I got started in Bitcoin (BTC) through a Bitcoin trading club. Basically, it’s like a day-trading club that trades the top cryptocurrencies for you and pays you in Bitcoin. You can literally know nothing about Bitcoin/cryptocurrencies and earn Bitcoin 5 days a week using this club. I bought into the club with $900, the cost of a Bitcoin in January 2017. I figured, “Hey, I’ll give it a shot.” Honestly, I didn’t really think much of the club or cryptocurrencies, at all. I was skeptical and shortly after getting started I thought I had just blown my $900. I would rarely check my trading account to see what I had earned and just figured, “Whatever.” When I finally did take notice of what was going on, I had made over 1 Bitcoin. The even cooler thing was, the value of Bitcoin had gone from $900 when I bought in to roughly $2,500. This meant my Bitcoin earnings were now worth more in USD. That’s all good and stuff, but I’m not writing this to sell you on a Bitcoin trading club.
After seeing there was actual money to be made from investing in Bitcoin, I started to study other cryptocurrencies so I could start trading on my own. It has been the best financial decision I’ve ever made in my life. Why? Because I’ve been able to invest relatively little money and have earned some great returns. Now having said all of this, I’m no expert, at all. I’m a straight up rookie, as a matter of fact! But, below I list some of the things I’ve learned trading cryptos, as well as some tips I think are important for anyone getting into Bitcoin and cryptocurrency trading—and, of course, all of this is based on my experience.
Education and Research
When you first start learning about all of the possibilities of Bitcoin and cryptocurrencies, you will probably get pumped up, excited, and want to jump in head first. Great, I get it! I was the same way. However, if you just jump in and don’t know what the hell you are doing, you could lose a good bit of money and want to break things around the house. Or, you could end up living in a van down by the river—and nobody wants to live in a van down by the river. This is why it’s very important to educate yourself on the crypto space and stay on top of the latest news. Yeah, ’tis true. Below are a few great ways to learn about the mega-universe of cryptocurrencies. Use them as you begin your never-ending journey towards becoming a crypto ninja (it’s not a thing, really).
You can always read. It just makes sense, doesn’t it? There are plenty of great articles online and good books on Amazon you can check out. Just take a look here.
One great way to learn about the serpent building at the Vatican, the JFK conspiracy, and even the Mothman, is on YouTube—but, YouTube is also a great place to learn about cryptocurrency trading. There are tons of videos on YouTube that can help you learn quite a bit. But, also keep in mind, there are videos out there that may not be so accurate, or ones simply being uploaded to “pump” a coin. A few channels that I recommend are BTCKyle, The Modern Investor and aantonop.
Twitter (and Other Social Media)
I don’t necessarily use Twitter for the most trusty educational information on cryptocurrencies (or anything else), but I do use it to get a pulse on trends, what people (real people and not bots) are thinking or buying, news, etc. You have to be careful though, as some accounts are on Twitter for one reason—to pump cryptocurrencies. Also, take a look at Facebook and other social channels. Just always be sure to do plenty of research yourself and don’t make impulsive buys based on what you read on social media.
I love this one—Google news. However, I take news on Bitcoin and other cryptos with a grain of salt, a lot of times. Always consider the source when reading about Bitcoin or any cryptocurrencies. And remember, not everyone is a fan. Google news though, can help you learn about the latest on specific cryptocurrencies, developments, issues, corporate adoptions of crypto-technology, etc. The easiest way to take advantage of Google news is by simply signing up to receive news on cryptos every day in your email. This way, you can stay current and not fall behind.
Watch and Test
OK, so you’ve learned a little bit about trading cryptos, and you’re ready to jump on one of the trading exchanges and get rich trading, I get it. But slow down high-speed. You don’t want to lose your cash. First off, you are actually going to need some Bitcoin before you start trading other cryptos. Yes, there are other options for buying Bitcoin, but personally, I use Coinbase. Next, I suggest that you join one of the major trading platforms (I use Poloniex at the moment) and watch. Yep, that’s it. Pick a few coins and, using what you’ve learned, do mock buys and sells. See if you would have made money (BTC) or lost money based on your decisions. Once you start having some success, then you might want to invest a little “McDonalds money” into a coin or two and see how you do. This is what I did, anyway.
Beware of the Pumpers
Trading cryptocurrency can be a thrill. You can make lots of money—and lose lots of money. So try not to be emotional and impulsive with your buys. Again, there will be buyers/trolls/whales on social media and elsewhere, pumping a coin and driving up the price only to dump.
You Never Know
Another piece of advice, don’t get greedy—meaning, take your gains. Even with great technical analysis, you don’t always know what is going to happen in the market. Everybody is different with the way they take risks. When you learn to read charts, you can definitely minimize risks, but again, you’ll never know the perfect time to buy or the perfect time to sell, really. Having said that, I’ve heard the saying, “Buy on the rumor and sell on the news.” I’ve seen this to be true on several occasions.
Be Calm and Don’t Sell Your Coins
As a continuation of the point above, sometimes you might buy into a crypto thinking that it’s all going to pan out like you planned. You think the coin is going to surge and you are going to cash in big, fly off to Vegas, or an island, or wherever you want to go, when you make lots of money. Who knows, maybe you just want to sit at home and watch Game of Thrones, or something. Sometimes though, a trade or two might not go as you planned. It might go from green to red, and really fast—but, don’t freak out. Take some deep breaths and don’t panic sell. Often times, there’s a good chance your coins will get back to where you can sell them without being in the negative.
It’s a Good Coin But…
When I first start trading, which wasn’t that long ago, people would tell me what coins were “good coins.” I took that as, “Hey, you need to go buy this coin ASAP!” So, it goes like this, yes, a coin might be a “good coin,” but if you are buying it at its all time high, that’s probably not a “good decision.” So, again, make sure to do your analysis/research before you buy.
Pay Attention and Keep Track
Other than paying attention to new developments in the crypto world, news, etc., keep track of your earnings. Sounds like a no-brainer, but I do know a few folks trading without any idea of exactly what they’ve made. I suggest using a spreadsheet. I set up a spreadsheet and track every trade in the spreadsheet. The spreadsheet automatically calculates my Bitcoin earnings (and losses, ugh) and the equivalent dollar amount, based on the current value of Bitcoin at that time.
“Seh’kurity!” This one should probably be at the top of the list—security. Make sure you protect your online accounts with strong passwords, a firewall, and a VPN. I’d also suggest downloading Google Authenticator to your smartphone and adding 2-way logins. Basically, when you login to any of your accounts, you’ll be required to enter a code that is generated by Google Authenticator that is on your smartphone. Also consider purchasing a Trezor hard wallet. All of these things may sound foreign to you if you are just getting started, but it will all seem like old news once you get going.