The way that I trade alt-coins for fun

The real value is in bitcoin, but a lot of us like to speculate in this market.  I found this technique on a VLOG by Trevon James.  [Quad Squad] I guess it was his friend Craig’s suggestion.  I don’t use the Jaxx wallet, but I was able to adapt the idea to Coinigy.  I think of this as one of those new fidget spinners.  It keeps you out of trouble by keeping you balanced and busy.  (Warning: Trevon does let some curse words slip in from time to time) So I use one account on an exchange with a lot of alt-coins available.  I bought a balanced supply of 4 alt-coins.  I use Coinigy to keep an eye on the total balance where ever I am.  When a coin’s bitcoin value is up over my alloted amount, I sell some to bring the balance down to the allotted amount.  When the coin value is down, and I have some spare bitcoin, I buy back in up to the allotted amount.  It is also good that the trading fees tend to be around 0.25% which makes it affordable to make many trades.

Traditionally people try to find a “bottom” of a market and go “all in”, but this balanced approach pushes you to buy and sell only a little at a time.   You can do this with dollar value or bitcoin value depending on what platform you use and how you make it work for you.

So far, this idea is working well.  The account is up in bitcoin value (so far) and I get to participate in daily trades.  This account is only 10% of my holdings, so I can afford to loose it all.  Another risk that I forgot to mention is that there may come a time where you can’t recover your coins from off of an exchange because of an event like a hacking.  This is another reason to use only a mall portion of your total bitcoin holdings.

If you want to do more of a traditional trading approach, I suggest you go to The Rational Investor.