Ultimate Guide to Trading Altcoins Using Coinmarketcap Data
There are several websites that can help you to be up to date in the cryptocurrency market, but one I find convenient and detailed is the non-other and popular COINMARKETCAP. Coinmarketcap is a site that details every relevant coin that can be exchanged. For a currency pair and exchange platform to be listed on coinmarketcap, it must be verified by them and go through their acid test. Here is how the interface looks like: The coins are listed in descending order of their market cap. There are several options which include all altcoins, tokens, 24hrs volume ranking for currencies and exchanges, top gainer and losers, etc. Filters available on coinmarketcap also include base currency (USD, BTC, ETH, XRP, LTC), 24hr Volume, circulating supply, 24hrs percentage change, 7days price graph, etc. To choose an exchange to trade with its best to do so on an exchange with high interactions (volume). To make this easy for you can simply click on ‘Trade Volume’ and a drop-down menu appears. On the menu select ‘24hrs Volume Rankings (Exchange). I won’t go into many details here as this isn’t the primary target of the topic. To know more go read binance VS bittrex. Here’s a short and ultimate guide on how to use the site to find good buy or sell opportunities.
1 Just get to the site and look on top coins.
I prefer to work with the first 100 coins listed. If one interest you get inside of it and check markets it trades. If it has just 1 exchange or worse 1 exchange that nobody knows — if it had a big raise then it could be just a pump and dump. I would ignore coins from unknown exchanges.
2 Check the coins that lost the most.
Use the filter ‘Change (24hr)’. This will filter the first 100 coins according to their percentage gains (descending order) or lose (ascending order). Filter it to ascending order of percentage change by clicking ‘Change (24hr)’ twice. Change the base currency to whichever suits you. If done correctly should look in this manner. The coins that have many exchanges and are also in point 1 listed here if you check and they had no super bad news — those are most likely investments that will soon rise again. The ones that have a low volume of like 17 USD are likely going to flop. Others — do the research as before.
3 Open the coin and check the chart
Filter the chart to a seven (7) days chart. On the picture above, we have a chart of Horizen (ZEN). On the chart, you will see three colors of green (USD), blue (Market Cap) and orange (BTC). All show their individual relationship with ‘Horizen’. I will focus on the orange line because that the base currency filter I chose in point 2. You will notice that the last price of the orange line is barely the lowest. It’s had a slight rise above the lowest price (0.00273273 BTC). The highest price is 0.00330734 BTC. Also, the blue line is on a rise. This is a very good indication of a potential investment.
Having done your research properly, you simply go over to an exchange where the coin is listed and trade against your chosen base currency. Knowing when to sell is up to you but you will need to consistently monitor your investment so as to make good gains. I always say that no matter how small your gains are, either small or big what matters is that you sell at a higher price than your entry price. Don’t FOMO. My next Lesson is on Understanding and Trading with the RSI Also, read the news and follow sites like nigeriabitcoincommunity.com, bitcointalk.org, cointelegraph.com, etc.
Originally published at https://www.nigeriabitcoincommunity.com on February 27, 2018.