


 

Can you suggest what those 5 coins we should buy? Because I guess that you already have the list containing that 5 coins, so maybe you can share that 5 coins with us. After you share the coin's name, we can discuss furthermore to find out if that coin is worth buying or we need to find the other coins. All altcoins will have the same opportunity to grows, and that still a mystery to know which altcoin can rise.

Not all coins here are the same dude, I am not saying your idea is wrong, it could be right or wrong to others.
But basically, if you choose the right coins 10% profit possible to be happen, but if the coins is not the right one,
the 10% might take long before it happens, this was based on my experienced as a trader.

I don't find this strategy viable for a couple of reasons:

1. Most alts are declining.
2. You cannot predict the movement of the smaller alts where every single "news" is moving the price.
2. Fees will eat you up. Especially if you want to convert crypto <> fiat every time.

This sounds more like a lottery than trading.

I agree that crypto trading can sometimes be a real lottery, especially when it comes to altcoins - and it is enough to look at the post from Bitcoin_Arena where it is clear how all the top altcoins have failed compared to BTC since the last ATH. It is evident that the times when alts followed BTC are a thing of the past, and that in the long run it makes no sense to invest in them.

---

Or invest 5000 EUR in BTC at the right time - and it's no secret that this year it was in the time before the halving or even after that, and take almost 10000 EUR of profit (which is great even when you pay income tax - if there is a law that says you have to of course).

The most important thing is that you can choose the right currency to buy, if you choose a good project it can bring you profit.
But there are many coins that when it goes down in price will not go back to the previous price or the time for it to come back is very long.

There are coins that take a long time to get back to their previous prices. It will take years or it will turn into a pile of trash, and then you will not be able to recoup your investment.
Ideally you shouldn't use such tactics, selling at a 3% profit or a 5% loss would be a better way to trade in this market.

I believe the diversification rule in investing can hurt you if you do it too much and too recklessly. Try to think of it this way, the best method you can do is to find 5 coins you can invest and put your money in there and wait for them to increase, that is definitely the best one, the second best one will be picking one coin or maybe two if you can and investing in to it all of your money and hope it profits, this is opposite of what diversification suggests, however worst one is definitely picking 5 to 10 coins or whatever amount and trusting some of them but investing into others just for diversification sake, that is not really something you should do, just because you want to diversify your portfolio, do not invest into things you are not certain about.

First, you must know what 5 coins that you have bought, whether they are good coins or shitcoins to be  ;D
Second, not every coin may increase 10% at a certain time, It may vary, like what happens to BTC, ETH, and probably others. They may not increase as much as 10%, but the nominal is high enough. It means that every coin may have different criteria or degree of how it should hold until what percentage.
Are you sure that the coins after the dump will be back to the top and reach more than 10% again? Are you sure you only need to wait for several mnths? you know, some coins were dumped and after 3 years, the price is still dumped. You must be careful when deciding this kind of strategy.

Yeah, that could works, do you mind to share what are those 5 coins?  Are the coins btc, eth, ada, xrp, and xlm?
10% isn't a relatively high number, if you buy €1000 each, then it's €100 profits for each coin, and the 5 coins I mentioned above could increase more than 10% within a few weeks. Just make sure to set the buy and sell arrangement.

Your idea is a good one, there are already a lot of people that are doing it, and there are those that overdo it, and when I mean overdo I mean that they buy more than the numbers you have said, I have seen someone buy up to twenty five coins.

It is good to keep the number low, five is a good number, and they should be good coins that you’re going to handpick, the ones you know are more likely to see growth in some weeks or months and you will be able to focus on them. If you buy too much coins you won’t be able to keep track of all and you will even end up buying some shitty coins.

If that is the coins, I think people already buy those coins with a large amount and they are ready to sell them at the highest price. If the profit is just €100 for each coin, that will be no problem because he can make another profit from the other coins if he buys it. But if he doesn't have the other coins, he can wait for a while to buy back on that 5 coins to make another profit. But I am not sure if that coins can increase within a few weeks because that will depend on how good bitcoin will move in the market. If the bitcoin price does not move to the higher price and stays at the current price until the end of this year, I think the altcoin will also not move to the high price and be up and down for more. But we can use that moment to buy low and sell high to still profit in any situation.

That's called a long-term investment strategy, it doesn't matter if you do that, many people do things like the strategy you call it.

If you can add 5 more coins, to 10, the important thing is you have to look at the potential coins in the market, which have the best volume and trade in the market, for what do you buy coins that are less desirable by the public in the market just to drown your money, look for good coins in the market for investment.
what kind of coins are you currently investing in.

And my idea is you should also have short-term trading to get more profit, do two things long and short term investment.

It depends to the coin that you buy because they have coins that need a lot of time to pump like months or years and the others is weeks only if there is a lot of demand of buying.

A lot of profit or percentage you will if the coin is very potential and not only 10 percent you will get but maybe twice or even more you get if the coin you have will rise very high.

Buying different kinds of coins is good because it will become safe once the other coins dump or die you still have the others to recover your lose.

Indeed this is risky, and if might take a long time before you can see at least 10% of profit as we all know that altcoins are more of a pump and dump scheme. And also the question is how mentally tough you are seeing that for a certain given time your portfolio is going down. Might better be off putting all your money to the grand daddy of all - Bitcoin BTC, that's it as least you will have a peaceful mind.

Good altcoins you have choose here, but remember majority of the altcoins have some positive news that why the price keeps going up, more than bitcoin itself. But the question is will the rapid rise will continue? Is 10% enough for you or you might switch your trading strategy and go a bit higher by 15%-20%.?


That's why I'm asking you why 10% though? Well, it could work, but then again there are a lot of factors you also have to take into consideration. In paper is sounds very simply, but certain parameters could come up that might make you think twice.

That's diversification and if you're confident with that strategy and you're ok to do an experiment and see where it will be ending, conduct it with precautions and just choose the best coins that you think will make you gain 10%.

It's in your hands but always put bitcoin.

*this idea is certainly very good, but which five coins do you mean??? :D
playing ping pong *the current term in trading is very good, Bitcoin price moves up and down and some Altcoins follow. profit 10% sell then buy again when the price goes down, slowly but surely very profitable.

When you said buy 5 coins, what are the five coins. And why did you said that? I also read, one of the point you made, that when the coin comes down that you will wait till it goes up again so you can sell. Let me now ask you some questions, have you not seen where a coin will go down and it will never comes back up again. I can mention hundreds of coins like that that I know. They went down, never to come back again. Some even close down. So when you want to do that, do it with discreesion. Make sure you do it with established coin.

Since it seems that it doesn't matter to you when to enter the market and your strategy is hardcoded to get out of the coins in which invested when they grow 10% then the success or failure of your strategy will depend entirely on the coins that you select to perform the strategy, just a warning, if you decide to try the strategy with coins out of the top 20 there is no guarantee at all that you are going to recover your money.

Now even if you perform that strategy with the top 20 coins in the market that is still not a guarantee but at least your chances are better, however your strategy is going to depend a lot in the cycle of the market in which you happen to make this investment, if you happen to invest at the peak of the movement of the coin then you are not going to have to wait weeks to get that 10% you will probably have to wait for years.

I agree with the trading strategy in the opening post, because buying 5 potential coins can optimize profit.
But the most important thing is you have to be able to choose coins well, don't choose the wrong coins,
there are losses experienced can also be much greater than buying 1 coin. Therefore, in trading, good
analytical skills are needed, so we won't buy shitcoins.

This is no different from the buy low and sell high strategy but most importantly you have to minimize the risk and always do your own research to the coins you have to invest. It may not be that easy but considering the top coins in CMC is your best choice. I don't really recommend altcoins since once the hype is gone they are good for nothing or just good only for pump and dump strategy.

The results will still be dependable based upon the choices of 5 coins you will buy because it is still dependent if you have chosen the right coins and have spent wisely the budget you have allocated on buying those coins. The strategy you have is just a simple trial and error if you will simply think of it. It could work or not depending on the coins you have bought but still there is no assurance that you can be successful by doing that. You can do pursue it and learn your lesson but still it would be a wise spending if you will get yourself familiarize first on the coins existing in the market to help you out on deciding which coins are worthy of your expenses and will give you profit once and for all.

This is a strategy that has never been overestimated. It's too rudimentary and has no security for your portfolio.
Try for example applying your strategy to the Sushiswap token, otherwise luckily you buy at $ 7 and now its price has dropped to $ 2.28. So your assets have been divided 3 times and your capital is still buried for 3 months up to the present time.
Obviously this is a very bad strategy because without a stop loss the market can be very volatile and we will never be sure where its price will be tomorrow. So before a good trade, risk management is very important, spend more time learning it bro ;)

A scam coin with fake project would only makes you have a never ending to wait.

A coin that are on its peak will take you ages,  a coin with high market cap won't move that quick and required years...  So yeah it's depends on what coin you choose and there's no guarantee for you to get that 10% target especially if you doing it randomly.
A technical and fundamental analysis would always be better required,  otherwise things will feel like gamble.

Using stop loss will be better to anticipate the drops of the price that can happen at any time. But that will need more lessons to learn when we should use the stop loss, so we don't get too big a trading loss. We can't predict what will happen to the coins, whether it will bounce up or go down after we bought. But if the price is down and the down is more than the price you bought, perhaps, you need to prepare to use that stop loss to anticipate another drop.

Yes, I agree that risk management will be necessary at that time to anticipate the drops. Besides that, you need to know how much money you can use to buy the coins to see what you need to do if the price is down.

You working very well man. Your idea is almost ok. I also looking for best currencies and want to trade. I found yet only 2 currencies where i have invested. In month there price goes up to 20% but i am waiting for 100% then i will choose another. Top exchanges and top wallet own token is best for trading.

Not a very sound strategy for high volatility products, you can make 10% in 3 or 4, but the remaining 1-2 can incur a 90% loss, in which case the strategy would yield a massive loss...

A more viable alternative can be to leave your upside open and focus on altcoins that have the potential to make exponential returns, this might make a 99% drop in value still an acceptable reward to risk ratio...

Moreover, its even hard to hold them when they are crashing. Most of the people are victim of FOMO and they think this is the point below which they can't hold up the loss and they panic sell. If it would have been that much easy then this market will be much stronger than the current one. What I mean is, if everyone was capable of holding the position then market would have flooded with lot of capitalisation making them very stable. However, that's exactly opposite to what we see these days and hence open market -> more volatility. Reaching to 10% change could take lot of time, sometimes it may even drop harder to overcome your break even point and then back to 10% profit. So do it wisely man  :D

When you read it looks very easy but the reality is different. At the moment it is possible cause of the nature of the market now. Be careful make good picks it only depends from that.

Have you decided on what altcoins will it be?
I mean, that is the first thing you should do.
Filter the ones who are really moving at percent every week or month then check if they really good coins.
I prefer the old ones of course.

It's a good strategy but what if 3/5 will be on the losing side because of wrong picks?
You should also have a backup strategy if ever that will happen.

Portfolio diversification is a good idea but the 10% thing is not really that good, at least I do not see it as a good thing, I would suggest that having some sort of goal to get out is a good idea but this %10 thing would make your portfolio change all the time and wouldn't really help you at all because %10 is not really a big increase.

What you should probably focus on would be to buy 5 coins, distribute them equally or however you see fit, and wait for them to go up enough that you think you can cash out and remove yourself from all of this. At the end of the day if you are getting only a small amount of money and nothing substantial, I do not really see the point of making these type of decisions and investments for only a small gain that would mean nothing.

Theoretically speaking it makes sense but if we apply it on the cryptomarket it would be pretty bad since each altcoin has a different reaction to the market and the chance to take a loss is high. There are many altcoins out there that declined hard and don't get up to the crash. And I think it is not worth spending the time researching for your top 5 alts vs staying on the best that you think has the possibility to make you a profit.

Now, when you are willing to wait to finally get a profit of +10%, then it would be better to make a long-term hold plan because in addition to getting a higher profit, basically you are already willing to wait. It doesn't matter if you have a lot of capital or money, because the problem is that not all traders have a large amount of capital so they are bound to look for new projects that will basically provide quick returns. So in this case, when you choose the top coins with a large amount of capital you have, basically it promises to be a profit even though indeed, patience is needed to be able to generate higher profits.

This is not a strategy and a very simplified version of buying low or selling high. The idea is always to sell at a higher price and the previous prices can't be available for trading for a long time. I don't think it is a smart trading strategy waiting years for making a 10% profit, at least impatient investors will not wait more than 3 months. In the worst case, the altcoins purchased for a long term HODL will disappear before the altcoin season. There is no need to risk the hard-earned trading capital for such risky strategies because it can blow up the trading account faster than we planned, unfortunately.

You are not trading, you are gambling here @Op.
Why don't you use your €1000 in a sportsbet with 1.10 odds? Win 5 bets and you will be in 50% profit of €2500.
Your trading style looks the same, you are randomly picking some 'good' coins which crashed and will recover. Let me give you my pick of the year, buy bzrx with 30% of your capital, link with the next 30%, waves with 20% and keep 20% safe in btc for your expenses.

what if the price never goes up by 10% ? ::)

The 5 coins you choose must be at the top of the CMC rankings.  do not take the risk of choosing a coin that does not have a large volume and good development.  But the strategy you use is not that easy.  You also have to be right when you want to enter the market.  Never enter when the price is in a Down Trend condition, it is very dangerous.  Wait at the lower price until it stabilizes.  Fundamentally, you can take advantage of "Buy On Rumor, Sell On News" and combine it with technical analysis.  A better suggestion in my opinion, you should have spare money if at any time the price drops significantly and you haven't reached the% 10 profit you want.  it will keep your profits.  Don't panic and stick to the original strategy.

Dividing our capital into 5 coins and waiting for a profit of 10% is a good strategy. Instead of buying one coin and waiting
for it to go up, it is much more risky. Because of the 5 coins that we buy, some of the coins usually have a large enough profit,
they can cover losses in other coins. Compared to focusing on investing in one coin, if the coins go down, of course we can't do
anything, besides holding the coins until the price goes up again.

Sounds easy but hard to follow in an actual situation.

Crypto is volatile and can create an unfavorable situation for us. Making profits out of it will depend on how we will handle it.

Why not just try your idea OP and give it a test. See the result for yourself if it's effective.

You are right! we do have our own plans and ideas and its up to ours if we do decide to test it out knowing that this crypto trading do matter with
trial and error and if you do saw that this one isnt that effective then you do jump to another one.10% gain security isnt a bad choice yet price
can move out with those numbers in a short span of time.The question is, would it able to move that way on the time you had able to buy or
get in? What if the price had decreased or opposed on what you had expected? For sure you would really be changing some plans and
emotion do comes out.

There is no wrong with that, that's your goal and all of us can make the same or difference from it. But TBH, 10% is big enough and I am not confident if people could able to wait longer because of the said target especially when you are investing altcoins. Well, that hypes could help but not all, unless if we are investing Bitcoin that we know that it surely go high.
No, you can't expect that these 5coins will come to that realization, that seems impossible (I hope I'm wrong).

He didn't even think about the possibility for the bulltrap to happen, he was not mentioning which position that must be taken as a time to buy. That means his suggestion to buy crypto in the random rate.
It's not so simple as that. There must be a deep analyzation before try to buy something especially to use it as our investment.
It's a really really simple strategy but it doesn't guarantee the traders will always be getting profit.

You use phrase with not put your egg in one bracket and always put your eggs on several bracket, I think this brilliant ideas how to manage investment risk when put all money in one kind investment will get big risk when coin have down, but if you buy 5 coins you have chance when lost in one or two coins still available with profit left three coins, just happen when you choose right coin to buy like have volume transaction on exchange market, on the top position market and always have new update from team of coin.

choosing coins in the current situation is very difficult to do, because the price of Bitcoin is very volatile,
we often see altcoin prices go up high and fall deeper, of course this will make traders and investors find it difficult,
but there are some coins that I am bullish on, XLM, NEM and XRP.

This is because bitcoin has the inflow of volume that can help regain price stability. With bitcoin the price can fly high  at anytime but altcoins don't do such all the time. Buying bitcoin against altcoins will profit op better.

When it comes or part of risk management then diversification is one thing but doesnt mean that it will work most of the time but those probabilities you had mentioned
is actually true when you do have several coins into your portfolio then you would really be having always that chance of recovery came from other coins in case you do lost
money on a certain coin.Recovery is there but to think that it will same goes to the risk as well when the market tends to flip out.
Getting percentage profits in shorter duration is a good idea and if you do see this strategy do works then stick with it.

its a good strategie but its so hard to apply it in the real market and i tell why :

in the current market ( bear market) not all altcoins goes up in  same time , only those who  get whales attention and its so hard to know what is the next coin that gonna make 10 % so if you bought those coins that you are talking about , there is an ability to not get any profit from them and you will only see loses .

PS: doesnt work in the bull market because almost all altcoins goes up .

  Not all altcoins have a 100% chance of going up, a sharp rise should be accompanied by good news. Also, I don't think there are really many cheap altcoins, after Bitcoin's strong growth, altcoins have followed suit and the current price is quite high.

I am expecting a strong correction in preparation for a strong pump in 2021. At this point, we really shouldn't trade with subjective sentiment; that would easily shatter our portfolio :)

buy Ontology, Waves, Ravencoin, Bitshares, and Ripple, I am sure these five coins will increase by more than 10%,
just wait until the Bitcoin price goes sideways then the altcoin will recover quickly.

You are saying weeks, what if you buy at a price that wouldn’t be crossed for years after it falls? Even the top cryptocurrencies sometimes becomes bullish and reach a very high price and when they do that, they will fall back after a correction and will stay on a normal price, and those people who bought at a the highest point of the bullish market might be waiting for years before they recover what they have lost.

So, if you’re investing you have to be very careful, keep an eye on Bitcoin, it’s the main thing there and its price can influence most of the other coins, most of the times they follow its movement.

It is a good strategy, but it is too far from your expectations because it is a risk if you would buy 5 coins, especially if you bought coins that are not very promising. There is no guarantee that all of the coins you have bought will grow by 10%, even you have earned by 10% from one of these coins you can still lose money because there are coins that takes months and years for them to increase by 10% from it's prices and sometimes they don't.

The right currency will be hard to figure, Waves could have been one if you have gotten them at the right time too. If you have to make it simple that you don't have to wait longer then just pick BTC. 1000EUR today could be worth $5000 in the next few weeks without you having to deal with stress when the token you have chosen is left behind when all are green and they are still red. 10% is always possible for BTC in just a week,

Why never buy one coin for all your money? I know when you reach profit you can earn more but cryptocurrency is fluactive price and we can't prediction correctly because any bad news happen outside and make any coin have predicting before miss from our expectation, so this why most important you need buy more than one coin for less risk when with one coin bad news and dump you still another coin have chance to get profit and keep trading with other profit coin, maybe if you wanna all in your money in one coin if price going dump you need waiting for when your assets coin trading back to higher price without have chance to buy other coin.

There is nothing wrong with the idea, it’s a good one and five is a good number to go with, it isn’t too much and it’s not small, it’s moderate. When I was reading the article at first, what I had in mind was what you’re going to do if the market of one of the coins should go down what you’re going to do, and you have already answered that, the others are going to cover for it.

If you’re going to be buying five coins you should look for good ones that are not going to disappoint. I have seen coins, especially the new coins, that will increase to a very high price when they are launched and then they will fall badly and never to get pass their ATH price. So sometimes it’s best to go for the old coins.

What about time frames? If you look at some coins and how they did since 2018, you'll see that many never pumped by 10%. They had their small 5% pumps and 6% dumps that over the course of months made them lose value.

A new investor may find that he held a coin, there was no 10% pump and the coin is now worth 20% less than a year before. He can sell at a loss or hold a bag forever like people who bought all those new PoS coins last year.

In that case, we have to choose some coins that have good potential such as bitcoin, altcoin, ethereum, waves, monero, nem, and so on. 10% isn't so big to achieved and may take 1 week or 1 month to reach it, depending on current market trends. For example, bitcoin fell to $17,6k 3 days ago but managed to increase up to $19,4k yesterday, so it has achieved a 10% increase. Nevertheless, limiting profits to just 10% is indeed an advantage, but some coins like bitcoin have the potential to grow more than that, so we can wait a little longer to take 20% or 30% profit.