Matthew Monaco’s Crypto Guide: Key Takeaways
- Why crypto isn’t as shady as it used to be and why that’s GREAT for traders…
- What altcoins are and what makes them move BIG…
- My strategies for finding and trading the best coins…
Hey. Matthew Monaco here. You’ve been under a rock if you haven’t heard of the crazy moves happening in the crypto world lately. It’s insane!
I like trading crypto. Honestly, I like trading anything where there’s action. Follow the money! Right now, there’s a ton of opportunity in crypto. And if it’s new to you — no worries! I’m here to teach you what crypto is, how you can trade it, and explain my strategies for finding the best plays. Let’s go!
Table of Contents
What Is Crypto?
Cryptocurrency is digital currency. Digital currencies are referred to as tokens or coins. These digital coins are often exchanged through a secure, decentralized blockchain.
And while a decade ago, it was a lot harder to spend digital money, now it’s becoming easier and more widely accepted.
That’s partly due to the unregulated nature of crypto giving it a bad name … It’s been known for shady, under-the-table dealings that the government can’t detect due to the secure nature of blockchain technology.
But it’s not so shady anymore. Crypto’s going mainstream! Big companies and banks once fought it. Now many are working to integrate it into their platforms and portfolios. Think PayPal, JP Morgan Chase, Citibank, and many more.
That’s giving a lot of customers exposure. We’ve come a long way since bitcoin’s early days.
No, that doesn’t make crypto perfect. But it’s becoming more popular in the trading world now. And there’s no shortage of options.
More visibility means more cryptocurrencies. And that means more opportunities to trade.
Where Do You Trade Crypto?
No surprise that with more cryptocurrencies will come more exchanges for buying, trading, and selling crypto.
The most popular exchanges include…
- Binance
- Coinbase
- KuCoin
- FTX
- Kraken
These different exchanges accept a variety of fiat currencies and have a varying amount of coins.
You may have to do some searching to find an exchange that offers the altcoins you’re interested in trading. It’s like finding a stockbroker that offers the stocks you want to trade.
What Are the Top Crypto Catalysts?
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One of the main reasons crypto exploded this year is that there are more eyes on it…
Bitcoin has exploded long term, but that long-haul run pales in comparison to its 2021 performance. The godfather of crypto was at about $19,000 in December 2020…
It’s now trading over $60,000. And yeah, go look at the chart, because you’ll see a LOT of peaks and valleys. Crypto is VOLATILE. That can be good and bad.
What’s great about bitcoin is that it’s helped legitimize cryptocurrency. But most importantly, it spurred altcoin runs
Altcoins are any cryptocurrency not named bitcoin. The leader of that pack is ether, which is up nearly 500% year to date.
Then there’s dogecoin (DOGE), which went from 7 cents to 74 cents in less than a month. That’s a 957% gain!
Lately, we’ve seen shiba inu (SHIB) deliver a similar return … Again, lots of big gainers and lots of volatility in this space. So there’s definitely potential, but you have to be safe.
That starts with knowing what can make altcoins run…
#1. Blockchain Technology Improvements
Many popular altcoins, like ether and ADA, are native coins on a blockchain.
These blockchains sometimes make improvements to become more useful, efficient, and secure.
Native coins can see huge spikes with blockchain improvements.
#2. Regulation
Like I mentioned above, with crypto, there’s no government regulation or oversight. That can be a pro and a con.
A lot of people don’t want the government in their digital wallets. That’s part of the appeal for many crypto fans.
But … the lack of regulation can leave more people prone to scams. So regulation can help separate scams from legit operations.
And regulation can ensure that coins and exchanges are legit.
All this means that regulation can be a catalyst for crypto runs. And while for those who may not be a fan of oversight, I think it can mean more trading opportunities.
Also, it’s good to know your money isn’t going to some scammer. The Squid coin scam is a perfect example.
#3. Patterns
If you like trading penny stocks — like we do in Small Cap Rockets — altcoins shouldn’t be that big of a leap for you…
The patterns aren’t that different. Being able to read charts can give you a nice head start in trading crypto.
Just like with stocks, crypto runs when bullish patterns develop.
What Are My Strategies for Trading Crypto?
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I like going into coins that have momentum behind them.
Momentum means money and volume. Cryptos with enough of each have a good chance of running…
Of course, nothing’s guaranteed, just like with stocks. The insane volatility in crypto can be a good or a bad thing.
I like using the former runner strategy I learned from trading stocks.
When an altcoin has a huge run-up and starts to lose steam, I start watching. Once those bearish trends start to turn bullish, I’m ready to make a move.
Some crypto trades take time to develop. Some can go parabolic in a day or two. It all depends on the setup and the hype.
Learn more about my approach to trading altcoins in a free webinar on November 4, at 8 p.m. Eastern. Sign up for my Crypto Moon Jumps event here!
Conclusion
Crypto is volatile — which makes it fun and scary to trade. But to me, trading altcoins isn’t much different than trading penny stocks … You need to know the patterns, trade safely, and have a strategy.
And with crypto going crazy, now’s the perfect time to start learning how to trade it.
Opportunities like this don’t always come around often in the crypto space. A few good months could be followed by a long drought…
So study up and join in on the fun!
What do you think about crypto? How likely are you to trade it? Let me know in a comment below!