Categories
Podcast

How to scan the market 26.01.2021

Market is looking flat, rejected it’s uptrend from yesterday and is currently consolidating at around 32k. Is there a shorting trend setting up?

Categories
Podcast

How to scan the market 25.01.2021

ETH is setting a new all-time high while the rest of the market is consolidating. BTC is moving sideways, staying above 30k. Good news?

Categories
Podcast

How to scan the market 22.01.2021

Bitcoin is entering a shorting trend. All the Altcoins follow with one exception: DOT is consolidating and still holding its grounds. Where are we heading next in a market where the bears take over?

Categories
Crypto Blog

Embrace the volatility, trust Bitcoin

“Bitcoin is a Ponzi scheme” and “Bitcoin has no value” are my favorite Keynesian counter-arguments to why Bitcoin is a valuable investment alternative. For many years, Bitcoiners had to endure the Wallstreet’s bashing and institutional investors that saw Bitcoin as a no-go. It felt like a cult, organized against the magical internet bean that everyone underestimated. However, the cult is now part of the Ponzi scheme, and there are only a few lefts to preach the flaws of Bitcoin. What has changed? Why is suddenly everyone jumping onto the train? 

Pexels.com

After seeing 2018, Bitcoins’ increase in price became more important than the negative press around cryptocurrencies and Bitcoin. This was a game-changer in many regards. It taught many how Bitcoin really works.

The volatility of Bitcoin is of paramount importance to understand when you try to trade it. It is nearly impossible to foresee the price movement of Bitcoin because the price is directly susceptible to the human need for it (demand). Since Bitcoin has a limited supply, selling and buying do have a direct influence on the price, this is not likely to change much in the long term, sure the volatility will decrease with a higher market capitalization, but the fact that everyone’s buy or sell order will affect the price will not change. But what does that mean for you? How can you learn to deal with it? 

Volatility is actually a great thing. There are so many more positive aspects of volatility than negative ones. Volatility enables you to buy the lows and sell the high (trading). Since the cryptocurrency market offers high rates of volatility, it also provides high gains. The cryptocurrency market can not be compared to the conventional markets. The crypto market offers much more return and loss. Do not expect it to be easy to master, but investing time and money will surely help you understand how it works.  

Another strategy is to HODL, keep your money, and hold it as long as you feel the need to save it. Many Bitcoiners (including me) hold their coins until they are dead, probably. Hodling is actually a great way to avoid volatility and even out your losses. For example, a good friend of mine bought his Bitcoin in 2018, right on the peak at around 18k. Bitcoin fell right after and was devasted (he didn’t need the money, he was sad that he lost it), he kept on holding it and buying more throughout the months and years. His Bitcoin in 2018 doubled in value in 2020. Keep on hodling your coin, and your return on investment will be almost 100% in the long term. Do not be distracted by short-term news. Keep on holding it, and you will be okay eventually. 

Average your entries out. You can also buy Bitcoin by, let us say, in 1-month intervals, not looking at the price at all. Every month you buy Bitcoin at the same time for the same amount. This would help you even out losing investments. If you purchased the high as my friend did in 2018, you could have bought it at a lower value. The price increase Bitcoin did on that entry could compensate for the losses you endured earlier. This is the best way to fight volatility but makes the calculations much harder, be sure that you are on top here and record your entries to come back and check your gains. 

Bitcoin and other cryptocurrencies offer significant volatility and great gains. Getting your fair share of the cake is not hard. HODL, trade or average out, do one of these, and you are likely to see gains in the long term. Look at this as a long-term investment, and your mentality will shift, and volatility will become your friend. 

Investors and the public are realizing this in big style today. It is no secret that Bitcoin is here to stay. Buying into it now means that you understood how Bitcoin works. Since Bitcoin has limited supply and everyone is trying to escape the Keynesian economies’ inflation, demand for Bitcoin is picking up and will pick up further. Trust in the economics of Bitcoin, and you will see how much sense it truly makes. 

Check my other channels for more content:

A live-changing technology

My YouTube:

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

My Twitter:

https://twitter.com/aversionfall

My LinkedIn:

https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/

Categories
Podcast

How to scan the market 21.01.2021

Is Bitcoin pulling back? Is Ethereum not pushing to new all-time highs? Uncertainty takes the markets over. What do you think will be the next move?

Categories
Crypto Blog

Why has Bitcoin value?

Understanding the value of Bitcoin means recognizing its properties as useful. Bitcoins value is of subjective nature. To understand what this means, we must dig deep. We need to know how Bitcoin is created and why its properties contribute to its price. Every average person sees that Bitcoin has no commodity that it is backed by. There is no centralized authority that can inflate money as they wish. Bitcoin derives its value because it is of enormous importance to the free market right now. So, let me answer this question at the end for you. First, we need to understand why Bitcoin works. 

What is Bitcoin mining? 

Bitcoins embedded in its protocol are “set free” by the competitive and decentralized Bitcoin mining process. Miners are rewarded by the network protocol for hosting and processing transactions made in the network. They get some coins in return. Since Bitcoin has a limited supply, the protocol is set to produce a fixed rate of Bitcoin. This makes mining more competitive because the more miners enter the market and the lower the chances are to be the lucky one to get Bitcoin in return. This should incentivize miners to cut their operating costs to increase efficiency. Since Bitcoin gains in value, the promised return of value is not a metric number that gets bigger as the fiat currency system works. Bitcoin increases in value by not changing its metrics. This still enables miners to stay incentivized for a very long time. Bitcoin is created at a decreasing and fixed-rate. Bitcoin halving decreases the amount issued for mining the Bitcoin protocol. So, once all the 21 million Bitcoin have been mined, Bitcoin miners will continue hosting the network, and they will solely be incentivized by the transaction fee to continue hosting the network. This enables Bitcoin to continue existing for a long time. 

What determines Bitcoins price? 

My paint skills once again…

Since Bitcoins supply is limited to 21 million, the sole factor determining Bitcoins price is demand. If demand shifts from Demand 1 to Demand 2, price shifts from price 1 to price 2, increasing in value. However, this works the same if demand falls, price falls too. Based on the limited supply concept, Bitcoin has no other factor than demand to determine its worth. 

What properties make Bitcoin worth buying?

Bitcoin has the characteristic money needs. Bitcoin has the durability, portability, fungibility, scarcity, and divisibility, which gives it the properties of a medium of exchange not based on debt or on commodities. But what is it based on? What is Bitcoins core-value? 

These questions are best answered by also answering the central question of this article. Bitcoins value is subjective and based on the subjective need for Bitcoin, which is represented in demand. As soon as people realize what their day-to-day currency used to be and when they compare it to Bitcoin, many will realize that Bitcoin offers all the properties that should be desired to have in a currency. Bitcoin has no value backed by a materialistic factor. Its sole determination for its value is demand. Demand picks up, Bitcoin will surely increase in price. If people find a better currency than Bitcoin, Bitcoins demand can and will drop to 0. Be sure to buy when demand picks up. 

Check my other channels for more content:

https://yvestalksbitcoin.com/

My YouTube:

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

My Twitter:

https://twitter.com/aversionfall

My LinkedIn:

https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/

Categories
Podcast

How the scan the markets 20.01.2021

Bitcoin is consolidationg further at around 35k while ETH has rejected it’s all-time high. Will we see moves into the green again today?

Categories
Crypto Blog

A 3-minute guide on how to start trading cryptocurrencies

A beginner-guide to trend-trading cryptocurrencies

Trading cryptocurrencies can be a nerve-wracking experience. It involves you being busy doing your due diligence all the time, but you probably are scared off by the rate of volatility that cryptocurrencies offer. This guide will educate you to do the right thing and trade clear patterns that dramatically reduce your risk. Let me take your fear.

Indicators to use for this strategy

Before we get started, we need to setup up our indicators. Indicators will help you find a reference point on the chart. You should not use them to find trades. Indicators are called Indicators because they only indicate, they will never show you the perfect trade opportunity. Keep that in mind. The combination of indicators, however, can point you towards some gem trades. Indicators we need are:

  • Moving Average 10
  • Moving Average 20
  • MACD (Moving Average Convergence Divergence) 

Identifying the trend

Trading is all about reducing your probabilities. Before we start identifying the trends, let me point out that you should start looking for trades not to take. By doing so, you trick your head into looking for options that fulfill the criteria that we will be defined below.

Sorry for my paint skills

In theory, your chart looks somewhat like this. The black line indicates price movement, the blue line is the moving average of 10, the red line is the moving average of 20. The space between MA 10 and MA 20 is commonly referred to as the cradle zone. The cradle zone is where the magic happens.
Only knowing that so far, I bet you could go out there and already make some smashing trades. However, continue reading to get some more tips on how to spot entries and prevent risk.

Finding the entry

Red arrow indicate entries

The red arrow indicates entries.

Finding the right entry as a trader is not easy. If the price is trending and moving into the cradle zone or scratching the MA 10, this could be the entry. Do this check-list before entering.

  1. Identify the trend.
  2. Price falls into the cradle zone on the entry timeframe.
  3. Check on the higher timeframe for trend confirmation.
  4. Wait until you find a small and green candle.
  5. Enter when the price breaks the high of the candle.

Prevent risk

Use as a stop-loss. A common rookie mistake is to not use one. Just because you got the strategy, it doesn’t mean that you can not lose money. Set yourself a target and a stop. Ask yourself what you are willing to risk your portfolio (1 to 3% is standard), as you define how much you can afford to lose on your trade, you know your target already, the target defines what you want to accomplish while making the trade. So if you are willing to lose 1%, set your target to 1% too. If the price hits your target, move your stop-loss to your entry value. This reduces the risk of the trade going negative and you losing any money. After that, you have only profits to take. Use your target to trail the stop-loss. So if the price goes for another 1%, adjust your stop. If the trend were broken, you would be stopped out with a 1% gain.

To conclude, trading needs an edge. Find your reference in the market and stick to it. Being distracted by the noise in the markets is never helpful nor beneficial for your portfolio. Try on keeping your money, stop trying to make more. In attempting to preserve what you have, you will start taking the profitable trades.

If you want to find out more about trading, check out my content on various platforms. I also offer one-to-one mentoring, so if you are interested in hopping onto a call with me for 15 min for free, I could help you layout how to approach this the best.

Check my other channels for more content:

https://yvestalksbitcoin.com/

My YouTube:

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

My Twitter:

https://twitter.com/aversionfall

My LinkedIn:

https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/

Categories
Podcast

How to scan the market 19.01.2021

Is Ether heading for new all-time highs?

Categories
Crypto Blog

Why we should stop and reconsider our monetary system

Photo by Karolina Grabowska on Pexels.com

Asset-classes worldwide are increasing in value, while every inflationist country is pumping more and more money into its communities, many will nonetheless lose their jobs. All this causes the gap between poor and rich to become as straightforward as it has never been before. Money is printed and handed out as if the world would not understand the concept of exchange anymore. Lockdowns and the pandemic have driven us into a need for cash that has never been experienced like this ever before. Our addiction and demand for money are growing by any minute. But what can we do? How can we prepare for when everything is going the other way? 

Discipline. 


Our world needs discipline. We have to get rid of our IOUs and never go down this path ever again; we need to part our way with the Inflationist mindset dictating our economy and find back to a path of economic naturalism. Fiat and debt-based consumerism have been ravaging our society and environment for ages. We have been shacking the money tree senselessly. The shaking has been good fun and very addictive. We had to shake harder, and the harder we shook, the more money came out, and everyone was happy. People have been offered debt as if they were candy, and since many did not have the option to be disciplined, they fell for it. But who can blame them? The money tree has been around since we are all born. This is normal. 


We need to realize that shaking the money tree has cost us our financial independence. Inflation of our fiat currencies has eroded away the hard-working purchasing power and has left those with millions, now with billions. Understanding the monetary system we have nowadays is nearly impossible. Banking and complicated finance have made it almost impossible for a non-academic person to grasp its importance. For the first time in history, you need at least a Bachelor of Finance to explain money to someone else. Money, the one thing that made a living together and exchanges possible. 

Asset classes like Bitcoin or other cryptocurrencies have been very educating in that sense. Thanks to Bitcoin, many enthusiasts are very aware of these problems. However, their mentality has shifted, long-term understanding and logical arguing have helped them to see that the dualism between currency and assets are unnecessary. Those who study Bitcoin intrinsically and based on its importance as an asset class or a monetary system agree that it fulfills all the needed criteria to be a currency capable of being a fully functioning economic system. Even though Bitcoin has opposition that argues differently, Bitcoin is here to stay, and they have no control over that fact. 

Bitcoins’ growth rate is explained easily with everything I have stated before. With a withering economy and politicians that believe the government must be the golden knight that helps everyone, Bitcoin offers a peaceful and excluding experience of how the world’s monetary system has been working for ages and hopefully for generations to come again. Investing in Bitcoin not only feels like investing in our heritage but also in the future. It is a safe haven of mad consumerism and even more ludicrous Inflationists. 

For further posts on that kind of topic, check out my other ones:

The battle against consumerism – Bitcoin:
https://yvestalksbitcoin.com/2021/01/06/the-battle-against-consumerism-bitcoin/

What makes bitcoin special?
https://yvestalksbitcoin.com/2021/01/04/what-makes-bitcoin-special/

Why is Bitcoin bullrunning?
https://yvestalksbitcoin.com/2020/12/29/3-reasons-why-bitcoin-is-bull-running/

Check my other channels for more content:

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

My Twitter:
https://twitter.com/aversionfall

My LinkedIn:
https://www.linkedin.com/in/yves-hofstetter-9752b6202/

Or support me directly on Medium:

https://yveshofstetter.medium.com/