As a newbie trading crypto, there is no doubt that having fundamental knowledge such as:
+ Fundamental Analysis &
+ Technical Analysis
are important to pivot the crypto market successfully but regardless of these knowledge the market can still be tricky with new comers. This is why I am sharing one of the most important and goal getting method of buying the deeps as a new comer. I am created this post to simplify the complex context of buying the deeps. This post is based on personal experience getting started with the crypto market.
THE KEY-POINT: PATIENCE
This post will also help in getting started with portfolio diversification. This is how we are going to work it out:
Let's assume we have $1000 or less for our crypto trading or investment; we split our investment capital into as follow:
+ $200 for Day - Swing trading:
This will be used to exercise the market inorder to make profits that will keep us sustaining:
Breakdown:
+ $100 for Binance Centralized Dex Trading
+ $100 for Decentralized Trading which can be splitted into:
+ $50 Binance Smart Contract Tokens on Binance Chain via Binance Web3 &
+ $50 for Solana or Tron or Ton Chain.
The need to consider Dex Trading cannot be overemphasized in order to compound big gains in a short period of time. However Dex trading carries a lot of risk:
(High Rewards High Risk) I already made a well detailed tutorial on this in my previous post. It's important you see the article.
Recommended Narrative:
Before you take a position for Day - Swing Trading. Confirm on daily chart of the coin or token that it is not in down trend. It's a risky zone unless we plan to short (taking advantage of making from down trend) coz some whales might have accumulated during the up trend days back. Sell Trades by whales can sink our little investment for days before it recovers.
While we diversify
+ $500 for investment into actively trading solid projects:
Our aim here is to buy the deeps of:
5 Projects if we intend $100 stake on each or
10 Projects if we intend $50 stake on each.
Buying the deep: THIS IS AN INVESTMENT PLAN BASED.
To achieve this we have to work with the monthly time frame. Our confirmation is buying not more than:
+ 10% - 15% from All-Time-Low [ATL].
+ Sometime making sure we are buying below all time market activities. All-Time-Low means the lowest price of a coin or token in trading history.
We can also use:
dropstab.com
This website provides coin listing sorting by:
+ All Time Low [ATL] &
+ All Time High [ATH]
Our attention would be on sorting the list of coins by ATL either in ascending or descending order then hold a position. Pls not that this can take up to few months depending on the profit taking target.
We can also implement from altime high using:
75% - 80% from All-Time-High [ATH].
Regardless of the market exploit. Keep in mind:
When some coins or tokens are at their ATH others are at their ATL. Rotating investments using this strategy will help us compound profits gradually from:
+ Buying deeps and selling high.
+ Staking purchased coins or tokens on Binance earn to earn rewards usually in APR. I recommend daily or flexible plan on Binance.
+ $200 for BNB Lock Vault which can also be used for airdrops from Binance launchpool to earn another token for free from their airdrops instead of buying.
+ $100 for presale of strong projects, I'd strongly recommend: Max of Two Projects.
Staking $50 each.
+ IDO (Initial Dex Offering).
+ IEO (Initial Exchange Offering).
+ DeFI
+ Infrastructure
+ Meme Token (With strong use case).
Engaging in presale is where our knowledge of TOKENOMICS comes to play.
KEYNOTES: When buying any presale, tokenomics such as: + Use case (utility)
+ Realtime community engagements via project social network are important.
+ Supply: The less the supply, the profit potential, otherwise,
+ Burning Plans or mechanism: Project with high supply and strong burning plan can increase the profit potential as well. Stay away from project with high supply and no burning plan. Especially when a project under this radar is mintable (Run Away From Such Project, Especially If It's Not A Stable Coin).
Part of profit made from the day trading can be used to accumulate chain based tokens such as:
+ ARB
+ BNB
+ ETH
+ Polygon
+ XRP
+ Solana and their likes because they are backbone. BTC can be considered if you want
This content is based on my personal experience trading which is applicable both on Centralized Exchange [CEX] and Decentralized Exchange [DEX].
Kindly share and leave your opinion if you have something helpful that can be contributed to help others.
🙏Namaste🙏
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