Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: Tamaragold on January 16, 2018, 10:27:49 AM
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My name is Tamaragold (Doctor Crypto) and I would be presenting to us the topic *introduction to Crypto trading*
I would ensure that, this class is as interesting as possible and would be very Much educative.
So, we would do well to pay maximum attention and learn. And also before I forget, we would not be taking this class based on assumptions, hence everyone would be regraded as trainees.
now, to introducing Crypto trading
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I would start by making defining what Crypto currencies are
What exactly is a crypto currency?
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency, cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
There are numerous coins on the market
Companies who release coins have individual technology backing them, it can be anything from simple banking transactions to replacing cloud storage or
everyday things such as music and video platforms.
You will want to take this into consideration when you invest in a coin, as some coins may have a novelty value, and while being listed is one thing,
you may not get the return of investment you're looking for, and ultimately they may be delisted if they serve no purpose, or people are not investing.
For example.
Dogecoin, a realtively old coin, has been slowing making it's way in the market, it originally started as a tipping system on the website reddit where users could tip posts they enjoyed, as such, it doesn't have a very high market growth, instead growing over weeks and months.
Siacoin, a relatively new coin however, has jumped above dogecoin in price rapidly, owing to its parent company having an actual product to sell,
and market to people (De-centralized cloud storage), personally I love the idea of a completely secure cloud storage system.
So in those two different coins you can see a difference, if you're looking to invest in a very stable, slow growing coin, you would more than likely take Dogecoin, if you're looking for the possibility of a quick ROI(Return of investment) aswell as higher market growth, you would take siacoin, but ultimately, both have their risks.
While looking at parent companies are a great way to get a sense of the coins worth in the long run, this is by no means a guarantee of profit.
*Getting started!!!.*
To most people, getting introduced to Cryptocurrency is both confusing and anxiety inducing, a lot of people will look into it on the surface but many often feel it is either a scam, or not worth their money, as with most things that become popular outside of standard monetary gain such as shares or stock market trading, people have to be willing to put their bias aside.
I admit i felt apprehensive when i invested my first $70 dollars, however I'm glad i did and since then iv'e invested whatever spare money i can.
Getting started in crypto trading is relatively easy depending on your understanding of a few things.
*1. -Basic computer and Internet knowledge*
*2. -Understanding of capital gains and how returns work*
*3. -Understanding your thresholds and how much money you can comfortably invest(This is an important one, don't go broke searching for something that may not happen)*
*4. -A Propensity to learn a new market*
And probably the most important one.
Note:
*it is very much important to know that this isn't a get rich quick scheme, just like most investments, they may take a day, or a month, or even a year, to pay off and give you the ROI you're searching for, be patient.*
Now as for actually investing, this is straight forward, find a reputable exchange and depending on how they trade use that to buy BTC(Bit coin)
I find a lot of times people come into these things with only one eye open and can caught and fall through traps or sell and buy at the wrong time (Panic selling and buying).
I had a friend get into the crypto trade and invest $50 dollars in Siacoin, when it dropped by 3% he panic sold his money, and the next day it rose by 17%, if you are down in money don't panic, watch the markets and wait, remember, time is a very crucial factor here, 12 hours can be worlds apart in the trading realm so hold your coins until you're absolutely sure you have to sell, most times holding your coins reaps more rewards than trying to recoup small loses.
Once you have a coin you feel confident investing in, do yourself a favour and watch the market place, you will want to look at a few things, such as 24 hour high, 24 hour low, and current price.
The basic tenants of trading apply here, sell high, buy low, however with crypto currencies buying high is sometimes viable, for example one day on a 154% upswing for Peseta coin, I invested $50 dollars and it continued to climb to 272% and had doubled my investment in roughly 30 minutes, the same thing happened for SMART somedays ago, where we had some people buy high and still made but these are usually rare however, and should only be done once you understand the market and are willing to lose whatever money you invest, remember, there's always a risk here.
For the majority of trade you will want to invest in stable coins that change small percentages per day, rather than massive spikes that have inevitable retracements(Reverting to their original price) I myself invest the majority of my money into stable coins.
Hence, I recommend more investment to be done in stable growth i.e coins that are not in a rush up. Coins whose growth are controlled and not manipulated
I believed, I've been able to do a bit justices to introduction to Crypto trading and newbies are able to catch a glimpse of what they are coming into.
I remain my humble self, Tamaragold (Doctor Crypto)
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Thanks for this topic. I'm learning a lot on this forum. Cheers!
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Good post.. the one thing I'd add about your friend panic selling at 3% down is I find people with a very small investment tend to panic and overtrade vs people with larger stacks.. its kind of weird that you'd think with more invested you'd panic more but from my experience and observations of others, its how it goes.