Today I want to talk to you about how to do a gambling business by trading with low market-cap cryptocurrencies, but in a way that we will define "conscious". Why this definition? Well, for the simple reason that I will explain how to do it without incurring considerable losses for your portfolio.
Small market-cap or newborn coins are very volatile and allow you to make big gains (and losses) in a very short time. To name a few: #Safemoon, # Shiba-Inu, # Akita-Inu etc.
When trading these currencies you have to be very careful because of their volatility and the fact that they often see their price pumping even without a valid reason. By riding these "pumps" it is possible to make huge gains, but you must first conduct a careful analysis. There are some points that cannot be missed in the initial analysis, here's how to do it:
Compartments: First of all, you need to divide your investment portfolio into compartments and reserve a part of it for this type of trading. The amount dedicated to gambling must be decided at the beginning and must be respected in any case. it is important to use a small amount of money for these trades, considering it lost from the start.
Evaluate: it is necessary to take into consideration a limited number of coins on which to invest and divide the dedicated part of the gambling portfolio. once identified, for example, 10 coins, the investment must be shared equally, possibly providing 2 or 3 different inputs in order to mediate the downward load price.
Betting: in this phase we physically invest, using decentralized exchanges such as Uniswap or Pancakeswap, as the coins we are looking for are hardly already present on traditional exchanges such as Binance or Coinbase.
Rebalancing: Once the profit (or loss) has been made, the position must be closed and the portfolio must then be rebalanced, i.e. re-establishing the percentages decided at the beginning of our strategy for the other currencies, by selling or buying currency up to the established quantity. This leads to greater optimization of the portfolio's performance over the long term.
Warning: this is not an investment advice but a starting point to draw a strategy evaluated by each one individually!
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