Crypto Trading Strategies: How to Profit with 3 Different Coins

Every reader will be well aware that the catalyst here is the ongoing SEC case against Ripple and the presumption that Ripple is highly likely to prevail. If and when that happens, XRP is expected to appreciate in price rapidly. This is not news to many. 

But there’s a real question that needs to be answered here. What are those investors expecting in terms of price in the days, weeks, and months following a favorable court judgment? Do they anticipate XRP’s prices will remain higher thereafter, or do they expect many investors to cash out quickly? If the latter occurs, XRP will peak rapidly and lose value just as quickly again.

That’s where I would put my money. Any investors playing that game should be prepared to cash in on XRP as soon as they can following a court judgment. Make those quick returns. Earmark some of that return for future investment if you truly believe in the long-term utility of XRP. But don’t risk the chance that those rapid gains evaporate.

Hedera (HBAR)

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Hedera (HBAR-USD) investors should follow a trading strategy that is similar to that of Bitcoin. That’s because Hedera should benefit from a similar decline in trust in all that is traditional.

In Hedera’s case, it’s more about looking for signs that institutions are going to invest in crypto again. It has lots of enterprise utility and use cases with some of the biggest firms out there. Let’s assume that another shock rattles the markets shaking trust in traditional finance. That leads investors away from the stock market and into Bitcoin, which is the most trusted cryptocurrency.

Institutions could logically then invest in beefing up their cryptocurrency functionality in order to reattract some of that investor capital. That would be a clear opportunity for Hedera with its track record of enterprise utility. So, in short, look for a flight of capital away from the traditional financial system prompted by another shock and a resultant reaction by institutions to become crypto-friendly again. If that happens, HBAR will rise in price quickly.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.