Evidence of our Crypto Trading Strategy working 10 FEB 2025
Accumulating crypto without putting in more cash (Fiat)
As ever, nothing in this article should constitute financial advice. Always do your own research. Seek professional qualified advice.
Throughout our website there are many articles and snippets discussing how you can grow cryptocurrency by buying below the current market price, and selling above the price you bought it for.
There are also many discussions around the many ways in which you can lose money in the cryptocurrency market. One of the big ones that really distresses us here at Crypto Statto, are the crypto influencers rolling out there industry catchphrases encouraging you to part with more of your cash.
You do not need to keep putting more cash into cryptocurrency to be able to have a reasonable amount. As an aside, exactly the same thing happens with many within the precious metals arena. There will be some individuals that put all of their spare cash into gold and silver over decades, but the real money is made by buying and selling paper commodities and/or trading mining stocks. They then move profits into physical to accumulate more.
The basics of the strategy
- Start with a certain amount of Fiat capital
- Identify an asset you wish to hold
- Set a limit order below the market price
- Once the trade settles and you own that asset
- Set a sell limit order above the price that you purchased the asset at
- Repeat
There are more advanced forms of this strategy. Without getting into the detail, the beauty of it is that it works extremely well in bear markets and you will often find your Fiat value does not increase substantially - meaning that in theory you may not be realising significant capital gains.
We have other articles on this site explaining the strategy.
One very important feature of this strategy to understand is that you may not make any profits from it. It relies upon the market going up. As an aside, and this is quite complicated to envisage - where you can argue that the cryptocurrency market is very inflationary. The number of coins in circulation are increasing constantly especially if we consider the number of new blockchains and tokens being created. This inflationary pressure may mean that many coins won't rise in value - ever. We start to delve into areas of asking about true utility of crypto assets and deciding which ones you wish to try to own more of.
The trades in our example are manually set up
There is nothing that complicated about this strategy. You don't need to do day trading all day long, every day. Personally, I am too busy to spend all day trading. The team here at Crypto Statto all extremely busy adding important features and capacity to this crypto analytics platform. We're building advanced analysis tools to allow us to trade automatically and manually with trade signals. We also undertake consultancy for clients and so the idea of sitting down all day doing trading is not something we can put time towards.
Those that do trading need a range of tools and approaches to maximise their returns and minimise their losses.
We're building those tools, so please join up here - www.cryptostatto.com/register
About the asset pair in question in these evidenced trade examples - Litecoin vs Bitcoin
I have been following Litecoin for many years now. I have had quite a bit in the past, I've sold quite a bit in the past. Litecoin is a coin that very closely mirrors Bitcoin in terms of its functionality but is designed to be faster in settlement - quicker blockchain confirmations. We can think of this in terms of carrying around gold bars versus carrying around coins when going shopping. Litecoin is limited in supply - just like Bitcoin.
My personal conviction is that Litecoin will be a very important coin in the future. It reached an all-time-high of £294 back on May 10th 2021, and as with many other coins has been brutally slammed down from there. None of this is advising you to go and buy Litecoin.
Litecoin versus Bitcoin all time chart
If we look at this chart it looks like a shitcoin. Litecoin has dropped and dropped and dropped against Bitcoin since Litecoin's inception. We are never going to see Litecoin go to anywhere near the levels against Bitcoin. So why Litecoin? My reason is it has the same features as Bitcoin, it works extremely well for payments and my personal belief is it will rise substantially.
Litecoin versus GBP all time chart
Compared to some other coins this hasn't looked so bad at all. We have that all-time-high of £294 to hope for. Indeed Litecoin has done quite well recently compared to many of the other altcoins - My gut feeling is that there are enough people aware of this commonality between Litecoin and Bitcoin. The real advantage is it's still seen very low prices compared to its all-time-high which means you're trading more coins for less money.
What about other altcoins?
Well this strategy has been undertaken with other coins too. One in particular is Algorand. Algorand's Fiat value has fallen off a cliff, stop the technology behind it and it's much higher all-time-high price means that I'm holding this coin at the moment. Not financial advice. Another interesting coin is Filecoin, and there are many others.
The secrets that most traders won't tell you about cryptocurrency trading
The secret is that most traders with rather large portfolio of cryptocurrencies, will be doing something like this. They will look at their portfolio and rebalance their positions in and out of coins. There is one trader I like who often posts his trades on YouTube on Twitter, with very large trade quantities. Once you get to this kind of level, for him, it is probably a money printing machine.
Trade evidence
These are genuine trades over the course of a three month period. The trade ideas have been blacked out for obvious reasons. We're now going to simply list the various trades from oldest to newest, so you can see how this has worked out.
11th November, 2024
14th November, 2024
23rd November, 2024
20th December, 2024
17th January, 2025
19th January, 2025
30th January, 2025
2nd February, 2025
So why do we need to use crypto analysis platforms such as Crypto Statto when we can just do your strategy?
As great as the examples provided on this article are there is way too much uncertainty in terms of generating regular cash flow. For example, one portfolio still hasn't exceeded it's all time-high-despite having huge amounts more of coins. Which is fantastic for cancelling out capital gains, but doesn't do much for bringing in income. This is why Crypto Statto was created, and why you should become a member of our community and platform.
We would like better signals on when to buy and sell too. Defining better levels is another important element of trading.
Other useful articles on Crypto Statto
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