I tried to make this article as simple as possible for the new readers to understand about some important key words and information regarding Blockchain, Cryptocurrency and Cryptotrading.
I am very new into this cryptocurrency world and first heard about Bitcoin six month back from now from a friend of mine. That night I came home and searched on the internet Bitcoin.
What I found?
So many news updates, articles, information about cryptocurrency, Bitcoin, Altcoin, Tokens and crypto trading. First few days all this information was new to me and I was spending as much time as possible to read and watch different videos on YouTube to understand and learn more about Blockchain besides my work and study. It was like as much as I learn, it was not enough for me. I have also attached different article and YouTube links which helped me a lot to learn about all the information I am sharing with you guys.
Step - 1
Get some information about the following topics:
• Bitcoin
Bitcoin is the first invented Cryptocurrency by Satoshi Nakamoto in 2008. Bitcoin has a market share of 45% to 60% of the total cryptocurrency market.
• Altcoin
All other coins except Bitcoin is called Altcoin
• Blockchain
All digital assets and cryptocurrency tokens uses this new blockchain system which has dramatically changed the movements of 21st centuries use of internet, data storage and transfer system.
https://blockgeeks.com/guides/what-is-blockchain-technology/
Distributed Ledger
https://www.coindesk.com/information/what-is-a-distributed-ledger/
• Blockchain Technology changing the future of Finance?
https://www.coindesk.com/information/how-blockchain-technology-change-finance/
• Applications and Use Cases of Blockchains?
https://www.coindesk.com/information/applications-use-cases-blockchains/
• Ethereum?
Most popular and promising blockchain development platform. This platform is called Ethereum and the currency is Ether
https://www.coindesk.com/information/what-is-ethereum/
• Ether?
https://www.coindesk.com/information/what-is-ether-ethereum-cryptocurrency/
Step – 2
• Where to buy Bitcoin/ Ethereum?
There are many websites where you can buy Bitcoin. I would recommend to buy from any of the following sites as they are providing a very good service.
www.coinbase.com (USA)
www.bitcoin.de (Germany)
www.anycoindirect.eu/de (NL)
• Where to store my bitcoin?
ELECTRUM / EXODUS / JAXX (Free, offline)
(Pc wallet, cold storage, good for initial storage of your bitcoin, if you don’t have any hardware wallet. But, I would not recommend for small amount of coins to hold in Exodus as the transaction fee could be higher.)
Trezor (99€, Physical device)
Ledger nano (70€, Physical device)
(It is always better to use physical wallet which is more secure.)
• How to secure your trading account and pc before trading:
2FA – Google Authentication
VPN for Pc
IP Whitelist for trading account
Withdraw whitelist for trading account
API Keys
(I would personally not recommend connecting your normal trading account (Ex. Bittrex, HitBtc etc.) to connect with your Coinigy trading platform. Of course, you can use Coinigy platform as it is very helpful to understand charts and do technical analysis. But you can place the order always differently on your exchange website. It would be safer; if you are worried about your privacy and safety from hacking.)
If you want to be a learn more about blockchain and investing in cryptocurrency, please also try to understand the WHITEPAPER.
You can follow this channels on YouTube. It would help you to learn more about cryptocurrency world and trading.
• Crypto Is Key
• Quickfingers Luc
• Chris Dunn
• High Altitude Investing
• The Cryptoverse
• Node Investor
Step – 3
I have bought bitcoin, now where I can start trading with my bitcoin?
1st you need to sign up for exchanges:
Each site has a standard sign up process and it takes only two minutes. They list the coins that can be traded. You can send coins to the addresses and out of the addresses.
Watch this video for more details ( )
Keep up to date on the coins and what exchange they are on:
www.coinmarketcap.com
www.cryptocompare.com
www.cryptowat.ch
www.coinigy.com
www.tradingview.com
www.etherscan.io/tokens
www.cryptomarketscanner.com
www. cryptrader.com
• Trading platform to connect your exchange and buy, sell Bitcoin/ Altcoin with e technical tools:
www.coinigy.com (20€ / Monat)
Follow this video
• Which Tools should I use for technical analysis for trading?
If you can learn this technical analysis tools. Then you could always decide by yourself what to buy, when to buy and when not to buy! It is not as hard it seems like when you watch the videos for the first time. But if you watch this few times and apply this tools in back chart for testing and do it continuously for one week, it would be very helpful for you and you can see the result by yourself. You do not need to listen to the news or articles what they are saying.
Candlestick chart
(
Fibonacci Retracement
(
MACD
(
Moving Average (MA)
(
On Balance Volume
(
Relative Strength index
(
Please try to follow the following strategies if you are new in crypto trading:
• No emotional trading!!!
• Try to follow 5 minutes to 1 hour chart for day trading
• Trading plan for profit and loss. (Not more than 10% loss and profit between 10% to 100% high depending on your choice of Day Trading or hold for Long-Term
• Follow and research 2-month back chart if you want to hold or to get a better idea about the currency or token
Important:
To transfer coins between exchanges depending on the coin can take some time. Half an hour for example sometimes more. To make this simple keep coins in the two given exchanges before start trading so that you can do it instantly. Time is key.
You can do this every day and night if you are doing Day Trading. At the end of the trading time you should sell all your coins for bitcoin. Because it has less fluctuation many times then the other ‘Altcoin’ and 1 Bitcoin is always 1 Bitcoin. And send the gained profit you want for that day to your personal Bitcoin wallet and from there transfer it to your bank. Next day convert your bitcoin again to another coin and go at it. These trades are happing every second.
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I am looking forward.
😊