Hi folks,
I have been asked by many people about some strategies when it comes to cryptocurrencies. Therefore I am posting some here. Those are not set in stone and are common sense based. Feel free to post yours investment strategies here
Many people would say, well whats so difficult about it, just buy all new coins and sell them once they hit exchange or shortly after. However often some coins might not even hit exchange or on day one major `shareholders` decide to sell most, leaving the rest gazing at large sell walls and tiny buy walls.
1. Talk to a developer via forums or IRC. Ask him/her what is his/her coin about, ask some technical questions if you know a bit how coins work, in other way try to ascertain if its a coin designed be sold in day/week one and forgotten about or its a medium or even long term cryptocurrency.
2. Check amount of the replies on the forums but make sure to compare page count with a coin current hash power and trading volume. Sometimes you might find gems that many overlooked in favor of hyped coins that are about to collapse or already collapsed and promoted by some burned investors.
3. Read recent posts to see if coin have been spammed by people who create topics like `which coins are best to buy` mainly to promote their coin. The more natural interest is there the better. People who like the coin are likely to mine it longer, work on it and promote it to their friends.
4. When to sell. This is tricky question.
4.1 You could sell after reaching X% ROI. If you become really familiar with a particular cryptocurrency or two you could sell at peaks and rebuy at lows. Its easier to do it with coins you know well rather than trying to play with say 60 plus coins
This strategy is best suited to long term cryptocurrencies with a large amount of people who like the coin and few if any large coin holders.
4.2 You can sell after you are X% in plus and move to new promising coin if any.
To be continued ... In Part 2. How to value an IPO and ensure your money is secure. Pow as price signal. And more
