How To Trade With Alternative Cryptocurrencies And Hopefully Generate Massive Gains

I won’t hide it. I am not your average cryptocurrency enthusiast. In fact, I am quite conservative and have just been monitoring the rise and falls of cryptocurrencies. Despite the fact that I kept tracking their evolution, I never felt motivated enough to invest in them. Even when one bitcoin was trading for $50-$100, I was reluctant to step in.

However, 2017 differed significantly from previous periods and cryptocurrencies went mainstream. All of a sudden, everyone started talking about bitcoin and alternative currencies. Nevertheless, crypto trade is still risky, the majority of people has no idea how to join the party and let’s face it – some digital currencies are hard to obtain, especially if you are a newbie. This is why I decided to enter the market with a small amount and hopefully enjoy the ride.

Note: I only express my personal opinion on the topic. Do not take it as an advice! Cryptocurrency trade involves a lot of risks and you may lose gross sums of your money. Have in mind that taxes and fees go along with trading, and may add to your expenses.

What resources did I use to convey my research?

1. Coinmarketcap.com – you can easily follow current and previous rates of every digital currency out there

2. Coinbase.com – an exchange platform where you can purchase your first bitcoin or ethereum tokens

3. Yobit.net – an exchange platform where trading with alternative currencies is possible

4. Altpocket.io – an online wallet where you can follow the current rates of the cryptos you own

How did bitcoin and ethereum perform in the past?

A quick check at Coinmarketcap.com reveals the prices at which cryptocurrencies were traded in the past:

We can see that bitcoin’s price was fluctuating around $90 back in July 2013. In 2016 one bitcoin has been traded for $400-$500. Later it smoothly goes up to $1000 and in the end of 2017, it skyrocketed to nearly $20.000.

Ethereum follows the same pattern. In September 2015 its price has been a mere $1.5 and just a year ago, in January 2017, an Ether cost $12. The current Ethereum price is circulating around $1300.

As you can see, both currencies have multiplied their value by thousands. Ethereum has risen 1000 times.

This is what would have happened if you had invested $1000 in the previous years.

$1000 investment in 2013 could have generated more than $214 000 in December 2017, when bitcoin hit an all-time high at just under $20k.

What about ethereum? Those you put $1000 in ethereum back in 2013 now are millionaires. Perhaps they have near one million dollars or $972 300 to be precise. This is what I call a massive gain.

However, it’s obvious that kind of revenues are difficult to obtain nowadays. Now we have an abundance of cryptocurrencies and it is hard to predict, which of them will be as successful as bitcoin and ethereum. What can we do then?

Is it possible to generate that massive gain again?

Now we exit the field of statistics and enter highly speculative territories. But what we can do is develop a strategy an aim for a digital currency, which we believe will deliver huge profits.

I would not bet on ethereum or bitcoin, however. Perhaps they will continue to increase their value and this is important but I would rather put my money on smaller and more unpopular coins. Why, you may ask? Because if they grow 10, 100, 1000 times they would bring huge revenues. And they are more likely to grow rapidly in a few months than bitcoin and ethereum are.

Ok, let’s go back to coinmarketcap.com. Now we are going to filter low-cost currencies with large trading volumes. There are several crucial factors so keep on reading.

The filters I use when looking for perspective cryptocurrencies that would potentially increase their value.

1. Filter coins – choose “Full List”

2. Price filter – I prefer to select currencies, which are currently trading under $0.01

3. Filter trading volume for the past 24h – select above $10,000

4.I assume some cryptos have more appealing names and their names may have an impact on their popularity. A quick google research reveals if the currency is popular or not

Once you filter the results you’ll see all cryptocurrencies matching your criteria. Cheap currencies with large trading volumes indicate that a lot of people trade with them; hence their price is prone to go up.

Great! We have a strategy! We are buying cheap cryptos and hope they will surge in the months to come.

There is some problem though. Cheap currencies are not as easy to purchase as bitcoin and ethereum and sometimes their prices are converted in bitcoin or/and ethereum. This is essential, though. Whenever main currencies rise in value, smaller cryptos rise in value as well.

My strategy for buying currently cheap coins:

– I am going to buy coins cheaper than $0.01 and hope they will grow to $1. This will generate me $10,000 if I initially put $100

– I am buying coins worth $0.0001 and hope they reach the $0.1 mark. In this case, I can have $100.000 revenue out of my $100.

I set myself a $1000 limit. This is why I am going to invest in 10 different cryptocurrencies and hope at least one of them to skyrocket. So far I’ve chosen the following crypto coins:

*All prices were accurate at the time of writing.

Ok, a $1000 investment spread across 10 currencies doesn’t’ seem ridiculous, bearing in mind how I’ve selected them. How do we do it? Keep reading.

How to buy cheap and unpopular coins?

I use the following tactics:

1. I set up a coinbase account where I purchase bitcoin and ethereum. You can pay for them with debit/credit card or a bank account. I verified my profile and I hope everything’s fine.

2. I got my yobit.net account

3. Once I purchase bitcoin and ethereum tokens I’ll send them to my yobit wallet

4. Then I purchase coins in yobit and keep them until they reach my target price.

5. Once they reach the desired prices I sell them for bitcoin or ethereum and transfer bitcoin and ethereum tokens back to my coinbase

6. Finally, I withdraw my funds from coinbase to my bank account.

7. Briefly explained it is as simple as that. Now a little bit more information:

If you don’t know how to purchase bitcoin via coinbase but you’d like to change that, check this article.
Setting up your yobit.net profile looks like this (of course you can use other exchanges; it’s up to you to decide):

Step 1. Go to yobit.net and click “Registration” on top-right.

Follow the instructions and verify your e-mail. Complete your profile and improve your security (again follow the instructions).

Step 2. Transfer bitcoin or ethereum tokens from your coinbase wallet to your yobit wallet.

Once you’ve verified your profile click on “wallets”.

Just next to BTC there is a “+” sign. Click it to see your yobit bitcoin wallet address.

Copy your BTC address and go back to your wallet in coinbase. Click “send” and type the amount you’d like to send. Then paste your yobit address. The transfer may take up some time so arm yourself with patience.

When your bitcoins arrive in your yobit wallet you can trade them for cheaper coins.

Step 3. Buying cheap currencies. Go to coinmarketcap to check the current rates and copy the signature of the cryptocurrency you’ve chosen (for example PAC stands for paccoin, you get the idea). Paste the signature into the search engine in yobit to find out if this certain currency is available.

In this case, PAC is available so I click on it to make a purchase.

On this page, you can buy and sell paccoins. I want to make a purchase so I check “Buy” and type the number of paccoins I wish to have. The page automatically calculates how much bitcoins it will cost me to make the purchase. Hit “Buy” and wait until the transaction is settled. Sometimes when the market is overloaded there might be a delay but usually, there are no delays when you trade with unpopular coins.

Once your wallet indicates you’ve bought new coins you can sit and relax until their price goes to the moon.

This is it. You are ready to dive into the cryptocurrency ocean. Follow these steps for any cryptocurrency you wish to buy.

Bonus! Since it is quite uncomfortable to constantly check the rates in your yobit wallet you can easily follow the prices in Altpocket.io. All you have to do is select the currencies you own and enter the amount you have in your real wallets.

Now you can comfortably see how much money you’ve made with your investments in real time. The platform shows your gains in dollars.

This is my strategy for putting $1000 into cryptos. Please, do not consider my opinion as a guide. Be careful when trading with digital currencies as they are highly volatile.