I've seen a lot of posts in this section with fairly basic threads and beginners, so decided to post this here as opposed to Altcoins, but admin feel free to move it if you feel its necessary.
This post is mainly about trading and what coins to pick that
you think are (potential) winners.
The market is obviously down at the moment, but this will help you on the way back up i am fairly certain.
When i first started out in Crypto, i wont lie, i dived right in at the proverbial deep end and bought all the wrong coins at all the wrong prices, and pretty much got 'REKT' (wrecked/lost money) as some say in crypto. Totally out of character for me really as I generally like to learn my trade and research on anything before i make my move. However, i did what i did, and in truth it turned out to be a blessing in disguise as i managed to turn it around...eventually!
So, i decided to post this as a heads-up, rather than a guide or advice per se. As i am no financial adviser, and my experiences shouldn't be classed as financial advice either.
It's irrelevant to tell you which coins I bought when i first got 'REKT' as the same principles apply today, just there's a LOT more of them now. Its split into 4 categories for me:
- Winners- Coins that have great fundamentals and look certain to stick around. Think BTC/ETH/LTC etc
- Good Potential- Coins that have a clear direction/use case. That look solid and are potentially disruptive. Think NEO/OMG/ICX/ADA ETC.
- Shitcoins/Boldcoins- Coins that bang their chest and think they are something, but really they are just plain old crap. Think TRX/XVG etc.
- JOKEcoins-Coins you possibly bought when you first started out thinking- "Is this the next Bitcoin", "great project" etc. Think pretty much MOST 1-100 sat coins (Sorry if you hold any by the way!)
So, yes i have my favourites- everybody does. Everyone differs, and i respect your choices, we don't have to agree on them in order to trade.
I am only going to be using OMG as an example here. Maybe as its been around a while longer than a lot of others but mainly, because I unashamedly like the project. I think its solid, i like where they are going with it and what they are trying to accomplish, LOVE the partnerships, the potential to be listed on Coinbase, the very close links to ETH, the list goes on and on. I have done pretty well from OMG by just watching the price and going back over time and taking an average price down. WRITING- yes physically writing the opening and closing prices down in my journal, doing basic Technical Analysis will usually give you the answers on a favoured coin if you have the info with you on what it has done in the past, and what its 'normal' sort of price is.
OMG (in my opinion) its normal price is around $15-18. Back in April at the beginning of the month when we had another 'crash' it was trading around $8, needless to say I was all over it like a tramp on chips (french fries)
). Then the market recovers, and it goes back to its 'normal' price. Its moved up and down a few times, but this is still what i consider to be its price. So today (under $10) is a steal and where i am stacking more. If it goes down further? Who cares! I'll still make bank when this blows over.
This is why i
STUDY certain coins. Not just the price, look at events that are upcoming, main-net or test-net launches, partnerships etc that may increase the price.
Unless you are a skilled day trader (and theres plenty of them), you are literally gambling! Going down this route on a swing trade is most likely your best bet. Study the coins to find their NORMAL price and when the BTC price tanks next time round, you can bail straight out and/or have your stop loss ready, so when it dips right down you can buy more of it back at a better price.
Anyhow, I know this will seem basic to some of us, but if you're a beginner I think it'll definitely help you to trade smarter and avoid day trading (gambling!)
Any other tips? I'd love to hear yours! Cheers
