Understanding Bitcoin and Ethereum - Secrets to Boosting Your Portfolio without getting involved in Altcoins

Welcome back,

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Bitcoin and Ethereum are the top two cryptocurrencies in the world, and these two tokens alone collectively have approximately around 70% of the total crypto market capitalization. That is why, if you are able to understand how these two tokens perform, you can easily earn a good amount of money by trading just these two. You do not have to look into altcoins for short term trades if you understand the movements of these two tokens.

There are tokens that actually follow the movements of Bitcoin and Ethereum. I have been in the market for the last 7-8 years, and I have seen many tokens at different points of time that closely follow the price movements of Bitcoin and Ethereum. Recently, when I started investing in Ethereum ecosystem tokens, I realized that there are tokens that follow Ethereum’s price movement quite well.

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For example, the Lido ( LDO ) token and Ethereum Finance ( ETHFI ) token are two of the tokens that I personally hold in my portfolio. I have monitored them for more than a year, and I can confidently say that if Ethereum pumps by 10-20%, these tokens often perform even better.

So here is the thing, if you are able to understand the price movement of Ethereum and capture the bottom for a short period of time, you can make significant gains. For example, recently Ethereum dropped to 4250 USD, and because of that, the two tokens I mentioned above also fell. Ethereum Finance ( ETHFI ) dropped to 0.99 USD and is now trading at 1.27 USD, which means a gain of 27%, while Ethereum itself only gained about 5-10% only.

A 5-6% move in Ethereum since the dip was equivalent to a 27% pump in Ethereum Finance ( ETHFI). That is because Ethereum Finance is a low market cap coin, while Ethereum is a high market cap coin. When Ethereum pumps, its ecosystem gets boosted as well. That is why we often see different Ethereum ecosystem tokens pump when Ethereum goes up.

There are other tokens in the Ethereum ecosystem, but I have not monitored them as closely. You can look into them yourself. If you are looking to make profit, then I think Bitcoin and Ethereum are some of the best cryptocurrencies for trading. You must have a good amount of funds if you want to earn a decent income from trading Bitcoin and Ethereum.

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In fact, if you have a decent amount of money, you do not even have to look at altcoins. Just trading Bitcoin and Ethereum alone can be profitable. If you are someone with low funds, then you can explore Ethereum ecosystem tokens and make profit there as well. There is always a risk be it any token so make sure you do your own research before doing anything in the market.

The words I said in this blog are valid only for researchers and spot traders, if you are someone interested in futures then there is nothing I can do about it as that is the road full of risk and there while you might be among the very few percentage of people earning money, the max probability is that you will lose all your money especially if you are there without a good research of your own.

Thank you, and happy trading everyone.

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