This is my 2nd post on my crypto trading experience as a newbie , do read my 1st post before starting with this :)
Before going into a trade with crypto currencies , you of course need to decide the amount you would like to put into Cryptos
To Decide this let’s have a look at some of the market trends
Let’s start with the historical graph for BTC USD Price
Graph source : Coindesk
JUL 2010 : It was way low at $0.06
OCT 2013 : Started Rising Drastically
DEC 2013 : Crossed $1100 and later went down
Jan 2015 : Went Below 200$ to mark one of the Lows
OCT 2015 : Marked the 2nd rise for bitcion
DEC 2016 : A drastic rise started , never looked back again.
June 2017 : The rise currently facing some resistance around $2700
AUG 2017 : Now there are some major changes for the code starting 1 AUG - Software fork , Hardware fork ,Segwit , Blocksize increase etc .(Final plan still not floated) .
This can impact BTC positively or maybe negatively.
But many predict it to rise above $3000
Next is the chart for ETH USD
Graph source : GDAX
The graph is for Ethereum USD pair on coinbase exchange which highlights the recent FLASH crash that happened on 21st Jun 2017 ( The long line marked by an arrow )
During the Flash crash, within a matter of seconds the price went down from $328 to $0.10.
This was result of a multi-dollar sell order executed on Coinbase exchange GDAX for BTCUSD , which further caused a chain reaction of sell orders due to stop-loss and margin liquidations.
On the +ve note, people who had buy orders as low as $0.10 got their orders fulfilled, and now most of them might be a millionaire as price went back above $300.
As per latest news coinbase has announced some kind of reimbursement for the losses.
So, what do we Learn from the above: -
- Crypto currency market is a very volatile Market.
- There are no circuit-brakers as in traditional markets
- Price can take a steep dive within matter of seconds.
- We can also have the price shooting above 100% in single day.
- Any news can cause market fluctuations easily
So is this market good for newbie
Yes, the crypto market has still a long way to go.
Though you see the frequent fluctuation, if you consider long term, majority of the coins will be in uptrend.
So how much amount to invest?
"Invest only the amount you could lose, without regretting about it later"
"Never put your savings into it."
So, this amount can be 1000$ or even 10$ varies person to person.
I suggest you at least start up with $10 ie. at least have $10 worth of bitcoins, which you will further trade for other coins on the exchange.
My Plan :- i have a part of bitcoin put in to trading , would plan to put in more as i get more efficient in trading.
This is it for this post , in further post I would like to continue sharing my experiences on crypto trading.
:)
My previous post on Crypto trading experience :-
https://steemit.com/introduceyourself/@dwitil/crypto-currency-trading-my-experience-as-a-newbie-journey-to-steem