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Reasons why you should NOT trade cryptocurrencies

volumemaster
Mar 14 2019 at 07:31
32 posts
No need for leverage on crypto, the market quite volatile, leverage can kill your account for sure

JesusSaves
Mar 15 2019 at 08:10
8 posts
Magelaus posted:
Unfortunately, I do not understand cryptocurrency. Although I read the article here https://bitcoinbestbuy.com/bitcoin-mining-guide/ . I plan to start mining, even if it sounds very difficult. I want to try :D


Love it. Just like everyone else. You don't understand crypto but because of one article you decide that it is worth investing in. Madness!

psnowfox
Mar 15 2019 at 09:48
17 posts
volumemaster posted:
No need for leverage on crypto, the market quite volatile, leverage can kill your account for sure


Absolutely agree, no need to leverage on crypto.

Somethings I learnt over 3 years trading on crypto:

- Don't use any broker that offer crypto CFD because their spread is crazy (sometimes 1-2%), just trade with own money in exchange like Bitfinex, Binance.

- Truth be told, I gave up predict the trend of crypto since early 2018, instead, in such volatile market, you can make money without predicting the trend of market. Use mathematics, you will find crazy unreasonable volatility in market that you can take advantages by some simple statistical arbitrage strategy.

- One more thing, understand Value at Risk (VAR) theory is critical when you trade in any bubble market like crypto.

ATB,
have fun trading









Attachments:


Matt (BluePanther)
Mar 17 2019 at 06:53
1354 posts
JesusSaves posted:
Magelaus posted:
Unfortunately, I do not understand cryptocurrency. Although I read the article here https://bitcoinbestbuy.com/bitcoin-mining-guide/ . I plan to start mining, even if it sounds very difficult. I want to try :D


Love it. Just like everyone else. You don't understand crypto but because of one article you decide that it is worth investing in. Madness!


True! omg... lol

LeBuffon
Mar 18 2019 at 15:11
11 posts
psnowfox posted:
volumemaster posted:
No need for leverage on crypto, the market quite volatile, leverage can kill your account for sure


Absolutely agree, no need to leverage on crypto.

Somethings I learnt over 3 years trading on crypto:

- Don't use any broker that offer crypto CFD because their spread is crazy (sometimes 1-2%), just trade with own money in exchange like Bitfinex, Binance.

- Truth be told, I gave up predict the trend of crypto since early 2018, instead, in such volatile market, you can make money without predicting the trend of market. Use mathematics, you will find crazy unreasonable volatility in market that you can take advantages by some simple statistical arbitrage strategy.

- One more thing, understand Value at Risk (VAR) theory is critical when you trade in any bubble market like crypto.

ATB,
have fun trading











I am really interested in your idea of using statistical averages. Could you please explain a bit more about how you do this? Do you think it would work with Forex because I mainly trade Forex not crypto

psnowfox
Mar 19 2019 at 07:07
17 posts
LeBuffon posted:

I am really interested in your idea of using statistical averages. Could you please explain a bit more about how you do this? Do you think it would work with Forex because I mainly trade Forex not crypto


Theretically, you may. To be able to stat-arb, you need to find pairs those are cointegrated, then you trade everytime they diverge. But I never find any forex pair sets which highly cointegrated for a long-term.

You can find some basic knowledge here:
https://gekkoquant.com/2012/10/21/statistical-arbitrage-correlation-vs-cointegration/
https://jonathankinlay.com/2018/09/developing-statistical-arbitrage-strategies-using-cointegration/
https://www.quantinsti.com/blog/johansen-test-cointegration-building-stationary-portfolio

uxStyle
Apr 11 2019 at 07:56
28 posts
Yep, I thought it's all finished and we just went smoothly with all established crypto currencies, yet like 2 years ago till now they are still popping up everywhere, so please explain this to me ? Somebody just virtually want to increase that interest. Some homemade currency which were issuing there tokens already closed 6 month ago. So it's artifical boom for another....

Global Tech (GermanyFX)
Apr 11 2019 at 08:15
361 posts
uxStyle posted:
Yep, I thought it's all finished and we just went smoothly with all established crypto currencies, yet like 2 years ago till now they are still popping up everywhere, so please explain this to me ? Somebody just virtually want to increase that interest. Some homemade currency which were issuing there tokens already closed 6 month ago. So it's artifical boom for another....


cryptos are like fancy toys anyone can make his own crypto and start his own market and bump and dump whenever he wants to.

Beethoven9
Apr 11 2019 at 10:46
8 posts
So many ICOs right now. Everyone is trying to get in on the excitement of crypto. I would only consider trading the top 5 crypto and even then only in small amounts. More of a gamble than anything else. Even the oldest crypto BTC is very volatile

JuanJoel
Apr 17 2019 at 11:37
5 posts
To the people saying you don't need leverage to trade with Bitcoin, that's untrue.

Higher risks come with higher rewards... If you know what you're doing, and you work within the industry, you will be able to see the ups and down trends so you can push for short orders.

There's a lot of content and step-by-step tutorials you can read on the internet about trading with Bitcoin.

https://insidebitcoins.com/trading/bitcoin for instance, has a few brokers and explains the basics to beginners.

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