TUTORIAL. How I Am Trading Cryptos And Getting Profitable Trades 98% Of The Time.
Hi guys,
Today I decided to start a thread to teach about how to trade cryptocurrency in the way that 98% of the time your trades will be profitable no matter what.
I saw many people are against trading and they told that it’s waste of time, energy and money, as you will lose all your saving, but there are people who are interested in learning to trade, they believe in the blockchain technology, they believe in the bitcoin and whole concept of cryptocurrency, so actually this thread and post is for the second type of people who love cryptos and want to learn or improve trading.
I have started trading about 4-5 months ago and since then I made about 100 trades from which only 2 trades weren’t profitable, but not because the method doesn't work, but only because of stupid learning mistakes.
So as I said, only 2 wasn’t profitable and 98 was profitable and gave me from 5% to even 20% ROI (return on investment) o each trade.
I am not saying that I am a professional trading guru. I am just a regular person like you, who just started trading cryptos not so long ago and want to share my own experiences, steps which helped me to reach such amazing profit rates.
Before starting I want to inform that this is not the “get rich quick” scheme and you won’t start earning thousands of dollars right away. The ROI is not so big, it’s about 5%-15% twice a week. You can’t just trade on each coin, each day, you need to research first and chose only best coin pair to trade with. For example, I am doing like 2-3 trades per week, some other person maybe would make 5 trades per week or another person will do 1 trade per week, it’s actually up to each person and depends on the market.
Also, I want to tell that this is not my strategy and I learned this from other people, so it’s not my invention and many people are using this method, but not many know how correctly use it.
Alright, so let’s begin.
The method I am going to talk about is called ‘Base-Line’ method. ‘Base-Line’ method has 3 super important aspects.
Main ‘Base Line’ method
Coin daily volume and if the coin respects ‘Base Line’
And the last one is layering your buys.
So let’s start with main ‘Base Line’ method.
All the research has to be done using coinigy app. You could use any other chart app, but coinigy is the best as per my opinion. If you don’t know what is coinigy, just Google it.
So you open coinigy and select any coin pair, for example, NEO/BTC
You can see many spikes, many dumps, the price increase, the price decreased. So what you need to look is the ‘Base Line’. You need to see the point where the price touches and drops below this point 10% if there is this situation, you should buy. To make it easier to see, you should draw ‘baseline’.
Below you will see where the baseline is.
As you now understood, ‘Base-lines’ were drawn at the start of big price increment.
As you can see here, yellow circles show the big spikes. You should draw base-line below these spikes.
Okay, so now you know where to draw base-line, whats next?
Next, you need to check if the price touches the baseline and whether it drops below the baseline. If it drops 10% below the baseline, you should buy.
Take a look at the chart below.
In this example, you can see that price has reached baseline and keeps dropping, so after the price drops 10%, you buy. Later the price recovers, so you sell.
Take a look at more examples:
Alright, let's move on to the next step which is checking coin daily volume and checking if price respects the ‘baseline’.
Now let’s check the coin daily volume, the bigger the volume the better the chart. If the volume is low, it means that not many people are trading in this coin on daily basis. For example, if people panicked and the price dropped 20%, it would take more time for the price to recover and get back to the baseline. If the coin daily volume is high, it means that the panic will be fast and the price will reach the baseline faster for there are a great number of people who are trading with this coin and putting a lot of money.
Actually, each person can decide on his own about which coins to trade in, what volume is high or low according to him, but with my experience, I am not trading with the coin which has a daily volume lower than 50 BTC. How to check coin volume?
It’s easy.
As I said before, I am using coinigy.com, So I would suggest all of you, use the same. Now, I will show how to check daily volumes inside coinigy.
You should select any coin and click the BTC button, it will show how much Bitcoin is traded in 24 hours.
In this example, I will show you how to check XEM/BTC pair chart. You can see that XEM daily volume is 197 BTC, which is really good.
As I said before, I am not trading with the coin which has less than 50BTC daily volume, but you can follow a different approach, you can trade with 10 BTC daily volume. It’s solely up to you, but you must keep in mind that everything will take longer if you chose a coin with a daily volume less than 50 BTC. In such cases, the price would not recover fast and it could take days or weeks for the price to recover after breaking baseline.
Back to the main ‘Base-Line’ method. After we check the daily volume of the coin, we need to check if the price/chart respects the ‘Base-Line’. What I mean is that whether the price recovers after dropping below the base-line. You need to check the past 3 months chart and observe whether during this period the price has dropped below any baseline and couldn’t recover. If you see just even one such scenario, you should avoid trading with that coin because if a coin does not respect baseline again, you will be stuck in the bought position.
Take a look at the example below.
The last indicator is layering your buys.
Let’s look at the chart. The price dropped 10% below baseline, so you should buy. You bought 10% below baseline but the price dropped again (20%), so if you don’t buy again, you would need to wait long before it breaks or make profits, but if you have bought again at the point where the price dropped at 20%, you wouldn't need to wait for the price to increase to 10%, because if the price reaches this point, you are already making profits. So you see guys, it’s not guaranteed that the price will reach exact point where the baseline is; the price can reach a bit lower than this point, so we can’t always expect it to reach the exact baseline point. It’s better to sell after you are getting 7-10% profit. But it’s purely a personal opinion, maybe one wants just 5% ROI, maybe someone will wait for no less than 10% or %15. I personally just look at a chart and decide if I am happy with 5% ROI or 7% or whatever. It's a person’s own decision.
So back to the layering guys. Okay let’s say you bought at 10% below baseline, also at 15% below baseline, but the price keeps falling and now it reaches 30% below baseline, so you buy again. You need to think that if the price keeps dropping its like bonus for you and you should be happy and take the advantage of the situation because you will make more profit as eventually the price will be restored.
Just take a look at the picture and you will understand what I want to say about layering the buys.
So let’s discuss all three components once again.
First is- main baseline method. You looking into the chart and see if there are big bounces and look if the price breaks baseline, if it breaks and drops 10% below baseline, you should buy. So you just need to look for big nice spikes, draw lines and see if the price breaks the baseline. Check this for each coin which a has proper daily volume.
As I said about the daily volume, the bigger- the better. With my experience, I am trading with coins which has a daily volume greater than 50 BTC.
After you found a nice baseline break, you should wait until the price drops 10% below the baseline and then you should buy, if it keeps falling you buy at lower points again and eventually it will rise again and you will sell depending what size of ROI you want or what ROI is good according to you, is it 4% or is it 8%, totally depends on you.
As I said before, I am not a professional trader as I have started trading 4-5 months ago, yet I have made over 100+ profitable trades, which I think is quite an impressive number.
I really advise you to not start with big amounts, try with $5 or $10, maybe $50 and later increase the amount as you earn more and more experience.
Also, this is not a complete method, I could write in much detail and with more in-depth explanation about each step, because every step is very important and if you fail at any of the steps, your trade will be in a huge peril, so just play with the charts, check the baselines, and ask questions here, I will try to answer as fast and as accurate as possible.
If you want to learn this method in more details, I have youtube channel, so please visit my channel, post comments there and I will answer all questions.
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