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Crypto Blog

Why should you NOT buy Bitcoin

I feel the storm, a breeze whips my face, the wrath of the community is entering this post. I am scared, I am trying to run, but the angry mob of Bitcoiners chases me, hunting me down, help me…

As many of my followers know by now, I am a Bitcoin fanatic. This post has no intention of degrading Bitcoin or any other cryptocurrencies. Because I know Bitcoin, believing that it is not for everyone is a crucial part of my understanding of it. That Bitcoin overtakes the world and will be the only monetary system that exists is utopic and is not very likely to happen. The mixture of institutionalised monetary systems and hard-to-produce currency is what our world needs in my opinion.

Many of you might be thinking “So, what is the point of the title?”, and you are right, this article is not dedicated to why Bitcoin is great.

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Let us dig into some reasons why you should not buy Bitcoin.

Uneducated decisions – Inform yourself. If people do not know about Bitcoin and you decide to invest into it, you are likely to underestimate the risk it brings with it. Too often people jump onto the FOMO train thinking “ah, I know the volatility and the risk”, these are the ones that are most likely to be crying the loudest as soon as they get spit out with less money. Understanding Bitcoin means that you must educate yourself.

If you are a hater – Every Bitcoiner can agree on the fact that Bitcoin haters get punished by not investing in it. The more days go by the more silent the Bitcoin hating community grows, the higher the Bull-run goes to more people understand that being against Bitcoin might not be a good path. However, even when everyone owes Bitcoin and the world is living happily some haters would rather prefer to not have any, which is fine, more for us.

If you cannot afford it – This is an obvious one, people that do not have the money, should rather stay away from Bitcoin since it is a high-risk investment.  Bitcoiners seem to have the most problems with that since many take up mortgages or even sell houses to invest. This is not a very smart thing to do in my opinion. Losing money hurts, reduce the damage by reducing your order size.

If you have a hurry – Never ever rush into a trade. These were the worst trades I took. Always, take your time, best to have a routine on when you are investing or trading, everything else will make you regret your decisions very hard.

No time – There are two things you need to trade or invest successfully into cryptos. Money and time, both a luxury to have. If you cannot afford both, best not to stress about having cryptos too. This is just a recommendation.

Honestly, this was one of the hardest articles to write so far. I can think of a thousand reasons on why you should have Bitcoin and many of them make much sense, but my head can not think of many reasons why to not have Bitcoin. Add up if you can think of more!

Wrapping things up, I understand that some people can not have Bitcoin because of financial reasons or simply because they do not have the time or the nerves to wrap their heads around it. This is very fine for me since it is your choice to not have Bitcoin at the end of the day. I can tolerate people not willing to buy Bitcoin because out of scepticism or fear and I accept negative haters too, because they are public relations, there is no such things like negative PR. Thank you haters.

If you want to educate yourself more about cryptocurrencies and trading or investing, check out my website and my YouTube. I even have a Podcast on Spotify in which a do a daily commentary of my understanding of the markets, be sure to check it out and leave a follow.

My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ

My Twitter:
https://twitter.com/aversionfall

My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/

Categories
Crypto Blog

How I approach the cryptocurrency market, a step-by-step guide

No magic, just the way I do it. 

Investing and trading have become my passion. The sheer amount of time I have invested in Bitcoin and other cryptocurrency markets is not comparable to anything else I did in my leisure time last year. The lockdown really gave me the perfect opportunity to sit down, find an approach, and learn it as good as I could. By doing so, I did not even realize that I created my own little training summer camp. The training camp result was an approach that worked and aligned with my specific understanding of how the cryptocurrency market performs. Trading and investing give me a long-term perspective and the urge to create a better future for me and everyone around me, this shift in my time preference was made by my approach. 

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This is not the “holy grail” of trading but merely a guide to help you find your own approach to the market. What I want to give you in this post is a starting point, from where you can start working yourself through the market. 

Use this guide, write it down, copy it, and reuse it. The more people that know about this, the fewer people spend money on overpriced courses that teach a strategy that might not even be understandable for you. Let us dig into this.

  1. Shift your time preference – Trading and Investing is not a “get rich quick scheme,” if you are here intending to make money today to buy your Lambo tomorrow, you are probably better off using that money elsewhere. If you think that you can quit your job tomorrow, you could not be more wrong about the market. Most think this way, underestimate the risk and get spit out by the markets empty pocketed very in no time. The longer you stay in the markets, the higher your chance is to turn up again in the long run. Learn to increase the probabilities of success, continue reading, and get some tips on achieving this.
  2. Due diligence – Back to school! Do your homework, be sure to understand what you are doing and investing in. Learn how to handle the tools and indicators you are given before making your first purchase. “But the cryptocurrency market is so complicated,” some of you might be thinking now. But that is how it works with all investments. If you want to buy a house, you first want to check it out before moving in. Since we have sources like YouTube or Reddit, learning about crypto can be good fun. You just need to be up for it. Understand Bitcoin, start there, and see if you really can learn about what it is and how it works. Find out if you can do the same with other projects. Having basic knowledge about what the market is will never hurt. 
  3. Consistency – Turn up every day. Look at it as if you would be working or studying something. Taking a break is good and needed, but being successful with anything means you have to turn up again, overcome your comfort, and scan the charts daily. Bringing the routine into your approach is essential. It will help you to get a relevant perspective on the market. 
  4. Security – Dig yourself into this. Cryptocurrency exchanges and hot wallets (wallets that store your money online) get hacked often. Be sure to keep your money safe. Dealing with cryptocurrencies is like becoming your own bank. Every bank needs a vault. A cold storage wallet can help you out here for sure.

As we defined before, your time preference needs to shift, kill the “oh I need it now” mentality. Overcome your inner-slacking-you, do your homework, and do it consistently. Learning how markets work is like learning a new language. It has its own vocabulary, structure, grammar, and culture. Accepting and tolerating is the key. Forcing your own perception onto something much bigger than you makes no sense. Go with the flow and become part of it. 

It is crucial that you got those 4 points ticked off before running into the battle. Let me give you some tips on how you stay in the markets for longer. 

  1. Find your exchange – An exchange is like the dictionary to the new language. The easier the dictionary is for you to understand and find what you need in there, the faster you are becoming in mastering the language. Find an exchange that suits your need. Do you want exposure to a lot of coins? Do you want an easy setup that just gets you started? Do you want an exchange that makes bank transactions most straightforward? Find your questions in this regard, and be sure to choose wisely. An exchange can make or break your experience trading or investing. 
  2. Swing or Day Trading or just investing? – This question is fundamental because it will have a direct impact on your strategy. Be sure of what you want and stick to it. Having consistency in your approach is paramount in this stage, be sure to know how much time you are willing to sacrifice here. 
  3. Never invest more than you can afford to lose – Investing more than you can afford to lose is never a good idea since you will lose for sure, especially in the beginning. This is a common mistake. Moreover, over-leveraging is the number one reason many newcomers leave the markets with heavy losses. Do not go all-in on a single coin. That mentality gets you nowhere and is best compared to gambling. Many trading critics argue that trading is just gambling, and it is if you go all-in on a coin. Diversification is vital. Get yourself a good portfolio of promising coins to be exposed to a greater variety of moves and reducing your risk of losing money. 
  4. Use a strategy – Have an approach. I often get the answer, “oh, I can sell before I am in negative anyways,” this is an approach to get wrecked fast but not to trade or invest. Use tools such as the stop-loss or indicators (or both combined) to find entries or exits while trading. Cryptocurrencies do not behave like stocks. Losing 20% in one day is often seen. Moreover, a strategy keeps you from being too emotional. Emotions are not good while trading. Stick to your guns. That is the plan! 
  5. Plan your trade and trade your plan – This tip combines consistency and experience and makes you unstoppable! No, seriously, have a plan in place. It is much easier to comprehend what you were doing and thinking when you have to look back onto your trades and judge yourself for not being consistent. Having a plan in place makes it much easier to buy and sell and naturally gives you more confidence that transforms into the experience. 
  6. Review your trades – Judging myself is a fixed part of my routine. Sounds weird, but it is the best way to improve and to trade or to invest. I screenshot every trade I made, and I write down my plan I had in place at that time. Coming back at the end of the week and judging myself on my bad trades became very important. A positive trade with a negative execution is a negative trade with good execution is considered a good trade. 
  7. Do not trust anyone when it comes to crypto – I see too many people falling for scams. Double-check everything, be sure that the news you are checking is official. There are more scammers out there than people trying to be honest. Never trust anyone when it comes to your investments. 
  8. Knowing when to stop – Overworking yourself and trying to get every possible investment opportunity out there will not help you become better. Find the profitable trades, execute them, and leave them be. Trust your strategy but also listen to your inner self. Breaks are important. They help to process and reflect on your accomplishments. 

By following these steps, your crypto journey will be more likely to be a successful one. Good investors are investors that plan to stay in the market for a long time. Many tools help you to accomplish this, so why not using them? Thinking that you know everything better might work for you in real life, but crypto can be ruthless, and people who know things better tend to fall harder. Do yourself a favor and use a cushion before falling. Standing up first will be much more comfortable that way. 

If you want to follow me on my journey through the cryptocurrency world, be sure to subscribe to my blog and my social media accounts! Please leave a like or a comment if you enjoyed my content. 

My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ

My Twitter:
https://twitter.com/aversionfall

My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/

Categories
Crypto Blog

I bought my first Bitcoin with 22, here is what I learned

My new workplace in my office was in a different room with entirely new faces sitting next to me, due to corona I got seated away. A co-worker and I got into a casual talk; we did not know each other at all. Nothing was going on at work, so we had a lot of time to chat. We got to know each other throughout the day, and as it got darker outside, he started talking about his investments in cryptocurrencies. I exchanged stocks before, so I wanted to know more, and I was interested in discussing it. He spoke, and I listened. He was very confusing, and I honestly did not understand what he tried to tell me. But there was something about Bitcoin, something that really caught my interest. 

The next thing I know is that I went home, opened my laptop, and went straight for YouTube and other sources of information. What I learned was more than just life-changing. It was a real eye-opener. The quantity of knowledge about economics I acquired has really impacted me and my political thinking. The vast amount of business ideas it sparked in me is incredible. I discovered an entirely new side of myself.  

Fast forward a year, here we are, Bitcoin bull running, and I am trying to realize new visions and dreams of mine. Let me help you on your journey. Let me share some of the tips I learned during this journey. 

Listen to yourself whatever market you are investing in

There are tons of analysts out there, and every single one of them knows it better somehow. Understanding that every approach to the markets is highly subjective is paramount and should be kept in mind accordingly. Trade only when you feel yourself. Doing what others tell you to do or what others believe is best for you rarely works out the way you want. This is very simple to explain: These people cannot think like you. 

When I started trading cryptocurrencies, I fell for the analyst trap. I wanted to know every little detail about the market and what I forgot was my own subjectiveness. The noise completely blinded me because I need my own approach and not someone else’s. 

However, there might come a time where finding a mentor or doing a course would not be a bad idea. But be sure to find the one that suits you and your approach the best. 

Be consistent 

Dig yourself into it. As soon as you feel comfortable with your approach to investing or trading, repeat it as often as possible, especially in the beginning. This is important since it can tell you how to improve in the long term. Investing is about staying in the market as long as possible. Therefore, you need consistency to be there in the long-term. Being lazy or blinded by the ideology that stocks and cryptos make you rich quickly is quite foolish. Turn up every day and get rewarded in the long term. This is how it works. 

Stick to what you know 

Short term noise can be a distraction, and many suffer from impulse decision making because of it. Buying and selling your assets because of speculative news or noise is rarely a good idea in the first minute. 

Red circle on the green line indicate Entry and Exit of trade, I HODL by believing this would take of, however, it was only a pump and dump.

I stuck to my guns. Even though XRP (cryptocurrency) dropped, I kept on holding it. It came back above my entry, and thanks to that, I sold it with a profit. I did not enter the trend and dumped it while everyone else was. I kept on doing what I planned, and it got out of it. Plan your trade and trade your plan is the best advice I can give here. 

Do not over-invest in one project

Going all-in has nothing to do with trading or investing, especially when you are starting out. You are probably better of going to the casino with that cash. Diversification really can help you cover up mistakes in your trading history that you otherwise would have regretted. Being exposed to a certain amount of assets will increase your likeliness of finding one that moves better than the majority. Or if one goes south, you still have the gains of the other investments to make it look better. 

Never invest more than you can afford to lose. A critical point, especially for the ones planning to turn up in the long-term. Over-leveraging yourself is never a good idea since you increase your risk dramatically. Instead, reduce your order value and split it into 3 or 5 separate entries to level out the natural market volatility and misjudgment.

Do not give up 

Learning from your mistakes and not doing them again is crucial. Everything has a price, especially when you want a long-term return. The money you lose in the market is the price you must pay for the experience. By looking at it in this way, losing money will become more comfortable for you. Be critical with yourself, do not fall into the habit of making the same mistake repeatedly. Use a system that allows you to control yourself and even judge yourself. 

I screenshot every trade that I make. Coming back a week later and reflecting on the trade really makes it worth it. What I learned from that is how to judge myself properly. A positive trade with a negative execution of that trade is not considered a fair trade anymore. Learning to think for yourself, no matter what the outcome has been before, is the clue. 

Just because professionals do it, it does not mean you have to do it too

Do not try to be the Big Short. Listening to professionals will not help you develop your own understanding of the market. They will blind you. Stick to your rules and your perception. You are far more likely to do the right thing by sticking to your own guns. Wallstreet produces much noise. Best not to care about the noise at all. 

Starting out with trading or investing is never easy. The more you do your homework about it, the better you will eventually get. Remember, it is all about staying in the market for as long as possible. The more you feel good about your approach, the better you will get in the long run. Right investors know what they add to their portfolio and have a strategy in place on how to deal with this investment. Do the same but add your subjectiveness to create a mix that suits you and your perception of things. This will surely propel you to becoming a more successful investor. 

If you want to follow my journey or if you even want to join it, leave a like, and subscribe on my various channels, so you never miss any article again! Thanks for reading. 

My YouTube:
https://www.youtube.com/channel/UCuNA5jnimv3erEJ1VmUBSoQ

My Twitter:
https://twitter.com/aversionfall

My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Categories
Crypto Blog

How to scan the market 12.01.2021

Bitcoin and the Alt-market had pulled back yesterday. Today is the day of trend-reversals, how fast will we see new highs in this market?

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Crypto Blog

How trading cryptocurrencies changed my life

Do not worry. I will not tell you how I became a millionaire by speculating or investing in the right penny-stock or shitcoin that shot me to the moon. The reality is, I am still working a 9 to 5 job, and I am a student. Trading changed my life differently. It opened doors in my mind that I have never walked through before in my life, which has left a permanent change in my state of mind.
Learning a new skill involves commitment, and it often returns more than you could have expected to get. The same was it for me with trading. So, what did trading teach me that I did not know before?

  • Risk to reward awareness – Not everything that shines must be gold. Trading taught me many things, but the most crucial thing it taught me is to be aware if something is worth my effort, time, and money, and if it is not. It gave me the confidence to sit out on things I have no expertise in. I used to be the person that tried to know everything, but trading showed me that focus is better than anything. I also used to be that guy that wanted to do everything or even buy everything. Trading taught me to do the opposite. Moreover, I used to fall for the “too good to be true” trap, but that has changed. Understanding that taking a risk is to understand probabilities made me much more aware of how to portion my resources and energy to help me stay healthy.
  • Money handling – I used to spend my money on all sorts of things that I did not need. Most of that stuff I am selling on eBay nowadays. Money is a resource; precise allocation of that resources is a tough thing to do. Trading showed me that I should never invest more than I can afford to lose. This mentality is applicable too, and helps me to stay focused and do the right thing.
  • Handling the loss of money – To spend money is easy. To make money is the hard part. Learning to deal with money means losing money. The faster you get used to the fact that you must pay for your experience, the faster you will learn how the markets work.
  • Understanding consistency – Trading successfully is a hard thing to do. The only way you reach your goal of becoming a day trader is by being consistent about your approach, and you make sure that whenever you approach the markets, you are in your zone, and you use your approach repeatedly. By replicating your approach, you become more and more successful the more often you turn up to trade.
  • Understanding business – Cryptocurrencies helped me develop various business ideas that are good and do not require much prior knowledge. However, more importantly, it showed me what works in business regards and what does not. I always thought “fake it till you make it” was an actual thing, but hard work is the essential key.
  • My fundamental understanding of how economics work or what economics should be has changed – Bitcoin and other cryptocurrencies play with the idea to exchange the conventional monetary system through a monetary system that offers deflation and increasing value. I could go on talking about that for ages. Find more arguments in my prior articles.

My 9 to 5 job does not fulfill me, and unfortunately, it does not fill my pockets either. Cryptocurrencies offer an exciting solution to actual real-life problems and cause a shift in mentality. Keep an open mind about cryptocurrencies, and be sure to learn what they are and what they do. This will help you broaden your horizon and become more aware of new potential business ideas with low competition and, practically speaking, no barriers to entry.
Thanks to crypto, I have to businesses today, and they really showed me what I want in life. If it wasn’t for crypto, I might have never started to be interested in this stuff.

Categories
Crypto Blog

The battle against fiat-based consumerism – Bitcoin

Many economic discussions lead to the emergency argument of inflation. Inflationist argues that through inflation only, more significant demise can be avoided because if sound money is not temporarily abandoned, economic and social demise will be far greater than the actions of inflation. But if thought about that argument, it boils down that it is just a choice of a lesser or greater evil.  

The liberal doctrines and policies of the nineteenth century were a product of a classical economy and were propagated into that time’s political minds. Many understood that a nation’s freedom is dependent on the ability to exchange. The private sector played a vital role since the ownership and production means were under less control of the government. Society came up with institutions because of the need to catch fraudsters and domestic gangsters that would not bend to society’s fixed rules. 

However, a new problem came up, institutions became strongly influenced by governments, and the western societies had to endure governments trying to erode social liberties and freedom through social or economic institutions. 

It is paramount to understand that sound money’s function directly protects your social liberties against the government. Sound money, commonly referred to as hard money, protects freedom and independence because of its properties. So, what defines sound money? 

  1. Hard to produce – No money printer enables you to press as much money as you need. Gold needs to be mined, for example. 
  2. The medium of exchange – Is widely accepted, and demand for the currency is of high importance. 
  3. Store of value – It should be a store of value that is not much affected by price volatility. Money should appreciate in value. 
  4. It is developed on the free market – Money is chosen because of its utility of the user and not because someone dictates it. 

How does sound money protect you from the government? Having an independent store of value that cannot be inflated quickly protects you and your financial value from counterfeiters trying to inflate money. Money that can be inflated is far more likely to lose its value over time than the money that can not be inflated. The more inflation a currency suffers from, the consumer is far more likely to be incentivized to consume rather than to save money. This leaves the public exposed with no savings, and when a scenario of demise happens, only the government will be able to help those affected most by it. Inflation exposes human liberties and independence to the government imposing inflation.

Since today’s fiat currencies have that inflationist property and are effectively speaking no store of value, they cannot be adequately classified as money. They represent an imposed medium of exchange that has a decreasing backing value and is very easy to produce, not matching the criteria defined for sound money before.

How does Bitcoin come into play? 

Bitcoin’s value lies within the fact that it reminded us of how money should be; therefore, Bitcoins value is considered subjective, giving it value because of the need for an alternative. Inflationist policies have been invented to deal with economic hardship. Still, since economists of today have forgotten that inflations should only be a financial tool and not an economic system, we have been living under the fiat standard for nearly a century now with no sign of stopping inflation. Bitcoin brings an opportunity the Weimar Republic did not have. Bitcoin gives the chance of a sound store of value that promises long-term appreciation due to its limited supply. And since we live in a time where inflation is more than just scary, the demand for Bitcoin starts to pick up because of the realization that this is a valuable alternative. Bitcoins properties of a limited supply (can not be produced more off), its ability to be a medium of exchange, and its store of value are all the reasons why Bitcoin has been chosen by the free market as the alternative to fiat. 

So how does Bitcoin battle consumerism? 

As people see that the appreciation of value has long-term effects on their financial life. People tend to understand the importance of having a medium of exchange that offers all the investment properties an investment should have. Since Bitcoin is a medium of exchange but also an investment, it is the opposite of fiat. There is no need for a bachelor’s in finance to understand to invest. There is no need to have a bachelor’s in banking to understand the simplicity of how Bitcoin is exchanged. Bitcoin showed me and many more than the current fiat system is rusty, and Bitcoin offers a solution to this problem. This has a massive impact on consumerism, since the time-preference shifts as soon as you invest in Bitcoin, you understand that having more value in the long-term is far better than having something now. 

To conclude, the long-term economic impact of Bitcoin will be enormous since a significant proportion of the public will realize that their preferred store of value does not need to be complicated stocks or shares but merely some magical internet beans. This shift in psychology is aligned with our intuitive state of mind and is the most logical way to approach this crisis. 

Relevant link:

https://mises.org/library/principle-sound-money

Categories
Crypto Blog

Why is Bitcoin changing the way we think?

Bitcoin, the majestic internet bean, has caused quite an uproar in the past two years. Who has not heard of the mighty 300% increase in value from March 2020 to December 2020? Bitcoin resonated not only in the public mind, but investors and venture capitalists have also all turned their heads toward the insane revenues taken out of Bitcoin investments. Now even the governments around the world know that Bitcoin is here to stay. So, what is changing? Let me explore further. 

This article will be quite economical. If you like what you read, please let me know so I post more of my thoughts on this. Stick around till the end. I finish this article off with a short story that presents a world using Bitcoin with no alternative. 

High time preference is a side effect of consumerism driven by inflation. 

High time preferences mean that an individual focuses on his well-being in the present. A person having a high-time preference is rather happy to have their product now than in 30 years. But I understand them, it does not work like this anymore, saving has changed. Since our economies have only seen inflation since the invention of fiat currencies, the average consumer knows and feels the rate of inflation decreasing their purchasing power in the future. The average individual has no other alternative than to store their value in inflation-related assets or exchange it against a store of value subject to volatility related to the fiat market.

Moreover, thanks to inflation, the price of products is rising in the long-term, leaving the purchasing power of most of the population exposed to inflationary shifts. As a result, less money is being saved by the average family, more money must be spent on the same amount of goods without getting a significant increase in their wages. Our economies are clearly built on the idea of consumerism and high-time preference. 

Low time preference is the result of appreciation in the price of the chosen store of value. 

Saving is the best way to explain the features of a low time preference, meaning an individual lies emphasis on his future well-being. Since you expect an appreciation of your value in the long-term, you are more reluctant to consume. This is against all the economic principles we have right now. Consumption is the driving factor of our economy, but more and more people realize that their long-term situation will be worse than the more they spend now. The inflationary monetary system incentivizes consumption through inflation. Sounds like a bad deal now, doesn’t it? 

You are right. It is a bad deal in my eyes too. Now let us see how Bitcoin comes into play here and why it has a massive impact on the way we think. 

Bitcoin is changing our time-preference

Thanks to Bitcoin, you and I understand that we had no choice. There was only one option for many years, but this is changing. Bitcoin offers an alternative. It provides you more than just an alternative. Besides its other qualities, it gives you a sound store of value too. The more people keep holding their Bitcoin, the higher the price of Bitcoin will go in the long term. It is intuitive and easy to grasp. All you need to do is hold on to it, and it will eventually fire you to the moon. This is due to the scarce nature of Bitcoin. Since there are only 21 Million Bitcoin out there and there cannot be made more, the price of Bitcoin is directly subjected to the demand for it. So, if demand never leaves because people know that all they must do is wait to get more value in the long-term, Bitcoin will be bound to increase in the future. More and more people understand that economics should work this way, not how the governments think it works. Bitcoin changes the consumer. 

Bitcoin not only implements the need to save, but it also shows the consumer that their way of living has alternatives to choose from. Bitcoin is the best alternative because it offers an appreciating store of value while being a fully functioning monetary system. This offers opportunities. People start to see how real money should work, and by comparing it to what they have been using before, many begin to understand. 

Before we end this, I would like to show you an insight into a short story I am writing: 

In a world of Bitcoin

As the door opens, the room full of venture capitalists goes quiet. A small but steady man walks into the room, everyone greets him simultaneously. “Hi, Boss.” The short men sit into the small leather chair at the end of the table. The man to his left (wearing the same suit as the men to his right, just the tie is different) gets up and addresses first the boss and then starts speaking clearly into the room. 

Men to his left (Red tie) starts speaking: the situation is concerning. After the last appreciation of the market capitalization, we have seen a backslash as two years ago. We are expecting a depreciation of more than 60% in the coming week.

(Hysterical discussions erupt in the background)

Boss: (slams his fists onto the large wooden table) No one could have foreseen something like this. We thought we could correct the cycle of market corrections and break free of the chains of losing money. 

 Men to his right (blue tie): We need to save our money! What are we going to do?

 Red tie: There is no alternative! 

(Hysterical discussions erupt in the background)

If you like to know more about this story, please leave a like or a comment with a short mention that you liked it. Thanks.

To conclude, thanks to Bitcoin’s nature of scarcity and expected appreciation in value, many start to understand how a currency really should work and what a real store of value should be. This increase in interest is directly reflected in the price of Bitcoin. But why is Bitcoin bull-running now during a pandemic? Can I make a living by trading cryptocurrencies? 

 If you ask yourself questions like this, please check out my website. I have plenty of articles and podcasts that provide you with answers to these questions. I am doing a newsletter, too; the first 100 subscribers are free life-long. 

Categories
Crypto Blog

How to start trading cryptocurrencies

Check out my latest podcast about how to start trading cryptocurrencies.

This episode will cover what you need to get started.

Categories
Crypto Blog

What makes Bitcoin special?

Some of you surely know the sweet feeling of opening the charts in the morning and looking at the green numbers the markets are doing.

Usually, I get up, make myself a strong coffee, and while doing so, I fire up my PC. The charts’ first view still feels dreamy, and as I recheck my exchange to have a second view, my coffee starts to kick in. Bitcoin is bull-running. But why? Why now? In the middle of a pandemic? The answer to those questions is not easy, and to understand this better, let me break it down for you.

Bitcoin has no materialistic value; its value is of a subjective nature. As soon as Bitcoin rises in price, the public’s attention toward Bitcoin grows, which in fact, increases price again. Bitcoins price is solely determined by the demand for Bitcoin due to its limited supply and its non-materialistic nature. But why is that? Why is Bitcoin bull-running now?

This has to do with economic changes happening due to the pandemic. Investors and the public both realize that Bitcoin is a valuable store of value and that Bitcoin might save their money from inflation happening with the fiat currencies. Bitcoin not only an alternative, but it is the only alternative that is out there right now to do transactions or send money around the world. The other is the central banking system of the fiat governments. People realize more and more that their financial freedom is no longer dependent on using fiat. They can now send money around the world without having to pay ridiculous amounts of transaction fees to send their money through an inefficient banking system that has not innovated much in the last 20 years. The real question is, when will the government realize that?

They already did. And that’s why Bitcoin is so unique. The real value lies within the fact that Bitcoin is too important now to not get involved. Governments cannot miss out on crypto because they would miss out massively, not only technology-wise but also because their banking system virtually has no future in the current crypto market setup. They start to understand that. Which is fantastic news for Bitcoin and everything related to blockchain technology. The European government was one of the first in the west to come out with plans to create a Euro based on the cryptocurrency concept. China is already shifting its currency from fiat to crypto. Governments worldwide realize that the crypto train has not departed yet, and there is still time to jump onto it.

Bitcoin is not just superior because governments cannot do much about it except accept it. It is also notable because it gives you financial freedom. Investments into Bitcoin means that you invest money where only you have total control. This makes Bitcoin more valuable to you than to the government. The government will try to introduce their own currencies, which are hopefully linked to Bitcoin. Giving as a new “Gold Standard.” But that is unlikely to happen. They are probably introducing inflationary monetary systems connected to the blockchain to get their fair share of the market. However, that will not change the fact that Bitcoin will still be here after all and can not change it. Even though the government might want you to use their currency, but you know better now. Having money in Bitcoin feels so much better than having cash in the fiat currency system.

After reading this, many of you might be thinking, “another crypto geek that can not shut up about Bitcoin,” but I understand that Bitcoin will not change how governments work in this world. Bitcoin needs regulations. Everything needs regulations. The government should get involved in the regulatory aspects of Bitcoin and other cryptocurrencies instead of inventing a Keynesian cryptocurrency. That would be time well spend since Bitcoin is here to stay.

To conclude, the revolution of Bitcoin will motivate anyone to rethink their financial situation. Not even governments will be spared from this momentum. I dearly want you and your family to be part of this to understand what cryptocurrencies they are about and how they might affect you and your financial life. So, if you want to learn more about cryptocurrencies such as Bitcoin, make sure to check out my website. If you have loads of good stuff on there, I even have a daily podcast to scan the markets for you. Be sure to check it out!

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Crypto Blog

How to start trading or investing?

It does not matter if you want to trade cryptocurrencies, stocks or if you just want to invest. There are 3 things that everyone needs to have or know before they can even start trading or investing. 

Trading and investing are ways to exchange your assets against tangible value. This value is often derived from either a service or a good (e.g., commodities). You either can enter the trade by expecting the value to increase (go long) or decrease (go short), depending on your strategy. To be able to trade your assets, you must use an exchange. Imagine yourself needing an apple. To obtain your apple, you must go to a supermarket or to a local apple-tree to get it. It works the same way with stocks and currencies. Trading can only happen over an exchange. Learn the language of the exchange and make the best deals by mastering it. However, be sure to bring some money, otherwise you will not be able to engage.

So, let me point out 3 things you need, to get started with buying and selling stocks or currencies. Make sure to read every point since I will give some tips on the way. 

  1. Choose your exchange – Choosing your exchange is of paramount importance, especially when you are starting out. The first exchange can make or break your experience in trading or investing for you. Make sure you use an exchange with a beginner-friendly interface. In the beginning, it is vital to get used to the tools of a regular exchange, such as the limited order, the stop-loss, and the stop-limit function. The faster and better an exchange shows you what these tools are and how to use them on the chosen platform, the better your trading experience will be. So, be sure to choose your exchange wisely. As soon as you think you mastered your exchange, do not stop there. Try out more platforms and use more than one exchange in the long run. Being friends with many exchanges helps you to avoid downtimes or outages of specific exchanges. 
  2. Start capital – Every trade needs money. Remember, we exchange goods or services in the form of value for money. So, be prepared to spend some money. However, never invest more than you can afford to lose, especially when you are starting out. You will lose money, and the chances of you losing money, in the beginning, is far greater than when you have experience. So, reduce your order size, meaning, invest less money while trading. Start out with 5% of what you initially planned on trading. Just to get the hang on how the tools work. As soon as you feel confident and you think you can trade more value, do so. Use an approach, do not just throw your money into the markets. Use a strategy.
  3. Strategy – Having a strategy will help you to stay in the markets for much longer. Just throwing around money has nothing to do with trading. You need an edge, something that gives you a reference between all these charts and ideas. Use the strategy to focus your attention. It will bring you consistency into your trading, making it easier for you to find the right perspective. Ensure that the strategy you chose matches your personal understanding of the markets. This is highly important since tons of mentors sell you the holy grail of trading that does not exist. Do not fall for these traps. Finding out how you understand the markets is essential. As soon as you have the basic understanding, find someone that matches your understanding, and then focus on that. Do not get distracted by all the gurus. Concentrate your focus like a death-ray and make your strategy work. 

I want to give you guys a bonus:

Always use a stop-loss – It does not matter whether you trade low-volatility markets or high-volatility markets. Having a stop-loss in place will surely save you a lot of money. A stop-loss is triggered when the price hits a specific value. The stop-loss sets a limited sell order at the chosen value and sells off for you by doing everything automatically. Having a stop-loss is like having a protective dog. It will bark when someone or something wants to hurt you, the same with the stop-loss. So be sure to use one.

To wrap things up, the beginning is not hard. However, staying in the markets for a long time is hard while trading. Be sure to have a strategy in place that protects you and your funds from significant losses, use an exchange that you trust, and have experience with while seriously trading. If you combine these 3 steps, you will become successful in the long run. Ensure that you stay consistent about your approach and do not let yourself be talked into something that does not exist (e.g., the holy grail of trading). 

If you need any help trading, ensure subscribing to my email list since I am creating a beginner’s course. Until then, be sure to check out my blog for more useful information to get started.