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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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Uncategorized

3 reasons why new traders or investors fail

Here are some “Do not do” while starting out trading or investing.

Trading and investing is not easy; it takes time and can be nerve-wracking. Keeping a calm mind and doing what you are supposed to do are crucial to success while exchanging. However, human psychology often does not work like that. We tend to act out of impulse reactions and emotional bursts that disrupt our understanding of reality. Bending reality and telling yourself that you are doing the right thing has nothing to do with investing and especially trading. So, how can you combat that? How can you stop being emotional? How can you improve your decision making? Trading or investing with an approach will help you become better at what you do. Plan your trade and trade your plan. Find the edge and learn from your mistakes. Investing and trading are about reducing the probabilities of your exchange going negative. Learn how to minimize those risks, and you will improve.

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Now let us explore why so many newcomers stop trading after a few months after losing most of their money and having bad experiences. Here are 3 reasons:

  1. Underestimating their risk — Risk is the factor of success but also a failure. Often you hear the saying “higher risk, higher reward,” but that is misleading for newcomers. Many believe that trading or investing is a quick money scheme that gets them rich quickly. But it is the exact opposite. The longer you try to stay in the market, the higher your probability is to succeed in what you are doing. Jumping on penny stocks or cryptocurrencies that promise fast return rarely works out. Most people believe they become rich by spending their life savings on something that has not even a proof of concept yet is just idiotic, I think. Many trading critics argue that trading is compared to gambling, and it sure is if you only bet on something that has no real value and is not delivering yet. Do not just become an investor or a trader for the belief of retiring tomorrow because the market will spit you out with empty pockets. Be wise and use an approach to reduce your risk by setting up stop-loss and having a strategy, for example.
  2. Over leveraging — People get caught up by things like margin trading to get more money out of their trade. While having the idea of doubling your money at every 10% increase, it is also a swift way to the get-wrecked city. I see it all the time. Margin trading is very lucrative if you can do it. However, newcomers should not use it. This is a mix of my own experience and of what people have been telling me. You will lose more money while investing with margin than making any. Also, a common assumption is that many believe they need to buy into something with a tremendous amount of money at the same time. Do not be like that. Buy at 3 different points in time to average out the volatility and profit from low-value entries. Just throwing your money on the table as if you would go all-in in poker has nothing to do with investing. Stop believing the “get rich scheme” will get you there. Over-leveraging shows that people do not understand to handle their risk.
  3. Analysis paralysis — Getting every piece of information on a project won’t help you be a better trader or investor. You must understand that the more you know about a company, the more subjective your action becomes regarding projects you want to buy. It makes sense to get the fundamentals on a project. It makes a lot of sense to keep sticking to an analysis process and go through them with a consistent approach. Do not become too emotional about something, and if something seems to be too good to be true, don’t enter. It normally is. Being fascinated is good, but it should come naturally, do not let yourself be talked into something that you wouldn’t use or like. If so, you could not stand behind it as much as you should. Check on the team behind the project. Are these people worth having diner with? How do they handle the company? Checking information’s like these are essential and subjective enough to get your blood flowing for an investment opportunity. Every bit of information that is unnecessary usually is not necessary, do not get caught up by those small details.

There are many more reasons why newcomers might struggle in the beginning. I have been through many of these reasons, and I have learned from these experiences that becoming a better investor or trader is about how well you speak the language of the market you are trying to trade. Learn about your market and approach it the way it suits best for you. You will start to understand risk and control it, and you will not get caught up in analysis paralysis because you don’t have to anymore.

Trading is my passion.

I switched to trading cryptos because of the volatility and the returns it brought me. If you want to learn more about it, check out my website or my Youtube.

https://yvestalksbitcoin.com/

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

Categories
Podcast

How to scan the market 11.01.2021

Bitcoin and all the Alt’s have pulled back. Is this bullrun over? All my stop-losses are in place, just in case.

Categories
Podcast

How to scan the market 09.01.2020

Bitcoin and the Alt-market is consolidating, are we going to see some new ATH soon?

Categories
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
Podcast

How to scan the market 08.01.2020

Bitcoin smashing through 40k but rejecting it. The market holds it’s ground and picks up some good trend patterns on the lower time frames. Will we see some new highs till tomorrow?

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Podcast

How to scan the market 7.1.2020

Bitcoin once again at a new all-time high, the Altmarket looks in place to push through some new ATH’s. Let’s keep on trading!

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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
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!