My Thoughts on Crypto

by | Nov 3, 2021

With the market heating up, it’s time to revisit crypto plays.

This has been a huge sector in the past. I recently gave you all an update on my newest crypto strategy. 

Today, I want to discuss my general thoughts on the sector as a whole. That includes my opinion on trading actual crypto and crypto stocks.

If you have no idea what the difference is we’ll go over that too… 

Crypto? Coins? Stocks?

I day trade penny stocks, usually those listed on Nasdaq or NYSE. Sometimes I dabble in the OTC market and other unlisted stocks.

But there’s another niche that you need to learn about — crypto.

Trading crypto is sort of like trading stocks. The charts can be very similar and so can the patterns.

But instead of trading shares of a company, you’re trading coins. Bitcoin is an example of a cryptocurrency and arguably the best-known coin. Here’s a quick breakdown:

Stock Market

  • Listed stocks (Nasdaq, NYSE)
  • Unlisted stocks (OTC, pink sheets)

Crypto Market

  • Coins (bitcoin, ethereum, dogecoin, etc.)

Also, momentum in crypto can spark penny stock runs. You’ll start seeing companies drop press releases with mentions of blockchain, mining, and other crypto terms. That’s a great reason for traders to follow bitcoin and crypto trends.

It’s also good to keep up with the big picture. Here’s a smart question to ask…

What Spikes Crypto?

This sector is volatile. Coins can run hundreds of percentage points in days.

The best way to catch one of these runners is to identify a catalyst. That’s the reason why it’s spiking. Yep, just like penny stocks.

So what sparks coin runs? There’s no shortage of crypto news. Watch for government regulation, crackdowns on mining (like in China), Twitter action, and bitcoin runs. That’s the short list. There’s plenty more to watch.

Again, all that action can spill over into penny stocks.

But sometimes coins — like stocks — spike without catalysts. Like stocks, I wouldn’t try to play those. They fail more often and can be unpredictable.

Now, I’m not exactly a crypto wiz. But, lucky for you, another one of Tim Sykes’ millionaire students is. 

What to Trade in Crypto Land

I’m a little biased — I like trading penny stocks. 

So when I see bitcoin or other crypto news, I check to see if there’s spillover momentum in penny stocks.

Will I trade crypto and altcoins? I don’t see that happening now, but who knows.

If I do make the switch, I want a solid foundation going in. I suggest you do the same, whether you trade stocks, crypto, or both.

That’s my goal as a mentor: I want to share everything I know about trading with you so you can build your foundation.

Monaco shows us it’s possible to apply penny stock strategies to the crypto market. But remember, he spent years studying first.

Like I said, these are volatile markets. That works as a double-edged sword. Be prepared.

Parting Thoughts

Crypto has seen some wild tears this year. Just look up bitcoin’s chart. And think about all the viral coins, like dogecoin.

Then think about how that affects stocks. I see a lot of overlap with penny stock action here.

The most important piece to me is practice. I’m good at spotting catalysts and trading penny stocks because I study and practice a lot. It’s something you’ll do your entire trading career.

Mentors can help you direct and focus your efforts, sort of like a coach. But the work is ultimately up to you.

Trading — no matter the asset — is NOT an easy industry to survive. You don’t have to go on the journey alone. There are people who have walked the trail first.

Learn from their mistakes and successes to learn faster.

Mint your method,

Roland Wolf

Editor, The Wolf’s Den

About Roland

Originally from Arizona, Roland started trading after a career-ending ankle injury forced him to quit pro soccer. After a few years of hard work, he managed to turn $4,000 into over $1.2 million.

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