The idea of this article is to help people who are starting out in this world so that they can generate profits and not lose their money, just as the “CryptoInfluncers” seek. This publication is not intended to be economic advice, but rather to provide analysis tools and knowledge for new people seeking to generate real income in the #cryptos so that they EARN MONEY AND NOT LOSE THEIR INVESTMENT.
I want to start by pointing out things that I would have liked to know when I started this project, things that, not knowing, delayed me and affected the growth of my humble capital.
1.- Use the Stop/Limit tool: When I started I didn't know about the existence of this useful tool. I spent all day looking at the charts, buying and selling manually, which made me lose money since I couldn't manage to sell at the top of the picks or buy at the bottom. Give the Binance PRO option a spin, it's totally free, it's just a little confusing at first because of the number of options, but after browsing a bit you'll understand. Don't be afraid to search on Binance or YouTube how these tools work, it will be very helpful.
2.- DO NOT SELL coins at a closed number: It is normal for beginners to say “when the coin reaches 2 USD I will sell to collect my profit”. Everyone is aware of this and has thousands of sell orders programmed several decimals before reaching the closed number, which makes it difficult to meet value objectives, try to program your objectives at 1.97 / 1.96 / 1.81. Proof that this is real is that the historical highs of coins are never closed numbers, if you analyze the charts, the highest picks are never closed numbers. You may wonder why this happens, it turns out that prices rise according to supply and demand, and support floors are generated by the amount of money held by users (HOLD, HOLDING), if your sales goal is not met and everyone sells their money at the same time, the value will fall suddenly, you will need to keep your money already invested in that currency until you wait for it to rise again so as not to have losses, becoming part of the currency's ecosystem, becoming one of the investors who create the support, or in the worst case, you will sell at a loss causing the currency to devalue even more, which opens the door for investors to buy again (ENTER) at a cheaper price even to resell in the new rise.
3.- Schedule sales at target levels AND DO NOT SELL EVERYTHING AT ONCE: It turns out that when you invest in unstable currencies, or when you cannot identify very marked patterns in terms of rising or falling values, it is very likely that you will lose money by betting on the sale at a very high value, or on the contrary, sell the item too soon and it will continue to rise much more. To avoid this, it is very important to have a clear concept: NEVER RISK MORE THAN NECESSARY YOUR CAPITAL and sell by profit levels, risking the profit margin, not the capital. EXAMPLE if you have 100 tokens (coins) worth $1 (USD) and you are sure that it can be worth between $1.5 and $1.7 in the next few hours, program your first floor at $1.47 (not a closed number) and set a sales percentage (%) that generates a profit and brings you closer to recovering your capital quickly, a safe number can be 50%, when this is achieved you would already have $73.5, the next floor could be 25% at $1.57, which generates $39.25, if you do the math you would already have $112.75 USD, you recovered your money, you earned $12 USD and you still have 25% of the tokens you initially bought, then with the remaining funds you aim for the highest floor but you leave an amount without a sell order, for example program 15% at $1.66 which is pure profit and the rest you leave, in the best case the currency It rises more than you expected and you sell at the pick, in a relative case (neither good nor bad) the currency resists for a while at the values you calculated and you continue to have profits or the currency falls suddenly, but you are left with the tokens supporting the support and having a reserve for when the rise returns.
4.- DO NOT PAY ATTENTION TO CRYPTOINFLUENCERS: In the vast majority of cryptoinfluencers who tell you "X CURRENCY WILL REACH THE MOON, buy buy buy, X CURRENCY WILL MAKE YOU LOSE, sell sell sell" there are two options (in the vast majority) or they are "Whales" trying to manipulate the market by making small inexperienced investors invest money at their convenience or they are digital beggars who copy and paste other people's posts in order to ask for tips or ask you to follow them on other social networks to earn money for their content, the logic is simple, if you are so good at trading or living off your investments, why would you look for tips for "giving data"? , it's not bad to tip, but if your influencer says that he is already a millionaire for his efforts and that you will also be a millionaire for buying his online course, would he be selling courses if he has a “fortune”??, apart from that, there are others who comment every 30 minutes that the currency is going to go up and after 5 minutes that it is going to go down, and so on all day, then you realize that they do it at random and of course out of 100 random predictions they will say 5 are right and they will boast all their lives saying that they were right about 5… I leave that comment to reflect on.
Now we are going to talk about something else very important, the analysis techniques that really worked for me. It should be noted that this is what worked for me and not a piece of advice or ritual that will make you a millionaire (maybe it can help you, read it and then give your opinion in the comments).
The first thing is that when I read about head and shoulders patterns, unicorns on rainbows and Sagittarius shapes with Capricorn on Mercury rising (sarcasm), I only had losses, I only lost money following the “technical analysis” advice of the so-called experts.
When we have a capital as small as 15 USD we immediately rule out doing #HOLDING and go directly to focusing on SHORT AND MEDIUM TERM TRADES, for this I used low value coins, which are very volatile, at the time it was #WLD (I still invest there), SHIB, #PEPE MANTRA, $SUPER , CKB, $ARKM , with the most volatile TOKEN the analysis consists of averaging how much the price variation is in short intervals of time (5 minutes - 10 minutes) and making short trades in order to make a profit even if it is cents, but without wasting anything, apply the philosophy of EVERYTHING ADDS UP, AND DO NOT MAKE LONG TRADES since most of these tokens do not have any backing to ensure that you will have profits in the future, especially MemeCoins, these have no backing, they are just a currency with a drawing without value, nothing ensures that they will rise in the long term since they are just supply and demand.
Always remember the philosophy of SELL HIGH and BUY LOW. These strategies apply both in bullish and bearish races, since despite the decline, currencies rarely plummet, there are always small temporary supports where there are spikes and they fall again, that is why it is important when analyzing, to see the daily, monthly and annual behavior to identify the behaviors.
Always remember to find out about the projects, what financial backing they have, how the tokens are distributed, how long they have been around, and check their historical lows and historical highs to have a reference of how much you can lose or gain in extreme cases.
I think I still have some things left to do, but we can leave them pending for another publication since this article has been extensive, I have needed a lot of time to write it, if you want us to go deeper into a specific topic, or you have any questions, leave them in the comments, I answer them all!!
Success in your business!
