Crypto Trading

I used to trade in stocks a lot, but I had to do it through an agent, since getting a direct trading platform was difficult in my country. This was the story 20 years ago. I always hoped for trading on my own terms, and that too whenever I wanted to trade; after all, I had a job, and I still do. But these were the silent prayers that were heard by the Almighty, I guess.

The crypto revolution started in 2008 with Bitcoin, and I got on the bandwagon in 2017 and never looked back. It had everything I ever wanted. Direct access to the crypto exchange and 24*7 trading for every single day of the year. That’s my prayer answered. Thank You, God!

Now, to the trading part – how did I do it in the beginning? I used to buy, hold for some time, hoping for the price to increase and then sell at a higher price, and then wait for the price to fall so that I could buy again. But this was a long wait game and not interesting at all. Not to mention, selling Bitcoin was at your own peril. You may have sold it at $X, hoping that the price falls below $X to buy again. As history would tell you, sometimes Bitcoin does not return below its last held price. EVER.

So, this was, first, a boring strategy, and second, I risked losing an asset like Bitcoin forever at a certain price point. But here’s what I did.

Track Bitcoin Price at Intervals | Put Up "Buy" or "Sell" Orders at These Intervals

Yeah, that sounded too technical. Trust me, it isn’t. Here, let me explain.

Step 1

At any given point in time, Bitcoin has a pattern of trading + or – 10,000 dollars from a midpoint. For example, while we are discussing Bitcoin’s price as of today, it shows propensity of trading around the midpoint 112,500 (don’t ask me how. It is my observation and not some graphs, patterns or complex mathematical models. 😊) so, all I have to do is track the Bitcoin price to -10,000 dollars or up to 102,500 and +10,000 dollars or up to 122,500 dollars. That’s it. That’s the first analysis, and now that I have it out of the way.

Step 2

I create a buy order if my selected price is less than Bitcoin’s current price, or a sell order if my selected price is more than Bitcoin’s current price. So, what this does is that when the price goes down, I automatically buy Bitcoin, and when the price goes up, I sell Bitcoin. I usually do this in steps of USD 2500. Here is my order chart on one of the exchanges.

As I write this post, Bitcoin is trading at USD 111,300. Notice that there is one “buy” order at USD 107,500 (because it is less than the current price) and there are sell orders at and above USD 112,500 (because those are higher than the current price points.)

Now this is what happens. As Bitcoin price moves up, I sell BTC at USD 112,500 and collect USDT. The reverse is also true, as Bitcoin price falls, I buy it at 107,500.

What do I do then?

Step 3

I then create a “sell” or “buy” order again in steps of 2,500.

For example.

1. If I bought 0.000372 BTC at USD 107,500 because the price fell, then I will create a new sell order at USD 110,000 for 0.000372 BTC. In that case, when BTC price goes up, my order will once again get filled at USD 110,000, and with that, I will once again create a buy order at 107,500.
2. In the situation that the price goes up, I will sell 0.000348 BTC at USD 112,500. From the realized USDT, I will create a buy order at USD 110,000.
3. I continuously set up the orders in a cycle, taking full advantage of Bitcoin’s price movement between USD 107,500 and USD 126,000 (this was the highest BTC hit recently. I always do this in steps of USD 2,500. You are free to choose your own steps. It could be USD 1,000, 500, or even 3,000. Do what suits you.
4. Note: Here, I don’t intend to take out the money from the sale of Bitcoin. I am just playing the market and growing my BTC stash as the price fluctuates.

That’s it. That’s how I trade.

But Remember | Important

The price of Bitcoin will keep fluctuating beyond the +/- 10,000 range also. For example, just three months back, the price ranged between 89,000 and 110,000. At that point, USD 110,000 was Bitcoin’s All-Time-High (ATH) price, but today it trades between USD 105,000 and USD 126,000. So, keep shifting your orders to fit that price range. From my experience so far, BTC stays around a price point for roughly four months. This too may change. But what have we got to lose? We are growing the stash nonetheless.

This form of trading has helped me a lot. In fact, when the 10th of October BTC freefall happened, I did not lose out. I, in fact, had my orders filled when I woke up in the morning. The price had fallen from roughly USD 120,000 to USD 102,000 overnight, and by the time I woke up, it was at USD 108,000. I had a field day. I was probably one of the few non-affected parties, other than those who don’t trade or those who have no clue what crypto is. 😉

But Why Do This? | Why Trade This Way?

Because I don’t like my BTC sitting idle. We can argue about staking or even crypto exchanges’ earn programs, but those don’t give returns at the rate at which I get just by betting on the fact that Bitcoin’s price cannot remain stable. That’s all.

And as Bitcoin’s price keeps fluctuating, I keep growing my stash, much more than the 10% APR that I could earn from staking or earn programs.

I like this form and I think it makes sense. You can try the same with other coins/tokens too. But select a constantly moving coin/token. That’s where you can make the most. I hope you all enjoyed reading the article.

Take care. Until the next one!

Image Courtesy: PabitraKaity at Pixabay(dot)com