When I first got in to crypto in early 2017, I never knew that you could make a living from trading it. I always just subscribed to the idea of buying and holding long term. I guess this notion was taken from the plethora of books I read on personal finance. These books all talked about how you should, in a nutshell: 1) buy low cost index funds 2) set and forget and 3) diversify your portfolio.
Applying these ideas may work in the traditional personal finance world, but in the crypto world it's a whole different ball park in my opinion. Crypto is the Wild West of the traditional financial world and crypto is still a speculative asset class. It thus should be treated as such.
This isn't to say that I dislike crypto. I absolutely LOVE crypto. Crypto is the amalgamation of economics, finance, history, politics and technology which I'm fascinated by. But crypto is still nonetheless a speculative asset class at the moment as it still needs more time to develop and grow. I do however believe that crypto has the potential to dramatically change lives. I wouldn't be creating crypto related content otherwise.
Having said that though, as I'm a long term believer in crypto, I am always trying to accumulate more. One of the things that has helped me personally accumulate more is through trading. Now there are people out there who are going to say that trading doesn't work or that technical analysis is nonsense and that very well can be the case. This just means that it hasn't worked for them.
From my experience, I can definitively say that trading has helped me to accumulate more crypto. It definitely wasn't easy to learn though. I've probably put about a thousand hours of learning over the past few years. Even today I still continue to learn about trading.
In this post, I'm not going to overwhelm you with too much information as there's a lot to learn in trading. I do however believe in taking baby steps towards mastery; life is a marathon, not a sprint.
With all of that said, I want to introduce to you a resource that I think that everyone should know about or use when it comes to trading. This is a must have charting tool if you're going to want to learn how to trade as it's the foundation of trading. The website that I'm referring to is Tradingview (www.tradingview.com). It's a website that allows you to chart essentially anything that has an open market. This includes, stocks, bonds, forex, commodities and crypto. Best of all, they have a really good FREE account. When you go to their website, you'll be presented with a homepage that looks like this:
At the top of the page are the real time prices of various markets. On the right side, there's a summary of the different markets with a semi interactive chart. You can click through the different tabs and select the different markets you'd like to see a chart for. You can even change the time frame. On the left side are the "Editor's picks" where they highlight the chart ideas that have been posted by others. At the top in the red box named "Chart" is where you'll want to go to start. When you click on it, you'll be brought to a page that looks like this:
If you're looking at the chart with confusion, you're not alone. When I first started using Tradingview to look at charts, it looked like a foreign language to me. In a later post, I'll write about how you can read those red and green bars that are on that page.
However, I want to bring your attention to the top left hand corner where it says "AAPL." This is the ticker symbol for the company Apple. This means that this is the price data of Apple's stock. If you click on that box where you see those letters, you can change the market to what you would like to see.
If you enter "BTC" in that box, a drop down menu of all the different markets that BTC is traded on will appear. This is where you will need to enter more specific information as there are numerous exchanges where BTC is traded on. I can list a handful of exchanges off the top of my head where you would have to specifically select the exchange that you would like the price data for.
Unlike crypto, stocks are traded on only one exchange. Some of these exchanges include New York Stock Exchange, Toronto Stock Exchange, and the London Stock Exchange as examples. With crypto, coins can be traded on multiple exchanges. Bitcoin is traded on essentially every crypto exchange out there. Binance has Bitcoin. Coinbase Pro has Bitcoin. Kraken has Bitcoin. Bit Panda Pro has Bitcoin and etc. This means that each exchange will have their own price history on Bitcoin and the charts will all be a bit different across platforms. This is why if you're trading on Binance for example, to make sure that you don't select Coinbase Pro's chart. This is why you need to know what your trade pair is.
For myself as I personally trade on Binance now, I would select Binance's exchange when looking at the coins I'd like to view the price data for. I also know that I'm trading Bitcoin against Tether (USDT) which I would then need to type in "BTCUSDT" in the box. Once I do, a different dropdown menu appears and looks like this:
I would want to select the first one as that's the price data of Bitcoin on Binance's exchange. When I click on it, I'm then redirected to the chart for Bitcoin traded against USDT on Binance.
So there you have it. That's how you can get started with your trading journey. Again, there's so much to trading that this post is probably just one of hundreds of things that one can talk about on trading. In the future, I will be writing more posts on how to actually read the charts as I did say that I would keep this brief.
Spending the time to learn how to read charts has definitely paid off for me as it has helped me to accumulate more crypto and hopefully it can for you too if you put in the hard work to learn about trading.
Here's a YouTube video for those who like videos better:
For those of you who are interested in starting with trading, I would highly suggest that you start with a trading simulator so that way you don't risk any of your own money. It's much better to learn from your mistakes through practice than with real capital. If you're interested in this option, I've written a blog post about crypto trading simulator website that you can check out here:
However, for those of you who are a little bit more bold and want to start with real money, my personal choice of exchange is Binance. Here's a link to help you save 10% off your trading fees:
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