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Podcast

How to scan the market 06.01.2021

Bitcoin at a new ATH while the Alt market starts to get fired up! Listen and hear where the best moves are to be expected!

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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. 

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Podcast

How to scan the market 5.1.2020

Bitcoin and the Alt’s are consolidating, now we have to wait and see what the markets bring as their next move. Some Alt’s indicate bullishness.

Follow me on Spotify or Youtube!

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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.

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!

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!