Shitcoin Trading Is Profitable But Don't Hold And Dream
A quote from a friend & possibly good words for those new to crypto assets.
What is a Shit Coin?
Let's start from the beginning, what makes a coin qualify as a shit coin, is there even an official definition or is this something we just throw around at will to any coin that's not a "household" name?
Well what do you know, good old investopedia.com has us covered..
The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose. The word is a pejorative term often used to describe altcoins or cryptocurrencies that were developed after bitcoins became popular. The diminished value of a shitcoin is often due to failed investor interest because it was not created in good faith or because its price was based on speculation.
So when used loosely it could be a term just thrown around to describe any coin that's not Bitcoin, but that's a bit of bull shit.
I'll go with a coin that has little to no intrinsic value or utility, no immediate or purpose. When that's the case the value is entirely speculative.
Trade It Don't Hold It
You can try holding shit coins long term but you'll probably get burned in the end. You'll most definitely get burned in the end.
The lesson is if the value is entirely speculative you'll probably want to be trading this coin while it has momentum, understanding full well that momentum swings both ways and will eventually die down.
Strike while the iron is hot and get the fuck out.
I think this falls into the category of things everyone new to crypto assets should know. Yeah so where's the manual on how to do crypto right? School of hard knocks baby!
That's one of many great reasons to be active on the LeoFinance.io platform, you can read on these hard lessons that people have learned the hard way and then avoid making those same mistakes yourself.
Am I Willing To Bag Hold This Asset?
I think this question is another good one that people ask themselves when looking at a crypto asset. At least when I'm trading I ask myself this with pretty much every asset I touch. Does this fall into the category of a coin that I would happy to have in my portfolio, or not.
If my answer "or not" I do manage my risk accordingly for better or worse. My goal is to stick to my trading strats and not deviate, I want that consistency with my system to have the best chances to win. That said sometimes there's a little wiggle room for risk maybe in terms of what I consider an acceptable risk to reward ratio at the time of a trade.
Ultimately if it's an asset that I don't want to bag hold you better bet I'm pretty tight with my system and rules.
If You're New To Crypto Assets
I suggest you adapt a similar thought process when it comes to assets, make it part of your risk management framework.
Is this a shitcoin, is the value purely speculative, am I willing to bag hold? Asking these questions takes just a couple seconds and help keep you on the right path to profits, short term and long term.
Do you fuck with shit coins?
I'm curious to know, I just have a feeling some people don't even bother trading these coins and stick to the big names, with big volume, maybe coins you can get a better read on. let me know..
Ciao for now,
Posted Using LeoFinance Beta
