Trading Bitcoin

WARNING

Trading and Investing are HIGH RISK endeavors.

You may end up with less than you started with.

Trading and Investing guarantees that you will lose at least once, if not multiple times.

The wisest thing to do with your is to sit on it and proceed no further.

coinsfor.life is not liable for your actions.


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You should know that it's impossible for coinsfor.life to give you all the knowledge necessary for effective trading. Trading is, perhaps, the second oldest profession known to Man. It goes back to our first recorded civilization as the only means of exchange before currency. Modern trading has only turned everything up to 11.

You can look at trading cryptocurrencies as investing in companies on a stock exchange. Some traders swear by Fundamental Analysis (documents), some traders swear by Technical Analysis (charts), and other traders call both the equivalent of reading chicken bones. The answer is likely somewhere in the middle.

While it's impossible to predict market movements with absolute certainty, humans and their emotions are much easier. Conveniently, market movements are primarily driven by humans and their emotions.

So... let's get you educated and armed, then we'll show you where to trade.

3 Tips for Effective Trading


Tip 1: "Buy the rumour, sell the news."


The flow of information on the Internet continues to travel at exponential speed as interconnectivity increases to new levels. Just the whiff of rumor on the air can incite price fluxtuations that make no logical sense to someone outside of the know. This is human emotion at work. An indespensable resource for finding news is the Coin Market Calendar. Other resources include various social media platforms.


Tip 2: Always buy/sell in parts. Don't go all-in.


Even the best Technical Analysts will tell you that they can't predict where the price will be tomorrow. They can only make an educated guess at best. Staggering both your buys and sells allows you to achieve an average that helps to protect you against wild price movements. If it goes down, wait or buy more. If it goes up, wait or sell some. What goes up, must come down, and vice versa. You will always have a window of opportunity.


Tip 3: Always set a stop-loss.


Let's say you make a trade. One night, while you're asleep, the value of your trade declines by 40%. It doesn't recover for weeks, and when it does, you're still at a loss from your initial price. This is because you didn't have a stop-loss on your initial trade.

A stop-loss is a conditional sell order. If you're only willing to lose 10% on your initial investment, then the conditions on your trade are essentially as follows: sell if the last executed trade was less than or equal to 90% of what you paid.

You need to execute this trade manually for it to happen automatically. If your coin is in profit when you aren't ready to sell, it may be wise to increase your stop loss to match the coin's rise in value by canceling and replacing the trade.

Don't lose money because the arrow brackets are facing the wrong way.

Be sure to double check: less than or equal to.

If the price of the coin drops by 20% while you sleep, your stop-loss will trigger at -10% to ensure that you lose no more . Sometimes, this is an opportunity to buy more for cheaper. Other times, it's an opportunity to find new opportunities.


Bonus Tip: Actual profits are always better than imagined profits.


Sometimes you sell too early. It happens. Other times, you hold on for the birds in the bush only to lose the bird in your hand. It's easy to get caught up in your own emotions while trying to gauge the emotions of others via market sentiment. Don't worry if you need to remind yourself again down the road. It happens to everyone.


These tips are endorsed by the Pirates.




Do yourself a favor and join their Telegram channel.


Cryptocurrency Resources


Before you jump onto the exchanges, please take the time to acclimatize yourself with the curated list of resources provided by coinsfor.life. Below is a selection of the master list.


CoinMarketCap, Natalya.AI, CoinMarketCal

Investopedia, Trading View, Investfeed


Finally, without further ado...

Exchanges to Trade



That's not even all of them. Of course, this begs the question, "Which exchange do you recommend?". Well, the short answer is any exchange in the top row. The long answer is that it's really a matter of choice based on volume, user interface, fees, selection of trading pairs, location... DYOR? DYOR. Again, you can simplify life by choosing an exchange from the top row. However, before depositing , be sure to at least skim their trade fees and withdrawal limits. BitTrex, while featuring one of the most beautiful interfaces and a decent selection of altcoins, limits withdrawals to 0.4 /day until you verify your identity. YoBit on the other hand, features one of the widest varieties of altcoins to trade while having an interface that could be better. For the record, most exchanges have an ugly user interface, but that's purely a matter of taste.

Take your time. Explore. Make up your own mind.

Transferring Between Exchanges


If you don't want to have your chipped away by transaction fees, consider moving your into another currency with cheaper fees and shorter transaction times. Suggestions include $LTC, $VTC, $GRS, $XVG and $DOGE. They're all faster and cheaper to move than , with listings on the majority of exchanges.

Special Mentions


Introducing both Changelly and ShapeShift:




These exchanges are unique in that they allow you to swap certain coins between each other. Let's say you have Xcoin, but you'd rather take advantage of Ycoin. You send Xcoin; math happens; you get Ycoin. One smooth transaction. Be aware that you'll need to have a corresponding wallet to receive your desired currency, but for the purposes of trading then the one provided by your exchange is fine in nearly all cases. You should still do some math on your own to determine if you're willing to accept the presented rate of exchange. It isn't always advantageous.


Introducing the Bitcoin Mercantile Exchange:




BitMEX is a cryptocurrency derivatives trading platform. You can long or short perpetual swaps, futures, and binaries with leverage up to 200x.

More should be said but there aren't enough words; be careful.

Use this guide to multiply your returns on 's rise in value with minimal risk.

Educate yourself to further minimize risk.

Please see the BitMEX Blog, their Crypto Trader Digest, as well as their resources that explain the platform. The first two are worth reading even if you don't trade there.


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