What is Bitcoin?
Much like fiat money, bitcoin is a human-created value artifact and, as such, it is a new digital asset. Totally orchestrated. Some believe that bitcoin “will replace gold and the USD as the global reserve currency” within 20 years. I concur, but we will need to see.
Do we need a digital currency, or new digital asset? Regular fiat money (dollars, yuans, etc.) seems to work just fine for most – orchestrated as well or not.
But then again, fiat money suffers from inflation and is otherwise used by central authorities to keep tabs on their population. Fiat money is confiscatable, and it is slow and expensive to transmit to family and friends across borders. That does not bode well for many.
What will the future hold? Think about it, how did Luke Skywalker pay for fuel to power his starship out there? With gold or PayPal?
Extra Income: Profit from the Rise of Crypto
In the meantime, bitcoin can be bought and held (hodled), sold, and/or traded on crypto exchanges for profit and loss. Profit is my interest. Go #crypto #bitcoin #btc #xbt.
No, this site is not a bucketshop. Am NOT trying to sell you an expensive membership to shill technical analysis or buy signals, either! And I’ll refrain from unnecessary “pump and dump” messaging and schemes.
This site presents no financial advise and is simply a journal of my journey or experience, a shortlist of dos and don’ts, my growing knowledgebase for how best to trade crypto assets, that sort of thing. Documenting what I figured really drives it home for me as it helps me see my progress. It has helped me avoid making costly mistakes and become a better trader.
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 hodling 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. It’s my underdeveloped style. But…
“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.
Basic and In-depth Content
All the basic explanations on this site about chart patterns, candlesticks and technical indicators, etc., are freely accessible. Why not, most of it can be found elsewhere in the cloud. But as a novice, one must be careful. Simply “digging the free stuff” does not make anyone a successful investor or trader.
Free stuff is promoted everywhere to make a newbie feel instantly confident in buying and selling assets like stocks, forex and crypto. That then gets him or her to join and pay trading platforms and/or paid membership groups their fees – to make them wealthier first and the trader second at best.
Understand that profitable trading takes a few years of learning, etc. All the articles and books written about trading make novices think that they now know when they don’t. What takes years of experience is integrating these many learnt dots, or loose ends, in one’s mind to arrive at having some control, or an “edge.” Now, let that not prevent you from starting to learn today.
My growing insights into crypto trading, additional in-depth studies of strategies, a discussion forum, etc., are tucked away behind a login. A lot of that more-involved content is still unfinished, so I am not pushing registration at this time. I’d rather have a few join the journey one day than the many now.
Is trading Cryptoassets gambling?
Not so, IMHO. Roulette is gambling, yes. First, a gambler sets his or her mind on a number and puts money on it. Then the tiny ball rolls and falls into a numbered spot and the gambler, therefore, simply lives or dies by that random event of chance. Contrast that with poker. A speculator is dealt his or her cards first by chance, and only then does s/he makes up his or her mind. That is speculation because the player has some control after the random event (especially if you know what you are doing).
“Know when to hold ’em, know when to fold ’em, know when to walk away, know when to run.” Kenny Rogers in The Gambler
In the end, the crypto game is not as much about chance as it is about probabilities. Yet, even probabilities can’t always account for all variables, so be prepared. Trading crypto assets can and must be learnt.
Having said all that, I also understand that this type of auction market is not set up by and for us small retail traders. There are some really loaded and tricked-out folks operating their schemes in crypto (they can be found anywhere there is a lot of money involved). It’s all natural, though, and according to the meme recognized as “survival of the fittest.”
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.
It’s a psychological Battleground
The digital currency 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 – trust me.
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 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?