New to trading Crypto's - would appreciate advice/guidance

[Oddjob]

a few reasons:

1) I have no experience with other markets and I believe, correct me if I'm wrong, there are much higher commission rates with other markets. Currency crypto commissions are less than 1%.

2) I believe that the crypto's will eventually be much more regulated and your average trader will be much more likely to enter into the market (SEC will likely begin approving ETF's in this market); the market will open up to the mainstream. Cryptocurrencies and the technology behind them are quietly creeping in the background of major industries including my the industry of my profession, commercial insurance (by technology standards we are 10yrs behind even banking so this was a surprise and made me pay attention). I want to be there before it becomes big hence why I've already invested in bitcoin.

3) there are so many changes, innovations, ideas, market entrants and changing regulations everyday that its become a market I really enjoy researching it.

what market(s) do you trade in???

 

[bublu]

The only advice for trading crypto is to buy them at low and hold till they are filled up with juice and then sell them at right price, that seems much lucrative however i am more happy with trading forex pairs because it makes me more profits in less time.

 

[algofy]

The only advice for trading crypto is to buy them at low and hold till they are filled up with juice and then sell them at right price, that seems much lucrative however i am more happy with trading forex pairs because it makes me more profits in less time.

How do you know the low or the "right" price?

 

[Oddjob]

How do you know the low or the "right" price?

great is example is whats happening now...bitcoin broke $3k last night which was above their previous resistance level of $2.8k. bitcoin always falls after breaching a previous high. but also exchanges like coinbase are having issues which is causing the price to drop further. I wouldn't trade bitcoin, I buy and hold because I do believe in its future value.

 

[algofy]

great is example is whats happening now...bitcoin broke $3k last night which was above their previous resistance level of $2.8k. bitcoin always falls after breaching a previous high. but also exchanges like coinbase are having issues which is causing the price to drop further. I wouldn't trade bitcoin, I buy and hold because I do believe in its future value.

Cool...nothing wrong with buy and hold assuming you aren't tying up a huge part of your net worth in it.

 

[lovethetrade]

greetings,

any advice for a newbie? where can I search for more information?

Thanks,

Oddjob

Most of it is experience.

If you want to be fairly active your best bet is to wake up and trade the Asian session. During the Europe or US session most of the intraday bull rallies are coming to an end and you'll most likely encounter a sizeable correction with very little forewarning.

The Asians will go sleep then wake up and do the same again so you don't want to to be on the wrong side. Alternatively, one can swing trade longer time frames.

Correlation is another issue one needs to deal with. A crypto can have no sign it's going to reverse and will simply do so because another correlated crypto is in a legitimate correction phase. Sometimes you have to know when it's just a correlated move and be willing to take it on without realising a loss (but within your risk parameters of course).

Good luck using limit orders close to the market in a fast moving market also.

 

[Oddjob]

Most of it is experience.

If you want to be fairly active your best bet is to wake up and trade the Asian session. During the Europe or US session most of the intraday bull rallies are coming to an end and you'll most likely encounter a sizeable correction with very little forewarning.

The Asians will go sleep then wake up and do the same again so you don't want to to be on the wrong side. Alternatively, one can swing trade longer time frames.

Correlation is another issue one needs to deal with. A crypto can have no sign it's going to reverse and will simply do so because another correlated crypto is in a legitimate correction phase. Sometimes you have to know when it's just a correlated move and be willing to take it on without realising a loss (but within your risk parameters of course).

Good luck using limit orders close to the market in a fast moving market also.

Thanks a lot for the advice. I have noticed that theres a ton of activity overnight (EST).

 

[jj90]

Correlation is another issue one needs to deal with. A crypto can have no sign it's going to reverse and will simply do so because another correlated crypto is in a legitimate correction phase. Sometimes you have to know when it's just a correlated move and be willing to take it on without realising a loss (but within your risk parameters of course).

Great points by @lovethetrade here. I haven't really sized up in some others just because the liquidity isn't there in a correction. Prime example is the BTC led selloff yesterday in the US AM, currently most other cryptos are at highs or new high and you could have had a 40% gain since the lows yesterday. Woulda shoulda could(ETH).

 

[Oddjob]

Great points by @lovethetrade here. I haven't really sized up in some others just because the liquidity isn't there in a correction. Prime example is the BTC led selloff yesterday in the US AM, currently most other cryptos are at highs or new high and you could have had a 40% gain since the lows yesterday. Woulda shoulda could(ETH).

I'm sure there were people laughing and people crying.

 

[beerntrading]

the industry of my profession, commercial insurance (by technology standards we are 10yrs behind even banking so this was a surprise and made me pay attention).

Wait...you're I insurance and you want out? What are you, human?

And sorry, not to tease, insurance guy myself. Also, as for other than currency markets, what about options? Literally net short put spreads are identical to a policy with a SIR and facultative re...or assuming a property first loss, while someone else carries the excess of loss policy.