In the cryptocurrency market, there are a lot of strategies that can be used to gain profit, especially during a bull market.
One of the strategies that investors or traders use is a strategy called The Moon Bag, which is essentially a strategy to gain huge amounts of profit that is going to be discussed in this article.
What is a Moon Bag Strategy?
Moon Bag refers to a term holding a crypto in a significant period of time with the hope of that crypto giving huge amounts of profit.
The term Moon itself refers to the jargon that is famous in crypto space which is “to the moon”, often used by crypto promoters or hopeful holders that predict that their crypto will go significantly higher than it is currently.
Bag itself refers to the portfolio of the holder, where the term holding your bags means holding your crypto in your portfolio so essentially, moon bag means holding your portfolio until your crypto increases significantly.
Using this strategy investors and traders are usually asked to be patient while waiting for their crypto to go up.
But, in this strategy there is only a certain amount of crypto that can be considered moon bags, so not all holders are considered using the moon bag strategy.
How to Analyze for Potential Moon Bags
Moon Bag Strategy only involves cryptocurrencies that have a significant potential of going up in their price, giving profits to the investors because of their price gain.
Most of the cryptocurrencies that can be considered moon bags are the ones that have a more than 100% potential price increase.
To find these kinds of cryptocurrencies there are three things that can be done to find them amongst the thousands of cryptocurrencies in the market
Look through the Fundamentals and Technicals
The first one is to find the information around the crypto itself and analyze it using fundamental analysis and technical analysis.
Fundamental analysis can give a great insight into the crypto itself, whether it has future potential or is it just another pump and dump scheme.
The information gathered from the analysis itself can determine the way investors or traders approach the crypto, is it prioritized for long term holding purposes or is it just a quick pump and profit strategy.
There are many applications that can be used to do fundamental analysis, but the simplest one is to look at the whitepaper and determine if it is a long term or short project and whether it has good technology behind it.
The technical analysis can be a complimentary to the fundamental analysis as it can give a certain target for buying entry and profit taking.
Overall these simple analyses are the most normal ones, because there are a lot more complicated ways out there.
Look for Potentials on Twitter, Telegram, and Discord
The more time consuming and advanced one is looking through social media such as Twitter, Telegram, and Discord to find potential projects in the crypto space.
This is all done by joining communities and following informational accounts especially on projects that are being talked about often or are giving signals of potential price pumps.
Looking through all of these platforms is a more degen way of approaching the Moon Bag Strategy because it requires more dedication, including talking to community members to make yourselves known and potentially getting early information from becoming a known member in the community.
These platforms are the most used ones to talk about crypto, so it can be beneficial to scroll around and engage with any community that talks about crypto, even the community of the project you're researching itself.
Use a Crypto Screener
Lastly is to use a crypto screener which is more advanced than the previous two. By using screeners, there is a possibility to see what cryptocurrencies are pumping.
This is because screeners give all the relevant data of the crypto itself, including transaction volume.
By using screeners, investors and traders can look for volumes of cryptocurrencies that are currently increasing, so they can get in when the price is going up and can potentially detect where it's going to stop by looking at the decreasing volume.
Screeners are a great tool as it can provide data from different blockchains all in one place, so it can be utilized by degen to hunt for potential moon bags.
Conclusion
Overall, the strategy itself has a high risk because not all crypto will go up as most crypto that are considered moon bags have higher volatility.
So it is better to use careful risk management when approaching these kinds of crypto and strategy so you can maintain your capital for the long run.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.