Bitcoin Forum

Hello,

I am here for 4 months already and have seen a lot already. What bothers me all the time is the relationship BTC versus Altcoins. I don't understand why the whole market is being driven by BTC value. When BTC drops 50% all other altcoins also losing their value in USD for 50%. If i am mistaken please correct me. I think all altcoins should keep their stable value in USD no matter if BTC goes up or down. This is very strange to me.

I just want to ask you guys what is your exit strategy from altcoins when BTC corrects in the future for example 50-75%.

I want to invest in some altcoins now for long term. If i make 100% gains on altcoins and BTC correct -50% i am actually on zero profits and i think it may happen in near future since BTC has more and more competition.

So far i noticed everything is losing their value when BTC is going down so in the scenario when BTC = 0 all other altcoins = 0. This is stupid.

So what is your exit strategy from altcoins if BTC for some reson goes to 0 and everything is paired with BTC?

I now there is pairs with USDT also on Bittrex. Is this another option to exit from altcoins if BTC goes really down?

I never used USDT before  ::)

I've noticed,that altcoins are in the inverse correlation with BTC, so they should increase in value,when BTC drops down. For the last half a year BTC has tripled and alts lose a lot in usd.

it is not exactly same percentage sometimes it is bigger sometimes it is smaller and rarely it is even reverse. but you are correct they get dumped whenever bitcoin price goes down.
and I say the main reason is because they are called "altcoins". they are alternative to bitcoin, which makes them not be stand alone projects.

and the other main reason is that these altcoins are purely for speculation purposes there are no other usages for them that makes the market move as one.

if that big a correction ever happened in bitcoin then just go back to fiat!

first I would ask myself why did bitcoin go to zero!
almost all the altcoins are forked from bitcoin one way or another. and the rest have at least something in common with bitcoin. the same reason that may cause a fall to 0 in bitcoin will cause the drop to 0 in all the altcoins too!

it is a centralized altcoin distributed and controlled by the same company that created bitfinex. it is not wise to use it but sometimes using it temporarily may be useful.
it is shady as hell and if anything happened to bitfinex or the company it will drop to 0 in less than 5 minutes.

In the title, you ask about a long term strategy,but in the description you ask about exit strategy.I`m confused.My only long term strategy is HODL and my only exit strategy is SELL for fiat.I don`t know about any other and more complex trading strategies.About BTC/alts correlation-sometimes the new government regulations hit all the cryptocurrencies,other times they hit only bitcoin.The BTC/alts price movements depends on the factors that influence the markets. 

Maybe he was asking both and due to excitement and confusion that is why his question also confusing, anyway, strategies depends on us, on how to make our time valuable because we cannot learn through the experience of other people we cannot 100% rely on it, but we can always get an idea about it, so it is also important to make our own strategy.

The only long term strategy is to buy a few good altcoins and hold for a big price increase. I don't see any way of gaining big multipliers unless you hold some coins long term. You need though to find those gems when they are pennies a piece, a bit like penny stocks and when they explode in price, sell some of them for big gains. I would have been a millionaire now if some coins I had I had not sold for only a x 2 gain but I didn't know and am paying the price now. I hope I can slowly get a few good coins and grow a decent pension portfolio over time.

Would have been too if I hadn't liquidated a huge chunk of my portfolio way back 2015. Learned a lot from that.

@ontopic In this space, patience is key, or a trading bot if you're into day-trades. 4 months is way too little of an experience believe me.

Altcoin are very predictable. If you are not the type that always monitor your altcoin, you may wake up one day and find your altcoin becoming zero! Of course there are established altcoin like ether etc. But potential altcoin are not established alt.



 

you are covering a lot of topics in one comment and none of them have anything to do with your title!

it is hard to tell what you want to do. yeah altcoins are tied to bitcoin price but they usually go down no matter what. if you check out altcoin prices during the bitcoin rises you can see they still go down by that time too.
this is one of the reasons why i don't like them as long term investments. they are too unexpected for long term and too unstable for my risk tolerance.

but if you already know this (altcoins dump because of bitcoin rise and fall) then try to use it. short them when bitcoin is rising or buy them at the bottom after they got severely dumped to benefit from their recovery.
you don't always have to know the reasons for all things, you just have to know they are happening and how you can use them to your own advantage.

Sorry i picked up one question in you're post i think it's a lot of question you have.
For long term i strongly recommend with you those coins who top 5 and have big value in crypto market cap, like BTCH, XRP, LTC, ETH and NEO thesoine are the coins who have a big potential for long term especially litecoin i know this coin is next to bitcoin.
Good luck for trading if i where you choose wisely or read platform for strong fundamental coins good for long run.

There are a couple of main strategies which crypto traders tend to employ:

Hold - where traders buy and hold coins for the long term, riding out the volatile movements
Day trading - where traders analyse the market, the charts and news to trade in and out of coins
For me, holding is not a strategy on its own and you need an exit strategy.

I buy and hold coins for the medium to long term which I feel have growth potential.
I take small punts on small and interesting coins which have significant growth opportunity.
I rebalance my portfolio based on tiered investments, primarily investing in Tier 1, long term stable growth coins supported by speculative investments on small/new growing coins which might see significant gains and accelerate my stable coins.
I take money off the table, 5% for each 25% up, back in to FIAT (British Pounds), to give me an income while still benefiting from compound growth

What I can say about that is because Bitcoin is the mother of all cryptocurrencies. It was one of the pioneers in digital currencies that paved the way for winning large crowd of market.  It is like the US Dollar which you can use world wide,  you can use it to buy all other alt coins. Long term strategy for me means being able tl hold your coins for some time till the market price is up.

Nowadays bitcoin long term goals has gone so strong and it may surge back again to where it should be, and being a pioneer of digital currencies it really a positive impact to entire bitcoin economy. Those winners of profitable income could aim good price at that moment it will reach at higher value, as long as it will gain good demand which could attract more interest on digital currency investments.

To answer it, some altcoins are deeply affected with bitcoins dropping or pumping but it is regardless it depends on your stratedgy so if you are a holder you just buy and leave it for a time months or years.

i would absoulutely say altcoin is the best way to invest for long terms. playing long term really profitable if you buy coin under 1$. just hold the coin and wait it till it reach 1 dollar and look what you got from yours investment.

Well, its all compare to bitcoin because bitcoin is the strongest one in the market.
But in this case if you are not comfortable with btc pair so you can try usd or usdt market.

What is your chance to buy cryptocurrency at the most basic price? and how much is your chance to sell crypto currency at the top of the price? The reality is that buying and selling cryptocurrency will not be possible with perfect timings.
Define a strategy. How many times did you sell and buy cryptocurrency in one week? Some people want to be daily traders, but many people have proven that holding for the long term is more fruitful. A strategy I always tell friends who are new to cryptocurrency is "buy and hold". The longer you plan to hold a cryptocurrency, the more risk you face. Unless there is an unfortunate indicator of what is going on behind a cryptocurrency, then you must make a decision to cut loss (sell it).

Well think of it this way. Bitcoin is the original cryptocurrency and it currently has the highest market cap out of any other coin on the market. When bitcoin drops, people see that the strongest, largest valued coin is dropping and think that the altcoin that they invested in will go down too because the "mighty" coin is going down. So, they fall into FUD and sell sell sell.

My exit strategy is technically already in place. I try to limit myself on how much bitcoin I'm keeping and how much fiat I keep. if I overflow on one or the other, I put into altcoins. I have enough in bitcoin such that if it goes up like crazy, then I'd enjoy the profits, but I also have enough earnings overall off of bitcoin such that I'd be fine if Bitcoin goes to zero because I end up in the positive zone based on my initial investment. People should try to trade safe and hold for a while until Bitcoin is technologically beat by an altcoin.

If you never use usdt then now its your time to try trade in usdt.
Other trader normally think that bitcoin will keep growingbso thats why they prefer to trade in bitcoin pair. So if you are not satisfied with bitcoin pair, just try usdt.

I think if you want to trade or invest, you should know the altcoin. and for trading maybe get to this telegram channel https://t.me/poloniexsignalsforyou and I think you already know what the risks of trading

yes thats right some of the alt are affected of bitcoin volatility so you need to choose what altcoin is good to hold in long term nowadays. For me i choose to hold eth cause i have doubts this will give me profit in a long term . Just imagine my 15$ become 30$ in just a month,  so i will keep holding this until the value reach my target.

Yes tether is centralized but if you play with a strategy , then tether is a very useful coins. For example if  BTC went to 20000$ and you sold out and have tether. And later btc went to 10000$ then you will be having 20000$ tether as tether is almost stable for its price and you can buy 2 BTC's then.