My experience trading with bitcoin

During the past year, there has been a cryptocurrency craze. Many people have been investing in cryptocurrency and seemed to be making a killing in the industry. It was around the beginning of the year that I also decided to get into the industry.

Getting into the crypto business is an exciting journey. I got to learn a lot and hence would like to share my experience. Before investing in bitcoin, I considered the following.

Selecting the right platform

I started by doing market research to determine the best trading platform. I discovered that not all these platforms were intriguing. After long explorations, that I will not go a lot inside and out as they are past the extent of this article, I have at last tracked down my best three finalists, specifically: Cryptohopper, 3Commas, and IQ options.

I learned that 3commas offered expensive accounts. Also, I was turned away by their monthly subscriptions that were quite expensive. They also needed the money to be paid upfront with no guarantee I would get my money back if the trading strategy did not make me any money.

The other option was crypto hopper. Which was at that point much better as it was offering an alternative achievement expense between myself and the merchant, and this was a lot nearer to what I was searching for, yet, I didn't care for the way that the whole stage depended on their trade, that was likewise custodial.

I have chosen to go with Iq options, truth be told, because of their recently dispatched benefit-sharing model. They were offering something almost identical to Cryptohopper, however far and away superior as there was no base add up to contribute, which permitted me to plunge my toe before really contributing my full size. Additionally, what was vital to me was that they were non-custodial. The whole stage is based on Binance. It is the real custodial of the relative multitude of resources exchanged on Blockfi, and this has given me considerably more trust in giving it a shot.

With the trading platform picked it was currently an ideal opportunity to select a broker. With my absence of involvement, I chose to follow the principal dealer I saw. Bitexpert was one of the dealers whose record was looking good that was drawing in the most publicity, so I have chosen to bounce on that train, as well. Toward the beginning of January, I assessed his provider who was at about +50% in benefits for quite a while of trade. I especially favored his 45° degrees esteem twist, which looked assured to me.

After only a week of duplicating this broker, my record was at that point up +60%. I was feeling incredible, being sure that bitexpert would have made me wealthy in the blink of an eye. I was at that point contemplating where to purchase my private island when something odd occurred. 

This trader was using a trading approach that I learned later was called a mean reversal, which can be seen by the respectable further developing 45° worth twist referred to above. It involves averaging down on losing positions, routinely on impact and without stop hardship, to underneath ordinary entry cost, and believe that the position will get back to rise to the underlying speculation, or at last advantage, before closing it. 

The issue with this was that while this was making predictable returns and clear low capriciousness in the record. It is a procedure that works until it doesn't, and when it doesn't, what happens is unequivocally what had happened to bitexpert.

The guy clutched this losing position that continued going down, all while additionally adding to it, with the expectation that it was, at last, going to turn. It doesn't simply imply that he was over-utilized in this losing position. Additionally, he didn't have the capital accessible to open other possibly beneficial positions. He had run out of slugs.

The losing continued going for half a month until on that morning of April everything reached a conclusion and the edge call showed up for Bitexpert; the market had brought down his supplier, and my record with it.

What I learned 

I had made a horrendous choice and these were the results; accepting I expected to procure different results in a little while, I would have expected to see my money assignment by putting time and energy into some suitable investigation. 

So I started my trader's assessment without any planning, checking each vendor's channel on the Blockfi Discord server, or the dealer's private channel if and where these were open. Looking for additional information about their style. Also, experiences concerning why they were doing what they were doing and why they were getting the results they were getting.

I was able to find a more honest trader who seemed like he was aware of the best trading strategy. Whenever I have begun delving further into his Medium aides, I have discovered that this person had never had a losing year in crypto since 2018. He likewise made +70% in 2019 alone, so maybe he realized a few things about trading, specifically he was putting the consideration on managing the risk by slicing disappointments and permitting victors to run and having a somewhat long horizon in return, the two things that were reverberating very well with me after my experience

 It was truth be told while perusing one of the Crypto trading guides that I abruptly had a moment of clarity, and acknowledged where bitexpert had gone wrong he didn't deal with his danger; he didn't stop his failures and let his victors run, he was rather doing an incredible inverse, by adding to washouts and selling champs when they were showing a benefit.

Conclusion

From my ordeal, I was able to learn that finding a passive income earner has never been a simple undertaking, as anybody that has at any point trouble attempting will realize all-around very well. I accept that duplicate exchanging, and explicitly benefit-sharing models like the one at present offered on IQ options will demonstrate truly progressive and will unquestionably take a piece of the crypto markets volume in due time.

Eventually, you could either remain to acquire or lose while exchanging digital currencies, very much like in some other speculation. So ensure you read market conjectures cautiously and consider the guidance of monetary specialists before you put resources into Bitcoin or some other digital currency.

My advice to anyone who is thinking of investing in bitcoin is that you should start by investing a small amount of money. By investing small you will be able to learn how bitcoin trading works. You should be able to learn all the pitfalls and hence you will not lose money as I did.

Also, first-time investors are advised to invest what they can afford to lose. The cryptocurrency market is highly volatile and therefore it is wiser to invest what you can afford to lose. Also, any profits gained should be withdrawn regularly.

This article is for educational purposes and highlights my experience in bitcoin trading.it is not necessarily you will have similar experiences as I did. Before investing you should learn as much as possible to make the right decision.