The theme of the week here has been how to profit in the short term or passively while we "hold" for the longer term. Last week, we talked a bit about splitting up your holdings into categories. One of those categories was short term trades.
Some cryptos are extremely undervalued at lows that they have not been at in a while. One thing we like to do is trade these bounces when a crypto hits a low that it has not been in a while, it tends to recover a bit, then, may stabilize or go even lower. So, one strategy is shorting some of these cryptos when they are heading down on platforms that allow shorting. However, if you get cryptos for a really low price, you can hold for the longer term, or sell when it pops up 20%, 50%, or more.
Let's take Litecoin (LTC) for example. It hit about $108 in early Feb. Then, it went up around $245 by the end of Feb. You could have more than 2x'ed the value of your position. However, you could have sold at any point, such as $150, on the way up and still gained 50%. When you get good pricing on a crypto the risk is much lower when you are trading in and out. Litecoin is almost that low again. Also, if you are getting solid cryptos, even if they go down a bit further and you have to hold longer, the likelihood they will go back up is much higher and in the longer term even past previous all time highs.
TOP CURRENT UNDERVALUED CRYPTOS
Here are a few cryptos from yesterday plus more that are highly undervalued right now.
Lisk (LSK)
Cardano (ADA)
0x (ZRX)
Steem (STEEM)
Litecoin (LTC)
Stellar (XLM)
Neo (NEO)
NeoGas (GAS)
