Catch coin is one of the popular coin trading techniques in the Crypto market. The profits from these campaigns are huge. However, not every trader is qualified enough to do it. Below, Crypto Trading will reveal the basic tactical secrets of this Crypto money-making method, let’s see to “catch the bottom” successfully!
Catch coin: Crypto money-making method is favored by many traders
Catch coin is also known as “Buy the dip” which means buying at a reduced price, even the lowest price, the bottom price. However, do not think that the market is currently at the bottom. It could be the bottom of an uptrend. Or it is the price of a stable market and after reaching this price, the price will bounce back extremely strongly.
When traders implement a bottom fishing strategy, they will conduct a very specific Crypto technical analysis. The goal is to find a major price correction in the market. The more volatile the price drop, the higher the profit will be.
For example, we can see that BTC in 2013 increased 500 times compared to 2011. This increase continued the miracles from 2019 – 2012. However, by 2014, BTC prices decreased 3 times compared to 2013. By 2015, it decreased 15 times compared to 2014.
These are the best times for traders to catch coin. If they predict correctly that this slowdown is a preparation for the next price increase, traders will gain huge profits. And when 2016 – 2017 came, the price of BTC suddenly increased more than 100 times and investors could gain the biggest profits.
See more: How to “get rich” thanks to crypto trading for trader
Coin trading techniques: How to catch the bottom effectively?
Many traders believe that Catch coin is a scalping crypto strategy. Although bottom fishing seems to be done in a flash, it is not a surfing strategy. Because after bottom fishing, traders have to wait quite a long time to be able to sell for profit when the market converges all the necessary factors.
Making money Crypto with bottom fishing will be done through specific methods:
- When the price drops, start buying and gradually increase the volume of your purchases as the price drops further.
- When the price gradually stabilizes and shows signs of recovery, continue to place buy orders after testing the reaction to the support level.
- Place buy orders below the support levels because during this price testing phase, this is the best strategy. Soon, the price can jump higher and you will make a profit.
This method is based on the principle that a coin that increases or decreases in price needs a long period of accumulation. For example, if it is in an uptrend, the uptrend can last. The downtrend is just a period of price stagnation. Therefore, bottom fishing is not about choosing the time when the market drops the most to buy but choosing the time when the price is lower than the average price of that coin in a certain period to place an order.
Summary of 3 secrets to help traders Catch coin effectively
How to Catch Coin Effectively and Achieve the Desired Profit? Here are 3 Secrets That Experts Always Follow:
Build a pricing strategy by identifying market trends
Ideally, you would catch the coin when the market is stagnant and the price then peaks. However, this coin trading technique is not easy because the market is always volatile. Therefore, it is important to have a specific pricing strategy. What is the market trend and is your strategy to strike quickly and exit or hold for the long term?
Once the market trend is identified, the trader can decide whether it is a good time to buy the bottom or not.
Crypto Technical Analysis on Why Coin Prices Are Falling
The decline in coin prices will determine when traders place bottom-fishing orders. Therefore, you need to learn and analyze Crypto techniques about this. Is the asset price falling sharply due to manipulation by sharks, or due to important news? Depending on each factor, the price will fall deeply or shallowly, for a long or short time. When analyzing in detail the factors that cause the coin price to fall, you will evaluate your bottom-fishing strategy more effectively.
Therefore, following related news is very important when catching a coin. Because bad news will cause the coin price to continue to fall sharply afterward. On the contrary, good news can cause the market to recover quickly. At this time, your bottom-fishing opportunity will not be optimal.
Setting a stop order: safe bottom-fishing coin trading technique
To optimize performance, traders can place a Buy Stop Limit order so that the order is matched when the price reaches the desired point of the trader. What is buy stop limit order? It helps you not have to sit and “watch” every market fluctuation but still place a buy order at the desired price.
In every coin trading technique, what traders want is to make a profit. However, nothing is 100% certain and there will be unexpected incidents. At this time, you should be mentally prepared for all situations by setting up stop-loss and take-profit orders safely. Grasping profits is the most correct strategy. Never expect everything to be perfect as desired.
Is it possible to catch coins when the market is bearish overall?
It is very difficult to execute a coin-catching strategy when the market is down. Bottom fishing strategy can destroy everything if you expect to make profits in the short term. In the long term, everything is unpredictable because it depends on the coin you are choosing.
Each asset will have a different path. To effectively catch the bottom in a falling market, you should choose large coins with stable growth potential. At the same time, build a long-term holding strategy, accept buying when the market is down, and wait a long time to make a profit.
The big risk when bottom fishing is speculation. For example, if you have a good pricing strategy, think the price has hit bottom, and buy. However, the worst scenario happens when the price of the coin continues to fall sharply for a longer period. Therefore, the safest thing to do is to bottom fish in a bull market.
See more: MEXC: Open a MEXC account, invest effectively
Some important notes when Catch a coin
Making money Crypto with Catch coin will be done more effectively when traders note:
- When the market is too chaotic, pending orders should be prioritized. Executing market orders at this time, traders may face slippage pressure.
- It is necessary to determine whether the market is in a stable and long-term uptrend. The purpose is to find the bottom-fishing waves.
- To understand the trend and execute a successful bottom fishing campaign, the MACD line is an ideal tool to support.
- Use the moving average at the bottom to determine the volume you will buy.
- It is advisable to look at price movements over at least 3 time frames to assess the overall market.
Conclude
Catch coin strategy is worth trying but not easy to achieve success. You must identify the right price trend, and consider the risks involved. In any case, you must always emphasize technical analysis to make the right decision. Follow more articles on other ways to make money with Crypto from Crypto Trading to learn more attractive coin trading strategies.
FAQs
When is the bottom fishing strategy effective?
Bottom fishing is safe if the trader does it in a stagnant market or a bullish market.
How long does the market have to rise to safely catch the bottom?
Traders should look at the overall market for at least 3 months and 6 months for slower-growing assets.
Which technical analysis tools should be used to analyze the market?
Using MACD, support, and resistance lines for technical analysis helps you have the most accurate entry points.
