Cryptocurrency Trading Strategy

The following information is only my opinion and in no way financial advice.!!!!!!!

If like me you always wanted to try and trade you may find one the best ways to start is to trade cryptocurrency. I found this method easier than Forex but you must be mindful of what you are doing. In this crypto trading world you have to be aware of how volatile the market is which means it may go up or down by 20% or more per day.

You can be two times of trader which are a swing trader or a long term trader also know as a HODL which means you hold for the long term for some big gains. At first I started out has a swing trader but found this very time consuming and made me miss out on to much life and also was forcing trades to try and meet a target that I had set. Now instead I just buy certain coins and hold them until the rise in price.

My trading plan is rather simple which are in this order;

1. Research as much about the coin as possible, do this by looking at the coins website, looking at the roadmap and following their social media accounts. If you don't know what the purpose of the coin is after viewing this then I normally avoid. (do you want to invest in something you don't understand)
2. Follow the coin for a number of days to get a better understanding of the price action and to gain confidence in what you have learnt about the coin.
3. When you have done these steps do more research on the coin as you may now have a better understanding of the tech behind the coin to make a more educated decision.
4. If after all the above steps are done and you are happy with everything then look and buying some of the coin. This is where I normally have an idea of the price action of the coin and I ONLY buy when the price is down or in the red. Cause if you buy low you will always be able to sell high.
5. The last tip is if your a long term holder never ever panic sell as you will lose more in the long run.

I hope you will reach the moon in trading and remember always do your own research and YOU be confident with the trade.

What is Blockchain

To better understand how Cryptocurrency works you have to understand what is Blockchain, you may of read this quite a few times and always looked and said " I will read about this later and never do" so hopefully you have not got here with the purpose of understanding Blockchain. If not just keep reading anyway as its good for my blog thanks :)

I will try and be as clear and simple when talking about blockchain and not blow your mind with fancy words and stuff like that, not that I have many fancy words in my vocabulary.

Blockchain was the brain child of  Satoshi Nakamoto the man behind bitcoin. Its key function is to allow the digital sharing of information not copied. Which means no one person is ever in control of a digital asset. It allows everything to be decentralised that is using the blockchain.

   "The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Source

Think of the Blockchain as a massive jigsaw that thousands of people have single bits of that jigsaw and these bits keep moving around to different people it is next to impossible to loses these bits.

When you talk about bitcoin people talk about is it safe to use and this is where understanding how the tech behind it comes into affect i.e Blockchain. If you compare blockchain technology to your bank you will soon understand how safe it is.

I will finish up with a statement form Vitalik Buterin, inventor of Ethereum;

“Blockchain solves the problem of manipulation. When I speak about it in the West, people say they trust Google, Facebook, or their banks. But the rest of the world doesn’t trust organisations and corporations that much — I mean Africa, India, the Eastern Europe, or Russia. It’s not about the places where people are really rich. Blockchain’s opportunities are the highest in the countries that haven’t reached that level yet.” Source

 I am also aware that I have left out a lot about blockchain but hopefully this will give you a little understanding about it. Another very good resource is https://blockgeeks.com to give you a more in depth understanding.

P.S If your confused that is fine as I am still confused after writhing this :)

 

History of Bitcoin.

In this post I am going to try and explain the history behind Bitcoin;

Bitcoin is a cryptocurrency that was created by Satoshi Nakamoto in 2007 for the sole purpose of peer to peer transactions. The idea behind Bitcoin was to have a digital currency that was not controlled by any state body and was safe for everyone to use. In 2009 the bitcoin network became live with Satoshi Nakamoto mining the first Bitcoin block which was called the Genesis block. With the Bitcoin block system it allowed people to complete advance math equations to verify a transaction and upon completion they were rewarded bitcoin. By using this type of system no one person was ever in control of any private information.

In 2009 the first exchanged rate is established with a price of $0.005 equals 1.309 Bitcoin (BTC), you will find with the cryptocurrency world everything move extremely fast.  In May 22nd 2010,  10,000 BTC were spent on just two pizzas from Papa Johns which was the first purchase with Bitcoin in today's market value of Bitcoin which works out to be $4000 for 1 Bitcoin  the value of them pizzas would now be and astonishing $40 MILLION Dollars such the fast growth of Bitcoin. Since the start Bitcoin has hit the high of $1000 dropped down to $100 and recently reached $5000.

Bitcoin can be stored both on a computer or an exchange but this may be vulnerable to theft the best way to store them is on a paper wallet where you have all the control over keys and passwords, below is a sample picture of a paper wallet.

Paper wallet with private key(Never Share) and the deposit address 

Like most new technologies bitcoin has it fair share of people saying it will never last or we cant work without the aid of banks but I believe that bitcoin will be the future of our financial system as we as a society become less reliant on banks for our banking needs and we move from solid forms of money to the digital age.

As you may have noticed I have not covered the entire history of bitcoin as I believe I would be hear all year writing about it but I have covered the basic parts that will help you grasp the idea of bitcoin.

     

About This Blog

Hi and welcome to this Blog if you found this site you were like me and trying to find out what all this cryptocurrency talk means. The way I will be blogging I will try to give people a better understanding of what the entire space of cryptocurrency is. I once and still am a newbie to this world and am always learning new stuff. My goal for this blog is to try and place as much information in the one place that will help you as I found that they are many places that give out (not correct) information and are just trying to sell you memberships or something else that you do not need.

I will delve into the history of cryptocurrency and will talk about the what I see as the mother coin which is called Bitcoin (which was maybe the way you found out about this crypto world). I will also look at the technology behind Bitcoin called Blockchain which I believe will be the future for almost all major companies.

The Future in my eyes!!!!

A small bit of history about myself is next I guess as i could talk all day about different elements in cryptocurrency. I first got involved in 2012 where i made a small purchase of bitcoin at around $6 at the time I was thinking not a wise move as I thought the price would drop (pity I didn't buy more) will explain more in a later post. After my purchase of Bitcoin i quickly got bored of the crypto world as i believed it was aimed at the more tech savvy people. So fast forward to 2017 in May is when I got back into it again and realised how much had changed in both tech and price. As of now i'am still learning new stuff and hope I can help you all in better understanding all of this.

I will also look at how to trade cryptocurrency to help us reach the moon :) this saying you will hear a lot in the crypto trading environment.