10 Ideas to Circumvent the "all cryptos move together" problem
There's a problem with trading cryptocurrency. It seems like they almost always move up together dependent on BTC and ETH, or down together. And there are few ways to short it and play the other side if you chose.
Therefore, trading crypto almost becomes extra difficult because money held in, then traded for another on the same day, could just drop as the market fluctuates back down, rather than being able to find "a value crypto" since the whole market of relatively solid options seem to move together.
Not financial advice here. Do your research. This is less of a "try this idea list" and more of a "I need to think about this better and here are my personal notes to self" list.
1. Find another platform that allows shorting
I'm bullish on cryptocurrency and I used to use short etfs on Gate but those went away.
2. Stop holding longer
If you hold something just in time for the pump, you can collect profits and rebuy in.
3. Stay on constant search for big pumps
Although it seems most crypto will move as btc eth move, some will pump bigger than others.
4. Do tasks or activities for crypto instead of trading
Trade time or skills for crypto rather than cash
5. Study into the different cryptos and who is involved
It seems like everyday there is a new random trending crypto. Study and find out who is involved in those if possible!
6. Use an algorithm
There are websites that will help you find stocks that have certain criteria such as "under $X, increased by 3% in the past hour, has volume > 1MM". Sites like coingecko have filters of crypto by category and such but not as good as some of the ones for stocks that are out there. Maybe use those find better choices rather than just looking at charts. Can't think of the word for them.
7. Be the source
Instead of wondering about why or what, maybe its better to be ahead of the game and be a source - ethically of course.
8. Find better arbitrage deals?
Its commonly known cryptocurrency is a different price on different platforms. Maybe figure out what programs allow you to arbitrage rather than arbitrage for themselves.
9. "Easily trade crypto for real assets"
It would be nice if you could easily trade crypto for other assets that could hold their value such as stock or bond. That probably requires a few decades of adoption rather than a practical solution right now. But only way to easily keep your money rather than ride a fluctuating value train, you can move from one investment to another.
10. Don't trade...
Maybe its best not to try to trade on the regular platforms such as coinbase if everything moves almost together and just buy and hold good ones? (this turned out VERY bad for anyone who bought in anywhere between August '21 and didnt sell into '22
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