Cookbook for a Down Day
We got ourselves another buying day folks. Unfortunately, when I was asleep there were some pretty good deals going on. I woke up to find some okay prices, but they went back up to those purgatory prices that weren’t eye popping enough. I wanted to share what I do on days like this to stay on top without having to go crazy about it. Alarms and Limit orders. I will also share a coin that interests me on a day like today.
This is a 24/7 market. There are no days off, and the best deals can come at the worst times. For me, they always do. I wake up at 5 a.m. and I am still not ahead on the day. What I do is very simple: go on the Coinbase app and set alerts on all three of the major coins (LTC, ETH, BTC).
The alerts I set are usually in the not-so-crazy downside. For example, my alerts are at $10,999 for BTC, $999 ETH, and $160 LTC. These may not be buying prices, but merely checking prices. At those prices, I want to pick up my phone and check alts. We may have some very big sales going on.
I don’t need to set 50 different alarms, I just need to know what the majors are doing at all times and I will almost be able to predict what an XRP/NEO is doing. If ETH is $999, chances are XRP is near $1.10-$1.20 and NEO is $110-$120 usually. Of course, we are never certain; that’s why we must check.
For the layman, a limit order is the process of setting a price at which you would like to buy something instead of buying it in the market at whatever price. So, if you want XRP at $1.00 or below, you set an XRP buy limit order of $1.00. Same goes for selling.
These are probably the best tools that are at your disposal. If you have been investing, you’ve probably found a major asset that you like and have been using as your own virtual coin bee hive. For some it’s BTC, and for others it is ETH. Having a portion of your base currency always tied up in correction limit orders may be a strategy that you could employ to take advantage of the market’s 24/7 nature.
I wake sometimes and my jaw drops at what coins hit when I was asleep. So, what I did was sell when the market was up the other day into ETH, and have my base currency limit orders. ETH hoarding is my specialty. I have the added benefit of doing so, while also maybe getting a fantastic deal that I can either hodl short/long term (I only buy certain coins that I have mentioned) via limit order.
I take great pride in business picking, and I am confident in it. So, I set prices for when good businesses are tanking for no reason. I knew the market was irrational, but not this irrational. I must take advantage.
XRP: Ripple will be added to Coinbase at some point in the near future, along with other cryptocurrencies (XMR, DASH, ZEC are also rumored… I will be doing individual write ups on these soon).
I am an ETH and XRP hoarder. I just have to wait for Coinbase to add XRP, and then pop in the ledger and sell it at an exchange that hasn’t collapsed from the amount of buy orders that XRP will cause when it can be bought in fiat. I have prepared for this day like a cowboy would for a bull ride.
This angry bull is going to jump in the air very quickly, and my performance will be measured in seconds, not minutes. I truly believe in the product, and I will be a long term hodler, but I want my money back. I have a cost basis, and I want to replenish it. I suggest everyone does it on major pumps for any coin.
Coinbase had to shut down BCH at $4,000 to save people from themselves. They were apparently getting reads way above $4,000 and got spooked. This confusion would be an exact entry point into Ripple.
XRP being added to Coinbase is still “somehow” a speculation because the exchange came out and said it had no plans to do so. Coinbase needed to handle the insider trading that took place ahead of the BCH launch, and then they would most likely begin taking strides to rounding out the exchange with more currencies. They have handled the BCH deal already.
The worst case scenario is that they don’t add new currencies in the next few months, and even in that scenario I am okay. Angel List has about 10-20 exchanges that have been going full steam ahead, and are all having dinner parties together each and every day that Coinbase doesn’t add any new coins. These folks will come out with apps, they will come out with perks, and they will come out ways to buy that don’t take nine days like they sometimes do with Coinbase.
This market is going through an exponential expansion (bubble). No denying a bubble. The bubble will burst and the project coins will all fall. Who knows when that will happen. During this bubble, no one is safe. Not even exchanges. They must innovate at a 100 MPH pace to keep up with demand or they will get trampled. Mt. Gox is an example of a trampled exchange. XRP is on every fiat exchange’s wish list. They know their exchanges probably can’t even handle the demand, but they want to open the flood gates. Raiden will be on his surf board when this happens.
Oh, and XRP at $1 is something I want to buy. I make sure I buy it down there. Always. Alerts and Limit orders help me never miss it.
This market is confusing and scared at all hours of the day. Please make sure that you are investing smartly. There is no reason to pay for something when it is 20% up because you think it will go up another 20%. You missed it. There will be another time to get into the coin, and there is always at least 2-3 coins that are attractive at all times. They will rotate in and out, and you must be prepared for when that happens. I don’t claim to have the best system, but this is best one for me. I check prices a TON, but alerts make sure I don’t miss the right times to check. If you aren’t looking at prices all the time, you shouldn’t be making short term trades. People who don’t look at prices rely wholly on people who are. I don’t invest that way.
This is NOT a recommendation to buy or sell cryptocurrencies. The orders I talked about are hypothetical, and XRP is nowhere near the levels mentioned. I want you to think about what you are doing, and what your goals are.
Feel free to chat with me @raijincrypto on Twitter, and I have been sending out some of my thoughts during the day.
Featured image courtesy of Shutterstock.