Teaching My Dad to Trade Crypto
Okay, Tonight I am gonna explain to my Dad how to start trading. So this version is particular to those in the EU and mostly in the Netherlands due to the exchange that I am going to I suggest. For those who are not in the EU, you can always use Kucoin Exchange, I will share the link later on.
First things First
So now how to join the Bitvavo exchange.
Why BitBavo, because it has no deposit fees if you use IDEAL. They have okay transaction fees and they have great customer service. Something that is very useful when you just get started.
So please use this link:
And Sign Up.
I suggest using the Desktop version when you get started.
It´s more transparent and easier to navigate than the app. The app you can find in the AppStore under Bitbavo and it will allow you to check the price 24 hrs a day.
But for now, let´s start on the desktop.
And it´s your lucky day first $1000 of trading you pay 0 commission, I never was that lucky.
Create your account.
Go to your Dashboard
And add your funds using IDEAL
Once you complete the deposit, you can start buying your first crypto- Select the name of the crypto you like to buy or scroll down the list to see what is available.
For this example, I will buy UTK of which I hold $33 (value) already and of which the change in the last 34hrs was -9%.
Now I can buy or sell it directly for the current price.
You can also see the trading fee you will be paying.
Once you bought it you can use exactly the same process to sell it again once the price is up.
Now there is also an advanced option if you would scroll down a bit.
Here you can determine at what price you want to buy if you use the limit buy.
You fill out the quantity and the price and that will trigger the Total including the fee. Now, this 0.19600 is the current price, but if you want to buy it cheaper you can manually adjust the price.
How to determine the right price?
On the initial buy page on the right, you get an overview of the price of the coin you plan to buy (Hour/Day/Week/Month/Year). This provides a bit of guidance on the price range.
If you are planning on a short-term buy select the lowest price in the last 24 hrs. And input this price in the advanced set-up
So I will put in a buy for 0.18 cents.
And confirm. The buy will now be listed at the right bottom side until the buying price is reached.
Now once bought the coins will show on your dashboard and now you can choose to hold and wait or already put in a sell offer. To get a good selling price use the monthly/yearly overview.
In case of UTK it would be about 0.30 cents. So now I will use the advanced sell option.
Hence I put in the coins I bought and the price I expect to sell at continuing and confirm. This will show the sell offer on the bottom right side.
The waiting game
Once you put them up for sale, that is when the waiting game starts
The waiting game can take minutes, hours, days, weeks, months....that fully depends on the market. If it dips you can become an involuntary holder, if you do not want to sell at a loss. But crypto is volatile, so what goes down, will go up...just hope that you are still around to see it happen-
That is also why I suggest buying 2 or 3 coins, and not spending all your money in one go. Keep some to buy the next dip 10-25%. And well if you just get started make sure you buy the dip or at least wait till the geo-political situation stabilizes as bit.
But what coins to buy?
This comes all down to Strategy and DYOR
So if you are just starting and are okay with building your fortune slowl and steady the best thing to do is stick to the top 20 Altcoins, of course excluding stable coins, and better to stay away from meme coins as well:
Binance Coin (BNB)
Bitcoin Gold (BTG)
Bitcoin Cash (BCH)
Bitcoin SV (BSV)
Now, these are all considered good steady projects...but you are looking for steady or steady with volatility. BTC and ETH are the most steady with the least volatility and therefore a pretty safe bet.
Then there are some projects that I personally would not choose, but that is a matter of opinion. Still, I would look at these:
Binance Coin (BNB)
Bitcoin Cash (BCH)
Now in this list you are not looking at a 100X coin probably not even a 10X coin. You are looking to make money to grow your portfolio. And that you do by using the market's volatility. Crypto prices are very volatile, which means that a 10% change in price can happen very easily, and this is how I started to make my initial money.
DYOR (Do Your Own Research)
Check which of the above coin dropped the most in the last 24 hrs. Check what the coin did in the last month/year to make sure you are not buying a coin that just topped. It´s always better to buy a coin that just dropped.
Once you did that buy the coin and add 10% -15% and put it up for sale. Or sell 50% with a 15% profit and the other half with 20% profit. Always keep an eye on the price and be ready to sell it if it comes close. Because sometimes it´s worth it to reduce your price a little to make the deal.
Split your risk and increase your fun by buying 2 or 3 coins of course 4 or 5 is fine as well, just don´t buy to many at the start so you get to know the behavior of your coins a bit. Often you can buy and sell the same coin various times especially if you learn about the coin and it´s behavior.
Feel free to use a calculator at first to determine what 10 or 15% would be.
For those non-EU Residents,the story is the same but I suggest using Kucoin. To get some insights on how the trading interface works on Kucoin you can have a look at this article.
The more risky variant
Once you are used to trading on Bitvavo you can send some BitcoinCash (BCH) to Kucoin and start trading the more risky coins. Link to Kucoin: https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite
Kucoin has some more risky coins that are a bit more volatile. So just be careful because volatility goes both ways and these projects have not proven their long-term value. But if you want some suggestions, these are my fav. low-cap moneymakers on Kucoin:
Umbrella Network (UMB)
LTO Network (LTO)
Now the last piece of advice be patient and do not get greedy
Really trust me on this, do not get greedy. Don´t look back and think about the profit you could have made. Take your 10%-15% and maybe overtime do a 20%, but start with small profits. If you can flip a coin with 10% once every 2 days you will have an a nice profit in your first month which you can increase month by month.
In case the market crashes, which happened to my girlfriend, you have 3 options. Leave your open sell offers as they are and be very patient, the market will go up or your coin might just do a quick pump one day.
The other option is to sell them on a good day at a loss and start the 10% game again.
Or option three: Leave your open sales and buy some new coins with the funds you had left and use those to play the 10% game.
All this is of course no financial advice. It is just how I got started and might help to get you started, to learn a bit about trading.
Once you are comfortable trading you can try a million other strategies. But I used this strategy for a year and I did quite nicely during that year.
Where to go for info
This is a great place to stay up to date with the latest news. It will provide an overview that includes links to articles and video´s.
Daily 15 min of latest crypto news at ALTcoin Daily
My favorite YouTuber with a great accent.
A very good data-driven YouTuber
Interesting blogs and articles written by people like me
Keep in mind that many people are promoting coins that they have invested in or promote projects/exchanges where they get a referral bonus if you join. This is no problem as long as you Do Your Own Research (DYOR) and do not trust just one single source.
Well, I hope this helps you get started and I am here for all your questions.
Posted Using LeoFinance Beta
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