Altcoins Market Dynamics, Basics, Leverage & Money Management

Aug 9

➖ Higher Low vs Lower Low Difference

This is a very important dynamic to consider because much of the buying and selling is done based on "higher lows" and "lower lows."

The altcoins market is huge. What one does, the rest follows; but, there are tens of thousands of altcoins right now. Many follow their own cycles and many variations across the market occurs. "What one does, the rest follows," applies only to the broader market cycle and direction. When the market is bullish, everything grows; when the market is bearish, everything declines. Price action can only be calculated by looking at each chart, each pair, each project individually.

Now ... With this intro I can get to my point.

Many altcoins already hit bottom and will only produce a higher low on the next leg down, compared to the last major low. While another portion of the market will produce a lower low on the next leg down compared to its previous/last major low. Those producing lower lows should not be sold, as in a "stop-loss" because they are still set to grow based on the broader market cycle when the bull-market comes in 2025. So the accumulation phase will have strong fluctuations, for a while, but massive growth will still be the result in 2025.

One later group will continue to produce lower lows and more lower lows because of the weakness of the project relative to trading action and the rest of the market. This also happens and will happen.

There is a portion of the market called, "the market leaders." As the name implies, these will lead the market. If you can catch some of these your portfolio is secured.

One needs some stable pairs/projects, some highly volatile ones and some of the leaders to balance things out.

➖ No Leverage, No Margin: No Risk

The capital used for leveraged trading should be separate to the capital used for spot trading or long-term buying; these things can't be mixed. There is a tendency to gambling in this type of venture, in this speculation game; so it is very wise to have a solid portfolio of altcoins that is based on long-term growth and then gambling, or "high risk high potential trading opportunities" are taken with funds that you know can be easily lost.

"Don't use money that you cannot afford to lose," is a true adage.

If you can't bear the weight of losing money, then you are not ready for the cryptocurrency market, you are not ready to trade. If you have spare money, or you planned your unique individual situation, then go ahead.

If you have a stable emotional and financial life, then you can do anything and you will be successful.

If you have financial needs and feel the need to make money fast, then you can't trade. Money is not earned fast in this business, but can be lost in the blink of an eye.

It takes time. It takes years for a position to mature and grow.

Patience is key.

Thanks a lot for your continued support.

Namaste.