Alternatives to Bitcoin, what strategies?
There are alternatives to Bitcoin for speculators, but the strategies to adopt are different and have their own rules, but can also yield a lot.
Bitcoin and a volatile currency. But in the Altcoins market, volatility can be as high, or even higher, either up or down, hence the interest in speculating on virtual currencies.
What strategy to adopt to speculate on alternatives to Bitcoin?
To understand which strategy to adopt there are several parameters.
First of all, study the market.
If one observes the curves of Bitcoin and alternatives to Bitcoin we will notice on the one hand that indeed Bitcoin produces relatively easy returns. But for the Altcoins, it’s clear that the curves are totally chaotic.
That’s why the first strategy is:
1. Invest at the beginning of the ICO
Invest in a cryptocurrency while still in its ICO phase.
This makes it possible to obtain a token at an extremely low price, their price will then only increase after the ICO, but they can also fall to zero! Very often at this time, there is a good chance that the Altcoin undergoes a very important peak of a gain that can be 100 to 300%.
Otherwise try to sell between 50 and 100% back if there is no immediate spike.
But a fundamental principle to always apply, is not to put all your money in a single ICO.
2. Invest on an already existing ICO
The second strategy is to invest in an existing OIC, but at a time when it is sinking. It may even allow you to get a lower price than the original one.
This trough usually takes place when presale buyers and those who have received them for free, resell their chips on the market.
But this dumping can also distort the company’s market capitalization.
3. Keep your chips on the longer term.
The third strategy is to keep his chips a little longer and observe the behavior of his graph after his first peak and his first dip.
Check the curve against graphical indicators like MACD.
This strategy is delicate but less risky than the two previous ones.
Check the candles and volumes to see if the trend is going up or down.
You can also compare its capitalization to other similar cryptocurrencies to check if it is under or over rated. The principle is in fact to evaluate the conditions of the Altcoin and determine its orientation.
According to the well-known saying “Buy the rumor, sell the news”.