Your Solana trading strategy could help you to become a millionaire. However, you should always do your due diligence when you’re trading any type of crypto. There are no guarantees in crypto trading and the Solana blockchain has a few disadvantages.
How many Solana do you need to be a Solana millionaire? That depends on the exchange rate. A few months ago, Solana was at $177.
In March, 2022, Solana is at $86.92. In this article I’ll tell you about my own experiences with trading Solana.
Is Solana the next goldmine?
There are some people who think that Solana is the next goldmine. Here at EA trading Academy, we don’t recommend any particular type of crypto. However, I’ll tell you why traders like Solana. I’ll also share my Solana trading strategy.
Several traders compare Solana to Ether. At the start of the pandemic, ETH was just below $100. Since then, Ether reached an all-time high of $4,867. It’s currently trading at $2,598.
Solana Trading Strategy – Calculate How Many Solana You’ll Need
I’m not a financial advisor. Don’t take what I’ve written in this article as advice. However, I’ve done my own calculations to find out how many Solana it would take to become a millionaire.
So, if you have $1,000 and you want to use that to buy Solana, the amount of SOL that you get will vary depending on the price. For example, if Solana is selling for $177, you would get 5.6 SOL
Cryptocurrencies always have retracements. If you look at the most recent retracements that Solana has had, you’ll see that there was an amazing move back in September. I caught that one and made some great profits.
Solana Trading Strategy – Buy During a Retracement
Retracements or price drops, happen in markets for several reasons. For example, the market might be bearish or people might be starting to panic.
Retracements always take place. The price never just goes in one direction. For example, the recent retracements took the price back as much as 46%.
If you enter the market during a retracement and then the price goes up, you’ll have the opportunity to make a sizeable profit. For example, with Solana, if you bought it at $129 you would have made a profit of at least 100% as the price moved up to $258.
Repeat the Process
After the price went up, SOL lost over 40% again. The price went down to 156. If you bought at that price and held your crypto until SOL went up to 308, you would have made almost 100% in profit.
At that point, it would have doubled your investment. So, if you started with $1,000 you would now have two thousand dollars.
If you invest that $2,000 in Solana again when the price drops another 40%, you would double your investment twice. If you repeat this process, you could eventually become a Solana millionaire. You would have to do that 10 times to reach a million dollars, if you started with just $1,000.
How many times will Solana keep doing that? How many times will it lose 40% and then gain 100%? I don’t know and I can’t predict that.
You can also check if Ethereum is doing the same thing. If so, you would use the same strategy as with Solana. That is, you would wait for the price to drop 40%, enter the market and then wait for the price to rise 100%.
I would keep the profit from my Solana trading strategy in USDT. This is a simple strategy. However, I’ve been using it for many different cryptos and it works for me.
Solana Trading Strategy – Monitor Rankings and Market Capitalization
Sometimes, you may only use the strategy around four or five times with a particular crypto. After that you might want to change because another crypto gets into the top 10. For example, you might switch to LINK.
Always look for a crypto that loses around 40% and then increases in price by around 100%. However, Ethereum and Bitcoin don’t follow that retracement pattern. That’s because their market cap is very big.
Bitcoin has only lost close to 50% once. That was when Elon Musk had made some comments on Twitter back in 2021. Ethereum also lost around 40% of its value once. So, my Solana trading strategy might not work for Ethereum.
However, I don’t see those drastic reductions in price happening often. That’s because both of these cryptos have large market caps. A lot of people are investing in them.
However, cryptos with smaller market caps will fluctuate more often. In fact, you should avoid some of them. Cardano has lost a lot of its value. So, it’s not a good idea to invest in Cardano in the near future.
I’ve been trading Litecoin, Algo, Chainlink, Bitcoin Cash and several other tokens. I just wait for them to drop 40% or 50%, buy them and then sell when they increase in price.
So, that’s my Solana trading strategy. It also works for me with several other cryptos. I know you might have some skepticism but you can’t tell me with 100% certainty that I can’t make a million with this strategy. So, let me know what you think in the comments below.