Do you want to get into altcoin trading? Well, with altcoin finally leading the gains in the crypto market, it makes a lucrative option to jump in at the moment. Bitcoin has long been the king of the crypto world. But now altcoin, which has lagged behind is finally gaining steam. According to Mitoshi Kaku, the technical analyst, and creator of the “Waves & Particles Trading System, there is a possibility of an uptrend for some altcoins in March-April 2020. It seems like there is some good news coming for altcoin investors especially for those who are aiming for long haul. And as 2020 is approaching, it’s time to think about new crypto opportunities.
However, altcoin trading is not something where the greenhorns can jump right in and start making money from day one. Indeed, it takes some solid strategies and market insights to minimize the loss and optimize the gains in this currency trading arena. If you are puzzled about how to trade altcoin profitably in the upcoming year, have a look at the following strategies.
Strategies to Choose the Best Altcoins to Trade
When it comes to profiting from the crypto market, knowing the right coins to trade is half of the battle. This is even more important for those traders who intend to hold for months or years. So, here’s how to go about it:
Though there are several aspects that can help you find the right altcoin, ranking is like the real lighthouse in the whirling sea of crypto. Ranking can reveal a great deal about any crypto coin and navigate your way through. You can find the rankings of different altcoins according to various factors at CoinMarketCap.
Pay Attention to Price and Trading Volume
Look at both the price and the trading volume separately and together. Remember, low price of a coin is tempting but it is not necessarily a positive sign to judge upon. Low price can be caused by different scenarios such as a relatively inadequate community trust or irrelevant project management and communication. Such scenario results in low demand and thus decreases the coin value. However, this does not apply to all the altcoins in the market. So, initial market research is always recommended.
With trade volume, you will get plenty of clues about demand along with the amount that has been transacted over the past 24 hours. Sometimes smaller coins like MonaCoin gain more trade volumes than larger coins such as Dash and Neo.
Investigate the Historical Trends
Investigating the trends and analyzing the expert reviews of the altcoin is crucial before buying. Especially for those coins with fewer followers, it is hard to get useful information. So, looking at the trends and reviews can help you take better decisions.
Set Up a Realistic Exit
Yes, fine-tuning the entry strategies is no doubt important but you should pay attention to your exit as well. What if you spend hours in improving your entry strategies, but then end up messing everything by having a bad exit? It is crucial to have an effective exit plan in place unless you don’t want to end up getting shaken out at a terrible price. Every crypto coin has a market cap and a finite coin supply and a certain percentage have already been mined out of that. So utilize those to set up a realistic exit.
The Big Three Altcoins to Watch for in 2020
Based on the above critical factors, we’ve selected a few altcoins that may skyrocket or make a huge impact on the market in 2020.
NPXS is a token created by PundiX that aims to create a global cashless payment system using cryptocurrency. The idea is to enable merchants to sell cryptocurrency and accept cryptocurrency payments through blockchain-enabled Point-of-Sale (XPoS) devices. All they need to do is to have an XPoS in their store and it will work with a simple mobile wallet (XWallet) used by customers to make payments. This exciting project has already delivered its first 500 units to participating businesses in Hong Kong in June 2018 and it aims to deliver 100,000–700,000 devices to 12 different countries over the next three years. Its brand recognition in Southeast Asian markets and its increasing popularity are the reason why NPXS can get some traction in 2020. Also, the price of NPXS is also very low at the moment, which is another reason why you should consider buying some.
BitTorrent which is the biggest peer-to-peer content distribution protocol was acquired by TRON in July 2018. TRON’s plan was to legitimize the platform and merge it with its own blockchain network. Currently BitTorrent drives a whopping 33% of all internet traffic and has over 100+ million users. Thus, TRON plans to add the bandwidth and storage to the platform and enable users to use its TRX token to get access to faster download and other special features. The strength of TRON and the hype of BitTorrent could help TRX to break out in 2020 and increase in value in the next crypto bull run.
Launched in 2017, IoTeX with its native token IOTX has a goal to build a new privacy-oriented blockchain platform based on the Internet of Things. Basically, the platform was established to secure the growing network and provide safe and fast interaction among different devices using side chains. And according to the data from Juniper Research, The number of IoT devices is expected to exceed 50 billion by 2022, which means a mass of Internet-connected devices will require secure methods of communication and automation in real-time. So, this could be a real game-changer as it could take IoteX to new heights in the next coming year. So, if you want to stay ahead of the curve in 2020, keep an eye on these.
Lastly, learn when to trade altcoin and when not to. Remember, the volatility of altcoins can help you earn profits in overnight. But it can also make you incur losses. So, it is crucial to understand the involved risks and use apt strategies to mitigate them. Also, putting all your coins into a single altcoin can be risky. Thus, you should target multiple altcoins on the basis of their performance and expected returns. When you have right strategies in place, you can make good money by trading altcoins even if you invest just a few hours every day. Just have realistic expectations and follow these solid strategies for altcoin trading success.