What's up everyone! This is the first post of Cryp Flyp, your most valuable source of information on making profits in cryptocurrency. Since this is the first post I'm going to lay down the foundation of what it takes to be a master trader of cryptocurrency. If you intend to make a lot of money in crypto then there are literally only three things you must master. You probably have already comes across these three things but you also probably overlooked them or seldom take them into consideration when they are most important. Please read through this entire article because it is extremely important that you get these three things into your thick skull and make them the cornerstone of your experience as a crypto trader or investor. When you are done please upvote this post, comment, resteem, all that good stuff. And of course if you want to stay in the loop then follow Cryp Flyp to be first on the scene for new shit.
#1 (This is the most important)
FUD tops our list at number one. Its a motherfucker. It will give you anxiety. Make you sweat, bite your nails, cry your eyes out, keep you awake at night, put you in the hospital, all of the above. After being on this planet for 38 years I've come to be immune to FUD. For me it was a combination of age and wisdom but if your reading this and in your 20's or even teens, have no fear because a little knowledge alone is all that is necessary to kill FUD. For those of you that don't know what FUD is, it is simply:
F - Fear
U - Uncertainty
D - Doubt
Seems simple enough doesn't it. What does this have to do with trading crypto you ask? So the way it works is someone either has a position or desires a position in the market that involves great reward. Having a position by the way just means that you bought some cryptocurrency and so you now have a position in that cryptocurrency because you are the owner of 'x' amount of coins. So lets look at two examples:
Example 1: Billy has a position in Bitcoin. His position is that he owns 10 BTC. Billy bought BTC when it was $5,000 and now its $10,000. He knows its going to go higher and so he wishes he had bought more but he didn't have enough money at the time to buy more. However, someone just gave him $50,000 more to invest. If he bought more now he could only get 5 BTC but if it went back down to $5,000 he could 10 BTC. Billy knows that Bitcoin probably isn't going back down to $5,000. So in an effort to create a better investment opportunity for himself Billy sets out to create the ultimate FUD campaign to drive the price of Bitcoin down to $5,000 or as low as he can get it to. He does this by writing articles and making videos about why Bitcoin is not a good investment, about why the price is going to drop and people will lose their hard earned money. His articles and videos go viral and the price of Bitcoin drops to his target price of $5,000 and he goes ahead and buys 10 more BTC.
Example 2: Billy does not have a position in Bitcoin but he wants one. The current price per bitcoin is $10,000 and he knows its going to go much higher. Upon doing a little research Billy discovers that the price per bitcoin was $5,000 a month prior to his recent discovery of this new currency. So in an effort to create a better investment opportunity for himself Billy sets out to do what he did in Example 1.
Those are two of the most common FUD scenarios in the world of investing. I say investing because this is nothing new. FUD has been going on since the beginning of trading for profit. As in over 100 years. It is only much worse now because of how fast information spreads through the internet. Before the internet FUD took longer to spread and so it didn't have as great of an impact on the human psyche.
With that being said there are many more examples of how FUD can be spread and what the motives are but it all comes down to one thing. FUD is LIES! It is not truth but it always masquerades as truth in the most spectacular ways. As far as you and I are concerned Billy is a nobody. Why would you listen to Billy? Well what if Billy was a wall street broker with a reputation. What if he was a journalist for a popular news outlet. What if Billy was the CEO of an international bank. Do you see where I'm going with this? For over 100 years FUD has been created by some of the most trusted and respected people and institutions in the world. Why? Because of greed. Keep in mind that there are millions of dollars being made with cryptocurrency. With that kind of money on the line anyone and everyone is liable to be corrupt. This practice has not stopped and it probably won't stop any time soon.
So the question now is how do you arm yourself against FUD or how do you identify it? In order to be as FUD proof as possible you need to do your research on any purchase you make in the world of crypto. Your research has to lead you to a definite stance on where the coin is going in the future. If you don't know where the price of the coin is going that you plan to purchase then you have no reason to stand firm in your position with that currency so when FUD comes you jump ship. Your emotions take over and you forget that you even read an article like this that told you exactly how to deal with it. In the unlikely event that you lack knowledge on a cryptocurrency you purchased then when you see information that causes you to reconsider your position with that currency then you simply need to conduct the following inquiry:
How could this person or institution benefit from a significant drop in price in the coin that I purchased? What would happen if the price shot back up afterwards? Who is saying otherwise and what are they saying?
A quick analysis of the answers you reveal to those questions to put you at ease and help you to make a rational decision instead of an emotional one where you stand to gain and not lose.
#2
FOMO is a lot simpler than FUD. FOMO will cause a little anxiety, maybe even have you on edge from time to time. If it goes unchecked however then it can cost you a lot of money down the line. For those of you that don't know what FOMO is it means "Fear Of Missed Opportunity". Before I further explain FOMO allow me to give you a more familiar example of FOMO that most of you have probably encountered in your life at least once if not every day with a scene from Office Space:
And that ladies and gentlemen is how FOMO can get the best of you LMFAO. That video kills me every time I see it cuz that shit happens ALL THE TIME in the world of cryptocurrency. Let's look at two examples of how FOMO can play out:
Example 1: Billy bought 1 bitcoin that he's been keeping in hopes it will go up. One day Billy goes to coinmarketcap.com to check the price of Bitcoin and he notices that Etherium (ETH) which is the second most popular cryptocurrency is starting to go up unlike Bitcoin which has been sitting still. Billy is almost certain that Bitcoin will go up but lately it's been hovering at the current price but Etherium really seems to be getting some strong support and Billy sees an opportunity. He figures he can trade his BTC for ETH and gain a quick profit. Shortly after he makes the trade Etherium stops going up and hovers at the price he got it for. Then to make matters worse it actually ends up dropping back down to a price lower than what he bought it for and now on top of that he sees Bitcoin is finally starting to go up like he had expected. So now he wants to get off this ETH train that's going nowhere and get on the BTC train that's taking off but now he has less than before because when he trades back to Bitcoin he'll be trading at a loss since Etherium devalued his original investment and Bitcoin is more expensive to buy now so it's a double whammy.
Example 2: Billy has some money that he wants to invest in cryptocurrency. He's been looking at a lot of different coins in the exchanges but he's unsure what to get at the moment. In the meantime he knows he needs to at least get some Bitcoin or Etherium to get started to he grabs some Bitcoin and transfers it to an exchange someone recommended to him. He then watches a video on youtube saying he should buy a coin that is getting ready to shoot up in price or "moon" as we say in the crypto world within the next day or two. He checks the coin on the exchange and notices how cheap it is but also sees that its been cheap for quite some time so he doesn't feel entirely confident about it. Then all of a sudden he notices the price starting to spike and his heart skips a beat. Could this be the opportunity the youtubers spoke of? The price goes consistently higher as he watches it and he can't take it anymore. He'll be damned if doesn't seize the moment and grab this opportunity so he goes ahead and trades his bitcoin for the other coin. He's got his position now in this coin and the price keeps going up. He's watching the profit he's making and he couldn't be happier. He just started trading and already he's making a profit. Suddenly with minutes of him make the trade and watching the price climb it starts to dive. It dives rapidly to half the price he bought it for. Now, not only did he lose his profit but his position is less than what he started at. He waits all day for another spike in price but nothing. The price is hovering now at half of what he bought it for.
These are two of the most common examples of FOMO in the crypto world. So again you want to properly arm yourself against FOMO and half of it is partially the same solution for FUD which is to do your research on any purchase you make in the world of crypto. Your research has to lead you to a definite stance on where the coin is going in the future. It is extremely difficult to do that kind of research with such limited time when you see the price of a coin starting to spike. Watching some youtuber is not doing your research. You need to do your due diligence. I cannot stress this enough. There is a lot of valuable information out there on cryptocurrencies but you need to do your end of it too in order to feel more secure about what your investing in otherwise you'll get caught by FUD and FOMO all day every day. The other half of your solution to dealing with FOMO is to understand a universal truth when it comes to trading for profit whether it be stocks or cryptocurrencies. You are actually ALWAYS going to miss an opportunity. The fact of the matter is when it comes the fast paced world of investing there are wayyy too many opportunities going around for you to seize them all. This is literally the land of opportunity so pick your opportunities carefully and don't worry about the ones you didn't pick. They weren't for you. Simple as that.
#3
In case you haven't already seen it here's a cool music video about HODL:
Everything he says in that video by the way is pretty much on point in terms of how successful traders have approached crytocurrency however if you stick with me I'll step your game way up. But anyways, on to the last thing you must master in order to master trading cryptocurrencies and that's the infamous HODL. HODL, unlike the first two things is not an acronym. It actually means to "HOLD" your position in a currency long term but the last two letters are reversed and so its pronounced "hoddle" or "huddle". How this started is not what you would have expected and it's pretty cool useless shit to know. For a quick one minute explanation on where this came from check out this great video:
So why is this one so important? Because to "HODL" a position long term is the corner stone of any investor with half a brain. Don't let day traders and swing traders fool you into thinking that you make more money trading all day every day as opposed to making long term investments. In fact the smartest day traders and swing traders that i know are also long term investors and it is this multi-strategy approach that is really the best approach if you wanted to make a living trading cryptocurrency and have a bright future at the same time. It is also how I approach trading crypto. The day trading landscape is changing however but that is for a later post.
Now to be more specific about why to "HODL" is the most profitable approach it basically just comes down to math. It's not rocket science. A day trader focuses on tiny gains that add up throughout the day and while a successful day trader can make $1,000 to $2,000 a day depending on market conditions a long term investor stands to make more with a solid portfolio. So even if you are considering becoming a day trader or swing trader it is a must that you first put together a diversified portfolio to "HODL" before you even think about trading on a daily basis or weekly basis. If you take the time to put together a solid portfolio you won't regret it. BELIEVE THAT!
And that's your 3 things to master to make money with cryptocurrency. And don't forget to upvote this post, comment, resteem, all that good stuff. And of course if you want to stay in the loop then follow Cryp Flyp to be first on the scene for new shit. Thanks everyone!