Crypto whales are on the increase. Here is your chance to learn about how to safely navigate the crypto market and earn like a whale.
The crypto ecosystem is a volatile one. If you are in it to make profits, I’m with you. However, if your goal is to always win, I’m afraid that is impossible! Bitcoin at the moment is enjoying a bullish streak with little or no regard for the spread.
Although my 2020 prediction was in this direction (attaining 12k), I never imagined the bullish run lingering this much. 2020 has been a strange year for everyone and this sums it up.
A recent report has it that a BTC whale moved billions worth of BTC from his wallet and traders are looking forward to the aftermath.
Why does the single decision matter? These and a couple of other questions will be our focal point in this article.
Whales and the role do they play?
Crypto Whales are crypto traders like you or let’s just say, they started as one. The term ‘whale’ came into existence at the discovery of traders with the capacity to own a huge amount of cryptocurrencies and impact the market waves, whether they are buying or selling.
Cryptos, initially designed to be decentralized, have been rendered stratified by whales. Crypto Whales dominate the market in such a way that blockchain constantly designs algorithms to integrate and accommodate their strategies.
Now that we have established that trading, like crypto gaming, is a game that gets better with experience and calculated risk (in the form of technical and fundamental analysis), you need to ask yourself if you are ready to play it safe and win like a crypto whale in 2020.
Here are a few tips that can make the journey easy…
1. Desist from hoarding digital tokens you can’t afford to lose
No one holds on to a coin or token for a very long time because 2018 gave everyone a stern lecture. Interested in knowing what happened? Here is the headline – Bitcoin value drops from $12k to $5k.
Interestingly, holding on to a coin still has its advantages. Ask those who owned Ripple at the time it experienced a surge from 4,000 SAT to 8,000 SAT. Nevertheless, I believe sticking to a volume you are okay with is advisable. Such that you can bear the loss in the event of a huge drop.
Another alternative is to operate majorly on fiat currencies and do not FOMO. The essence of being a whale is not to hoard a large volume of tokens but how well you use them in achieving your aim in the crypto market.
2. Monitor and take advantage of event pumps
Here, your focus is based on market news and updates (fundamental analysis). You do not need to hoard because you earn in USDT or fiat. Check out the best news site here.
Once there is a significant update about a coin, a pump is (90% of the time) expected to follow. Let’s take the series of events that happened to Stratis as an example:
Value at the time of the announcement – 1770
Value at the peak of the launch – 1950+
Your selling position – 1960 SAT
Your profit = 1960-1770 (in $$)
Owning the right coin at the right time (of a pump) is key. To achieve this, you need to have all the information about the time shifts promising coins. Especially the ones you are certain the whales will get themselves involved with.
I must warn, this is not as easy as it sounds. If you need help, these news sites will guide your path.
3. Opt for Crypto Trading Automation
Unlike when you have to be involved in every trade procedure manually, automated trading ballots you more breathing space and better outcomes.
You no longer have to worry about technical analysis decisions like volume, RSI, Bollinger Band, just to mention a few because your focus is on deciding your stop loss and making profits.
There are tons of tools available for this but not all are great for automatic trading. We’ll get into that in our subsequent articles. Before then, Meta trader 4 and 5 are worth a shout.
4. Don’t just be a hard jobber investor. Be smart in your decisions.
The fact that your trading is automated does not bring learning to halt. Normalize learning about the various tested methods for crypto success and be on the lookout for groups with Blockchain masterminds.
This takes you beyond being just an automated trader but one with enough credible sources to make smart decisions from.
5. Budget for Taxation
Different countries employ different policies when it comes to taxes. Whichever country you belong to, ensure you are not a government cheat. Skattestyrelsen (a Denmark tax firm), recently identified over 2,700 individuals as cheats. Traders and crypto gamblers inclusive.
This is probably because these traders purchased and sold tokens via an unnamed network (might even be illegal) and decided not to reveal the profits or losses involved.
Getting caught is not the way to becoming a whale. Being a law-abiding citizen is.
What are your chances of becoming a crypto whale in 2020?
Pretty much 100%. It all goes down to the amount of work you put into your research for coins with great prospects and your fund. These are coins you might want to watch out for in 2021:
I will take you through ‘why’ in future articles.
How many tokens must you control to be a whale?
Excluding value or price swing, if you have a 5 million equivalent or more, of any coin, the term crypto whale is yours. You can start imagining yourself storming Binance and influencing the market by buying or selling millions worth of crypto. That is what a whale can do.
Once beaten, do not stay down. This is the trading way. To win like a crypto whale, you must know what you are asking for. A good example is the 2018 drop. If most traders had given up, we would not have this many whales lurking around. Nevertheless, everyone learned their lessons.
The good thing is the fact that Blockchain keeps experiencing significant developments and looks like it is here to stay. That being the case, you have ample time to decide if you want to get started and earn big like crypto whales or not.
What is your stand? I’d like to know.