There's always hype around Altcoins and rightly so, considering 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 Altcoins, with some additional steps.
There's always hype around Altcoins and rightly so, considering 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 Altcoins, with some additional steps.
All Altcoins tend to have both a BTC and USD/T pair. Bitcoin was originally the first underlying pair that provided 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.
Key Points of the Lesson
UTILITY
Paramount to chart the Altcoin/BTC pair.
Determine whether the Altcoin can outperform BTC.
Focus on few Altcoins, but trade them well.
IMPLEMENTATION
Always track and chart the Altcoin/BTC pair.
Then move on to Altcoin/USD(T) pair.
Trade less Altcoins, no more than 5 recommended ⇒ need two charts per altcoin.
PRACTICAL EXAMPLE
TIPS & TRICKS
It makes little sense to trade the Altcoin/USDT(T) pair without tracking the Altcoin/BTC pair.
If the Altcoin is not outperforming BTC ⇒ trade BTC instead.
Can trade Altcoin/USDT pair on Bybit ⇒ based on Altcoin/BTC analysis (Binance).
TAKE HOME MESSAGE
Altcoin/BTC pairs are a must to chart.
Trade less Altcoins.
But trade Altcoins better.