It’s a bird … It’s a plane … It’s…
For those of you not following the current insanity in the crypto markets, let me break it down for you…
My name is Matthew Monaco. And before we go any further I have to tell you that I’m not a financial advisor. I’m not a professional trader. And I am not (nor have I ever been) a Dogecoin or cryptocurrency investor.
But I am a pretty good trader…
Table of Contents
My Trading History
In the last four years, I’ve turned a starting stake of $2,000 into over $1.6 million trading penny stocks.*
But trading penny stocks comes with some limitations.
First, the market is only open from 9:30 a.m. to 4 p.m. Eastern on weekdays. And unless you don’t have a job, that can make active day trading difficult.
Also, penny stocks leave two full days open — Saturday and Sunday. Those are two days that most people have more time to sit down and trade. And when the penny market’s slow, you don’t have much to trade…
Faced with these problems, I set out on a journey to turn the penny stock strategies I learned from Timothy Sykes and apply them to the world of cryptocurrency.
Matthew Monaco and Timothy Sykes © StocksToTrade 2021
Rocky Transitions
I wish I could say it was a smooth transition from penny stocks to crypto. Or that I immediately made money trading cryptocurrencies…
But that’s just not true.
I had a significant learning curve. Granted, I think the trading foundation I had from penny stocks sped up my personal learning curve. But it wasn’t all sunshine and rainbows.
However, through trial and error (LOTS of error). I managed to develop a system with three steps. This system allows me to take advantage of something I call the Coinbase Effect.
**But before we get to that, I think this is an appropriate time to state I DO NOT trade cryptocurrencies for anyone else. These are personal trades. If someone messages you on social media asking for cryptocurrency, it’s a scammer. Block and report them.
With that out of the way, let’s break down the basics…
The Coinbase Effect — The Foundation
On April 15, Coinbase (aka the Robinhood of crypto trading) went public on the Nasdaq via a direct listing.
This direct listing shot cryptocurrencies into the mainstream media. Every major news outlet — Forbes, CNBC, Fox Business, ABC, you name it — became an “expert” on crypto.
Then, everyone and their mother began talking about Bitcoin or Ethereum. That’s AWESOME, but to me, that’s not where the REAL opportunity lies.
Instead, I’m talking about the “penny stocks” of the crypto markets…
Altcoins.
Unlike the larger cryptocurrencies, altcoins have tiny market capitalizations. Sometimes under $1 million dollars.
With such a small supply, the potential percent returns of altcoins are MASSIVE. Larger than the percent returns of penny stocks. It’s the Wild, Wild West.
And in the last six months, I’ve made over $150,000* trading altcoins using my three-step system. No, those results aren’t typical. But I want you to see what’s possible with a solid trading and market foundation.
And you can learn about my powerful system. Timothy Sykes invited Kyle Williams and me to a LIVE event. Here’s how I find and trade crypto in three simple steps…
Watch this free crypto training now to learn my strategy.
Funny enough, this exact phenomenon is what sent Dogecoin to the moon.
While the richest man in the world and now self-proclaimed “Dogefather” may have started this run…
I think Coinbase’s direct listing played a significant role in the now-infamous DOGE coin supernova run.
Don’t believe me?
The DOGE Run
Image: Margaret Jung/Shutterstock
The day after the COIN listing, DOGE broke out from its base around 6 cents and doubled to over 14 cents.
Coincidence? Hmmm.
But Dogecoin was only the beginning. Within HOURS of the Coinbase listing, a handful of altcoins began to go parabolic…
And then there’s Ethereum Classic (ETC)…
ETC went on one of the biggest altcoins runs to date from sub $20 to over $143.
You don’t see that often in penny stocks!
Next, we have an altcoin called Maker. Two days after the Coinbase listing, Maker exploded from a base around $2,200 to a current high of $6,391.
And here’s the best part … I believe this is only the beginning.
With more eyes, more traders, and more institutions involved in the crypto market than ever before…
We could be on the verge of a huge crypto run.
Plus, history is on our side this time…
Image: SPF/Shutterstock
What You Must Know About Bitcoin
Every four years, like clockwork, Bitcoin enters a bull market. The first run dates back to 2013…
Then it happened again four years later in 2017. That’s when Bitcoin famously hit $20,000 in December before falling nearly 90%…
Now it’s 2021 — four years after the last crypto run. Bitcoin has already hit a new all-time high of $63,729.50.
I’ll talk about Bitcoin’s four-year cycle in more detail in a future blog post. For now, a simple Google will answer most of your questions.
Now, let’s get back to my three-step system. It all starts with Coinbase.
Earlier I said Coinbase is like the Robinhood of the crypto market. I didn’t mean this in a bad way … It’s just that Coinbase has made it very easy for the average person to purchase crypto.
However, the cryptocurrencies Coinbase offers are limited. Which is why their direct listing plays a crucial role in my three-step system…
The money Coinbase raised from its listing is allowing the company to list upward of 100 new altcoins.
That’s money to my ears! Here’s why…
When a new crypto coin is uplisted to Coinbase, there’s a massive influx of money. For many, this is the first time they’re safely purchasing an altcoin. This is where my three-step system comes in…
Step 1: The Uplist
Unfortunately, it’s basically impossible to catch these moves.
I’ve been trying for months. But, that’s OK.
A new uplisting to Coinbase is only the first step in my system.
Often, newly uplisted coins will see a near-instant 100%–500% spike. So I let all the dumb money flood into these news coins. I don’t succumb to FOMO.
Instead, I wait for…
Step 2: The Pullback
After the initial spike, I wait for a pullback.
I don’t have a hard value for the size of the pullback…
But I like to see a newly listed coin hold at least 50% of the initial spike.
The pullback phase can be as short as 24 hours — like it was with my STORJ trade…
Or could be upward of two to three weeks like it was with my NU trade.
The point is I’m waiting patiently like a sniper for…
Step 3: The Breakout
This is the final step of my system…
Step 3 begins with a momentum shift. The newly listed altcoin shifts out of its downtrend and begins to trend up toward its high.
This shift is my buy signal.
From here, I let the trade ride for as long as possible, selling small portions of my coins along the way to lock in gains, risking the pullback low.
In fact, as of this writing, I locked in my largest crypto gain to date … RLC: 189%, $56,829.*
The entire trade lasted less than 48 hours!
I entered at $4.21 on Friday, May 8, and locked in my last coins at $18.88 in the afternoon on May 10.*
Oh yeah. Weekend trading is awesome — when you’re prepared for the momentum.
Matthew Monaco, Timothy Sykes, and Kyle Williams © StocksToTrade 2021
It’s important to understand that not every trade is this quick or simple. I was prepared and in the right place at the right time…
That’s the power of learning my three-step system. You can put your own trading and crypto education to use.
Well, I think that’s about it for today. Thanks for reading this far.
And if you haven’t yet…
Check out this webinar I did with Timothy Sykes and Kyle Williams
It’s where I break down my system in more detail with more examples.
Until next time,
Matthew Monaco
Leave a comment! Have you ventured into the crypto markets yet? Let me know below!
Disclaimer
*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.