Introduction to Trading Crypto
Bitcoin can be bought and sold, that is, it can be traded on crypto exchanges for profit and loss. Profit, or extra income, is my interest. Go #crypto #bitcoin #btc #xbt.
This site started as a simple journal of my ongoing experience, and a shortlist of dos and don’ts. It is my growing knowledgebase for how best to trade crypto assets, that sort of thing. Documenting what I figure really helps me see my progress, avoid making costly mistakes, and become a better trader.
So, peruse the site’s content and get a good start at trading bitcoin.
At the same time, nothing on this site presents financial advise to visitors or members. Please know that I am far from being a pro and am no certified financial adviser. I am a simple speculator on a shoestring budget and do not mind sharing with others what I have come to understand.
As such, I find myself not holding positions for very long, but swing trade a lot, and occasional day-trade & scalp a bit. That’s just how my sense and sensibilities pan out. “A bird in the hand is worth two in the bush.” True? I think so. Which way are you leaning?
In spite of that, or otherwise, please read on.
Is trading Bitcoin not like gambling?
Well, while playing roulette, a player is at the mercy of chance. While playing poker, a player needs to know when to hold ’em, when to fold ’em, and when to walk away. While playing bitcoin, a player better remembers Kenny Roger’s song. Yes, it sometimes feels a bit like gambling, although a crypto trader has a lot of control – not over price, but over his or her trade execution.
Basic and In-depth Content
All the basic explanations about chart patterns, candlesticks and technical indicators, etc., are freely accessible on this site. Why not, most of it can be found elsewhere in the cloud. But a novice must be careful. Simply “digging the free stuff” does not make anyone a successful trader.
Free stuff is promoted everywhere in the cloud to make a newbie feel instantly confident in buying and selling assets like stocks, forex and crypto. That then gets the beginner to join and pay trading platforms and/or paid membership groups their fees – to make them wealthier first and the trader second at best.
As a new trader, please understand that profitable trading takes a few years of learning.
As a novice, I got my start with bitcoin in 2013 on the now defunct Mt.Gox exchange, and restarted my swing trading on Coinbase in Winter of 2017. Coinbase is a simple, easy-to-use spot exchange and fiat on-ramp to buying bitcoin and/or some altcoins.
Have I made some Money in the past while trading Bitcoin?
Yes, no big deal. Have I ever lost some money? Yes, as well. Nobody makes money on every trade all the time. Here’s why.
“Because I have a tendency to be overly optimistic and get overly excited about something that is too good to be true. Then I do not pay enough attention to the basics. Too many times did I believe that I deserve a break and great fortunes finally must be heading my way. FOMO (the Fear Of Missing Out) had gotten the better of me on many occasions. Sometimes I am greedy and I want it all so badly.”
I say all that only to make my case in point. The above mentioned realities are ever so persistent in many a professional trader’s life. These are what trip up beginning traders alike. Keeping emotions in check is key to doing much better! That, though, will take a bit of experience.
In any case, a few successful big trades will usually more than compensate for the smaller, losing trades.
Technical Indicators, Chart Patterns, & Candlesticks Formations
Do they work? Will they make me money? Which ones are the best? Here is my opinion: yes, they work like a tool. But it is not the tool that builds the house, it is the craftsman. And the craftsman needs to know when to use a hammer and nail and when to use a screw and driver.
Technical indicators, chart patterns, and candlesticks formations are only derivatives of price action. They are a bit like smoke, which is indicative of something burning.
At times it is fog that a trader is looking at, and not even smoke. But if it also smells like smoke (confluence), something might be on fire. Small fires might get larger, or not if it starts raining. So, do not just be binary in your thinking (up or down) and expect to encounter tons of subtleties in your trading.
I might have an inkling as to the level that price will go to, but I never know how it gets there. I might be able to correctly guess price’s temporary destination, but not the exact path it will take to get there.
It’s a psychological Battleground
The digital asset market, like most any other financial asset market, is a psychological battleground.
Do you have what it takes? What does it take? Patience, patience, patience, some smarts, an analytical mind, and something totally different to balance out the unavoidable stress. A dog, a mate, friends, family, a real hobby. Something.
And you will eventually encounter your predatory instinct, if you have one at all.
Manage Risks to avoid losing Money
You need not be a trading machine to be profitable. It’s OK to be on the sidelines and just watch. It’s OK to be in cash in your trading account, that is in USD or stable coin. It’s OK to wait for an opportune moment and then pounce. It’s OK to only make a handful of trades per year. Golden opportunities are not that plenty, but a few are always coming down the pike.
To start off with, be cautious and do not yet trade long or short on margins, that is with borrowed money. In my first year of trading, I did not buy long with leverage or short the market. It’s OK to let others be heroes, daredevils, and trailblazers.
Do not ever “sell the farm” for crypto; but ease yourself into wealth.Are you ready?