- 2–12–2018 Get Rich Quick Schemes never pay off…TRADE! HODL!!! No I don’t know!!!
Why is it every other crypto post starts with how to I make 100% on my investment? Or, I bought EOS a month ago and its down 70% I quit! Or some variation in between. Let’s not forget that this is a market, and a volatile one at that. That means if you get involved in day trading and don’t know what you are doing I PROMISE you will lose money. I know I did. I am not kidding. I got lucky sometimes, and I got hosed others.
READ — Do yourself and your wallet a favor. Utility, use cases, technical/potential value. These are the things you need to consider before you “invest” or “bet” on any coin for any purposes. With the exception of spot trading you should never be holding any asset unless you have a clear understanding of what it is, and what it’s potential use case might be, and what your going to do with it.
HDOL — This comes down to two things.
- One is you are investing in something like XRP or ADA. You are choosing to invest in this as a speculative asset based on information you have related to the coin, its utility, and the potential value. Or a hope and a dream.
- You must have an entry price, you must have an exit price to take profit, and you must have a long term plan for any holdings you keep.
This means put it in a wallet and forget about it for a year. Seriously you will make yourself sick if you don’t. If it makes you feel better set sell orders and pray to whatever deity watches over crypto.
TRADING — In this case your goal is completely different.
You are here to trade in altcoin asset’s against BTC/ETH/LTC/BCC/BNB/USDT and buy and sell coins to earn a profit. This is a bit more complicated. If you don’t have everything tracked in excel, a trading platform, or a bot utility, then you are probably losing money.
In day trading the long term value of the coin is irrelevant. The goal is to generate profit by trading in and out of say BTC or ETH. You should be able to earn anywhere from -5% to about 20% a day depending on what’s moving, how attentive you are, and face it, how flat out lucky you are. There are an army of tools out there to help you trade if you are feeling crazy enough to do it.
Semblance of Normalcy
I gotta say folks the last few days have almost been like being swaddled in cotton compared to the last few weeks. The both BTC and ETH were incrementally up but never able to break the 9k and 900 mark respectively. Both of them were up and down within 2–3% over the weekend with nominal volatility.
It made trading almost a bit boring. I didn’t see any steady gains or losses. I have been working on taming the bot trader, trying to figure out that sweet spot where I am moving enough volume without holding onto anything for too long. But even here in the world of BTC it’s tough to to move some of these altcoins any faster than a few hours.
Why does that matter? Well when you have say 2 eth out there, and you want to be making 2–3% on every trade it benefits you to move as many orders as you can. It’s a number game. In order to keep the money flowing you need to find out what your risk tolerance is. Right now I am working around 5% to cut an order loose.
It’s too soon and the trading has been too slow this weekend to see how this works at speed. Between cryptohopper and coindera I can keep pretty close tabs on what my ETH or BTC is doing at all times. Even if that means I wont like what I see. I will let you guys know what I think of it as I either earn or lose some bucks.
The Long Haul
So you don’t get rich quick. And the market doesn’t make millionaires overnight. But with the right selection of coins, decent trading, and a little luck I think you can make a decent little stash for yourself. Bottom line is do your homework and stick to your decisions. I can’t tell you how much it sucks to be sweating it when the price of BTC or ETH is yo-yoing up and down.
XRP ended up back above the $1 mark for the first time since the big dips in January. This comes on the heels of the UAE deal announcing a partnership with ripple to begin testing their transfer services. Again as has been the case with most of these it is unclear if they are using Xrip which is not actually XRP as a settlement medium. But time will tell.
I expect if BTC keeps up the good work the rest of the altcoin market will start to fill in as well. Still wide open to buy on XLM and ADA they are clawing back up to just around $.40 a piece. That AMB, KNC, ZRX, LEND, POE, and several others are all still quite cheap compared to where they were before the last two markets drops.
The general consensus both from the computing world, and theinternational governments is that cryptos are here to stay. What form they ultimately take, and how they will be utilized either as a currency or as a store of value remains to be seen. But its clear in the short term, and the foreseeable future that BTC will be keeping the title of King.
On the regulatory front Japan shrugged off the big hack of Coincheck. When the Japanese decide they want it they go for it. Think anime, talking robots, and Kamakazi. These people don’t quit, and they are intent on being #1 in cryptocurrency in the pacific rim. They also kick started and backed Cardano ADA and have ATM’s for the currency already.
On the hardware side the market for GPU’s has been completely consumed by bitmania. If you want a video card for any kind of high end gaming or VR expect to pay double or triple for your video card. NVIDIA says its custom chip line for scale processing was relatively unchanged, but you cant find a single video card ANYWHERE. I wonder where they all went…
Chinese Futures — The numbers don’t lie Chinese investors have been leaving the domestic markets in droves and heading to the us based CBOE and CME options exchanges. They have been conducting business there due to the regulatory environment being preferable to how things are done domestically for them in China. There are no regulatory protections for the exchanges in place. Most specifically capital controls.
And lastly a touch more Institutionalization. JP Morgan has been quietly talking about what cryptos mean long term to the markets and their role in portfolio diversification as an asset class.
That’s a wrap for this last week in review!
Martin I. Montoya
- Date of publication:
- Tue, 02/13/2018 - 11:48
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