In this guide, you’re going to learn exactly how to make money trading altcoins in 2020.
(By the way, I’ve actually covered my top cryptocurrency investments here)
And that’s why I’ve written this guide:
To help you discover exactly how to make money trading altcoins – without risking your whole investment.
1. What Are Altcoins?
Altcoins are basically just any other cryptocurrency apart from Bitcoin.
Now whilst Bitcoin is the most well known cryptocurrency, there’s still over 2,000 altcoins on the market – and most of them aren’t anywhere near as popular.
And more options = more potential trading profits.
Want to see just how much money you could make?
Here’s some recent examples of cryptocurrencies that have increased by 1,000+ percent in only 24 hours…
But this isn’t just about making money!
Altcoins offer loads of benefits – as you you’ll discover below…
2. 7 Reasons Why You Should Learn How To Make Money Trading Altcoins In 2018.
- 1You don’t need a lot of money. Even if you start off investing just $100, you can still make decent returns with the power of compound interest. Which leads me to my next point…
- 2The returns are ridiculous. 100% gains in a day? 1,000% in a month? Once you learn how to make money trading altcoins, these sorts of gains are very achieveable – which blows away the returns you’ll see on most traditional investments.
- 3Cryptocurrency is the future. Whilst there may be a bubble right now, cryptocurrency is an extremely disruptive technology. I mean, cryptocurrency could literally change the future of money! Privacy, online security, anonymity, day to day payments – these are just a few of the ways altcoins could transform our world. Trading cryptocurrency is like picking the next Apple, Amazon or Tesla!
- 4Altcoins are booming right now. Since the meteoric rise of Bitcoin, there’s never been a better time to invest in cryptocurrencies. And I fully expect altcoin trading to boom in 2018.
- 5It’s fun. The astronomical highs. The dramatic lows. The 1,000% gains…Is there anything more fun than the thrill of riding the cryptocurrency wave? Undeniably, there’s a LOT of risk when it comes to altcoins – but that’s part of the ride. Just remember to invest responsibly.
- 6It’s easy to get started. It might take a couple of days to get verified on Coinbase (where most people buy their Bitcoin) – but once you’re in, you’re in. You don’t need any experience, qualifications or big money to get involved.
3. How to Make Money Trading Altcoins.
A little tip:
Take your time and don’t rush through the steps below!
It’s important to research your altcoins throroughly, understand the risks and think carefully before you place any trades.
Now without any more delay, here’s how to make money trading altcoins in 7 simple steps.
1. Sign Up To Coinbase.
Before you can begin trading altcoins, you need to buy Bitcoin.
Most people get their Bitcoin from Coinbase – it’s a quick, easy way to buy it online.
You can do that here.
2. Transfer Your Money To An Exchange.
You can trade altcoins at exchanges – two of the most popular are Bittrex and Binance.
Exchanges are where most major altcoins are listed – they’re simply a place where you can buy and sell crypto online, kinda like eBay for cryptocurrency!
3. Shortlist Your Altcoins.
Now I know what you’re thinking…
When there’s thousands of altcoins to choose from, how do you know which is best?
Well if you need some tips, check out my top cryptocurrency investments for 2018 here.
Personally, I’d recommend looking for a long-term altcoin that you wouldn’t mind holding for 6 months or more – just in case the market changes.
Remember: prices are so volatile that they can fluctuate from minute to minute by a few percent…
So I’d recommend waiting for a dip in the market before you invest in your top pick. These dips tend to happen every few days in between high growth spurts.
You can keep an eye on the latest cryptocurrency prices here.
5. Monitor Your Gains.
Exchanges like Bittrex or Binance make it easy to track your profits/losses.
And when prices are fluctuating so rapidly, it gets a little time consuming to constantly calculate prices.
Instead, install the Blockfolio app.
Blockfolio updates your cryptocurrency portfolio everytime you open it – and it’s pretty easy to use too.
6. Sell Up When You’re Ready.
So how do you know when you’re ready to sell?
Set profit targets – and when you hit them, sell out.
When you’re learning how to make money trading altcoins, it’s easy to get carried away with greed.
But don’t let happen!
Because when prices are so volatile, if something goes up, it’ll most likely shoot back down too. And this usually happens without warning!
So sell up and get out as soon as you hit your profit limits.
Note: most people trade their altcoins back into BTC when they’re ready to sell out.
7. Cash Out.
You haven’t made anything until you cash out.
Sure, those 100% gains are great…
But they don’t mean anything until the money is in your bank!
So simply transfer your balance back to Coinbase – and then cash them out into your bank account.
It might take a couple of days for the money to come through.
4. Information Is Everything.
When you’re learning how to make money trading altcoins, you can take a cheeky shortcut!
…You see, I’m no trade analyst.
…I don’t aspire to be one.
…And I’m bloody terrible at maths!
But you don’t need to read charts or master numbers to learn how to make money trading altcoins.
All you need is the ability to research.
Because information = profits.
Every time there’s a new update, press release or big announcement, you’ll discover that the prices of altcoins change pretty rapidly.
And find out everything you can about your investments.
5. Information Pays Off.
Recently, I made roughly 90% on Bitcoin Cash the day before it was listed on Coinbase…
But I had no intention of selling up until I got a tip off that Bitcoin Cash was just about to crash! Shortly after, loads of sellers dumped it in a big panic sell.
Fast forward 24 hours and Bitcoin Cash has dropped by 70%! See how important information is now?
You can see the whole story unfold in the graph below.
6. 3 Proven Altcoin Trading Strategies For 2018.
1. Slow, Compound Interest Gains.
If you don’t fancy trading the high risk, volatile altcoins – don’t worry!
Instead, simply focus on making a small percentage gain everyday. 10% a day might seem slow, but it builds up quick with compound interest.
For example, if you made 10% interest per day for 25 days, you’d double your investment! Test out what you could earn with compound interest here.
And that is extremely achievable with altcoins but it does a lot of practice and technical knowledge.
Find a cryptocurrency you can stick with longterm and simply hold it.
It’s simple AF. But it also works like a charm!
If you’d held Bitcoin since January 2017, you would have made a fortune. And if you invest in a reputable altcoin that has a great future, then the situation is no different.
Need some tips? Check out my list of the best cryptocurrencies to invest in for 2018.
3. Follow The Hype.
When it comes to trading altcoins, your competition isn’t super smart.
You’re not competing against Wall Street…Or banks…Or particularly sophisticated software.
You see, when it comes to altcoins, you’re pretty much just trading in a market full of average Joe’s looking to earn a quick buck.
So whilst Bitcoin is being savaged by Wall Street, altcoins haven’t even hit the mainstream market. They’re only hosted on exchanges – which means you’re not competing against many pro level traders…yet!
7. Trading Altcoins Comes With A Lot Of Risk.
With big returns comes bigger responsibilities!
And when it comes to learning how to make money trading altcoins, a huge part of the game is managing the potential risks.
You’re hedging your investments on extremely new technology. No-one knows what the real value is…
You also need to be extremely careful about the exchanges you use. Some are better than others – so take care with which one you use.
Be wary of hackers, keep your login details secure and always use double layer verification on your account.
8. Rookie Trading Mistakes To Avoid.
- Getting greedy. If you’re making good returns, take some of it out at least! Once you’re making good money, it’s easy to let greed take over. But that will only hurt you in the long run…
- Never invest more than you can afford to lose. Rule #1 when it comes to any type of investing. Be responsible and don’t take any unnecessary risks.
- FUD. FUD = fear, uncertainty and doubt. Facebook groups are some of the worst for this stuff. Make some decisions and stick to them – because no one knows what the future holds.
- FOMO. Seen an altcoin that’s jumped 1,000% in a day? Please don’t chase it! The fear of missing out can turn any seasoned pro into a naive rookie. Instead, wait for the next opportunity rather than chasing saturated buys.
- Pump and dumps. If you’re new to the game, a pump and dump is when the price of an altcoin is inflated by a group of traders. It’s basically a scam that you can leave you holding low quality coins. If you need help spotting a pump and dump, read this.
- Dumb money. Hundreds of low quality altcoins are flooding the market right now, and that’s only going to get worse in 2018. So be careful who you invest with and always do your own research.
- Set stop losses. When it comes to altcoin trading, the market can crash pretty damn quickly. So protect your gains and set stop-losses – these will sell your altcoins automatically in the event that they drop by a dramatic percentage.
- Don’t panic. Whilst trading altcoins, I’ve made $1,000 in my sleep – but I’ve also lost similar amounts too! Learning how to make money trading altcoins is a volatile game that can easily suck you into emotional, rash decisions. So whatever you do, don’t panic buy/sell!