If you are like me, today might have been a bit of a rough day.
POSW absolutely cratered.
PIVX was flirting with going back down below a $1.
ETH was facing doubts over the continued success of BTC and ETC.
What a difference only two hours can make for all three of these currencies that experienced massive rallies in that timespan– in case of POSW it rallied to double the value and near an all-time high.
Why did these currencies grow? It goes back to the answers to the basic questions that I ask when I’m thinking about buying a currency.
The Three Questions
- Does this coin offer a technological advantage or unique feature?
- Does this coin have an active development team and supportive community?
- Which exchanges is the coin available on?
The One Answer
Is this coin the most that it will ever be worth?
Mostly it comes down to that last question, but the three questions above should guide you to your answer if you do your research. Once you’ve answered “Yes”, your next steps are simple.
- Purchase the currency.
- Hold the currency.
- Remain never nervous– through ups and downs. If you sell when it’s down, you’re guaranteeing a loss. Always remember the reasons you bought it. Ignore FUD.
- Stay comfy and wait.
- Sell at whatever profit margin is acceptable to you.
Trying to day-trade and time the market is a recipe for failure and technical analysis is not effective. Buying terrible coins like Milocoin, Trump Coin, or LePen that are made for the sole purpose of pumping and dumping is totally foolish.
I recommend something like the following portfolio diversification:
Whatever you want: 5%
If you don’t like one of those currencies, swap it out for an equal market cap currency that you do like. 70% ETH/30% STRAT is a good “safe” portfolio to hold as well.
Substitute anything besides ETH with whatever you like if you don’t like one of my picks.
Remember The Three Questions— and most importantly The One Answer.