I started spot crypto trading!
I mentioned in a previous post about starting crypto trading on Binance with BitTorrent (BTT), the experience gained, the ups and downs, the lesson learned, the various altcoins I tested, and a move to a new exchange; Bitmax, now known as AscendEx.
I seek to generate profits over a short period of time - possibly daily or every other day, so based on my financial goals and personality, I settled for short-term trading, where I actively enter and exit market positions over a relatively short time frame. I try to take advantage of a coin with consistent market volatility. First I find a coin that suits my goal, and I enter and exit positions daily (I buy on the dip and sell on little pump) which gives appreciable daily returns ($5 to $30).
Bitmax and the Lucky coin
I started trading on Binance but later switched to Bitmax (now AscendEx).
I basically installed the app, created a wallet, and transferred $200 funds from my binance spot trading account.
Click here to get started in AscendEx formerly Butmax.
The next step was to look for a token to trade with. I visited the market section on Bitmax and went through the lists of tokens. I essentially looked out for a coin with very low value, the more the zeros the better, so I saw a couple of them, and it took me seconds to choose one. I went with Centrix (CNS) at the value of $0.00598 (when I made the choice couple of days ago)
Why did I choose Centric (CNS) out of the others? The simple answer is I don't know. Perhaps I had an angel guiding me through my choices. And four days from that decision, it seemed like the best move I have made in a long time, financial-wise. As I have consistently made at least $10 returns per day with a startup investment of $200. Except for a day, when I let greed in - I wanted to make more profit and ordered to sell at a way higher position than I usually sell, but then that's high was lower for the day, so it was never executed. Lesson learned!
Also, I have not made any profit in the last 24 hours as my buy order has not been executed. The coins seem to have changed course. I made a buy order at $0.00061 but CNS has not dipped below $0.00065, it has maintained a position between $0.00070 to 0.00077 for several hours.
I will observe the coin for a couple of days and adjust with the new trend, while also on the lookout for another token that will offer a similar trend.
My Trading Strategy
I started trading to make a profit in a short period of time - daily or every other day. That's all I had - no other plans or strategy. But with few days of success, I want to believe I now have a strategy that I follow when executing trades and it works, for now!
I don't think there is any single correct approach to crypto trading, each strategy largely depends on the individual's preferences. Regardless of the approach to trading, establishing a clear goal is important so is controlling your emotions. Basically, all I did was to decide what I'll be trading, how I'm going to trade it, and the points at which I’ll enter and exit.
After choosing the coin, I noticed a trend - it dips between $0.00059 to 0.00061 and rises to about 0.0007+ within every 24hrs at least since I started trading with it. So all I do is buy at $0.0006 or $0.00061 and sell at $0.00069 or $0.0007. So, immediately my buy order at $0.00060/61 has been executed, I send a sell order at either $0.00069/71. I repeat this every day.
Am I day Trading?
Yes! I think.
Day trading is a strategy where a trader enters and exits positions within the same day (24 hours). Which is exactly what I have been doing for a couple of days. This is an active trading style as I visit the app often to see if my buy or sell order has been executed, so I can make another order. This can be highly profitable if properly done with a good amount of investment, but it carries with it a significant amount of risk as well. So it needs some trading experience or as in my case, beginner's luck in order not to get burnt.
In day trading, most traders often rely on some form of technical analysis to determine which crypto assets to trade. Because profits in such a short period can be minimal, you may opt to trade across a wide range of assets to try and maximize your returns. That said, some might exclusively trade the same pair for years.
Well, I don't rely on anything but my intuition and I have been lucky with this one. I'm not trying to brag here, but I had little to no experience in crypto trading and the success I have had is mostly up to luck. I intend on sticking to CNS for as long as I get returns from trading with it.
Keeping all my eggs in one basket
Asset diversification is a way of safeguarding your asset from total loss in one swift movement. But I've gone all-in on this one with all the funds I have allocated for trading - I have other crypto assets (BCH) stashed somewhere in my butcpin.com wallet.
I believe you are aware of the principles from the saying don’t keep all your eggs in one basket. Keeping all of your assets in one basket creates a central point of failure. Investments are unpredictable; even those that seem to offer infinite positive returns can come crumbling down. I'm looking to diversify, but it doesn't mean filling my trading portfolio with hundreds of different coins. The plan is to get about two other coins to spread my trading capital across. That way, if one is performing poorly, the others will augment for the loss incurred.
The Long-term Plan.
This day trading with the altcoins is short-term. The long-term plan is to trade, withdraw the trading returns, swap them for Bitcoin cash, and hodl. I have made a profit of about $80 in five days of trading with CNS, which I have converted to bitcoin cash (BCH). And to be on the safe side (Not your key, not your coin) I sent it immediately to my bitcoin.com wallet.
As mentioned earlier, the CNS market movement trend seems to be changing which has led to no trade or profit in the last 24 hours. I will observe it for a while and make adjustments if necessary. Also, I'm on the lookout for a coin that will offer a similar market trend.
I trade Centric (CNS) on AscendEx formerly known as Bitmax. Click here to create an account and get started.
What do you think about WINk?