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How To Get Started Trading Cryptocurrency?

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  • #32938
    VBJ
    Keymaster

    This thread is more me asking this question to this site’s readership rather than me teaching something that I know. There are many ways of making travel money that I’ve mastered, but trading cryptocurrency is not one of them. But I’m going to learn. If you have any tips or recommendations as to how to get started, please share them below.

    #32944
    cryptoguy
    Guest

    You know it’s really easy to talk about making money in cryptocurrency when the market is up. Just like the present situation in tech stocks. Past bitcoin history reveals the bubble always pops and the price of bitcoin crashes back to earth and the alt coins follow.

    So here we are with the price of bitcoin at 11,543.89 on August 29, 2020. Are we heading to 20,000.00 and then higher? Is this time different? Bitcoin fever is rampant.

    Bitcoin has been described as digital gold. A place to store money.

    Yet Warren Buffett the greatest investor of all time describes cryptocurrency as, “having no value and can’t produce anything.” Hard to argue against the greatest.

    Presently the market cap of Bitcoin is around 213 billion dollars. So it seems we can make some short and long term money. Bitcoin was was born about 11 years ago.

    Can we make travel money trading cryptocurrency? Of course. The question is how much money do you have to gamble with? Do you believe in cryptocurrency? I’d rather bet big money on Amazon or Nvidia for the long term.

    But lets diversify a little and bet on blockchain technology that is here to stay. Walmart is using it. IBM is betting on it. Farmers are tracking the food they grow with blockchain. The jewelry industry is tracking diamonds with it. So we could take the safe bet and invest in big companies using and creating blockchain technology.

    Blockchain technology is not Bitcoin. Blockchain is a digital distributed ledger.

    But lets make money on cryptocurrency. Buy low and sell high.

    Open a coinbase pro account. Fund the account with money from your bank. Learn how to trade just like the stock market. Such as market and limit orders. Pick a cryptocurrency coin that you think is going to go up in value and click the buy button. When the price goes up click the sell button and your on your way to crypto riches. So easy?

    But it’s a funny thing gambling. Because most of the time you will buy high and sell low. Don’t invest/gamble what you can’t afford to lose.

    My advice on learning to make money in cryptocurrency is start with 100 dollars and plan on losing it. Now remember your cryptocurrency is not guaranteed by the exchange for safe keeping. You will need to move your cryptocurrency off the exchange for safe keeping into a hard wallet. But if you are just day trading you will need to keep the money on the exchange so you can sell it quick. Moving your cryptocurrency between hard wallets and exchanges takes lots of time.

    So first steps are to learn to trade and move cryptocurrency around to different exchanges. Invest in a hard wallet for long term storage and learn to use it. Find some coins you want to buy. Start a small portfolio.

    Let’s speculate that cryptocurrency is here to stay. This is my present strategy. Besides putting some money into bitcoin for long term speculation. I’m looking for the next 3rd and 4th generation cryptocurrency blockchain technology. The future of cryptocurrency! Bitcoin is slow. Cryptocurrency needs to be faster than Visa, Mastercard, Western Union and Paypal to win the game. Plus cheaper in transaction fees.

    Long term bets I’m researching:

    Cardano (still in development, but you can make money staking it)
    Tezos (working and can stake it)
    Tron (working in gaming and can stake it)
    BTT (Justin Sun says big things are coming)
    Dash (Dash is strong in Columbia)
    BAT (Brave browser and working model)

    Staking is when your freeze your cryptocurrency and earn interest or rewards. Like a certificate of deposit with more risk.

    Cryptocurrency is volatile and you can lose your money in seconds. You can also make money quick.

    Just like the stock market I think it’s important to diversify.

    Pros: Market never closes, exchanges becoming more secure
    Cons: Market never closes, cryptocurrency not protected from hacking on exchanges.

    Have fun trading cryptocurrency and researching the technology. Meetup with groups. Support projects like the Brave browser which is trying to make the internet better and pass along some ad revenue.

    That’s my short take on cryptocurrency. Is it gambling or investing? Are you long term or short term?

    #32945
    VBJ
    Keymaster

    Thanks for this detailed primer. Very good advice.

    What hard wallets would you recommend? Also, what exchanges do you usually use?

    “My advice on learning to make money in cryptocurrency is start with 100 dollars and plan on losing it.”

    Very good advice. I did that back in 2014 when I first began investing in stocks. I took $600 and planned on blowing it to learn how it’s done. I blew it in a couple of weeks but I learned the ropes, which I feel was worth the price.

    I will start a separate thread to chart my progress. If you’re inclined, please feel free to do so yourself with some of the new coins that you’re investing in … or anything else.

    Thanks again!

    #32953
    cryptoguy
    Guest

    Hi Wade. Just a quick note using the Brave Browser on your website. In this board I had to turn off shields to read your comment. It worked in Firefox. I sent a report to Brave on the page not rendering correctly.

    The only hard wallet I have experience with is the Ledger Nano S. I’ve had no problems with the function and reliability. The Ledger Live software runs well on Linux.

    Exchanges that I use are Coinbase Pro, Kraken and Binance (not the USA site for Binance.) Kraken has lots of hidden withdrawal and deposit fees. So it’s important to read the fees overview page on Kraken. Coinbase Pro still offers free withdrawal and deposits. I started with Coinbase, but was much happier with Coinbase Pro.

    Yes learning the ropes like you stated is probably the most important step to make. Sending coins to exchanges and hard wallets can be lost forever with one wrong address.

    One thing I would like to point out to people thinking of getting into cryptocurrency is that you don’t have to be wealthy. One misconception is people think you have to buy the whole coin. Not true. You can purchase just 10 dollars of Bitcoin and own a small percent. That goes for all coins. So dollar cost averaging is a good way to enter a high crypto market that we are in now.

    I have a rather humorous trade on how I make 49.9% in less than 24 hrs on Polkadot (DOT). Get back to you on that one.

    #32956
    cryptoguy
    Guest

    Just like the stock market has IPO’s (initial public offerings.) Cryptocurrency has ICO’s (initial crypto offerings.) Similarly crypto will also have splits just like Apple and Tesla just split their stock. Crypto traders will try to profit from ICO’s and splits.

    Kraken exchange had been sending me emails about they were going to be offering Polkadot (DOT) staking soon. Doing some quick research I had decided that I was not really interested in Polkadot at the moment. It was still in Beta form and not yet easily supported by my Ledger Nano S hard wallet.

    But I was curious about playing a cryptocurrency split. Polkadot (Dot) was calling it a redenomination which was similar to a split. They were creating a new Dot that was 100 times smaller.

    I like summer dresses with polkadots and ladybugs put a smile on my face. So why not join the fun. Plus I had a whole 20 dollars on Kraken to experiment with. That’s the humorous part about this trade.

    So the day came on Kraken that the Dot was available to purchase and I went all in with my 20 US dollars. Then I staked it on Kraken earning close to 12%. Hit the pillow that night with sweet dreams of the riches about to bless me.

    Next day out of curiosity I checked the price of Polkadot and realize that the price had increased by about 49%. Well that was good enough for me. I login into Kraken. unstake Polkadot. Sell it for dollars. Buy Tron with the my handsome profit. Send Tron to my hard wallet and call it a successful small fun trade.

    A couple days later I check the price of Polkadot and see that the price is up a whopping 129% since my initial trade. Wow.

    Yeah I know I made a meager 10 dollars, but it was fun. Yes I love Polkadots and ladybugs, but even if I had some real money on the exchange I would not of bet no more than 100 dollars in a coin that I had not researched and believed in.

    Splits and ICO’s are crypto trading plays to think about.

    #32980
    VBJ
    Keymaster

    Just a quick note using the Brave Browser on your website. In this board I had to turn off shields to read your comment. It worked in Firefox. I sent a report to Brave on the page not rendering correctly.

    Hmm… Is it still doing this? I had a plugin conflict a week or so ago but after I fixed it it all looks good on my end. Let me know if it’s still not working for you. Thanks!

    I will get a Ledger Nano S wallet and do a little trading on Coinbase Pro later this week and start to get the feel for it. I will post notes here.

    A couple days later I check the price of Polkadot and see that the price is up a whopping 129% since my initial trade. Wow.

    Haha! Yes, the fun of trading! But, like sex, it’s usually better to pull out too early than too late … Thanks for the story and advice!

    #33346
    Jack
    Guest

    I don’t know how much money is to be made trading crypto. Yes, I have made money, but not like I could have. I knew Bitcoin back in 2010. Some money I have made recently with crypto was in the March 12th crash. I had transferred what crypto I had into stablecoins in January. On March 12th, I saw that Bitcoin had turned the corner and instead of throwing it into Bitcoin, I put it in Stellar Lumens(XLM). Generally the direction of the market is dictated by Bitcoin so I knew the XLM crash was just about over. I figured it would appreciate 50%. It has more than tripled off those lows.

    I still have my money in XLM, not because I am trying to make money but because I like the coin and the concept behind it. Keybase airdrops introduced me to it, but I stayed because I like the idea of the coin. It’s a coin started to make money transfers easier and cheaper. IBM supports the blockchain and have built international money transfer systems on chain. It’s a proof of stake rather proof of work blockchain. The fundamentals are there.

    I look at Bitcoin as something like gold(store of value). Ethereum is like silver(workhouse…with DAPPS), and XLM is like cash. I can send you XLM and you have it in your wallet in seconds and the fee is neglible. With decentralized exchanges like StellarX, you can quickly and easily trade it for any other crypto.

    I even have a Blockcard (referral link: https://dashboard.getblockcard.com/i/w4hUbY1d ) that uses Ternio tokens wich are based on XLM(and now also ETH). I had a problem when I was abroad teaching and that was getting money back to the US and having a US debit card I could easily use with that money. KYC was making it difficult to do wire transfers into the US and without any relatives to rely on…..The Blockcard solves that problem. I just need to be able to buy crypto and it’s not difficult to buy it outside of the US.

    But all of that said, I think the real money to make in crypto is in coming up with a token that takes care of a problem. BAT is a good example. If you can be the one to come up with the token and can market it right…..heck you could make a VJ token. If someone wants to read an article then they pay one VJ token. You have people writing articles so they might get 10 tokens for writing an article. I know that’s simplistic, but it’s an example. The market decides the value of token.

    #33673
    VBJ
    Keymaster

    Hello Jack, Thanks for sharing this. It is interesting how us humans just agree that certain things will be used to represent value. I have an entire spiel about this in my talk about China’s ghost cities. How the Chinese use excess apartments is kind of mystifying to many people, but actually not much different than keeping wealth in metals or currency or crypto. If you have wealth you need to keep it somehow … and at least a house has the potential to be physically used (unlike palapa leaves or paper).

    Thanks for introducing me to XLM. Yes, this could solve a big problem that many of us who have money coming in from international sources regularly have. Just today I had an issue receiving a payment from the UK. Some European banks refuse to accept the fact that my bank account number is only five digits and automatically rejects the transfer. For a long time it was amazing to me how difficult it continued to be to send and receive money to / from abroad. But now we have things like TransferWise, so it’s getting better. But crypto could be a better way to go — bypass exchange rates and all that. It is good to watch crypto actually get useful.

    I just signed up for a Blockcard.

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