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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.

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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!

I am also doing a newsletter. The first 100 people to sign up will be enjoying my newsletter for FREE life-long!

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Podcast

How scan the markets 4.1.2020

Alt market is on fire! Bitcoin currently pulling back, trend looks in place. The Pullback is needed, the Alt’s do profit.

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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. 

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Podcast

How to scan the markets 02.01.2020

Bitcoin at a new all-time high. Alt markets still looking strong. Are we going to see some new highs in the Alt market or is Bitcoin heading for 30k first?

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Crypto Blog

5 things every trader needs to know

Trading is a buzz, especially when trying to figure out strategies. It is tough to stay concentrated with all those traders sharing their own strategies that apparently work wonders. Not being distracted by all the buzz is the key to becoming a profitable trader. Many newcomers think that the more they know, the better. It does not work that way. People sharing their strategies is a good thing, and I do not want to criticize that. Every trader needs some form of plan to get started. Many think it is about that “one” strategy that will make them buckets of money, and I am trying to point out why this way of thinking is not very productive. Even though the truth is quite near to that. There is no such thing as the “one “strategy because the strategy you decide to use is understood on a personal level. This means, the more familiar you are with the strategy you think suits you best is the one thing you should double down on. 

Make sure to stick around till point 4 or 5. I will give you some great extra tips from my personal arsenal. At the end of this article, I provide my own routine that you guys can use or even copy. Without further hesitations, let’s get started! Here comes the first one:

  1. Do not use more Indicators than necessary – As we discussed before, there is no such thing as the “holy” grail of trading. If you want to become good at trading. The fewer indicators you use to judge your execution of trades, the better typically. Indicators usually just add to the buzz you should be avoiding while trading, so the fewer you use, the better your executions usually become. You need to change your mind here. Indicators should not help you enter a trade. They only should keep you out of a trade. This is one of the best ways to avoid being influenced by the indicators. Indicators should not be a critical point of your strategy but a healthy fundament to build your strategy right on top. 
  2. Use a strategy – Do not just use any. Using the wrong strategy can really lose you money. Find a strategy that makes sense to you. Do not let yourself be talked in by trading mentors that guarantee you X amount of money with their strategy. The holy grail of trading doesn’t exist. This is the best way to improve, finding the strategy that works for you. Research every single strategy out there until you are confident that you want to use the chosen, focus on the selected strategy, and try to blind everything out that has nothing to do with your approach. Trading is about finding your focus and keeping that focus consistent like a death-ray.
  3. Use as many perspectives as you can before entering a trade – It does not matter whether you want to day or swing trade. The more perspectives and views you got on a particular trade set-up, the better your judgment usually gets. An often seen mistake is that traders look at a timeframe that would make them enter a trade, and as soon as they move up higher in the timeframe, they redecide. Different timeframes can give you constructive insight while trading.  

Now many of you probably knew about the first 3 points. So as promised to let me give you some tips that improved my trading in no time. 

4. Plan your trade and trade your plan – By planning your trade, you really learn to understand what it means to trade. You must think about every move you are going to make before even taking it. This helped me immensely because I stopped taking emotional trades, and it gave me the new thinking of “Did I really think about this?” before hitting the buy button. Making unelaborated decisions while trading is one of the main reasons why many newcomers drop out very fast. So keep your head cool and trick your consciousness into a new state of thinking about trading. 

5. Document every trade – This is my favorite tip I can give you guys because it is easy to do. All you need to do is taking screenshots after you made a trade. Make sure to save the screenshot because we are coming back to look at it again at the end of the week. Reviewing your trades is a great way to learn and really is one of the best ways to preserve the experiences you collected while trading. All it takes is time and consistency. If you find the time to judge your successes and your failures, you will understand what it means to take a good trade. 

Trading is by no means easy. But learning how to trade wrongly will not help you in the future. Ensure that when you choose a strategy, ensure that the strategy really suits your understanding of the markets. Do not be distracted by all these traders trying to teach you the new way of making your living. Find something that works for you and focus that death-ray on it. Make sure to have a strategy and a plan for every trade you are going to take. I would do it like this: 

  1. Plan my trade
    – Where is my entry?
    – Where is my stop-loss? 
    – What is my target? (1:1, 2:2)
  2. Trade 
    – Check the timeframe 
    – Check the indicators 
    – Entry as planned 
    – Get stopped out
  3. After the trade
    – Take a screenshot of your entry and your stop 
    – Save it and look at it at the end of the week again

By using this routine, you will bring consistency and simplicity into your trading. This model does not include a strategy, so you guys can use whatever strategy you feel most comfortable with. Use this routine every single time you execute your trades, and you will learn fast. 

If you need help scanning the markets, you might be finding my daily podcast very helpful, or my blog where I post my thoughts on the charts and the markets. Make sure to check out my website for additional tips and tricks. 

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Podcast

How to scan the market 31.12.2020

Bitcoin sitting at a new all-time high, the Alt’s aligned to push further too. What a start into the new year. Let’s end the last one with a BANG above 30k!

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Crypto Blog

Five things I wish I knew before starting trading cryptocurrencies

This blog post is by no means my death note. I am still trading. Cryptocurrencies are very volatile, meaning that their value fluctuates at dramatic rates. These fluctuations can cause you to get kicked out of your trade very quickly and are a good reason why you must endure significant losses. Moreover, seeing your numbers going red in the beginning is a further reason for frustration. Head up, because this happens to every one of us. In fact, a trader knows the risks and tolerates that they are hard to avoid. But to be successful in these complex markets, having a wide range of experience is fundamental. Many newbies get kicked out of the market because they underestimate their risk, and they set their time preferences to high. Getting rich quick is very hard while trading and usually only happened when there was significant trade value from the beginning. Keep your head cool. Try to minimize the probability of substantial losses. By doing so, the chances are that you stay in the market for much longer. Staying in the market for longer also means that your likelihood of return increases. 

What I want is that you can stay in the market as long as you can. So, let me give you five tips that keep you in the market for as long as possible. Be sure to stick around till we get to point 5. I got a bit of extra advice ready for you that you don’t hear that often out there. 

  1. Consistency –  This hits the nail on the head and is one of the most critical trading factors. If you are starting, ask yourself: Do I know how markets move? If the answer to this question is no, go and learn it by scanning the charts with a consistent approach. If the answer to this question is yes, the same answer applies, keep on doing what you have been doing. The best thing to do is to create a routine around it. Wake up at 6 am, check the charts, listen to Yves daily podcast, see if anything interesting pops up. If there is not anything worth trading, come back in the afternoon. If there is something worth trading, take the trade but do not forget to come back in the afternoon too! Remember, we are committing to trading to obtain consistency. Seeing charts on a daily basis is the best way to get exposure to as many moves as possible. As soon as you feel comfortable observing the movements, get some experience trading. 
  2. Be willing to lose money – Making mistakes while trading means it involves you losing money. Losing money is a good thing if you get a return that gives you value back. Imagine you standing in front of a vending machine, hungry and willing to sacrifice 2$ in exchange for a delicious chocolate bar. To your despise, you find out that the vending machine takes your money but doesn’t give back that delicious chocolate bar in return. Now imagine, if you lose money while trading without learning a thing from it, you could be throwing your cash just as well into the vending machine described above. Making mistakes and losing money while doing so is fine. It should sting, which will increase your learning curve dramatically. Many fear the loss of money while trading, but you have to understand, with experience comes knowledge, and knowledge is the best weapon against fear. But to obtain knowledge that is practical, experience matters. Experience is worth the money because it will make money back and bring in more if you give yourself the time to grow on your mistakes and bad decisions. 

  3. Trading is nothing you can do while sitting at a party and have a drink with friends – Take your time trading. Dedicate at least an hour a day to trading if you are just starting. But do not be naïve; if you believe that your judgment is spot-on while you are not focusing on your chart, you are massively wrong. The market will be ruthless, and the market will take your money. I lost quite a sum of money because I installed an exchange app on my smartphone. The next thing you see is me taking trades left and right, trading my portfolio into the negative. The day I deleted the app, my portfolio went back into the green. Not because I was not executing trades on my phone anymore, but because I actually had to sit down in front of a screen and commit myself to the charts. Once I got the hang of it, trading started to make sense. You need time, focus, and you need the right mindset to trade. If you cannot align those three criteria, you better not be bothered looking at the charts. 

  4. Trade enough value – The only barrier to entry, practically speaking. In order to trade lucratively, you need quite some money. From experience, starting at 1000$, you are beginning to see some returns high enough to incentivize you to stay; making 1% with a 1000$ means, you make 10$ in profits. If you trade lower than that, you might feel that you aren’t moving into a profitable area with your asset. That is because you genuinely are not moving anywhere. There are maker and taker fees that destroy your return immediately. Trading with lower assets than 1000$ means that you have a lower risk of losing substantial amounts of money, though it is a great way to get started trading. By reducing your order size (the amount of money you invest), you effectively reduce your risk. 

 Be sure to have that notebook ready because the last tip influenced my trading immensely:

  • Stop looking for trades to take; start looking for trades not to take – The common mistake I have been making by myself and seen done by people I am trying to teach trading is that they think that they must find the perfect trade to take. However, this is the crypto market, so remember, volatility can bite you in the ass if you do not keep an eye open. Even the perfect setup can be a negative trade. Change your mentality; try to start focusing on not taking a trade. As soon as you start focusing on the fact that preserving money is far more challenging than spending it, you see everything in a different light. By virtually eliminating every possible trade option because of a fixed base of rules is the perfect way to combine everything taught until now. By having those rules and only trading after these rules, you become consistent. If something is out of line, you stay out of the trade. If there is a big candle before your entry, it does not fit into your set of rules, walk away. 

Trading is about reducing risk by failing and succeeding again, and again, and again. There is a good reason why consistency is at the top of this list. The clue to success lies in how you bend the probabilities of success and failure. It would help if you experienced winning and losing money, be sure to learn as much as you can from every piece of information you can lay your hands on and take your time and space to commit. The faster you build your routine around trading, the quicker you become good at it. The better you become at analyzing, assessing, and executing trades in the cryptocurrency market, the easier it will be to trade the market. 

Every trader experiences a dead end at some point; getting a mentor will help you for sure. Be careful with doing courses out there and only learn from someone you could eat dinner with. Otherwise, they might not be able to connect with you and teach you how to trade. If you need consultation, don’t hesitate to contact me. 

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Podcast

How to scan the markets 30.12.2020

Bitcoin at a new all-time high! Alt market is set to fire. Keep an eye on the charts today in order to catch some of those luctarive trades.

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Crypto Blog

3 reasons why Bitcoin is bull-running

Let us get the terminology straight first, what is a bull run? 

A bull-run is an increase in the value of a cryptocurrency over a long period of time. And since the price is rising, direct demand is increasing too. The longer a bull run is, the more people enter the market and join the rally. Good examples of bull-runs are the Bitcoin bull-run in 2018 and 2020 (writing this during the bull-run).

So, is a bull-run a self-fulfilling prophecy?

No, even though this could be considered as a logical assumption, but it is nonetheless incorrect. Since many people enter bull-run thinking exactly that, most of them will be surprised when the price comes down again and sell-off. Let me evaluate this further by listing you 3 reasons why Bitcoin is bull running now at the end of 2020. Make sure to stick around for a reason number 3 since it is the one we all can relate to the best probably. 

  1. Retail Investors are entering the markets – Huge international corporations are turning their heads towards cryptocurrencies. Bitcoin and some of the Alt’s have outperformed every other market on the planet in 2020 and soared to new all-time highs. The financial world finally starts to understand that Bitcoin is here to stay, if they want it or not. Companies like Microsoft and Visa are the top companies on the list. Retail Investors start to understand that diversifying into cryptocurrencies might dabble in some nice and good profits to top of a strong year in all regards. Moreover, financial institutions like Square Inc. or Visa have added some Bitcoin to their portfolio in 2020. The news that Square Inc. would invest in Bitcoin was widely recognized as the reason why retail investors started to turn up with some money. 
  2. Limited supply – Since there are only 21 million Bitcoin out there and demand for Bitcoin is picking up, the value of Bitcoin is increasing too. This effectively means that the more money there is in the Bitcoin market, the likelier the price is to rise. This makes it the perfect store of value. And since the US government has been inflating the Dollar at rates never seen before in the history of fiat currencies, many investors realize that Bitcoin is, economically speaking, the only real store of value next to Gold right now. This year alone, did the US print 50% of all the existing Dollar supply. I understand that this money is needed desperately, but, in my opinion, the US requires discipline and not more inflation to solve its problems. 

In the year 2020, many unfortunate events brought it down to this. The world now uses inflation as a tool to “fix” all the problems that we have. This is the reason why 2020 was the year for me where I started to understand what Bitcoin really means to the individual. It is crazy to think that the only alternative monetary system to the one we use to run our world is a magical internet bean with subjective value. But it is the reality, and to have the ability to use Bitcoin as an alternative system makes me more than happy. Luckily, we all live in a time where having Bitcoin is made possible. 

This brings me to point 3, so without further holdback: 
3. You and I are entering the markets – Since the general awareness about cryptocurrencies increased during the 2017/18 bull-run, the public only starts to understand and grasp the complexity of Bitcoin. We were not ready to understand this new technology in 2018, but more and more people nowadays. The younger generations realize that Bitcoin is the internet solution to a 2020 problem. The financial crisis and now the crisis caused by the pandemic have increased awareness among every age group that value preservation has changed in the past years. This time it feels different than in 2018, where the Fear of missing out was consuming the public. Many in cryptocurrencies have learned from 2018 and are now better prepared for the markets’ complexity and volatility. 

So, as I said before, the Bitcoin Bull-run does not work like a self-fulfilling prophecy because its value is based on the individual’s subjectiveness (how much some see value in Bitcoin). And since the public and retail investors do not act out of Fear of missing out anymore, they are likely to keep their Bitcoin for a longer time. Investors and you and I are all behaving more appropriately to the volatile market situation, which is excellent for a consolidating Bitcoin and hopefully a continuous run. This mentality change is crucial because it shows a maturing market situation that will eventually bring long-term price stability into the Bitcoin and cryptocurrency markets. 

So, is it too late to enter the market? 

NO, NO, and NO. It is never too late to enter the market, but please, never enter the market just for the sake of joining, do your due diligence and only invest if you have a strategy in place that might reduce the probabilities of losing your value. Starting out in cryptocurrencies is hard, but it is doable with a structured strategy and the willingness to sacrifice some time. 

To conclude, there are many reasons why the ever-growing interest in cryptocurrencies is not flattening out anytime soon. With Bitcoin set to crack new all-time highs and the growing interest of professional investors and ordinary people bring additional momentum, Bitcoin has a bright future in front of itself. Join this significant venture that combines the opportunity for independence and financial freedom. Bitcoin has outperformed this year, and it will happen in the coming too. 

If you need tips and tricks for trading and investing, do not forget to check out my website and follow my weekly newsletter tips and tricks for trading. If you need someone that shows you how to scan the markets, check out my podcast Yves talks Bitcoin on Spotify or YouTube.