Trading bitcoin against altcoins is a very profitable venture as long as you are willing to be patient and adopt some useful strategy. I may not be a professional forex trader but the little i have learnt through self study and practical experimentation is really helping in my crypto trading and has helped me to become very experienced.

Some common strategy that are of help to make profit include

1 Buy cheap and sell high

2. sell cheap and buy cheaper

Question: what do i do if i buy and the price falls instead of rising? am i not loosing?

Answer: Trading cryptos is not a smooth ride all the time. Dont invest funds you cant afford to loose. However there are more profits to be made than loses. Trust me i have been there.

To answer the question. If you notice a fall in price of a coin you bought, some exchanges offer a tool to help you set a stop limit. You can use this tool to minimise your loss if you cannot wait to long for the coin to increase in value.

The second way which to me is the best is this. Lets assume you have 3 bitcoins and you have decided to trade it with litecoin(ltc). Assuming the price of 1 litecoin is say 840,000 satoshis , do not buy litecoin with all your bitcoins at that price of 840,000 sats because cryptos is very volatile and the price may crash from 840k sats to 780k sats.

This is what to do. Use 1 btc to buy litecoin when the price is 840k sat so that when the price falls to say 780k sats use another btc to purchase at the new price and monitor the market. if it falls to say 700k purchase again with the remaining btc and then find your average buying price which should be about 773k sats. At this point you start monitoring your investment. Any price above 773k sats is a profit for you which can happen that day, in 2 days or a weeks time. If the price rise to 890k sats and you decide to sell at that price you will be making about 3.454 btc.

At this point you can remove your profit of 0.454btc which is about $190(above N50,000) and reinvest your 3btc again.

I was able to convince a friend about 2 months ago to try out this crypto trading after showing him my proof. He reluctantly parted with N15k thats about 0.108 bitcoin i had to assure him that i will insure the money for him. I guided him and we used the 0.108btc to buy an alt coin called syscoin which was doing well. we bought it for 633 satoshis few days later the price rose to 748 satoshis. I adviced we sell at that price and made about 0.13btc thats a profit of 0.022btc.

The profit may not be much but imagine if he invested 1btc, a profit of about 0.18btc ($75 = N21500 or so) would have be made.

Ever since I started crypto currency trading I have not looked back.

Thanks

Author

Dalemat is a full time crypto currency trader for more than a year based in Nigeria. He currently teaches group of Nigerians on how to trade bitcoins against altcoins. He is the site owner of a blog crypto currency trading. http://crypto-currency-trading.blogspot.com.ng/ He also owns a group chat on telegram where he also shares his knowledge on crypto currency trading and it is free to join by clicking on the link.

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