Analyzing 120,000+ Trades on Our Crypto Simulation Trading Platform
Analyzing 120,000 trades on our Crypto Simulation Trading Platform
Here at Altcoin Fantasy, we believe in empowering users in navigating the cryptocurrency space through our trading simulation platform.
Players start with $100,000 in virtual USD and can make any trades they’d like during the contest period, with a choice of over 1,500 altcoins to choose from.
At the end of the contest, the player with the most net worth in their portfolio wins real crypto, such as Ethereum, Stellar, etc. We’ve helped thousands of traders become educated about the cryptocurrency space and we’ve received over 120,000 virtual trades on our platform and we would like to provide some insight about what works vs. what doesn’t work when it comes to trading cryptocurrencies.
You’ve probably heard of a friend of a friend who traded Bitcoin or Ethereum when it was priced low and instantly became a millionaire overnight. Maybe that’s what piqued your interest in cryptocurrencies. Or maybe your mom clipped yet another newspaper article about some whiz kid doing something related to crypto and left it on your bed as a not so subtle hint. Whatever the case may be – today we’re going to share some little known tips to help you turn your pinto into a crypto Lambo.
Because of our unique insights into different approaches to trading and our careful dissecting of patterns for winning and losing, we’ve been able to determine strategies for crypto success that doesn’t work, strategies that do work and finally some interesting little nuggets of information that we’ve learned along the way that might surprise you.
“You must unlearn what you have learned”
Many of the strategies that are shared commonly about crypto and seem to be common sense actually tend not to be the case at all. We’re demystifying 3 common beliefs about successful crypto investment strategies:
- Despite all the claims of HODLing (“holding on for dear life”), holding as a strategy doesn’t work. Our most successful players tend to pick 1-2 cryptocurrencies and go all in on these and determine whether they hodl or sell based on the momentum of the coin hour by hour.
- While index funds tend to make a good investment choice for stock markets, taking the same approach for your crypto holdings, such as buying a variety of coins, doesn’t work well either. This is probably due to the fact that our contests are usually only 1 week long. If you’re playing the short game, the index approach might not work for you.
- Buy low, sell high – or so the adage goes. However, when we analyzed whether purchasing cryptocurrencies which dropped the most in value within the last 24 hours or within the last week correlated with winning more often, or at least tended to increase your net worth, this had no effect. Although this seems to be counterintuitive, a coin that drops in value doesn’t necessarily rise again after. The reason for this could be that the momentum of the coin plays a much greater role than the actual price swing.
“Lambo for you, Lambo for me, Lambo for everyone”
Now that you know what doesn’t work, you’re probably chomping at the bit to know what does. We share some common strategies that our winners use and why they work:
- Our top players tend to be pretty fanatical about crypto so they also subscribe to a lot of crypto news. An interesting approach our top players have been taking is to buy the crypto they read about in the news that day. The likely reason this works is because of the attention on that coin for the interim, the value rises, and as long as you sell on the rise and before it goes down, you can capitalize on the immediacy of the attention.
- There are great resources out there available on cryptos such as Cryptocurrency Calendar. Many of the top players will use these sites to time buying into the market. Based on whether there are any milestones planned for a cryptocurrency, they utilize this information to determine when (or if) they should buy a coin.
- Just like the stock market, truly understanding the crypto market is complex and requires a lot of time. Yet many of our players are so passionate that they play up to 12 hours a day and have taught themselves technical analysis of the market to learn the patterns of the coins and signals from the market that could dictate the direction. If you have the time and inclination, this way is likely your best bet to truly go from rags to crypto riches.
- Even when the crypto market goes down, you can still make money. Our top players tend to do well irrespective of market conditions (i.e. bear or bull market) as they engage in short term, or hour by hour trading. They’re able to take advantage of the upswings of specific coins, while avoiding the general downswing of the entire market.
What we’ve learned from all the analysis that we’ve done is that crypto is truly an equalizer. You can have a finance background and be a stock trader by day and still lose money in crypto. Most of our winners aren’t from the finance industry or have trading backgrounds, which is what you might expect.
However, these top performers find ways to educate themselves on every nook and cranny of the coin they are investing in.
This gives hope to all us average Joes out there who are just hoping to get a piece of the crypto pie.
If you are hoping to get a piece of the pie, yet can’t sleep at night knowing that your Lambo could become a Fisher Toy push car by the next day (or even next hour!) while you’re sleeping, think about selling before bed. Many of our players play during the day and sell at night so they can sleep better – no cryptomares here!
We hope you’ve learned a lot of useful and unique tips on how to become a crypto millionaire. Above all, our biggest advice would be not to invest in anything that you’re not comfortable losing. After all, that Pinto beats the Fisher Price push car any day!
**This article is for informational purposes only. It is not intended as investment advice.