This article we want to be able to give you a high level overview on 4 main rules that will help you become a better investor. The idea has to be that you must invest in currencies that will change the way human society interacts with technology as a whole and create the biggest impact in this new emerging market. With continuous analysis you will be able to identify coins potential in the long term and trade amongst those coins on a daily basis to gain on the volatility of the market. Taking advantage of the “pump and dumps” can be risky but if done correctly can increase margins for trading.
First rule is to trade with something that you would feel comfortable losing. The big increases and dips will make you think irrationally, so its important to have a logical strategic plan to become consistent. Its a crazy feeling when you see your investment double, most people become greedy and hold it thinking it will never stop, but the faster it rises the faster it will fall. Kenny Rodgers said it best when it comes to a degree of gambling "You gotta know when to hold 'em, when to fold, when to walk away, and when to run".
Second rule is to become aware of everything in the market. There is a vast amount of information in the coins and the best way to be able to keep up with it is to have a team of people that know the concept of trading and create awareness for each other. Everyone should be able to follow the same plan, and everyone should be able to use the market indicators before posting information that might mislead the group. Stick to your plan and there will be no communication errors.
Taking look at the market as of 12/03/2017 there were 1324 cryptocurrencies in 7,069 markets, 338 Billion dollar market cap on cryptocurrencies. Bitcoin is the currency with the highest market cap that was worth 190 Billion dollars (BTC dominance 56%). Second leading currency was Ethereum with 44.5 Billion dollar market cap. The growth that this market has gone through in the past year has never been heard of and it makes some investors afraid, but in every single article that I have heard of where big investors talk down on Bitcoin and digital currencies they can never back up their opinion with cold hard facts. In fact a lot of them actually admit that they don't understand the technology. I hate to be the bearer of bad news to those investors but your time has come where you are finally starting to fall behind in the world, you have been a great investor in the past but your strategies for long term growth do not apply to crypto. To understand this you must understand what the youth wants, in particular millennials. Millennials are about to overcome most markets in the world and for the longest time they have been demanding technology that can process information faster and be a lot more reliable. With hackings happening all across the world there is nothing more secure and efficient than block chain technology to finally fill the gaps that current technology has given.
Now taking a look at this as an opportunity one of the greatest things about this emerging market is that unlike stocks most of these currencies are their own individual market. The opportunity is so vast and we are still so early in these investments that the most profitable thing to do for Cryptos that are backed up heavily by investors are to create something that has not been created yet in the Blockchain world. Just to look at how much this is going to be used in the long run I wanted to post all the industries that will be able to implement Blockchain technology:
Network/Communications, Payments/Wallets, Drugs/Health, Social Network, Data/Computing/AI, Blockchain Platform, Commerce/Retail, Security/Identity, Finance Funding/VC, Real Estate, Education, Asset Management, Prediction Market, Music/Arts, Media/Content, Entertainment, IoT, Gaming/AR/VR,Jobs/Marketplace Insurance, Betting/Gambling, Content/Advertising. This is a multi trillion dollar opportunity!
With that being said this would lead to a third rule, and that is to know your resources. You can use a variety of sites to help you understand what is going on, but the following are sites that we use on a daily basis to help us:
https://www.coinbase.com
https://bittrex.com
https://poloniex.com/exchange#usdt_btcFinances
https://www.crypto-news.net/
https://cryptocoin.news/
https://www.coindesk.com/
https://coinmarketcap.com/Promotion
,and lets not forget this website itself find out what people are saying in relation to current news
https://steemit.com/cyptocurrencies/@report.btc/the-so-called-american-dream.
The fourth rule is always look at all the indicators. Opportunities will arise by looking at several different indicators that will increase the likelihood of determining whether a coin will go up or down in value in the near future. Pick the time you will buy the coin, when to hold it, and when to sell it.
In later articles I will explain in more detail several tools and indicators that have helped us stay ahead of the market to pick these numbers, but I encourage adding on to our strategy to get different views and that way it could lead to a better judgement in short and long term decisions. We actively look at the buy vs sell orders, the MACD, trading volume, market cap, bitcoin dominance, on balance volume, 24 hour high vs the 24 hour low, the money flow index tool, Fibonacci, the momentum indicator, the Parabolic SAR, and base some of the markets reactions from "The Elliot Wave Theory". These have proven to have worked for our trading strategy and have seen great returns so we will be glad to post them soon.
