In my previous post, I wrote about the dangers of borrowing crypto. In that post, I wrote about how my friend lost about $900 worth of Bitcoin because he, unknowingly, was borrowing when trading on Bitmex.
The feedback that I've received from writing that post is overall quite positive and better than I had expected. I believe that I was able to hit my goal of preventing at least one person from getting margin called or liquidated when trading.
Again, there's nothing wrong with trading on margin as long as you know the risks involved with it. That's why I think that for anyone who is thinking about getting in to trading should use play money first before risking his or her own money. Only after you've shaped your trading style to consistently make profitable trades should you put your own money at risk. There's no need to learn the hard way with your own money.
Having said that, I coincidentally came across a website that offers simulated crypto trading and figured that I'd write about it. I haven't really written anything about trading and so I thought I'd start writing some posts on the topic.
When it comes to trading I'm not a superstar at it, nor am I someone who's always making bad trades. Over the past few years I've been able to go from not knowing a single thing about trading to where I am today where I'm slightly more right than wrong on my calls.
If you're someone who has thought about getting in to trading crypto but didn't either because you didn't want to lose your own money or perhaps because you didn't know how to start, then you may be interested in the platform that I'll be writing about in this post. I think that this platform is worth checking out as it's an opportunity to practice trading with no risk involved. In fact, there's even some upside to it as you can earn some Bitcoin.
Crypto Parrot is a cryptocurrency social trading simulator where they allow you to take advantage of their free simulated crypto exchange without needing to risk any capital. In addition to that, you can actually earn some Bitcoin. For every $1,000 that you make on top of the initial $100,000 of play money that's given, you can then redeem them for 1,000 Satoshis; $1 is equal to 1 Satoshi.
When you go to www.cryptoparrot.com, you'll be presented with a homepage that looks like this:
Signing up with them takes less than 30 seconds and once you create an account, you'll then be brought to a page that looks like this:
The left side is the menu where you can view your trades, look at the different cryptocurrencies, read some news articles, exchange your play dollar profits for real Bitcoin, view past competitions, check out the leaderboard, invite friends, and join their Telegram group.
On the homepage though, is where you would make a new trade. There's a green button on the top right hand corner that says "New Trade." If you click on that button, a trade menu will slide out where you can make a trade. It looks like this:
To change the crypto, click on the "BTC/USD" button and a menu will drop down showing you the different types of crypto you can trade. You then have the option of buying or selling at market, putting in a limit order, or a stop loss limit just as you would on a top crypto exchange. They even have advanced options where you can leverage, and set conditional closes. You then have the option to share it on your timeline where others can view the trade you've made. One thing about Crypto Parrot is that you can only take "long" positions. This means that you can't "short" it.
For those of you who like to chart, I wasn't able to find out which exchange they're following for their prices. I'm just assuming that it's an aggregate of all prices across multiple exchanges.
For anyone who's been contemplating getting into trading but doesn't want to risk any capital, I would definitely check out Crypto Parrot as they help you get comfortable with understanding the basics of trading and to get a feel what trading is like. It's not going to replace actual trading with your real money but it will at least show you the basics of trading.
Here's a video I made showing how to place a trade:
If you're interested in trying them out, here's a link:
In the future I will be writing more articles related to trading as there's just so much to it. I'm personally glad that I spent the time (probably thousands of hours over the course of a few of years), and hard work learning how to do it as it definitely has been profitable for myself. I'm not going to say that it will be profitable for you but I think that if you've got the willingness and dedication to learn to trade, I don't see why you can't be profitable.
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If you have any questions or comments, please feel free to leave them down below as I will respond. You can also contact me at firstname.lastname@example.org. You can also message me on Telegram @cryptoforcanadians or feel free to join my Telegram group where we talk crypto: https://t.me/crypto4canadians.