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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.

Categories
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.  

Categories
Podcast

How to scan the market 29.12.2020

Some Alt’s fired up while Bitcoin is consolidating at around 26k. Listen to the podcast to find out what there is to trade out there right now.

Categories
Podcast

5 tips to self-improve Podcast

Yves talks Self-improvement episode 1.

This episode will cover 5 tips to get started on self-improving.

Categories
Podcast

How to scan the markets 28.12.2020

Today Ethereum, Litecoin and Bitcoin all sit in the cradle zone, I am wondering where Bitcoin moves next, but the Bulls haven’t left the market yet, the Run is likely to continue.

Categories
Crypto Blog

The crypto-glossary everyone needs to have

The cryptocurrency vocabulary guide:
Digital assets offer a fresh alternative to the traditional markets; however, it is more important than ever to do your due diligence and homework about the coins you want to invest in. To understand cryptocurrencies, it takes a lot of time and effort to find the relevant information that lets you know a project. To avoid, to make a wrong decision, knowing the terminology beforehand often helps.
Let us obtain a deep understanding of what cryptocurrencies are and what they do. The best way to get started is with terminology.

Bitcoin – is a decentralized digital currency that allows an individual to send value to another individual through open-source, peer-to-peer software without using a central bank. Bitcoin is a scarce asset that cannot be inflated artificially. Many love Bitcoin because of its economic properties.

Altcoins – Any other digital currency next to Bitcoin is called Altcoins. Examples for Altcoins are Ripple, Bitcoin Cash, Cardano, Monero, or Litecoin. Altcoins follow alternative protocols differing from Bitcoin.

Shitcoins – Often used to refer to Altcoins. Bitcoin fanatics call Altcoins “Shitcoins” because of their effort to be like Bitcoin.

Blockchain – Is the technology behind digital assets. It is a distributed ledger system that stores information unchangeable and not erasable. A blockchain consists of a series of blocks that contain all the information of transactions completed in the network.

HODL – Commonly referred to as “hold” but actually means “hold on for dear life.” Slang to imply that you will keep on holding your asset and not selling it.

Long, going long, long position – Stands for “expecting the value of the asset to increase.” If you long Bitcoin, you expect its value to increase. Going long just simply means to buy an asset.

Short, going short, short position – Stands for “expecting the value of an asset to decrease”. If you short Bitcoin, you expect its value to decrease. Going short just simply means that you sell an asset.

Moon/ mooning – If Bitcoin moons, it appreciates in value rapidly.
Exchange – Market where you can buy digital assets. Not every exchange offers every token. Having more than one exchange will help get exposure to as many tokens and coins as possible.

ICO’s or Initial Coin Offerings – Describe the process where a company offers its token or coin the first time to the public to raise the value of the project. ICO comes from the initial term IPO (initial price offering) used in the conventional markets to describe the same situation just with stock and bonds instead of tokens or coins.

Airdrops – This is a method of distributing assets of a specific currency without exchanging value for it. In other words, you can participate in airdrops to get free tokens by signing up for an ICO.

Fiat currency – A currency established by a government with no real intrinsic value. Fiat currencies are inflationary currencies that can be printed more of. Examples are the USD, Euro, and Swiss Franc.

ATH or All-time high – Refers to the highest value Bitcoin has reached up to this date. If Bitcoins value has been 30k in 2020 but has never exceeded that value, this is called the all-time high.

ATL or All-time low – Refers to the lowest value Bitcoin has reached up to this date.
FOMO – This stand for “fear of missing out” and means that if Bitcoin dramatically increases in value, people tend to make a bad decision while buying or selling it because they fear to miss out on a new all-time high.

Market Cap or Market capitalization – The total market value of an asset. This can be easily calculated by multiplying the number of Bitcoin in holding times the price of Bitcoin.

Pump and dump – A scheme that involves people buying into a project to inflate the asset’s price unnaturally. As soon as they reached a specific value, they sell all their holdings and letting the currency drop to virtually zero.

Rekt – Means “getting wrecked” in the crypto-trading slang. Getting rekt means that an asset loses all its value, and the trader trading that value loses a significant amount of cash.

Bullish – This means that optimism in the market is high, and an asset’s value is appreciating. Assets are bought in a bullish market.

Bearish – This means that pessimism in the market is high, and the value of an asset is depreciating. Assets are sold in a bearish market.

ROI or return on investment – Indicates the expected amount of profits to be made on an investment. The anticipated return on investment is usually calculated before investing.

Whales – This is commonly referred to as traders or investors that move a significant amount of money. If an asset has low liquidity, one whale can determine an asset’s price by selling or buying it.

Satoshi Nakamoto – Is the famous pseudonym used to describe the founder of Bitcoin. His real identity is still, to this day, unknown.

Mining – Describes the process of forming new units of a specific digital asset. Every 10 minutes, a block gets mined on the Bitcoin network.

Noob – Beginners or newcomers are often referred to as “noobs” because they lack the necessary experience to understand the crypto buzz. It is not a very nice word.

To conclude, to understand the markets, you got to speak their language. This list of the essential terms you need in the crypto world will surely help you orient yourself and become a better investor or trader. Remember, always do your due diligence, especially when you dive into the deep ocean of altcoins.

Categories
Podcast

Market Scan 27.12.2020

This is today’s market scan. I will do a daily market scan with my set of rules. If you want to find out more on how I trade, subscribe to my newsletter and get in touch with me!

Categories
Podcast

Yves talks Bitcoin Podcast

This is the official Yves talks Bitcoin Podcast, here you will find every new episode posted weekly and daily. This Podcast will cover everything from trading and investing in Bitcoin and cryptocurrencies, but it will also focus on the economics behind Bitcoin and Austrian economics. Moreover, it will be covering tips and tricks for mental health, self-improvement. Be sure to subscribe, so you don’t miss out on any new episodes.

Introduction to Season 1
Categories
Crypto Blog

What is a risk assessment?

Risk assessment describes how hazards are identified and analyzed that may cause a negative outturn in the planned process. Potential negative impacts on individuals, assets, or a company are assessed and eliminated or avoided. Risk assessment while trading is looking for factors that keep you out of a trade. Hazards or unusual movements are quickly identified, and if appropriately assessed, they may even keep you out of a trade. 

Three steps to assess risk:

  1. Identify the hazards – Write them down, save them. Learning while trading is the only key to success. Learn what works and what does not. Strategies are a great way to avoid risk and trades that should not be taken. For example, if there is a general uptrend, but there is a significant negative sell-off on the way. This usually keeps me out of a trade because it does not fit my rules and messes up the chart. 
  1. Assess the possible outcome – Be sure to understand what it means if you decide to ignore a risk factor while trading. Sure, it is a game of probabilities; however, the chance of finding another chart with a better build-up is very likely. 
  2. Take the necessary steps to reduce a negative outcome – Reduce your order size if you feel like it is not the best build-up. Take your stop-loss close to your entry to minimize losses. Average your entry out, if possible, by opening 2-4 positions. 
  3. Record every detail – I repeat it often, but I can not stress this enough. Record your trades, learn from your past mistakes and misjudgments. Making a mistake once is fine, but you wasted the experience if you are not learning your lesson from it. Review your recordings after a fixed amount of time, judge yourself for taking dumb trades, cherish the good ones. 

Why is risk assessment important while trading? 

The proper risk assessment will kick-off your trading career. Focus on what you see, match it with your rules, execute consistently. Trading is grinding, reduce the probabilities of having a negative outcome; if your focus is on that, you increase the likelihood of having a positive outcome. Moreover, assessing risk also helps you to identify your costs. Many beginners forget about taxes, maker or taker fees, and transaction fees to be considered in their risk assessment. Identifying every detail is not easy and involves a lot of reading and thinking, but it is well worth it. As soon as you experienced every risk situation, your trading will surely improve. 

My own experience with risk assessment 

Risk assessment is something every trader or even an investor needs to know. Risk assessment helps me to stay out of a trade. While I am looking at every timeframe, identifying hazards, and scanning with my strategy, I am not looking for trades to take, and I am looking for trades not to take. Risk assessment taught me to think differently. My trade assessment changed from FOMO driven trading to a calm and objective scanning. When I find my trade to take, I get excited for sure. The ability to anticipate future events and create processes or methods to alleviate the possible outcome is vital for every trader. 

Three methods to reduce risk: 

  1. Stay out of the trade – This is obvious but not an easy one for everyone. Fear of missing out is the biggest enemy of every beginner, and I experienced first-hand FOMO by myself. Remember, you are here to stay. Making an uneducated decision is never a wise decision. 
  2. Use a stop loss – Using a stop loss is crucial; if you want to find out more about why that is, click here
  3. Reduce your order-size – By reducing your order-size, you reduce your potential gains and your possible losses. Going in all-in is something I do very rarely. If I feel that my risk is too high while trading the markets, I only trade with an amount I feel comfortable with. 

To conclude, every trader needs to know how to identify his risk and reduce them if possible. Trading means failing. Failing isn’t cheap, but failing without reducing risk first is more expensive. Use those tips to become more successful with your trading. 

If you want to find out more about trading and investing or the economics of Bitcoin, go and check out my blog, subscribe to my newsletter, and get insight into how I am trading. 

Categories
Crypto Blog

Trading and Investing

What is day trading/ swing trading?

Yves Hofstetter1 day ago·5 min read

Day trading is the selling and buying financial tools and buying or selling them within the same day. Short-term action and lower timeframes are used to execute strategies based on indicators and trigger signals. Whereas swing trading is the buying and selling of the financial tools executing a strategy focused more on the long-term. The difference lies in how long a trader prefers to stay in a trade.

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5 reasons why you should day trade:

  1. Easy to enter — Day trading not only allows you to do what you like full-time but it also allows you to learn and see changes in real-time. This is a game-changer, learning how markets behave and executing trades daily is perfect to give you the understanding of the markets you need in order to see the long-term aspects of trading or investing.
  2. You can become independent — Day trading is a business if you think about it. If you manage to trade enough value and your execution is good, day trading might be the key to get you off your job and into a new field. But do not forget, trading is not easy, take your time learning it. You will only become successful when you practice and stay consistent with your approach.
  3. Work from wherever you like — This one sounds too good to be true, but it isn’t. All you need to trade is a stable internet connection, your laptop, and your everything else you need to be in the mindset. Trading even got easier through most of the exchanges offering Apps to download onto your mobile phone which enables you to execute your orders or manage your portfolio on the go.
  4. Day trading gets you off the idea “get rich quick” — I know, this one might sting. It is the truth, nonetheless. To become a successful trader, you need consistency, know-how, and the willingness to make mistakes. 90% of new cryptocurrency traders that just started out, end up with significant losses and no funds left after a month. Try to avoid being one of them, use a Stop-Loss, and manage your risk, if you need help with that, click here.
  5. If you can afford to lose money — The most important lesson to take away here. Be prepared to pay for your experience. Learning is a hard process, make mistakes but try to learn from them. Take screenshots, review your misjudgments, and don’t do them again.

5 reasons why you should swing trade:

  1. Less time consuming — Since you will not find yourself scanning the market all the time, you will have more time to work, do stuff with the family, or just enjoy some time off-screen. Swing trading is perfect for you if you need time off, all you need is a solid strategy and check on your investment once or twice a day.
  2. You can stay in the market for longer — Day trading needs you to set your Stop-Loss very close to your entry value which involves the higher risk of being taken out of the trade to early, swing traders can average their entry out by opening 3 -5 orders normally. However, by staying longer in the trade you increase the chance for a negative outcome and the risk.
  3. Rewards are usually way higher than day trading — Since swing trading allows you to adjust your Stop-Loss to a level that takes volatility into account too. Day traders normally use trailing Stop-Losses that take them out on the declining top of a candle. Swing traders are fine with giving back if it means that they can get more gains later.
  4. Cut out the noise markets are creating — Swing trading helps you to stay away from low timeframe charts. Hunting for news and trends is not necessary, just sit back and enjoy your strategy.
  5. Fit trading around your routine — Day trading is the other way round, to be successful you need a daily routine. Swing trading offers you the chance to plan your schedule when you check the graphs. You decide whether it is necessary to check the news for valuable information. Swing trading helps you to analyze the markets in a much shorter time since you are looking at the higher timeframes of the chart.

What is my recommendation?

Trading daily is fun and very good to get the hang of trading in general, having daily exposure to the charts and the movements of the markets will make you become a better trader. However, do not get lost in all the buzz out there. Day trading is full of people telling you what you should do and where you should invest. Keep it simple, stick to your strategy, and question everything you hear about trading. Do your due diligence and be sure that you invest in something with value. However, swing trading will help you to cut all that noise out of your trading, swing trading is the optimal way to test new strategies or prefect the ones that are already existing.

To conclude, I recommend starting with day trading, find the edge. Get yourself into it and learn what makes sense to you. There are many people out there trying to sell you something. First, find out if trading is something for you by using free material. Secondly, if you find yourself at a dead-end, get a mentor, and pay for a course. It is well worth the price if you find the trader that suits you best. I always imagine myself swing trading with 60 when I can’t be bothered looking at the charts anymore, that doesn’t have to be that way, swing trading is worth trying out as soon as you got your fundamentals right. It might be even perfect for you!

If you want to find more educational material covering trading, investing, and the economics of Bitcoin, check out my blog and subscribe to my email, I will be posting all my knowledge and experience for free on there.