Re: Altcoin Trading Guide
Alts are finally on the rebound after two days of slumping with the BTC rally. Congrats to those who sold BTC at 17k and bought back in at 15k. I tried desperately not to sell all my alts. I wanted a 50/50 profile, but I ended up with a 75/25 as they continued to dip. Of course, they're in recovery now unless BTC goes on another bull run this weekend.
I want to take the time to talk about small cap coins. For these coins, you can employ two separate strategies or use them both:
a)Do your research into these coins. There are so many coins that have a market cap less than 1% of the top 10 coins($3m or less) or even unknown market caps. These account for 1/3 of all the coins listed on coinmarketcap. Most of these coins won't help grow your portfolio, but many will grow in market cap depending on the strength of the development team and community for the coins. Rarely will any of these coins make mainstream news.
b)Look at trading volume. As the small cap coins generate more interest the volume will increase. The price might not change at all but an increase in volume means more interest, more people trading, and usually means an increase in price. This could stop and then drop after a few days though, so you have to keep track.
You can import the data here into Excel or Google Docs to keep track: https://coinmarketcap.com/all/views/all/ |