Alt Coin Trading

There's always hype around Altcoins and rightly so, consider some of them can move 1000% in less than a week.

Typically the market has shown us that Altcoins come to life under certain circumstances.

When BTC is rising in price, it tends to pull the rest of the market with it. However, in such times it can be simpler to trade BTC.

When BTC drops in price it will pull the market down with it as well.

When BTC is range bound and consolidating sideways, this is the most likely time for Altcoins to breakout.

Now the overall principles of TA still apply to trading Alt Coins, with some additional steps.

All Altcoins tend to have both a BTC and USD/T pair. Bitcoin was originally the first underlying pair that provides Altcoins with a spot price.

For this reason, you should chart both the BTC and USD/T pair for any Alt you wish to trade.

This tutorial will further explain the process.

Time Stamps

3:00 – PREVIOUS BTC TRADES

• Plan the trade and trade the plan
• Daniel explains his scalps – very insightful
• When you scalp trade and price pulls back very quickly and takes the low, it is very likely to bounce

11:11 – LINK/USDT COTW

• Daniel charts LINK/USDT from scratch

26:48 – ALTCOIN TRADING

• Daniel always charts altcoin/BTC pairs when trading USD or USDT pair
• The BTC pair is the underlying spot price of the altcoin, that’s why it always has to be tracked.
• If the altcoin/BTC pair is at resistance and altcoin/USDT is at support it is not a good idea to buy the USDT pair. The BTC pair may retrace in this case so one should better trade BTC in this case as it will be outperforming the altcoin.
• It does not make sense to trade USD or USDT pairs if you do not track the BTC pair first
• It is recommended to trade fewer altcoins (up to 5) and do a proper TA on them.
• You also need to know whether you prefer more BTC or more USD value.

39:54 – EXAMPLE ON LINK

45:30 – Q&A

• Daniel uses log scale for volatile assets
• It is best to trade altcoins when the BTC price is going sideways
• DXY and USDT/alts are inversely correlated

1:01:40 – SUMMARY