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making money trading/holding alt coins
Here me out on this
If what we're experiencing with Bitcoin lasts for a few more years (the overall bull run), you may make a larger return by also holding certain alt coins. I'm not talking about obvious scam coins, but safer altcoins such as Ethereum and Litecoin. Alt coins have been out performing Bitcoin most of last year.
What I've noticed in the last year of trading is money usually flows into bitcoin, it rallies for a period of time, along with some of the alt coins, then bitcoin consolidates while money flows into alt coins. Then after alt coins pump for a short period, then money usually flows back into Bitcoin, while alt coins plummet. This cycle has been happening the entire time I've been tracking crypto (1 year~).
What keeps happening every cycle is more money is being brought into the market if you watch the overall crypto market cap increase. The overall crypto market cap has nearly doubled every month for the past 3 months
I wouldn't advise trading more than 30% of your current Bitcoin holdings into alt coins (assuming you're only holding Bitcoin). If you research the top 100 coins and make a list of the safer ones with the better community, those will most likely keep rallying with Bitcoin as Bitcoin continues to grow. I spent weeks reading about the top 100 coins and choose coins that have a solid community, and haven't hyped/rallied as much as others. Most of the coins I hold have already had a crazy rally but I'm still holding them. So far, its been more profitable to buy and hold alt coins, than holding Bitcoin (by a pretty big margin). Currently holding BTC (60%), LTC, XMR, NEO, VeChain, Walton Coin, Vertcoin & Binance Coin. All of the alt coins have out performed bitcoin by 3-15x in the same period of time.
If Bitcoin continues to rally for at least a year, all the other safer alt coins will continue to rally as well, there's no reason they wouldn't follow Bitcoin up the charts. These alt coins have a much smaller marketcap than bitcoin, so their value is more likely to multiply by 5-20x in the same period your Bitcoin value doubles. Once Lightning rolls out for Bitcoin (instant, cheap transactions) it may be a risky strategy to hold any alt coins, but until then I think you'll make a pretty sexy return diversifying and catching some of these monster rallies while the Bitcoin networks continue to be congested. People are hyping on anything right now, pick a safe/solid alt coin and you'll see what I mean. There's no reason Ripple just went from 0.22c to $3.70 in the last week or so. There's some silly shenanigans going on.
There is no doubt money is currently pouring into the crypto markets, but these rallies are likely not going to last long. Right now you'll have a hard time registering and getting verified on any of the larger exchanges. They are receiving customers/volume like they never had before. Bittrex and Binance have stopped accepting new registrations. Gemini/Gdax and most other exchanges are experiencing really long verification delays. The way I see it is the crypto marketcap is 800B (all coins, not just Bitcoin) and golds marketcap is 7.8T, I'd say we got a pretty solid chance of hitting half the market cap of gold (~4T) before I advise running for the hills. Assuming the crypto market cap continues to doubles every month (on this current hype train), it would reach half the gold market cap in 4-5 months.
I was never around for the .com stock market crash but I'm willing to bet it went pretty similar. Every stock with a fresh new website was seeing monster returns. I think Bitcoin is here to stay but for the other 90% of alt coins, its acting exactly like the .com market crash. Almost every single alt coin has rallied to some ridiculous return, and most of them are vaporware. You're also not getting equity or stock from the companies coin you're investing in, you're only getting crypto coins. Its chaos and people are buying every coin with a name. I don't think this will last long, so if you do trade altcoins, I would always have an exit strategy lined up and ready to go. I also recommend buying back into Bitcoin with your alt coin gains once in a while when Bitcoin has a negative run. Continue to grow your Bitcoin stash is the ultimate goal :) |
| dachilla | 01-07-2018 12:37 AM |
Re: making money trading/holding alt coins
I still don't understand why people are still holding bitcoin. It was introduced as a currency. It was made to buy and sell stuff with it and not as a financial investment. With these fees and extremely slow transactions its not a payment instrument anymore, while ETH and others still are. So if they don't find a way to lower the fees, I am guessing very soon people will realize that their BTC are pretty much worthless at this stage, because other payment methods are faster and cheaper.
For that reason I'm not so sure weather BTC is here to stay and invested everything in altcoins. |
Re: making money trading/holding alt coins
@elmo - I actually agree with a lot of what you said Quote:
you may make a larger return by also holding certain alt coins. I'm not talking about obvious scam coins, but safer altcoins such as Ethereum and Litecoin. Alt coins have been out performing Bitcoin most of last year.
| Though how are you ascertaining whether a coin is a scam or not? |
| slokor | 01-07-2018 05:33 PM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by dachilla
(Post 894059)
I still don't understand why people are still holding bitcoin. It was introduced as a currency. It was made to buy and sell stuff with it and not as a financial investment. With these fees and extremely slow transactions its not a payment instrument anymore, while ETH and others still are. So if they don't find a way to lower the fees, I am guessing very soon people will realize that their BTC are pretty much worthless at this stage, because other payment methods are faster and cheaper.
For that reason I'm not so sure weather BTC is here to stay and invested everything in altcoins.
| By the same logic Gold should be useless and used as paperweights even though it used to be traded as currency - and not all that long ago in historical terms. |
Re: making money trading/holding alt coins
Quote:
Originally Posted by Play
(Post 894161)
@elmo - I actually agree with a lot of what you said
Though how are you ascertaining whether a coin is a scam or not?
| I’m just looking at the team / history / community of the coins. I wouldn’t recommend buying into a hyped ICO, those are just plain too risky. I wouldn’t even recommend buying into Ripple due to premine it had, and the crazy pump it had from the Korean exchange Bithumb. I stay away from premined coins and coins that have shady people backing them (such as BCash). But coins such as ETH will continue to grow as long as bitcoin continues to grow, the difference being the market cap is smaller so it has a higher chance of giving you bigger returns.
The further down you go on the list of the top 100 coins, the higher the risk goes (typically). But if you look into coins such as Lisk and OMG, they have a solid team behind them. Nothing shady behind them. As long as they’re working towards something, I would brand these types of coins relatively safe and they should continue to exponentially grow as long as Bitcoin continues to grow. If you’re betting on bitcoin like i am, then most solid coins should continue to grow along side.
I initially started trading alt coins at 10% of my bitcoin holdings. That initial 10% has turned into 45% of my total holdings based on the values the alt coins have gone up, without me having to invest more money. The growth is significantly larger than Bitcoin, but so is the risk. As long as you’re picking safe and solid coins (to the best of your ability) and you got a solid exit strategy setup to exchange alts back to BTC, I think you’ll be good to go.
It feels like this is the time to be making some serious cash on these overly hyped and speculative markets :typing:
It’s bubblicious mayhem |
| dachilla | 01-08-2018 01:59 AM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by slokor
(Post 894173)
By the same logic Gold should be useless and used as paperweights even though it used to be traded as currency - and not all that long ago in historical terms.
| Indeed, I thought about gold as well. However if you buy gold or sell gold you don't have to come up with tremendous fees for doing so. Also gold has been established a few years longer. This "Bitcoin is the Gold of Cryptos" thing has started since the price and its fees rose to the sky.:juggle: |
Re: making money trading/holding alt coins
elmo, good informative post!!
What's your take on LiteCoin, should I keep it or sell it? I can't really see it rising, after Charlie Lee sold his LiteCoins Quote:
Originally Posted by elmo
(Post 894047)
Here me out on this
If what we're experiencing with Bitcoin lasts for a few more years (the overall bull run), you may make a larger return by also holding certain alt coins. I'm not talking about obvious scam coins, but safer altcoins such as Ethereum and Litecoin. Alt coins have been out performing Bitcoin most of last year.
What I've noticed in the last year of trading is money usually flows into bitcoin, it rallies for a period of time, along with some of the alt coins, then bitcoin consolidates while money flows into alt coins. Then after alt coins pump for a short period, then money usually flows back into Bitcoin, while alt coins plummet. This cycle has been happening the entire time I've been tracking crypto (1 year~).
What keeps happening every cycle is more money is being brought into the market if you watch the overall crypto market cap increase. The overall crypto market cap has nearly doubled every month for the past 3 months
I wouldn't advise trading more than 30% of your current Bitcoin holdings into alt coins (assuming you're only holding Bitcoin). If you research the top 100 coins and make a list of the safer ones with the better community, those will most likely keep rallying with Bitcoin as Bitcoin continues to grow. I spent weeks reading about the top 100 coins and choose coins that have a solid community, and haven't hyped/rallied as much as others. Most of the coins I hold have already had a crazy rally but I'm still holding them. So far, its been more profitable to buy and hold alt coins, than holding Bitcoin (by a pretty big margin). Currently holding BTC (60%), LTC, XMR, NEO, VeChain, Walton Coin, Vertcoin & Binance Coin. All of the alt coins have out performed bitcoin by 3-15x in the same period of time.
If Bitcoin continues to rally for at least a year, all the other safer alt coins will continue to rally as well, there's no reason they wouldn't follow Bitcoin up the charts. These alt coins have a much smaller marketcap than bitcoin, so their value is more likely to multiply by 5-20x in the same period your Bitcoin value doubles. Once Lightning rolls out for Bitcoin (instant, cheap transactions) it may be a risky strategy to hold any alt coins, but until then I think you'll make a pretty sexy return diversifying and catching some of these monster rallies while the Bitcoin networks continue to be congested. People are hyping on anything right now, pick a safe/solid alt coin and you'll see what I mean. There's no reason Ripple just went from 0.22c to $3.70 in the last week or so. There's some silly shenanigans going on.
There is no doubt money is currently pouring into the crypto markets, but these rallies are likely not going to last long. Right now you'll have a hard time registering and getting verified on any of the larger exchanges. They are receiving customers/volume like they never had before. Bittrex and Binance have stopped accepting new registrations. Gemini/Gdax and most other exchanges are experiencing really long verification delays. The way I see it is the crypto marketcap is 800B (all coins, not just Bitcoin) and golds marketcap is 7.8T, I'd say we got a pretty solid chance of hitting half the market cap of gold (~4T) before I advise running for the hills. Assuming the crypto market cap continues to doubles every month (on this current hype train), it would reach half the gold market cap in 4-5 months.
I was never around for the .com stock market crash but I'm willing to bet it went pretty similar. Every stock with a fresh new website was seeing monster returns. I think Bitcoin is here to stay but for the other 90% of alt coins, its acting exactly like the .com market crash. Almost every single alt coin has rallied to some ridiculous return, and most of them are vaporware. You're also not getting equity or stock from the companies coin you're investing in, you're only getting crypto coins. Its chaos and people are buying every coin with a name. I don't think this will last long, so if you do trade altcoins, I would always have an exit strategy lined up and ready to go. I also recommend buying back into Bitcoin with your alt coin gains once in a while when Bitcoin has a negative run. Continue to grow your Bitcoin stash is the ultimate goal :)
| |
Re: making money trading/holding alt coins
I don't think you'll see explosive gains in Litecoin for the near future. But its definitely on the safer buy as long as you are betting Bitcoin will continue to rise. Who knows though, it doesn't hurt to hold several safe coins in case they do rally.
I think the safest coin with the best balance of potential gains at the moment is Ethereum. Most hardware wallets can store it which makes it convenient.
The Koreans are currently paying $1800 per ETH on Bithumb: https://coinmarketcap.com/currencies/ethereum/#markets
I've been using them as an indicator of potential growth for the past few months and its been working pretty well.
Do your own due diligence though! |
I can’t see LiteCoin going up much, it’s stagnant and the highest it’s ever been is around the $300 mark, then it’s dropped ever since Charlie Lee, sold his Lite Coins. Technology wise Ether is more superior and even BitCoin uses some aspect of Ether technology.
Ether will deffo go up in price, so will BIt Coin Cash once it’s live on Coinbase.
BitCoin at moment is too expensive to buy, waiting for it to drop to $1000 or lower. Quote:
Originally Posted by elmo
(Post 894687)
I don't think you'll see explosive gains in Litecoin for the near future. But its definitely on the safer buy as long as you are betting Bitcoin will continue to rise. Who knows though, it doesn't hurt to hold several safe coins in case they do rally.
I think the safest coin with the best balance of potential gains at the moment is Ethereum. Most hardware wallets can store it which makes it convenient.
The Koreans are currently paying $1800 per ETH on Bithumb: https://coinmarketcap.com/currencies/ethereum/#markets
I've been using them as an indicator of potential growth for the past few months and its been working pretty well.
Do your own due diligence though!
| |
Re: making money trading/holding alt coins
Quote:
Originally Posted by lucy
(Post 894696)
I can’t see LiteCoin going up much, it’s stagnant and the highest it’s ever been is around the $300 mark, then it’s dropped ever since Charlie Lee, sold his Lite Coins. Technology wise Ether is more superior and even BitCoin uses some aspect of Ether technology.
| Bitcoin and Litecoin are pretty much the same thing :)
Litecoin was literally a copy and paste of Bitcoin - Literally. |
| jakobrockz | 01-11-2018 11:05 PM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by elmo
(Post 894687)
I don't think you'll see explosive gains in Litecoin for the near future. But its definitely on the safer buy as long as you are betting Bitcoin will continue to rise. Who knows though, it doesn't hurt to hold several safe coins in case they do rally.
I think the safest coin with the best balance of potential gains at the moment is Ethereum. Most hardware wallets can store it which makes it convenient.
The Koreans are currently paying $1800 per ETH on Bithumb: https://coinmarketcap.com/currencies/ethereum/#markets
I've been using them as an indicator of potential growth for the past few months and its been working pretty well.
Do your own due diligence though!
| Pretty much everything is higher priced on bithumb or am I wrong? |
| duffrageous | 01-12-2018 09:45 PM |
Re: making money trading/holding alt coins
A lot of the scam coins and small cap coins have gone on a nice run since coinsmarkets has shut down. I saw my holdings go up 300% since they've gone down the last 10 days although all my coins are stuck there.
Binance has open registrations most of the day until they fill their 250k/day quota. They're double the second largest exchange by volume. |
| BlackLion | 01-13-2018 04:06 PM |
Re: making money trading/holding alt coins
Where do you all read up on alt coins? Why didn't coinbase tell us about GDAX? Why did it take for me to find out about GDAX on this forum? Is it truly fee free? |
Re: making money trading/holding alt coins
cryptocurrencies are hilarious....this one asian guy made like 500k from tron trade......showing he had 62.5 bitcoin at the time of his tron sale......and bitcoin being i believe 16k......so he claims he made a million dollars.....
I bet he did not immediately cash out all of his 62.5 bitcoin at 16k......the price now is at 10-11k that means he lost 300-400k when bitcoin dropped off a cliff....... |
| jakobrockz | 01-25-2018 11:33 PM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by jarsky541
(Post 897304)
cryptocurrencies are hilarious....this one asian guy made like 500k from tron trade......showing he had 62.5 bitcoin at the time of his tron sale......and bitcoin being i believe 16k......so he claims he made a million dollars.....
I bet he did not immediately cash out all of his 62.5 bitcoin at 16k......the price now is at 10-11k that means he lost 300-400k when bitcoin dropped off a cliff.......
| Won't be too long until its back up there |
| empirestate | 01-26-2018 12:12 AM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by dachilla
(Post 894059)
I still don't understand why people are still holding bitcoin. It was introduced as a currency. It was made to buy and sell stuff with it and not as a financial investment. With these fees and extremely slow transactions its not a payment instrument anymore, while ETH and others still are. So if they don't find a way to lower the fees, I am guessing very soon people will realize that their BTC are pretty much worthless at this stage, because other payment methods are faster and cheaper.
For that reason I'm not so sure weather BTC is here to stay and invested everything in altcoins.
| I agree with you on this one 110%. Some old people cannot see the future...
__________________ How to use Paypal correctly Run multiple portable Firefox, 1 user account How to add new PP to eBay How to clean photos Best image resizer |
| jakobrockz | 01-26-2018 11:07 AM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by empirestate
(Post 897324)
| The unconfirmed transactions is down from 110k to 62k. It's speeding up/catching up as we speak. I wouldn't say BTC is done for yet. You won't see 10 20 30 fold of your investment with btc anytime soon but I wouldn't say its stupid to have money in it. I'm sure we're going to go back to this thread in a few months and BTC is going to be at 20-50k. |
Re: making money trading/holding alt coins
Quote:
Originally Posted by jarsky541
(Post 897304)
cryptocurrencies are hilarious....this one asian guy made like 500k from tron trade......showing he had 62.5 bitcoin at the time of his tron sale......and bitcoin being i believe 16k......so he claims he made a million dollars.....
I bet he did not immediately cash out all of his 62.5 bitcoin at 16k......the price now is at 10-11k that means he lost 300-400k when bitcoin dropped off a cliff.......
| And on it goes if it is only held... |
| duffrageous | 02-13-2018 03:44 PM |
Re: making money trading/holding alt coins
|
Re: making money trading/holding alt coins
@duffrageous, which of the ones on this list have you profited on? |
| GreenBean | 02-13-2018 09:58 PM |
Re: making money trading/holding alt coins
Quote:
Originally Posted by jarsky541
(Post 897304)
cryptocurrencies are hilarious....this one asian guy made like 500k from tron trade......showing he had 62.5 bitcoin at the time of his tron sale......and bitcoin being i believe 16k......so he claims he made a million dollars.....
I bet he did not immediately cash out all of his 62.5 bitcoin at 16k......the price now is at 10-11k that means he lost 300-400k when bitcoin dropped off a cliff.......
| Someone on here claimed HE made a million
:violin: |
Re: making money trading/holding alt coins
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