Top 3 Tips for a Crashing Crypto Market
If you've been keeping a close eye on the cryptocurrency markets as of late, you can see just how volatile the industry can truly be. Just in the last 7 days, Bitcoin alone has swung from around $2,720.00 to a low of around $2,250.00! And as cryptocurrency investors know that when Bitcoin or Ethereum swing in value, so do many of the alt-coins that are tied to them! So, how the hell do you survive such volatility? Well, you could always hope for the best and shoot for the moon? Or, you could apply some quick and dirty logic to the markets and time your investments properly.
Tip 1 - A Deflated Market is the BEST time to buy more!
Whether you have $100, $1,000, or $10,000+ invested in a bear market, doubling down on the dips of the crashes could very well help you average out your gains/losses, and potentially come out way ahead. As of today, 6/26, there are dozens of coins at an all time low! Doge, SWT, Digibyte, ANS, PTOY, CANN...I could go on! These coins are at incredibly low prices, and while your portfolio may be hurting, if you have any extra capital available, get it into some of these coins immediately.
Tip 2 - Check the corresponding Exchanges!
Exchange conversions during crashes could spell massive gains as the prices fluctuate so quickly, the rates are often quite different. If BTC is $2600 on Bittrex yet $2350 on Poloniex, you could make some incredible 5%, 10%, or even 20%+ portfolio gains just by arbitrage between the exchanges!
Tip 3 - Pay Attention to the Conversion Rates!
One thing most people forget is that we're not simply purchasing in fiat and correllating that to a single stock option. Unlike the traditional stock market, the fiat you initially invest in isn't fluctuating wildly! However, in the cryptospace it does! Once you put your fiat into either ETH, BTC, or LTC, that currency immediately begins its transformation in value. The ideal time to convert and sell between the two is when the one you are holding is high, and the desired purchase is low. This would be assuming the purchased coin would then increase in value.
In the cryptospace, BTC is the most widely used coin for currency. You use it to virtually purchase 100's of other alt-coins. So, it would make sense to do so when BTC is as high as it can be, and the coin to purchase is a desired low entry point. This same principle should also apply for converting between the big 3. Just because you see DOGE coin at an all time low doesn't mean you should convert all that hard saved ETH you got near the $400 cap just to buy some DOGE and hope for a 60% gain. Always do the math and weigh out your conversion profits potentials!
In Summary...
At the end of the day, there are no hard-set rules to trade by. Everyone has their own tricks, tips, and ideas for approaching the wild wild west known as cryptocurrency trading. However, if you slow down just a bit and think through some of the more intricate specifics (especially during a blood-in-the-streets time such as a crash/dip!) then you can very easily come out way ahead!
Happy Trading!
It actually doesn't matter how much dollars your Bitcoin is worth when you are buying altcoins. All that matters is the exchange rate from BTC to the token that you are buying. Since trading profit should be calculated in per cent and how much Bitcoin was accumulated on your investment.
Fiat > BTC > Alt coin
The conversion does matter but yes, only for the 2 currencies being exchanged.
If I buy BTC at an all time low with fiat, I've received an incredible value. If BTC then jumps up 25% and I use that to purchase another Alt-Coin at a desirable entry point, I've made the absolute most of my investment. If, however, I purchase BTC with fiat and then BTC drops 50% in value, and I then buy into an alt-coin during a climb, I've essentially wasted a large chunk of the fiat potential for when I'd eventually cash out.
IF you hold and make massive gains, this later approach could very well be worth it. An example would be getting into an alt-coin at a rate that would facilitate 2000% gains that even a widely swinging BTC transition couldn't uphold.
All i'm saying is do your own due diligence and dont just invest/convert without accountability
Congratulations @christopher-ryan! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honnor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPBy upvoting this notification, you can help all Steemit users. Learn how here!
So you use both Bittrex and Poloniex? What are your thoughts on these exchanges?
Bittrex is my preferred exchange. I've yet to encounter any hiccup or downtime. Poloniex on the other had seems to have issues almost daily. They lock withdrawl/deposits for alt-coins frequently, beyond simple wallet cleaning requirements. I also had issues with Poloniex losing my withdraws. I had to harass their customer service half a dozen times for a resolution to which they still never responded. Customer service is complete garbage.