Skip to content

10 Things I wish I knew Before trading Crypto

December 10, 2017

10 things I wish I knew before tradingCrypto

1. Have a healthy skepticism about what general truths, universal rules and things that “everyone knows” about coins.

2. Whether you think a price is going to go up (bullish) or down (bearish) depends on the time you purchased and startegy.

For someone who’s owned Bitcoin since 2013 — a small dip in price (going down to $10K), makes little difference in the long term.

3. Don’t rely 100% on Technical analysis (TA). If people were able to 100% mathematically predict prices, the big wall street guys would’ve already done it!

TA is more accurate on telling you the current mood of the market and also tells you human behaviour in the financialmarkets.

4. Beware of the “I knew it all along”.

It is very tempting to think you can miss out on ‘the next bitcoin’. The problem is, though, that it is incredibly difficult to spot such an opportunity.

You have to be either lucky or extremely well informed (and lucky) to capitalize on such opportunity.

In reality, it’s very difficult to differentiate between useless information (noise) and something that truly matters (signal).

5. Become less addicted to the news and focus more on being informed.

Instead of reading news non-stop and watching youtubepredictions, better inform yourself on the technology and signs of a red flag.

That way you’ll be able to sort out the potential investments from definite scams!

6. Accept the truth that idiots also happen to make lots of money.

Some three months ago a Dutch father of two young children sold his family’s house, bought BTC and other cryptocurrencies, and relocated his family to a rented property.

After the recent spike in BTC price the guy’s net worth must have increased substantially.

So, is he an idiot? Absolutely! It is only a question of time before he ruins his own and his family’s life with some incredibly reckless financial decision.

7. Be less of an emotional trader

When your actions are driven by extreme emotions, anger, sadness, joy,etc. They tend to be in the heat of the moment and regretful a few hours later.

Be an observer of your own thoughts and regain composure. Otherwise you will forever be in the “FOMO — Fear Of Missing Out” group. Winners keep their heads cool and think long term.

8. Daytrading is probably not for you.

The markets are 24/7 arorund the GLOBE! Trying to time the market will drive you insane!

9. Volatility is your friend.

Though wild swings in price makes BTC almost impossible to use as a currency, volatility is good from the financialassetpoint of view.

Unlike traditional “stable” stocks, any big dips or shocks do not shake the confidence in the fundamentals behind Bitcoin!

10. Theres a lot of scams out there.

There are alot of coins out there that don’t serve a true purpose or can be replaced by another coin.

Do your research on the technology and teams behind each coin.








Where to buy BTC/LTC/ETH:

Source link