As big and diverse as the crypto market is, there are really only two proven successful ways to tackle it. The good news is, these approaches will be instantly recognizable to folks who’ve traded or invested in stocks.
And the better news is there’s really no “wrong” choice you can make from these two methods – you can go with whichever you feel suits you best.
And both of them are extremely reliable because they rely on data. In volatile market, you can always rely on data. “Data is your buddy.”
The data, and these techniques, have helped Nick Black and I rack up an impressive win rate during the toughest crypto market ever.
Let me show you how it works…
Two Ways to Spot the Best Crypto Opportunities
When you look at a crypto, you can look at the fundamentals, like Nick likes to do, or the technicals, which is my favorite way to go.
Here’s what that means…
When you look at fundamentals, you’re looking at the big-picture economic and financial factors influencing the token. Nick calls these the “5 Ts” – what’s the token used for? Who’s on the project team? Is this the best time for this token to hit the market? What’s the underlying technology powering the coin? Does the market need this token right now?
This approach is great for finding coins you want to own for the long haul, and answering these questions goes a long way toward showing you the best cryptos out there, but then, so does a technical picture.
The technicals are great for finding crypto opportunities that yield profits in anywhere from a couple of hours to a week or so – the short-term.
How has the coin been trending for the past 30, 120 days? Take a look at the chart of a crypto you’re interested in. Is it oversold, or overbought? Where has the price found support over the past six months? Where’s the price relative to recent highs and lows?
And this isn’t to say that fundamentals won’t work for short plays, and technicals won’t work for long-term holds – they can work great either way.
But whichever method you choose, the next step is to have a start-to-finish plan.
What am I trading?
Why am I trading this security (a simple “to make money” won’t be enough here)?
How much should I trade – investment amounts and number of total outstanding trades?
How am I managing risk (max dollars invested, stop losses/exit strategies)?
When should I get into the trade?
How much do I expect to make?
How long will I give this trade to win?
When should I exit the trade?
Me and Nick Black even had the chance to talk crypto trading strategies live recently. You can see the full show recorded right here.