Monday, May 16, 2022

How To Play The Crypto Market

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Cryptocurrency Trading: Technical Analysis Masterclass 2019

Buy Bitcoin in 2019? How to Play the Cryptocurrency Market
  • Who its for: Intermediate students
  • Price:On sale

This course is very comprehensive because it includes a lot of modules with different technical analysis segments. The course explains some of the most important components in the technical part of cryptocurrency screening in detail.

These include support, resistance, trend lines, candlesticks, chart patterns, channels, Fibonacci levels, moving averages, oscillators, momentum and volatility.

The course is rich in information so its a nice start of your intermediate level of knowledge about cryptocurrencies.

Cryptocurrency Trading : Everything You Need To Know To Start Today

Disclosure:Learn more…

Risk Warning: Your Capital is at Risk.

Are you curious about trading cryptocurrencies like Bitcoin, Ethereum or Dogecoin? If so, itâs a good idea to find as much information on digital currency as you can before choosing an exchange or trading platform.

This guide will explain what drives the price of digital assets and how to get started trading cryptocurrency. Weâll also give you our recommendations for where to buy and trade digital coins.

In a hurry? Hereâs a quick preview of top crypto brokers available in with modern mobile trading platforms:

Disclaimer: Availability subject to regulations. Between 74-89% of retail investor accounts lose money when trading CFDs.

Contents

Want a quick tutorial? Jump straight to our step-by-step How to Start Trading Crypto section.

Hot Wallets Vs Cold Wallets

Lets understand the basic distinction between the two with a real-world example. Hot storage is like the wallets that you carry around in your pocket. The Cold storage is basically somewhat akin to your savings bank account. Keep this distinction in mind as we move forward. Basically, if you want to use your digital currency frequently then you must use hot storage. On the other hand, if you want to store your money for a long time then you must use cold storage.

Also Check: How To Put Bitcoin In Wallet

Look Out For Obvious Signs Of Scam

Good coins have a transparent technical vision, an active development team, and a lively, enthusiastic community. Bad coins are not transparent, promote fuzzy technical advantages without explaining how to reach them, and have a community that is mostly focused on getting rich quickly. Perhaps the worst kind of cryptocurrencies are MLM coins like the now infamous scam Bitconnect.

We will talk more about Bitconnect in a bit. For now, here are some of the more obvious signs of scam.

  • The Team

  • It really goes without saying that the success of a project is directly related to the credibility of the team. Lets put it like this: if you are investing your money into a company, wouldnt you want to know that the company is in good hands and that your money is going to be appreciated considerably?

    One of the most successful new projects of the current 2020-2021 market cycle is Uniswap. Although created in 2018 by ex-Siemens engineer Hayden Adams, Uniswap saw incredible success later on in 2020-2021. In March of 2021, it was generating fees of approximately $2-3 million dollars daily for liquidity providers who create a market for buying and selling on the platform.

    Now, compare that to this team:

    Yesyour eyes are not deceiving you, thats Ryan Goslings photo on the team page.

    Of course, most of the time, bad investment advice wont be this easy to detect. But there are steps you can take to thoroughly research the projects team and ensure their credibility.

    How To Buy Cryptocurrency

    Earn a massive 12% On Your Crypto

    You may be wondering how to buy cryptocurrency safely. There are typically three steps involved. These are:

    Step 1: Choosing a platform

    The first step is deciding which platform to use. Generally, you can choose between a traditional broker or dedicated cryptocurrency exchange:

    • Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.
    • Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

    When comparing different platforms, consider which cryptocurrencies are on offer, what fees they charge, their security features, storage and withdrawal options, and any educational resources.

    Step 2: Funding your account

    Once you have chosen your platform, the next step is to fund your account so you can begin trading. Most crypto exchanges allow users to purchase crypto using fiat currencies such as the US Dollar, the British Pound, or the Euro using their debit or credit cards although this varies by platform.

    Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods and time taken for deposits or withdrawals differ per platform. Equally, the time taken for deposits to clear varies by payment method.

    You May Like: Where To Buy Chia Crypto

    Cryptocurrency Fraud And Cryptocurrency Scams

    Unfortunately, cryptocurrency crime is on the rise. Cryptocurrency scams include:

    Fake websites: Bogus sites which feature fake testimonials and crypto jargon promising massive, guaranteed returns, provided you keep investing.

    Virtual Ponzi schemes: Cryptocurrency criminals promote non-existent opportunities to invest in digital currencies and create the illusion of huge returns by paying off old investors with new investors money. One scam operation, BitClub Network, raised more than $700 million before its perpetrators were indicted in December 2019.

    “Celebrity” endorsements: Scammers pose online as billionaires or well-known names who promise to multiply your investment in a virtual currency but instead steal what you send. They may also use messaging apps or chat rooms to start rumours that a famous businessperson is backing a specific cryptocurrency. Once they have encouraged investors to buy and driven up the price, the scammers sell their stake, and the currency reduces in value.

    Romance scams: The FBI warns of a trend in online dating scams, where tricksters persuade people they meet on dating apps or social media to invest or trade in virtual currencies. The FBIs Internet Crime Complaint Centre fielded more than 1,800 reports of crypto-focused romance scams in the first seven months of 2021, with losses reaching $133 million.

    Cathie Woods $560000 Bitcoin Call Is Now A 988% Upside Play Here’s How To Take Advantage Of The Cryptocurrency’s Slide

    Bitcoin is so volatile that if you want to buy the dip, the dip will likely be there.

    Case in point: After peaking at over $68,000 in early November, the price of the worlds largest cryptocurrency wasnt able to maintain its upward momentum. In fact, over the past weekend, it dipped below $50,000.

    Trading at $51,444 as of this writing, Bitcoin has dropped 18.7% in the past month. Could this be an opportunity for investors who were previously standing on the sidelines?

    It all depends on how high you believe Bitcoin could go. Ark Invests Cathie Wood, for instance, told Barrons last month that if institutional investors move into Bitcoin and allocate 5% of their portfolios, the price of the cryptocurrency would soar to $560,000 by 2026.

    Based on where Bitcoin is at today, her latest projection implies an upside of 988%. That might seem far-fetched, but remember Wood was right on the money when she predicted a 1,200% upside in Tesla.

    So heres a couple of ways to play the crypto boom including options with small price tags and zero commissions.

    Read Also: What Is The Best Cheap Cryptocurrency To Buy

    What Is Cryptocurrency Mining

    Cryptocurrency mining is the process by which recent cryptocurrency transactions are checked and new blocks are added to the blockchain.

    Checking transactions

    Mining computers select pending transactions from a pool and check to ensure that the sender has sufficient funds to complete the transaction. This involves checking the transaction details against the transaction history stored in the blockchain. A second check confirms that the sender authorised the transfer of funds using their private key.

    Creating a new block

    Mining computers compile valid transactions into a new block and attempt to generate the cryptographic link to the previous block by finding a solution to a complex algorithm. When a computer succeeds in generating the link, it adds the block to its version of the blockchain file and broadcasts the update across the network.

    Security And Privacy Issues

    Crypto Birds | How to play | Marketplace

    Computer hacking and theft continue to be impediments to widespread acceptance. These issues have continued to rise in tandem with the popularity of cryptocurrencies. In July 2017, one of the five largest Bitcoin and Ethereum exchanges was hacked, resulting in the theft of user information as well as hundreds of millions of Korean Won. The FTC also recorded an increase in identity fraud complaints of more than 100% between 2013 and 2016, and Coinbase, the largest US-based exchange, saw account hacking double between November and December 2016.

    The pseudonymous nature of blockchain and Bitcoin transactions also raises other concerns. In a typical centralized transaction, if the good or service is defective, the transaction can be cancelled and the funds returned to the buyer. However, in the cryptocurrency ecosystem, there isnt a central organization to facilitate recourse against the seller.

    Read Also: Where Can I Buy Cardano Cryptocurrency

    Why Could Short Selling Btc Be Bad

    There are at least two scenarios where shorting does not generate the expected profit:

    • The price does not drop at all. This is the most unfortunate scenario, which indicates that the trader has poorly predicted the development of the situation and incorrectly defined the current trend of the cryptocurrency. The price has not fallen, but it has remained at ten bitcoins, which should be returned with interest.
    • The price falls, but less than planned. For example, the bitcoin has fallen not to $6,500, but to $6,800 and is not going to fall again. The rate is entering the upward trend again, and if the trader wants to make at least something on the shorting, he will have to pull the deal right now. With such a difference in rates, his dirty profit will be $2,000. Of that, almost $1,700 will be spent on commissions. His net income will be $300. And if the rate drops to $6,800, the commission will cut off the profits from the shorting. Hell just go down, paying off the loan debt.

    What Cryptocurrency Should You Invest In

    First, Blockgeeks does not give financial advice, and second, never asks anyone else what to do with your money, least of all Google! Always educate yourself, understand the risks, the all possible outcomes, and dont make any investments if you are not 100% comfortable with your decision.

    That said, Bitcoin remains the undisputed king of cryptocurrencies its been around the longest and has the largest market capitalization of over 674 billion USD . is the total value of all tokens available, or the price of each token multiplied by the number of tokens in circulation.

    However, there are other cryptocurrencies to choose from, such as Ethereum, Cardano, Litecoin, and thousands of others. They all differ in price, availability, demand, transaction speed and fees, and the technology that supports them.

    The website CoinMarketCap lists over 5,000 options in order of decreasing market capitalization. Here are the top 10 and their performance as of May 2021.

    It doesnt matter what the price of a given cryptocurrency is, you can always buy a fraction of a token. For example, if 1 Bitcoin costs $35,000 USD, you can always buy 0.0001 Bitcoin for the equivalent of $350 USD.

    When researching tokens to invest in, you can take a look at CoinMarketCap to get a snapshot of the top performers, but your research should not stop there. In fact, thats where the real work begins.

    You May Like: How To Get Bitcoin From Atm

    Bearish And Bullish Candlesticks

    Third, we need to distinguish that there are two types of candlesticks:

    • Bearish candlesticks
    • Bullish candlesticks

    For bullish candlesticks, the bottom of the thick section represents the opening price while the top of the body represents the closing price. The candlesticks wicks represent the highest and lowest prices during the selected time period.

    *Note: Apply the same rules in reverse for bearish candlesticks.

    The candlesticks will come in different shapes and forms. These candlestick price formations are a great way to predict future market trends. There are many candlestick combinations that can predict what will happen next and we call them chart patterns.

    In order to discern the information you get from the crypto candlestick charts you need the right tools:

    Are Cryptocurrencies A Good Investment

    Playing on Downtrends, or How to Short in the Crypto Market

    Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.

    Thats whats called the greater fool theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.

    For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.

    Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared bitcoin to paper checks: It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”

    » Learn more: Is bitcoin safe?

    This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?

    Recommended Reading: How To Buy Ibm Blockchain

    Ruby Play Network Partners With Yellow For Market Making Services

    Disclaimer: The text below is a press release that was not written by Cryptonews.com.

    Christchurch, New Zealand – Today, Ruby Play Network, a blockchain-powered, crypto gaming platform backed by the Binance Accelerator Fund – is pleased to announce a strategic partnership and investment deal with Yellow. The announcement sees Yellow lead Ruby Play Networkâs strategic round and will provide specialist market-making services to support the RUBY tokenâs listing on multiple exchanges, planned for early 2022.

    The move to partner with Yellow.com is just one of the many recent updates and developments that the Ruby Play Network is currently undertaking that is part of the larger strategy leading up to the launch of their native token RUBY for multiple exchange listings. The RUBY token is currently demonstrating its utility within their US-based casino platform as a reward for playing, demonstrating the effectiveness that a blockchain-based rewards system can provide in the gaming industry.

    Why Are Cryptocurrencies So Popular

    Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:

    • Supporters see cryptocurrencies such as bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable

    • Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation

    • Other supporters like the technology behind cryptocurrencies, the blockchain, because its a decentralized processing and recording system and can be more secure than traditional payment systems

    • Some speculators like cryptocurrencies because theyre going up in value and have no interest in the currencies long-term acceptance as a way to move money

    Also Check: How To Learn Trading Cryptocurrency

    Bitcoin Day Trading Strategy

    Day trading has the same principles for each cryptocurrency. Nevertheless, there are some benefits to day trading Bitcoin:

    • High supply and demand
    • Many exchanges allow leverage trading with BTC
    • Universal access all exchanges have added BTC to their lists
    • BTC-oriented exchanges provide lower fees and minimum deposits for BTC.

    There are two highly popular day-trading tactics for BTC:

  • Breakout. This opportunity comes up when the coin passes a certain level of support or resistance. Once the level is broken, the cryptocurrency is traded in the same trend. When you see the potential breakout, you have to open the position. The stop-loss should be placed below the first resistance zone.
  • Breakout retest. There might be an uptrend after the first breakout, but then, bulls will go back to this level to check the resistance. If the volume is higher at this stage, it means that prices will achieve a new maximum.
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    How this analyst says to play the crypto boom and avoid volatility

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    Recommended Reading: How To Buy Stock In Cryptocurrency

    Read The Projects Whitepaper

    When youve found a cryptocurrency you like, the first thing you need to do is read the whitepaper.

    A white paper is an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing bodys philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.

    Reading the whitepaper will give you two tremendous benefits:

  • You, as a potential investor, will learn everything you need to know about the cryptocurrency and the value that its bringing into the ecosystem.
  • A poorly written whitepaper is often a sign that the project is not worth investing in. If the team behind the cryptocurrency cant adequately explain the true utility of their token, then its probably not worth supporting.
  • Accounting Treatment Of Cryptocurrencies

    Under current accounting guidelines, cryptocurrencies are most likely not cash or cash equivalents since they lack the liquidity of cash and the stable value of cash equivalents. However, the accounting treatment of cryptocurrencies is still uncertain as there has not been official guidance on the issue from the International Finance Reporting Standards or The American Institute of CPAs .

    2014 Internal Revenue Service Ruling

    In the US, IRS Revenue Ruling 2014-21 stated that holders of cryptocurrencies should account for them as personal property, with gains or losses on purchases or sales. The value of cryptocurrency holdings on balance sheets would be at cost or fair market value at the time of receipt. Therefore, with the rapid increase in price, sales of cryptocurrencies lead to enormous gains at the time of sale: just consider the capital gains taxes on buying Bitcoin at $100 in 2013 and selling it for more than $4,000 in 2017!

    International Tax Treatment of Cryptocurrencies

    Outside the US, accounting treatment of cryptocurrencies varies. In the EU, a decision of the European Court of Justice rules that cryptocurrencies should be treated like government-backed currencies, and that holders should not be taxed on purchases or sales. In countries such as Germany and the UK, cryptocurrencies are treated like private money and not subject to tax outside of commercial use.

    Read Also: How Do You Pay Someone In Bitcoin

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