Simple guide to profit from trading cryptocurrency
Let’s get right down to it. Trading to me is super fascinating. I was
never one to trade stocks or Forex or anything like that.
I held a lot and still do in mutual funds. That is what you are
supposed to do right? You are supposed to be conservative and
make that 15 – 20 percent hopefully a year. In 30 years maybe you
get to retire.
Well you know what? Forget that.
It has its place don’t get me wrong. But it isn’t exciting. More
importantly it is not proactive. You need to be proactive. You need
to go out and get it. And by it I am referring to money.
We all know Crypto right now is hot. There is no doubt. Just the
other day they were chasing an old man OJ simpson style down
the freeway in L.A. thinking he is the creator of Bitcoin. It is
messed up. It is like the wild wild west out there and I am not
kidding.
What I am dead serious about however is that money / currency /
coins are moving around like crazy. The pie right now is worth
over 10 billion. Each day people are getting a piece of that. Some
more than others.
Your goal is to get you to be on the winning side. The positive side.
There is much debate as to what strategy is the best to get coins.
Should I mine? Should I trade? Should I hold my coins and hope
they go up in value?
What do you do?
There is something to be said about all of those methods. For me,
right now the money is in trading.
Why? The reason is I control my profit. It is as simple as that. No
one else but me. It does not matter to me what coin it is. I am
indifferent. Sure everyone has thoughts as to what coins they
think will be the top coins years from now. But my game and your
game should not be years from now. It should be the here and
now.
So let’s get into the details. The fact is you have to start with some
amount of coin. You can buy a small amount of bitcoin to get started
on a site like coinbase.com Which I personally use to at this point
convert my Bitcoin to dollars and send to my bank
account. You can mine. You can borrow coins coin from online services like
btcjam.com and btcpop.com There are a myriad of ways. You have to take the
initial step to get some coins and if you want to be in this game
you will find a way to get some.
I love being able to make hundreds / thousands a day in the
comfort of my home office. I come on when I want and come off
when I want. I make my own schedule. It is freeing.
Here is how it is done.
1st you need to sign up for exchanges.
My favorite two right now are yobit.com and c-cex.com
There are others and I for the most part am indifferent as to what
portal I am using. Each site has a standard sign up / registration.
You will notice that the interfaces are very similar. They list the
coins that can be traded. You can send coins to the addresses and
out of the addresses.
Here is how I keep up to date on the coins and what exchanges
they are on. I go to coinigy.com and www.coinmarketcap.com
It will show the currencies and markets that they are on. At least
the currencies that this site lists. For me I only deal with the
currencies on this site. All of the major ones are on there.
Click on the “markets” link in the upper right hand corner.
You see coins and the exchanges they are listed on. It is important
that you know that for one of the strategies I will mention in a
moment.
I look at this site every day. I don’t necessarily study it but I look
for movement.
I do sort the volume column to see what volume of coins are
being traded. I don’t really deal with coins with less than 50
thousand in volume. I was burned once where I traded for coin
and then all of a sudden there was no one there to trade with me.
No use getting coins if no one is willing to trade with you.
You may say it is good to get into trading a coin when it is new but
for me I don’t trade unless I know there are traders. The more
volume I see the more I am interested.
But part of the game to me is about looking for major spikes. I
don’t look at the forums on bitcointalk.org that much for example
and see what people are saying / speculating on coins. I let the
volume tell me which way to go.
So for example to tell you extremely recent trades that I dealt
with. As I stated every day I look at the list on coin market cap. All
of a sudden seemingly out of the blue last week I see Lisk
and Dubaicoin climb the rankings in the market capitalization and
volume. I didn’t know why and I didn’t care. What that told me is
that for some reason people were jumping on it. So I jumped on it.
I come in when the tide is rising big time.
So here is what I did. I went to the markets tab as I stated earlier
and found where these coins were being traded. I am already
signed up for the exchanges so it is no big deal to jump in. It takes
about 2 minutes to sign up so it is no problem for you.
I don’t care about these coins at all and I am not promoting them.
Just telling you what I specifically did last week. I have no idea
where these coins will be tomorrow let alone next year.
I don’t care. Neither should you when it comes to trading. It is all
about the here and now.
So for Dubaicoin for example (DBIC) I saw they were on c-cex.com
I saw the trade volume as I told you was hot on coinmarketcap. So
people were trading like crazy.
I log in to c-cex . Again these sites are similar in nature. Once
you sign up for a few you realize they are very similar. They show
you the coins you can trade. In c-cex that is on the top of the screen
where it says markets scrolled down to find DBIC. Most coins out there
can be traded for bitcoin or litecoin.
To get coins into the particular exchange you will go to the
balances tab. In each respective exchange they will let you click on
a button to create an address. You click on deposit and generate
an address. That is the address you deposit coins into it and then
withdraw out of it.
So for this case study I started with some bitcoin. I had a balance
already. If you have your respective coin in your wallet or
exchange you will send it to the respective address of this or any
exchange to begin trading.
So I decided on this particular day I was going to trade DBIC for
BTC.
Ok so what did I do? How did I guarantee success? So I know
from my quick research that DBIC on that particular day was hot.
The value was up 60% in 24 hours per coinmarketcap.com and I
saw it jump in value. Those were my two indicators to jump in. I
know that coins are going to go up and down in value every day.
But when it is hot the trend is up. The trend is your friend
especially when on the up swing. I only make that determination
on a given single day.
So I casually go the trading section. I am trading in and out of
coins all day long. I have a huge balance at one point in a given
coin then I transfer it to another coin or to a given exchange. It is
not about holding. For brevity I am focusing on the two coins for
that given day. DBIC and LSK.
So when you trade there are buy and sell orders. They are moving
fast because it is hot. 2 huge mistakes that can be made that are
easily worth way more than the price of this course to not
reproduce. Only dumbasses make these rookie mistakes. And
guess who is one of those dumbasses. Me! That is why I am telling
you about it.
Rookie mistake number one
When you look at the buy and sell it shows you the last given buy
or sell. That doesn’t mean squat. You may think that you HAVE to
buy or sell the coin for this value. You DO NOT. You decide the
value. You need to make an informed decision as to what to buy
and sell for. The last jackasses buy or sell doesn’t mean they knew
what they were doing.
So what you do is look at the buy and sell orders. Here is what I
saw at one point. (Remember this is happening constantly so you
are potentially making transactions every minute if you want to).
It told me the last buy and last sell was for 0.00002012 worth of
bitcoin for a DBIC coin. Ok now the rookie would either buy or sell
at that amount.
But the sell and buy orders. They are both lower than the
given rate. If you buy for higher you are putting yourself at a
disadvantage when you could buy for less. That is a huge
takeaway. A person somewhere in the world was selling at 0.00002 but
someone is buying at 0.0000203. Someone at that time was
willing to buy for more than the sell. So what did I do? (Hundreds
of times now) I bought at 0.00002 and sold at 0.000023. I gave
the seller what they wanted and gave the buyer what they wanted
at that time. No loss for me. In fact I only bought the amount of
coin that was being sold that would fulfill what the buyer wanted.
In the end I made a profit and my bitcoin went up. It was / is as
simple as that! That should be a mind blower right there.
Now when you don’t see that situation you don’t have to do
anything. When things are hot you see this more. You do this over
and over and over again. Genius.
The second mistake that I was going to mention. This is a fast
paced game and you are making trades quickly. BUT… you must
be careful. Especially with these newer coins they are worth a lot
less than the bitcoin. So we are seeing multiple zeros. If you screw
up and put one zero more or one zero less you are trying to buy 10
times more than the given rate (you get raped on the deal) or you
sell for 10 times less than the value. (Another rape). And believe
me people aren’t going to say oh look at that person that made
that rookie mistake. I hope they cancel that order. No. They are
going to pounce on that like a hawk. So be careful with the zeros. I
lost a lot of money one time screwing this up.
Sometimes on a trade I was making 1 percent. Sometimes with a
lot of coins 1 bitcoin worth ($550 approximately) or a lot less.
Sometimes I was making 15% on a trade. It all adds up. Just keep
trading.
It tends to come in waves. You can feel it. When you start looking
at these buys and sells for a bit you start to see the waves coming
on. Yes some will have a higher or lower buy and sell price
respectively. But you will see all of a sudden that people are
pushing that price up. Then all of a sudden they are pushing the
price down. I get in heavy when the price goes up for a guaranteed
win.
When the price goes down I get in the game also. This is not a
guaranteed win however but here is what I do. I see that price
start to go down I low ball the buy. I put in my request to buy low.
Knowing that if someone buys chances are I can sell to someone
coming in shortly that wants to buy higher (But still less than the
last trade). Remember this is not a fluid market. Just because the
price goes up a bit doesn’t mean the next offer is just a little more
or if the sell goes down the next one is a little bit lower. Yes there
are trends but there are a lot of noobs that don’t know what they
are doing. They just want to be traders and want coins so they just
buy and sell seemingly irradictly. You stick to the plan of
arbitraging as I showed you earlier when people want to buy for
more than the sell and then low balling when it gets lower.
Another major strategy I am employing that is a guaranteed win.
As I stated earlier I see what markets the respective coin is being
traded on. You will notice that many if seemingly not all of the
coins are being traded for different values on different exchanges.
So again a no lose arbitrage. I see coins are being sold higher or
lower on an exchange and here is what I / you will do. You buy the
coins on the cheaper site and then transfer them to the other site
to sell at the higher price. Ingenious! You become the fluidity. You
become the computer that doesn’t care what coin is cool. You
work on numbers. Like a casino does. The casino always wins and
with my strategies so will you at this game.
One thing also to do once you get into this game heavily. To
transfer coins between exchanges depending on the coin can take
some time. Half hour for example or more.
What I do to make this cleaner is keep coins in the two given
exchanges before I begin trading so that I can do it instantly. Time
is key.
I did this big time with Lisk last week. The values were
skyrocketing and I did this all day long. Buy the coin for cheaper
on one exchange and then sell on the other. The price was going
up like crazy so I was also gaining more profit as time went on.
Since that time Dubaicoin have tanked in value. So I
am out of that coin. I ride em and get out.
What I do every night as I do try and sleep just a little bit. At the
end of the night I sell my coins for bitcoin. I find it has less
fluctuation many times then the “alt” coins have and 1 bitcoin is
always worth 1 bitcoin. I send whatever bitcoin profit I want for
the given day to coinbase (or whatever exchange that converts to
currency) and then send it to my bank. The next day I start again
converting my bitcoin to another alt coin and go at it. I have made
thousands at this. You can too as there is a ton of room since you
can’t get ever transaction. They are happening every second.
There is room for everyone right now.
With the strategies I listed you should be super pumped to jump
into the game.