Big Coin, Small Coin, Short Term, Long Term - Which Strategy is Best For Crypto?

Big Coin, Small Coin, Short Term, Long Term - Which Strategy is Best For Crypto?

By BitcoinGordon | BitcoinGordon | 27 Feb 2020

People who are really into crypto might try their hand at day trading.

Trading coins can take place via a wallet that accepts bank accounts, credit card connections, a site like Coinbase, and they can take place on a centralized exchange like Binance or others.

A lot of people will talk about being dedicated HODLers. Hodl means to hold on for dear life. This has two connotations: intentional and unintentional.

My stance on all things considered, is that it all comes down to strategy. I believe strongly in decisions being intentional, so we can evaluate the desired outcome's success. If everything is just random and whatever appears right to us at the time, it is very easy to find one's self lost out to sea from the current and tide of FUD and FOMO, or fear, uncertainty, doubt, and the fear of missing out.

When trading, it is common for a person to experience a great measure of emotional discomfort, or even anxiety. I can almost guarantee that any serious crypto-fan who decides they are going to make a fortune trading coins will soon find themselves upside down in a sea of confusion and concern if they don't grab the bull, or bear market by the horns (hey, bears ain't got no horns bruh!) and decide how to attack things.

Here's the basic breakdown of logic:

1: Invest in any coin that makes the biggest moves in the short term. This involves maximum risk because smaller coins have some serious liquidity issues.

2: Invest only according to coins that have the best ranking and qualities that come with this. This is harder to do because on a daily basis, most higher level coins move much smaller amounts in price.

3: Either of the above, invest in the short term. This takes advantage of smaller, more common volatility and provides opportunity.

4: Either of the above, invest in the longer term, or HODL. For the right coins, if a person enters at a low enough value, this can be as close as anyone will ever get to a guarantee of gains.

So, to make the choice extremely easy for you, if you want low risk but you want to be in control of your own crypto decisions, you will want to utilize websites that offer ranking of coins according to several important factors. These should include the coin's project, team, website, social media, and the synopsis of their white paper. In addition, one should know how many coins are in circulation, whether this places pressure on a limited total supply, how many coins are being traded (in volume) usually in 24 hour cycles, and what the overall value of the current supply is rated, and finally, how many markets are available.

I will go into detail why each of these are important in a separate post. But, trust me aight?

If you wish to take advantage of short term market conditions, then your decisions come down to whether you are partly in it for the excitement and the journey, or if you are wanting to remove as much risk as possible. You'd think it a no brainer, but trust me a lot of people seem to be willing to risk a pile of Bitcoin for the adventure. In this case, please just get in touch with me and send me your Bitcoins instead (okay, don't really do it, that sounds bad, but also, yeah!). In the short term, you will find almost daily, even on the top exchanges, there are small coins that do not rate all that well, that pump by 10-50%, but all that glitters isn't always digital gold. Often, in fact in almost every case, these coins are being artificially pumped by a group who organizes to push a coin up with market orders in a matter of seconds, thus triggering a series of FOMO buy-ins, which gives them a very fast return, and almost always leaves the majority of members stuck in positions that are too high. Historically, small coins that have pumped have been in decline for 2 years straight, so what may seem like a quick, short term gain can actually become your worst HODL decisions ever. Tell me, would you rather HODL highest risk, ETH or BTC, or a coin that ranks 500 that has $1,000 of daily trade volume?

My advice is not to push for long or short, high or low risk, but for you to understand you are likely going to lose your funds if you don't determine the actual strategy you wish to follow. There are much easier ways to earn money long term than crypto, but if you are a die hard crypto believer, then get involved, but do so with an educated choice. 

And, if you are really into crypto, be sure to read my Crypto Manifesto, that may get you thinking about stuff in crypto you hadn't considered. It seems to have resonated with people kinda like Jerry McGuire's 'memo'.

If you got something from this, please tip!

Gordon Freeman Out.




Hi! I'm Gordon Freeman (I hear they made a likeness of me in some video game... totally unrelated... or...).


Welcome! This is my blog for all things crypto, from my day trading and tutorials to general crypto news.

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