1. Start with a sum that I can afford to lose.
2. Register with a few reliable exchanges - have registered and passed verification at some, although some more are overwhelmed now and not sure, when they'll recover.
3. Define the goals - at first, I just want to earn the same fiat value that I had initially invested and still have the same fiat value of coins left (to aim for double value, essentially). I'd like to collect small gains by selling small amounts of coins and keeping whatever I feel like ready to lose (or not win, because, technically, if/when I get back my initial amount, I'm already at 0 loss).
4. Choose the best coin(s) for my strategy (see below), and find an exchange supporting the coins.
5. Get my money onto to the exchange as cheaply as possible - I'm in Europe, so SEPA transfer might be the best way, but will have to wait a few days and also might need additional IBAN verify with some small amount. Still, maybe better than instant bying with a debit card and paying 8% fee.
6. Keep the coins out of exchange - ok, have set up some wallets and played a bit with settings to get familiar.
7. When selling, also account for local capital gain taxes (23% in my country, as explained by consultant when asked about income from exchanging cryptocurrencies) - thus I might gain less than I initially accounted for.
My strategy follows.
At first, wait for low. I guess, in February things might have settled a bit after December's craze? Maybe people got too excited during Holidays? Not sure, what happened so suddenly. Then I'll buy some (see point 1), wait for high (ideally, double
), sell the amount that has fiat value over my initial investment. I'll wait for periods when it's going solidly up but won't wait for record high because then it might suddenly fall or people might sell / buy like crazy and all exchanges will be overwhelmed. So, I need at least a few days of solid rising to be sure that I can sell. 50% might be a good point to cover possible fees and differences and still gain something. If less than that, then better wait some more (forever in the very worst case). After that I'm not sure, maybe I won't buy anymore but just wait and collect income, as long as the coin is going up, keeping the coins with fiat value I invested initially. Or I might start trading more actively, but still carefully and holding for long periods. Anyway, I'll stay away from day trading.
It seems, currently low but popular altcoins might be better fit for my strategy because they have more chance to double at some point and keep at that level for longer than just a day? Or am I wrong?
What do you guys think? Is it all any good?