Since the space of crypto-trade is so new, we tend to try to analyze and interpret the crypto market by comparing it to things we know. Some techniques used to trade cryptocurrency are similar to forex and stock trading. The end goal is always the same, make as much money as possible. And so we often look at the value of our investments in our fiat currency whether that be USD, GBP, MEX, etc. With trading cryptocurrencies, it’s a little different. The secret to obtaining huge medium to long-term gains is not to acquire more USD/fiat currency. The goal is to acquire more Bitcoin. That is the secret! Forget about fiat currencies and look at your investments in bitcoin or BTC value.
A coin that is $1.04 USD can be worth 0.00006991 BTC (Based on the current price of bitcoin at ~$15k). Forget that it cost $1.04 and look at the 0.0006991 BTC. Another way to look at it is 6,991 satoshis. A Satoshi is the smallest unit of a bitcoin. IT IS ALL ABOUT THE SATOSHI. When you sell the coin you initially bought for 0.0006991, make sure you are getting more BTC. If the USD value is down and the BTC value is up, you did great. Why is this a good thing? Bitcoin is the mother of all coins. It has been around the longest, has the biggest market cap, is accepted in the most places, is the most popular, the most expensive, and it is the fail-safe for so many day traders.
This picture shows the market cap of all coins over time. The line that stands out the most is obviously bitcoin. If you’re trying to trade dozens of tokens to make more money then you have to realize a lot of these tokens will die, or pail in comparison to the gains that bitcoin can make. Eventually, these coins will lose their value in USD if people won’t pay BTC for them. And this is as long as the current crypto-eco-system is in place, where the only place you can buy most altcoins is on exchanges.
“The goal is to acquire more Bitcoin. That is the secret!”
So when Bitcoin becomes your main currency, you only have to worry about sitting on your altcoin investment to make a decent percentage of satoshis/bitcoin. You should not keep your money is different altcoins unless you believe in the project. If you’re are swing trading then you have to do what you have to do and you can’t get attached to too many projects or you will lose precious trading capital.
I discovered the power of the satoshi the hard way. I needed a new app to track my crypto assets because coins.live was not doing the job I had hoped for. Blockfolio blows all other crypto tracking apps out of the water. It allowed me to view all assets in BTC, this made it easy for me to track my satoshis. I noticed on my investment in NEO, that I was up a considerable amount in USD but I lost satoshis. This baffled me because I thought USD and satoshis go up hand and hand. Well, they don’t. What someone would pay in USD for an item is a different market than what someone would pay in BTC for an item.
The reason why I had a lot more USD than I had in satoshis was because BTC and NEO grew in price and market cap for the span of a few months, increasing the price of NEO. BTC grew yet again and made each satoshi worth more in USD than they were when I initially bought the NEO. I’m a visual learner and it was hard to comprehend this occurrence, so I had to draw a crude chart to help me out.
The day I discovered the satoshi, I rearranged my portfolio and the value has been skyrocketing since. If you chase the satoshi, the dollar will come. Gather up BTC and wait for the next all-time high. This is the secret to huge medium and long-term gains.