In my post yesterday I referred to the “base multiplier” and reinforced principles that I had discussed in a much earlier post It’s Not All about the Money and I thought today would be an apt opportunity to cover principles again, especially in this tough Crypto season that blew in with the turning of September.
The principle is very simple and I know I run the risk of patronising those who are in the know, but please remember that everybody here is at different levels and there is no such thing as a stupid question if the asker doesn’t know the answer. The following formula is probably the most important one you will ever come across:
Number of Units Held x Current Currency Value = Currency Value
So if I have 10 Currency Units each worth £3.00 it works out as follows: 10 Units x £3.00=£30.00 ...and so on.
Now one of the things about Cypto trading is that unless you are a massive player (we’re talking millions) there is absolutely nothing you can do about the Crypto Price. It is out of your hands and however much research you do, at best, you are speculating with your investment.
Despite this, through watching the market it is possible to make incremental gains on the QUANTITY of Crypto held, which will also drive your portfolio value up. To some extent you can take control of this and the basic principle is
10 Units x £3.00 has the same value as 30 Units x £1.00
It is therefore a quite feasible and logical process, especially if in for the long haul (which most if not all of us are), to focus on building your portfolio in terms of the QUANTITY held.
There are two basic ways to acquire more currency – risky and non-risky.
Try to play your chosen currency (Currency A) off another (Currency B). Ideally this would work when Currency A is falling and Currency B is rising in value. In the given example I have not taken into consideration fees so do the research and do the maths correctly.
I have 10 units of Currency A valued at £10 (£1 each), I convert them to acquire 20 units of Currency B (at £0.50) each. I wait for the market prices to shift.
Imagine the following
Currency A changes Value to £0.95 while at the same time Currency B increases in value to £0.55. In this scenario reconverting will yield the following results:
20 Units of Currency B @ £0.55 = £11
Convert to Currency A; 11/£0.95 = £10.45 / 10.45 Units
Yes you have increased the value but whatever happens next you have increased the amount of Crypto held and even if it devalues further it doesn’t matter because you are still +0.45 Units.
This scenario can be created in any situation where there is a growing distance between a reducing Currency A* vs Currency B. Of course any shift in the wrong direction could result in reducing your value and making the second conversion unfeasible.
*This is in relative terms and can even be achieved in a falling market.
This actually is a multitude of approaches all aimed at acquiring free Crypto and can be broadly divided into Faucets which offer micro-payments for completing tasks, surveys and viewing videos and ads, Brave Browser who offer BATs for simply using their browser and viewing tailored ads and specialist sites that offer rewards; the best example in this case is of course Publish0x
For more details on how these principles work please read my previous posts on:
You may also find the following helpful:
I know in many ways this post is revisiting ground already covered, but I have gained many more followers since the original posts were published and posts tend to disappear into the ether after about 24 hours and I don’t want newer followers to miss out. Furthermore I have used this post to more fully define what I mean by the Great / Base Crypto Multiplier
Happy Trading and Stay Safe