Hi, I would like to move from the capital market to the cryptocurrency market. How do you think to make such a transition so as not to fall into some typical traps? Let's say something for a beginner.
Study a lot, Andreas Antonopoulos is great, he's got videos and books. Learn all you can about computer security, you dont want to get hacked and lose your investments. But most important of all, dont drink the kool-aid. What is common for those new and even for some experienced investors is to get more bullish as prices rise. So they buy more and more crypto the longer the bull market goes, or they have alt coins to be a bigger % of their portfolio as the market rises. So they will have the most risk when the market tops, when the bear market arrives they get destroyed, panic and sell This is a counter-cyclical market, you have to be a bull when everyone is in panic and a skeptic when crypto is super mainstream. I dont think we're are there yet and its more an art than science to know when to de-risk but its what works
It's a bull market at the moment, from what I've seen it's likely to run until September based on Bitcoin cycles, so investing in any crypto right now could be pretty profitable for the next 6 months. Also - buy the bottom of the dips right? Don't FOMO in
I just started trading traditional stock markets after trading crypto. I will say that traditional is nothing like the crypto markets. When there is a drop in crypto markets, it can plunge 30% or even higher within 5 mins. I have yet to see these kind of movements in the regular stock market. Regular stock markets will gently drop in price and gently rise. Also there is a lot of manipulation, so when you see a pattern forming in the crypto markets you best believe it can do anything when it breaks out, sometimes it will even break out the wrong way before shooting the opposite way and vise versa. Stop limits are worthless to use. You will save more money not using a stop limit than to get stopped out 100s of times. Also all alt coins reflect Bitcoins price, so when Bitcoin has a major move all alt coins will most of the time, drop in price. You best take everything you see with a grain of salt, and have the emotions of a lifeless zombie when dealing with the crypto markets. The only thing you have to lean on is ultimately do you think crypto will succeed or fail? That faith is what will help you succeed. Good luck
It can be more volatile than most. It does however lend itself to technical analysis. I use a strategy for both and they work well.
A couple of advises: 1. Understand the market structure very well as Crypto is very different than traditional capital markets in that sense 2. Understand what you trade very well before trading it 3. Understand all the potential risks 4. Forget everything you know about volatility, it's much wilder in Crypto Best of luck
yea...one of the main problems with crypto. Going back to early crypto days, younger traders sold completely into each run up and the markets would take back much of the run up. Its not nearly as bad now, since seasoned investors and traders are in the game. But its still an issue. And young people are trying to school each other into diamond hands (meaning don't sell completely after every run up) But clearly...crypto offers amazing opportunity to buy each dip much lower than the prior run up and you can hold long term as an investor nowadays. Just watch more closely than stocks. I also really like Andreas Antonopoulos