Wednesday, August 4, 2021

TRADING CRYPTOCURRENCY

Trading crypto is similar to trading stocks. You will need to know how to read a chart, understand patterns, and manage your portfolio. If you don’t mind losing crypto while you learn how to day trade crypto then maybe this is the way for you.

First you will need to signup an exchange with an on ramp option (fiat to crypto) via debit card or bank transfer. If you don’t already have an account with an exchange, please understand you will need to go through a KYC with them in order to buy crypto with your bank account or debit card.

I have given you a list of exchanges to get started with on the right. I would check to see if the one you like supports your country and take it from there. If your starting budget for your portfolio is large enough. You might want to have funds on more than one exchange.

Never have your whole portfolio on an exchange

CRYPTO EXCHANGES

Second, you’re going to need a really good chart system. I recommend using tradingview because its great and they have a free option. I only recommend upgrading if you need more features than the free version offers. The best way to find out what you need is go to their pricing page and compare.

Third, only risk 2% of your portfolio in any one trade. Remember, you’re trying to learn how to trade crypto. Cryptocurrency maybe similar to stock trading or forex trading but crypto has a lot more volatility than any other market.

Fourth, this is the most important information I can provide. Always look for ways to improve your trading. Buy trading books on amazon and really read them. Watch videos on trading, listen to trading podcasts, have conversions with a more experience trader, and don’t be afraid to review your trades daily.

Look for things you did right and things you did wrong in each trade. The best advice I ever got was from listening to a podcast on youtube during an interview a guest said “learn to lose”. When you first hear that (or read it), the brain goes “what?”. Here’s why you want to learn to lose, because once you know why you lost money on a trade. You won’t make the same mistakes again.

Fifth, ALWAYS SET A STOP-LOSS!!!

CRYPTO TRADING BOT

If you don’t have time to learn how to trade or just want to make money while you sleep. I recommend learning how to setup a trading bot. The easiest and best trading bot available is the 3commas crypto trading bot. After learning all the settings available, I can set up a bot to do trades for me less than a minute.

3commas allow you to run 1 dca bot and 1 grid bot on a free account. I recommend using the free version only to learn how the bots work. Once you have an idea on how things work. Buy a subscription to 3commas and setup enough bots to cover the cost of the subscription plus profits. Of course, this would all depend on your budget and knowledge. I recommend only doing this if you have $1k or more to fund the bots. This isn’t counting the subscription cost.