In the crypto currency markets, we are literally presented with live and real time examples of people ‘striking it rich’ on a daily basis. There is no other form of business where young adults are going to sleep with nothing except $1,000 in their pocket, and then waking up to $10,000 due to some long-term trade finally paying off.
It happens month in and month out.
With each passing day, the losses of ten thousand crypto traders are bundled up and divided into 100 portions, and then this cache of coins is deposited into the wallets of ‘the skilled few’ – who understand that 99.9% of traders in this market are here to lose, not to win, so the skilled few ensure that this money is lost to them
I have made numerous references to the fact that ‘behind every short-term price move, is a long-term trend.’ There simply is no reason to sell a coin just because it has gone up by 100%… why you ask? Well, it all comes back to perspective.
You see, those who only focus on 24hr price movements, or even 7day price movements are the ones who consistently lose money in this market. Just ask yourself… how many times have you sold a coin because “it wasn’t moving..” only to see that same exact coin produce a 200%+ profit several weeks later?
Everyone incorrectly assumes that trading is some sort of ‘race,’ so they are always rushing to buy, and also rushing to sell… and when a coin that they have purchased fails to return a profit within 24 hrs, they sell – even if at a loss… then once that coin rebounds and produces a treasure chest of profit several days later, these weak handed traders complain that crypto is a “rigged sport.”
Crypto may indeed be a rigged sport, but it is this ‘rigging’ of the market that enables those who are ahead of the game to continuously rake in unnecessarily humongous profits and, with each passing month, these profits are becoming uncontrollably larger.
Not too long ago, I made a post in which I stated that every single altcoin that is traded in this market is moving in accordance with both its own price cycle, and also the price cycle of the grandfather of crypto: Bitcoin… I’ll explain how all of this is relevant.
If you look into many of the top tier coins in the altcoin space… You can very simply pin-point all of the major altcoin booms that have taken place and link them directly to a major decline in the price of BTC.
START had its first big volume rally back in October 2014 – when bitcoin was plummeting in value
CANN’s first mega pump happened back in October 2014 – when bitcoin was plummeting in value
SDC had its first high volume rally back in September 2014 – when bitcoin was plummeting in value
BTCD had its first mega volume rally back in August 2014 – when bitcoin was plummeting in value
VRC had its big volume pump back in June 2014 – when bitcoin was plummeting in value
There are several more coins that can be tossed into this list
Simply, when bitcoin dips – the altcoins rip!
All of the rallies mentioned above attracted abnormal amounts of volume… In fact, due to the price of BTC at the time, both VRC and BTCD attracted millions in USD when they were rallying.
The implication is, except for the coins that move in tandem with bitcoin (DRK (DASH), DOGE, LTC etc) when bitcoin is booming and rocketing into sky high price ranges , no one is touching altcoins.
We all saw this phenomenon occur…
… as soon as Bitcoin started to pump again in February, the 24hr volume on Bittrex slumped downward into the most laughable levels. There were days where I saw 200 BTC daily trading volume on Bittrex.
Quite literally, when bitcoin begins to rocket in value, the herd turns all of their attention away from the alts. Allowing the most skilled traders to covertly swoop in and fill their warehouses to the brim with cheap coins!
I have mentioned that the only thing that can be relied upon in this market is the fact that prices will rise, and prices will fall! But, when the price falls – provided the coin is popular – it will rise again. However, the only people that benefit from this are the ones that understand the power of the long-term trade.
Some people are content with 50% profits. Others aren’t happy until they strike a 100% profit… but I tell you this; there is a small group of traders who are playing this game for A LOT more than some petty 100% profit… There is a small group of traders that have made 1000% profits from a single coin, on several occasions within the last 8 months. For those that aren’t aware, a 1000% profit multiplies your original investment TEN TIMES.
Ask yourself, how many times have you scored a 1000% profit from a single trade? If you haven’t achieved this yet, then I guarantee that you certainly have contributed to someone else achieving this level of profitability – due to your inability to commit to the long-term trade.
You see, you must realise that the crypto currency market offers endless possibilities in terms of profit. In fact, there is an infinite amount of profit that is available to those who are willing to play the game the way that it was designed to be played.
Sure, a 100% profit every now and again is fine and dandy… but, personally, if given a choice between either doubling my investment or multiplying my investment ten times over – I will chose the second option every time. It’s a no brainer – it’s like asking someone who is investing $400.00; ‘would you rather receive $800.00 next week, or $4,400 in three months?” Anyone with a brain would take the second option… why? Well, just ask yourself… when you reinvest that profit back into the market, what is a 1000% return on $4,400? …That’s the magic of compounding!
In the altcoin market, it is easier to win than it is to fail – simply because, everything happens in the open, so it is incredibly simple to foresee major price moves before they actually occur. Which enables you to position yourself in such a way that’ll allow you to reap unfathomable amounts of profit.
It all comes back to perspective.
If you’re the type of trader who bounces around, aimlessly, from coin to coin – then you’d find a much more suitable habitat at the roulette table, or the slot machine. Trading is a venture that requires strategy, this isn’t a game of musical chairs… there is a very specific method to playing this market for continuous profit and it has everything to do with ‘long-term trading.’
If you have lost more money in this market than you have ever made, then it is clear that you have been “doing it all wrong.” It is no exaggeration when I tell you that there are traders in this market who go weeks on end without losing money. There are traders who play this market like a finely tuned guitar, all for their own financial benefit.
Simply put… we are all aware that the character ‘Santa Clause’ was designed to embed the idea of Christmas into the minds of little children – but we are also aware that ‘Santa Clause’ is nothing but a man made fiction – he does not exist. Same thing with the tooth fairy, the bogey man, the easter bunny and the ‘fair market’ theory.
There is no such thing as a “fair market.”
Just like every other financial market in the world, the crypto currency market is a game of strategy.. and simply put, the aim of the game is not to win… it’s to force the person on the other side of the trade to lose… to you!
The caveat is 99.9% of participants in this market are trading using something known as “conventional wisdom” and, if you’re a regular reader – then you’re aware that conventional wisdom is literally the bait that lures the lamb directly into the slaughter house, hence why “doing the opposite” of the common trader always pays off!