5 Steps To Make Massive Profits During Cryptocurrency Crashes
Disclaimer first: I'm not a professional finance or cryptocurrency advisor. This is no investment advice, do your own risk assessment. There is always a significant risk with investments and especially with such volatile markets, so please do your own diligence.
The below references are an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Today is a really weird day for the cryptocurrency market.
In just 2 days cryptocurrency market cap has been lowered to 94 billion $ from 115 billion $.
If we take a look at top 20 cryptos on coinmarketcap.com we can definitely see that, it's panic time for all the cryptocurrency holders. But this can be a good thing for the wise investors.
Here is how you can turn this chaos into profit:
1 - Don't let your cryptos shrink when you know that the crash is coming
Why? Because this is an unlikely time. Normally I don't sell my cryptos when they go a little bit lower. But this time it's different. All the cryptos are shrinking, and I can not wait and hope that the crash will be over in the next hour, or next day.
Only having bitcoins at this moment, is smart. Keeping your altcoins is not. When you understand the crash from the beginning, turning your altcoins into BTC before they get lower is great. Because later you can buy them from lower prices, and get a great benefit from the crashes.
P.S. You can set alerts in multiple great coins, and if they are all getting really lowered in value, you can check coinmarketcap.com to see if most cryptos are having the same moment. If that's the case, you know that the crash has arrived. (You can use Coinigy to set sound alerts easily: https://www.coinigy.com/?r=a7a7deff )
2 - Be patient
Most people are seeing the prices really low right now, and buying, only minutes later to find out that the prices will go even lower. This is a bad mistake. Be patient and watch your graphs, only make a move when you know that, prices will start to skyrocket.
Usually I check out multiple coins, and if they are all getting bought super fast and having green columns mostly, I understand that, the crash is ending, only then I start to buy.
3 - Do your research in the meantime
Use coinigy, do your fib replacement graphs, and profit ratios, check out the best investments you can make, and find at least 10 amazing opportunuties. But don't invest now, just do more and more research about altcoins while waiting.
Also watch coinigy's youtube videos to understand, how to analyze charts better if you don't:
https://www.youtube.com/channel/UCdaJtMEVnuhTXSsSwA93sGA/videos
And if you don't have a Coinigy account register here: (the first 30 days are free, no credit card required)
https://www.coinigy.com/?r=a7a7deff
4 - Find your best bets
If you have done a great research, and use the Conigy charts very well, you must have at least 10 great bets right now. It's time to do even more research and find out which ones will be the best ones, while still staying patient.
Generally, I bet into the great coins which got decreased more than %20 in a day, so I can make the highest returns when their prices go back to their original prices after the crash.
5 - When you know the crash is over, buy!
The quicker you find out when the crash is over, the better. Check out buy/sell ratio graphs, and all your charts. But don't be quick to think the crash is over, wait a little bit more, understand if it's really over or not. And then buy.
If you follow these steps you will take advantage of market crashes.
Remember Warren Buffett's quote
If you know what you're doing during cryptocurrency market crashes, you can make huge profits!
Good post mate
Thank you so much. I appreciate it :)
This looks like great pieces of advice in hindsight, but they are actually terrible. You will never know when the crash is going to stop and when the rise is going to happen. Buy periodically and then hold is the best strategy. Don't use warren buffet picture for your novice advices.
@raghup I agree, this is poor advice.
It sounds good at face value, but leads to selling when it's down, and buying after it goes back up!
Buy early, buy during growth of a product or industry, buy more when it's down if you believe, and always be looking for the next thing to invest in, early!
Don't get caught up in the drama, and put it away for a year or two, and see how you do!
I totally agree @raghup. Buy and hold is the strategy I follow when the market is down. I also buy even more of the altcoins that are down...it is like a Cyber Monday sale. LOL.
If you don't be patient you'll pay higher prices by buying periodically. Buying perodically is a FOMO act. I'd rather let them go as low as possible. You also have a risk of panicking and selling them again if you buy periodically. Will you really hold them if the crash goes for a week? Probably not.
I think your strategy is not sound during real crashes. It will be good for a one day small crash at it's best.
Buying periodically doesn't mean you buy on every crash and every day. You keep buying monthly or quarterly when you have money to invest irrespective of the current price. The FOMO comes when you want to buy on every crash.
Also you agreed that you never know how long the crash is gonna go for. What if it stops the moment you sold and start going up? You never know. You can never predict the market. Trying time the market is the worst thing one can do.
I thought you meant buying perodically during the crash. Because this article is about crashes. Most people who make money buy and hold. But the times of crashes can be another opportunity.
You should check out the buyer and seller bars very carefully. If red bars are way more and huge, you can know that the crash is not over. So if you do the research well there, you will make some extra profit. The more you are better analyzing charts, you can predict some stuff.
Search for "Quants". They run the Wall Street and they're mathematicians who see different stories in those charts.
I agree @raghup there are always going to be ups and downs so use it to your advantage and buy more when it is down, even if its not at the lowest price (that is assuming you believe in what you are buying into) then play the long game and actually be patient.
How do you know when the crash is coming?
By checking the news, and setting alerts to charts.
IDK sounds risky..
Great Post and advice will definitely look on your resources. Thanks Man
You're welcome bro
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HODL and buy in to the dips to improve your dollar-cost-average by taking advantage. Put the volatility to work for you. This is a strategy I have been following for years and I've weathered every storm thus far. Just remember to never put in anything you can't afford to lose, scared money will weaken the knees and always result in losses.
Exactly man. Sometimes HODLing and sometimes making clever moves to improve dollar-cost-average is a great move for both short term and long term profit
Exactly. Always pay attention to make sure to profit when other people panic.
No more words necessary :)
Step #1 Hodl your cryto and don't loose to stack to greed.
Nice post