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A Beginner's Guide To Trading Cryptocurrency:
IF YOU ARE NEW TO TRADING CRYPTOCURRENCIES -THIS GUIDE IS FOR YOU!
FIRST THINGS FIRST!
Take my advice (and any advice you find on the internet) with a grain of salt!
DO YOUR OWN RESEARCH - DON'T JUST LISTEN TO PEOPLE YOU DON'T KNOW ON THE INTERNET!
If you're new to trading cryptocurrencies, the first thing that you need to do is read! There are tons of free resources all over the internet. Go and watch every video you can find, join numerous forums, facebook, and telegram groups in an effort to learn the best ways to trade crypto. On this site you'll find what I found to be many of the best articles, videos, and resources that I've come across that I've found to be helpful. After some intense studying, jump in and start trading small amounts to get your feet wet. Some of the trading strategies that I came across that I've found to be helpful to beginners were the QFL (Quick Fingers Luc) Base Breaking/Panic Selling and account building methods, and the rapid trading methods (read the guide in the pinned message of the rapid trading telegram group for more information on this method) that you can find out more about in the other sections of this website. The trades that you'll see in the examples below are somewhat of a combination of those methods. Basically you can look for situations where:
1) There has been a panic sell and the coin drops below an established base (support level) within a short period of time, normally a few hours, where you expect the coin will quickly jump back a few percent. L:ook at the average drops from previous panic sells and then set small (nibble) buy orders, knowing you might need to layer down. Then plan how much you're going to buy if the coin drops even lower (keeping in mind past support levels over the last 3-4 months) and then place limit orders to buy at those levels where you think the coin could drop even further.
2) A coin has been trading for awhile back and forth within a range with periodic high spikes up & down because of low volume. You then place buy orders in advance just above the bottom of the range and patiently wait (sometimes for days) for them to be filled. Once filled, place sell orders just below the top of the range and then patiently wait for them to be filled.
3) A coin has just dropped down to a strong base and there has been a good volume of buyers at that base in the past. In these cases just take a nibble knowing that it might break down below the base, and in the cases where it does, be prepared to layer down. Being able to layer down properly is key!
Below you'll see examples of 150 real trades over a two month period
Out of those 150 trades, there were 4 of them that broke even
and there were 146 that were profitable!
Most of the trades were only open for a day or two with only trying to get a few % profit on each trade.
Here Are Tips, Tricks, And Rules To Trade By:
Always do your own research and never just rely on what you hear from a friend or read on the internet!
ONLY INVEST WHAT YOU CAN AFFORD TO LOSE! Cryptocurrency investing is extremely risky! A few wrong clicks and you could lose your investment!
Once you've made your principal back, remove it from the market and play with free money.
One you've made some big gains, always take some money off the table!
You will never lose money by taking a profit, even if it's only a small one!
Just a few risky bets can bring you down very very quickly, and a lot of really good bets may take you up only a tiny bit.
Before making a trade make sure to do a google and a twitter search for news on the coin that could affect the trade. (Delistings, etc. )
Never put all of your eggs in one basket.
Always have extra cash on hand in case of real large panic drops - and have enough cash so that you can be prepared to layer down a number of times.
Once you find a coin that you like the chart of and want to trade, you can place some super-low limit orders and then just be patient and wait and see if there's a quick spike down and they get filled.
As soon as your buy order is filled you should already know what price you want to sell the coin for and you should immediately enter a sell limit order and then patiently wait for a spike and your order to be filled.
Remember, crypto markets are small and prices coins can be rise and fall dramatically based on news, they can be pumped and dumped, and they can be easily manipulated. If you get caught in a bad trade, know when to cut your losses. Don't be afraid to sell and take a loss.
In my opinion, layering down properly is one of the keys to trading profitably. When layering down you should first nibble, then nibble a bit bigger, then even bigger, then pretty big, then the biggest. This is the way to turn trades where you're losing into profitable trades.
Be patient - it's ok to miss a trade!
Be patient - wait for the price you want - if it doesn't happen, it's ok to miss the trade.
Remember, at the end of the day, the name of the game is to buy low and sell high.
The following trade examples and tips are meant for EDUCATIONAL PURPOSES only and are not recommendations or advice to buy or sell any particular cryptocurrencies.
In the examples below, I zoomed in on the charts in order to more easily show where the buys and sells were made, but when looking for opportunities, start by looking at one hour, 3 month charts.
Please note: some of the examples below do not include the exchanges fees (which are pretty minimal) and some of the examples do. In most cases, if layered down, the exchange fees are included.
Below You'll Find Examples Of 150 Real Trades:
Sell 0.00001560 - note: the order was only partially filled. A big order came in right below me.
Sell 0.00001559 - sold the rest an hour later
0.19% Profit After Fees - Broke even to get out of this one.
Sold this one about 40 minutes later for a 4.05% Profit
Note: I sold this slightly less than an hour later for a 4.31% Profit