For many traders, familiarity with the crypto bank occurs through Bitcoin . At the same time, experienced market participants are paying more and more attention to other coins – altcoins . Now they allow you to earn many times more, but at the same time risks increase.
Below we will look at a few basic strategies that should be considered before starting to buy altcoins. Working with them can differ significantly from Bitcoin trading.
Comparing any graphics performance of Bitcoin and other coins, you can make sure that the first cryptocurrency of the world is more reliable, taking into account the randomness and instability in the market of altcoins. But this does not mean that you should not deal with other tokens. It is only important to follow the correct operation algorithms in order to minimize risks and increase the size of potential profits.
Buying Altcoin at the ICO stage . There are many nuances regarding the purchase of tokens in this period, but with the right approach it is worth it. It is very important to thoroughly analyze the projects and prospects of the coins being produced. Many launches do not reach the stage of appearance in the listings of exchanges. At the same time, successful options show good growth when they enter the open market.
Purchasing tokens up to this point, you can take them at a bargain price. After they appear on the stock exchanges, as a rule, this is accompanied by a sharp surge in price. Previously, it could be a few hundred percent, now the coin can grow by an average of 30-50%. The louder the project will be at the ICO stage and the more attention will be attracted, the higher the prospect of growth. It is very important to remember that after a natural surge, a fall in value is sure to occur. Therefore, if there is no goal to keep the coin in long-term, you need to sell it during this growth.
The acquisition of altcoins after the ICO stage , as soon as it enters the open market. Often the method implies a more long-term purchase of coins than the first strategy. As soon as a coin hits the stock exchanges, there is often an instantaneous large reset of tokens from those who purchased it at the pre-sale stage, as well as from those who received it for free during the ICO for some work done.
Given the huge number of offers for sale, which are several times higher than the demand, after a sharp jump, the cost drops dramatically and can reach a lower price than it was on the presley. Such moments can greatly distort the market capitalization of the project, but if the process of selecting high-quality and promising ICOs is carried out well, the purchase of coins at this stage is very profitable. Fast enough, the tokens grow back in price and provide an opportunity to increase your deposit faster than when working on the first strategy. This is due to the fact that at the moment the stage of the ICO can stretch to half a year, during which it will be necessary to expect a coin to appear on the stock exchanges.
The most interesting, but at the same time quite complicated strategy is to keep the coins in the period of the first surge and the price fall after entering the open market . It is very important at this moment to analyze the performance graphs and observe the movement of value in relation to the key indicators. It is also necessary to monitor the “candles” and monitor the volume of activity in order to determine the moments of decline and growth. To understand that the coin is overvalued or, on the contrary, underestimated, a constant comparison of market capitalization in relation to other altcoins will help.
Despite the fact that this method can be called the most time-consuming, it is optimal due to reduced risks in comparison with other strategies. A definite plus here is that in addition to assessing the conditions of the asset, the direction of its movement is precisely determined.
In general, to work with altcoins, you can use any of the above strategies , or you can combine them altogether. It all depends on the style of trading and goals. The most important thing is to always take a responsible approach to the analysis and selection of projects whose tokens are planned for purchase. For this, the most popular profile forum bitcointalk.rog , as well as monitoring of the team’s previous activities will be an excellent helper . If developers already have a good experience in blockchain technologies behind their shoulders, this greatly increases the prospects of coins and, accordingly, the final result regardless of which strategy from the above described will be chosen.