Bitcoin is a volatile asset (relative to FIAT) and this fact should be taken into consideration, especially in the days when the Bitcoin value is moving sharply. Bitcoin and Altcoins have an inverse relationship in their value, i.e. when the value of Bitcoin rises then Altcoins are losing their Bitcoin value, and vice versa. When Bitcoin is volatile, our conditions for trading are kind of foggy. During fog we can’t see much ahead, so it is better to have close targets for our trades or not to trade at all.
Leverage is money that a broker loans you. Unless you’re a professional trader, you should stay away from leverage until you’ve learned everything you can learn about making trades with your own money. While leverage can help you make greater profits with short cryptocurrency movements, it can also amplify your losses when the trade takes a wrong turn.

I wrote the following simple guide to investing in Bitcoin and Crypto Assets back in Jan '17. After publishing version 3 of my strategy I felt a need to review and update it to reflect any changes in my approach, but upon review, I found very little needed changing. If you are new to Crypto, take your time to read this and the strategy, if you have any questions then feel free to get in touch, and I will do my best to get back to you.
Bitcoin faced extreme headwinds in March when Alphabet's Google (ticker: GOOG, GOOGL) joined Facebook (FB) in banning ads for cryptocurrencies, which lowered liquidity in the market. In an abrupt reversal, Facebook said on June 26 that it would allow some ads for cryptocurrencies, but continues its ban against initial coin offerings and binary options.

(function(){"use strict";function s(e){return"function"==typeof e||"object"==typeof e&&null!==e}function a(e){return"function"==typeof e}function u(e){X=e}function l(e){G=e}function c(){return function(){r.nextTick(p)}}function f(){var e=0,n=new ne(p),t=document.createTextNode("");return n.observe(t,{characterData:!0}),function(){t.data=e=++e%2}}function d(){var e=new MessageChannel;return e.port1.onmessage=p,function(){e.port2.postMessage(0)}}function h(){return function(){setTimeout(p,1)}}function p(){for(var e=0;et.length)&&(n=t.length),n-=e.length;var r=t.indexOf(e,n);return-1!==r&&r===n}),String.prototype.startsWith||(String.prototype.startsWith=function(e,n){return n=n||0,this.substr(n,e.length)===e}),String.prototype.trim||(String.prototype.trim=function(){return this.replace(/^[\s\uFEFF\xA0]+|[\s\uFEFF\xA0]+$/g,"")}),String.prototype.includes||(String.prototype.includes=function(e,n){"use strict";return"number"!=typeof n&&(n=0),!(n+e.length>this.length)&&-1!==this.indexOf(e,n)})},"./shared/require-global.js":function(e,n,t){e.exports=t("./shared/require-shim.js")},"./shared/require-shim.js":function(e,n,t){var r=t("./shared/errors.js"),i=(this.window,!1),o=null,s=null,a=new Promise(function(e,n){o=e,s=n}),u=function(e){if(!u.hasModule(e)){var n=new Error('Cannot find module "'+e+'"');throw n.code="MODULE_NOT_FOUND",n}return t("./"+e+".js")};u.loadChunk=function(e){return a.then(function(){return"main"==e?t.e("main").then(function(e){t("./main.js")}.bind(null,t))["catch"](t.oe):"dev"==e?Promise.all([t.e("main"),t.e("dev")]).then(function(e){t("./shared/dev.js")}.bind(null,t))["catch"](t.oe):"internal"==e?Promise.all([t.e("main"),t.e("internal"),t.e("qtext2"),t.e("dev")]).then(function(e){t("./internal.js")}.bind(null,t))["catch"](t.oe):"ads_manager"==e?Promise.all([t.e("main"),t.e("ads_manager")]).then(function(e){undefined,undefined,undefined,undefined,undefined,undefined,undefined,undefined,undefined,undefined,undefined}.bind(null,t))["catch"](t.oe):"publisher_dashboard"==e?t.e("publisher_dashboard").then(function(e){undefined,undefined}.bind(null,t))["catch"](t.oe):"content_widgets"==e?Promise.all([t.e("main"),t.e("content_widgets")]).then(function(e){t("./content_widgets.iframe.js")}.bind(null,t))["catch"](t.oe):void 0})},u.whenReady=function(e,n){Promise.all(window.webpackChunks.map(function(e){return u.loadChunk(e)})).then(function(){n()})},u.installPageProperties=function(e,n){window.Q.settings=e,window.Q.gating=n,i=!0,o()},u.assertPagePropertiesInstalled=function(){i||(s(),r.logJsError("installPageProperties","The install page properties promise was rejected in require-shim."))},u.prefetchAll=function(){t("./settings.js");Promise.all([t.e("main"),t.e("qtext2")]).then(function(){}.bind(null,t))["catch"](t.oe)},u.hasModule=function(e){return!!window.NODE_JS||t.m.hasOwnProperty("./"+e+".js")},u.execAll=function(){var e=Object.keys(t.m);try{for(var n=0;n=c?n():document.fonts.load(l(o,'"'+o.family+'"'),a).then(function(n){1<=n.length?e():setTimeout(t,25)},function(){n()})}t()});var w=new Promise(function(e,n){u=setTimeout(n,c)});Promise.race([w,m]).then(function(){clearTimeout(u),e(o)},function(){n(o)})}else t(function(){function t(){var n;(n=-1!=y&&-1!=v||-1!=y&&-1!=g||-1!=v&&-1!=g)&&((n=y!=v&&y!=g&&v!=g)||(null===f&&(n=/AppleWebKit\/([0-9]+)(?:\.([0-9]+))/.exec(window.navigator.userAgent),f=!!n&&(536>parseInt(n[1],10)||536===parseInt(n[1],10)&&11>=parseInt(n[2],10))),n=f&&(y==b&&v==b&&g==b||y==x&&v==x&&g==x||y==j&&v==j&&g==j)),n=!n),n&&(null!==_.parentNode&&_.parentNode.removeChild(_),clearTimeout(u),e(o))}function d(){if((new Date).getTime()-h>=c)null!==_.parentNode&&_.parentNode.removeChild(_),n(o);else{var e=document.hidden;!0!==e&&void 0!==e||(y=p.a.offsetWidth,v=m.a.offsetWidth,g=w.a.offsetWidth,t()),u=setTimeout(d,50)}}var p=new r(a),m=new r(a),w=new r(a),y=-1,v=-1,g=-1,b=-1,x=-1,j=-1,_=document.createElement("div");_.dir="ltr",i(p,l(o,"sans-serif")),i(m,l(o,"serif")),i(w,l(o,"monospace")),_.appendChild(p.a),_.appendChild(m.a),_.appendChild(w.a),document.body.appendChild(_),b=p.a.offsetWidth,x=m.a.offsetWidth,j=w.a.offsetWidth,d(),s(p,function(e){y=e,t()}),i(p,l(o,'"'+o.family+'",sans-serif')),s(m,function(e){v=e,t()}),i(m,l(o,'"'+o.family+'",serif')),s(w,function(e){g=e,t()}),i(w,l(o,'"'+o.family+'",monospace'))})})},void 0!==e?e.exports=a:(window.FontFaceObserver=a,window.FontFaceObserver.prototype.load=a.prototype.load)}()},"./third_party/tracekit.js":function(e,n){/**


Consider seeking out opportunities to practice and master using the lingo. It might not suffice to idly read terms like ‘MA’ or ‘DCA’: many new day traders get their feet wet by using these terms in conversations, in real life and public forums like Reddit. People often find that they learn better when they actively discuss the things they’re learning, finding the best ways to explain it to others.
On top of that, the cryptocurrency market travels at lightspeed compared to other markets. New coins enter the market on a daily basis (in 2016, there were about 550 different coins, today there are about 1,500), and each one has news every day. I’m not doubting your ability to consume and analyze news, but that level of information bombardment will always be more effectively consumed as a group. In these communities, you’ll see members link news and relevant articles about coins you’ve invested in and coins you’ve never heard of. The community will definitely expand your knowledge much faster than doing it all yourself.
The day I first heard about Bitcoin on Reddit, a friend had also called me to tell me about it. We spent most of our friendship talking about Ayn Rand and programming, so when we heard about a currency that was software and couldn’t be controlled by governments we were very interested. I purchased $600 worth of BTC and my friend and I planned on buying a mining rig.
It’s human nature to be cautious at first and then progressively relaxed, even reckless. My observations suggest that it is best to behave in the opposite, counter-intuitive way: commit yourself to the market with reckless abandon in the early days, and then start the scaling out process, applying the brakes and get the hell out when it appears to be the later stages.
Another tip is to try and determine why the value of a particular cryptocurrency is rising or falling before you make an investment. Buying a coin that’s in freefall and waiting for its value to increase again may seem astute, but there’s no guarantee that it’ll bounce back. Chasing gains by backing a currency that’s surged can also seem tempting, but there’s always the risk of “pump and dump” schemes where the price crashes afterwards. Know the “why” before you buy.
Certain candlesticks contain powerful clues about the direction of order flow and where the price is likely to go. The mighty engulfing bar is one of them and marks levels where reversals are likely to occur. Engulfing the entire price range of the preceding candle says much about where the big market players are putting their money. More about engulfing bar crypto trading coming soon!
I bought Elastic $XEL at the obscure Heat exchange. It was rather difficult discovering how to buy it because I was in this case ahead of the herd where the path was not well defined. In the end I bought it at a high price (average 31,367 Satoshis, should have got them at 25,000 Sats) as I got scammed over at Heat by a predator (Arsonic @Ars0nic on Twitter) playing the order book. We’ll see how that plays out. I think the excessive price I paid will not matter too much.

Realize that Bitcoin isn’t the same as Blockchain. Blockchain technology is something many are bullish on, but that sentiment shouldn’t be confused with being sentiment about Bitcoin specifically. Blockchain is not Bitcoin, a company that calls itself blockchain is not the same as the technology blockchain. The new “blockchain killer” might not be.
LocalBitcoin is a P2P Bitcoin exchange with buyers and sellers in thousands of cities around the world. With LocalBitcoins, you can meet up with people in your local area and buy or sell bitcoins in cash, send money through PayPal, Skrill or Dwolla or arrange to deposit cash at a bank branch. LocalBitcoins only take a commission of 1% from the sellers who set their own exchange rates. To ensure trading is secure, LocalBitcoins takes a number of precautions. To start, the platform rates each trader with a reputation rank and publicly displays past activities. Also, once a trade is requested, the money is held on LocalBitcoins’ escrow service. After the seller confirms the trade is completed the funds are released. If something does happen to go wrong, LocalBitcoins has a support and conflict resolution team to resolve conflicts between buyers and sellers. Check out LocalBitcoins FAQ
If you choose to keep some stored on an exchange or a website such as Coinbase, then ensure you complete a full security setup and ALWAYS setup Two Factor Authentication, I recommend using Google Authenticator for this and not SMS Two Factor Authentication as your phone can be compromised by hackers. Google Authenticator creates a random number string each time you log in to protect yourself in case someone can get hold of your username and password.
Dad Advice: Don’t invest more than you can afford to lose. No really, there will be many great investments in your lifetime, there has been in Bitcoins lifetime. Bitcoin doesn’t cost $225 anymore. The chances that you’ll never have to work again if you invest your life savings in Bitcoin aren’t non-existent, but they aren’t as good as they used to be. If Bitcoin ends up down, you’ll be hodling the bag while others are on to better and brighter pastures.

NOTE: Once you have Coinbase down, try moving onto GDAX. It’s, in overly simple terms, like a better version of Coinbase with lower fees. Coinbase operates both platforms, and both use the same logins. GDAX is the preferred exchange of many Bitcoin traders in the U.S. It caters to both pros and novices. After you master that, then consider exchanges like Bittrex and Binance.

Take profits. Some investors think “taking profits” is a dirty phrase, but it is a rather conservative strategy none-the-less. Taking profits can result in you making less money than you would have if you did nothing and just “let it ride”… but that is only true if Bitcoin goes up over the long term. If you have hefty profits, consider taking them off the table, and then waiting for a lower price in the future. Worst case, you can buy back in at a higher price later (leaving some potential profits on the table). TIP: If a coin just went up 400%… consider taking some profits. Cryptocurrency almost always corrects at some point after a big run. I personally would say HODLing after making 400% gains is called GREED. I won’t ever sell my full stack in one chunk, but I’m going to start averaging out when the MACD turns bearish after a 400% – 1,000% run if the run was somewhat organic. If the run was the result of a pump and dump, then I will likely take it all off the table quickly. Pump and dumps are frustrating events, like I said, watch out for manipulation.

If you’re only buying Bitcoin, Ether and other currencies in order to sell them at a profit a short time later, then the investment is turning into speculation. You can trade the different tokens on a digital currency exchange (which are designed for trading fiat money for crypt currencies) or a crypto currency exchange (crypto for crypto). There are dozens of different exchanges that we’ll describe in detail in the guide.
×