HODLing is an art form
I have noticed that I have a hard time hodling when it comes to my trading portfolio. I always sell to early, but on the other hand,
any deal I can walk away from with more BTC in my virtual pocket is a good deal.
So for now I still believe it´s better to get out with profit before the top, then get out with losses after the drop.
Still I am trying to learn the art of hodling just a bit longer.
And so far that tactic works for me, even though it´s said that 95% of the people that start trading loose money.
"Astounding. Almost everyone loses, they lose fast, they underperform simple, mindless investments, and they continue trading even after being proven unprofitable. Why?"
One of the reasons is that most would-be traders are not ready for the challenge ahead and like me learn many hard lessons with real money.
As I mentioned in an earlier blog, you should not get emotional while trading.
Trade by facts, set your plan, be factual agile, and not emotional agile. And no hindsight. Don´t think that could have been 100X, profit is profit.
Most traders underestimate the psychological impact of trading and fail to eliminate emotion from their trades.
Noob traders might have been trading on Simulators for months. Which is fine for a day, to understand the mechanics of the exchange....
But you don´t learn squid unless you can cash or crash.
No matter how much you practice, live trading is a totally different game. It requires the ability to plan ahead, know what your up against and adapt quickly.
Plan your exit when you buy
I plan it by reviewing the previous months chart and link that to what I know is coming for this project (research). And adding the current market type Bullish or Bearishto the equation.
Characteristics of a bull market:
Stock prices are climbing.
Investor confidence is usually high.
Characteristics of a bear market:
Stock prices are declining.
Investors often feel panicked and pessimistic.
Whatever you do, be agile. Especially if you trade in BTC like me.
Because if BTC surges the $ value you initially set as your exit goal might already be reached.
But did you make your BTC goal? The coin you´re selling is worth more in dollars, but might still be worth less in BTC than what you paid for it.
If you would sell like this every time the BTC value of your portfolio will keep dropping, even though the dollar value remains above what you initially started with.
I decided to not care about the dollar as it worth less every day....
So I aim on increasing the BTC value of my portfolio.
In most cases that means hodl a bit longer after a BTC surge till the coin you invested in is adapting to the new market values (unless you have clear indicators that is not likely to happen of course).
And last but not least start with setting small marks for your investments. 2X, 10X, 10000X is like winning the lottery.
Personally I started with 10% on $10 to $30 dollar buys and I am still here.... Not saying I should be, just saying I am.
Trading cryptocurrencies carries a high level of risk, and may not be suitable for all investors.
If you still think about trading, below I have a list of the best known exchanges. But I personally use these 2 for now:
Bitmart because it was advised by my mentor. It has low fees if you pay them in BMX.
They allow buying via many channels, but I suggest Pay Pall and Bank Transfers as they have low commission fees.
They also have a trading simulator, but you know how I feel about those.
BitVavo is the 2nd one. As I am in Europe and they are said to be Europe's leading cryptocurrency exchange. But mainly because of okay fees and a very user friendly interface.
Coinbase is the most popular because you can invest directly with USD.
Gemini is a popular platform which focuses on security and transparency.
BlockFi is a cryptocurrency investment platform that allows you to lend and earn interest on your holdings.
Robinhood a platform that offers free crypto trades on their platform.
eToro has been around for a while in the UK and throughout Europe, but they are now allowing traders in the United States. They have a trading simulator as well.
Bitcoin IRA Bitcoin IRA. Unlike most exchanges and wallets, you're basically just exchanging currency and are subject to paying taxes on your gains.
Hitbtc.com This has being Advertised as the most advanced and complex Bitcoin exchange. Therefore t's Not as easy to use.
Binance A great platform for getting into some currencies like Cardano ,Neo, yearn finance etc .But Not as easy to use as some of the top platforms.
Kraken.com Allows margin trading. Not as easy to use as some of the top platforms on this list.
Coinmama.com is allowing buys using a credit card, debit card, Apple Pay or bank transfer.
Yesterday´s News
I fried the fish and left the paper here for you to enjoy.
Start from Day 1
Or start reading about my crypto experience from day one.
Thank you for reading & Thankful for any comments, Tips & Tricks.