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Reasons why you should NOT trade cryptocurrencies

volumemaster
Mar 14 2019 at 07:31
32 příspěvků
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 příspěvků
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 příspěvků
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









Přílohy :


Matt (BluePanther)
Mar 17 2019 at 06:53
1356 příspěvků
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 příspěvků
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 příspěvků
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
32 příspěvků
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
495 příspěvků
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.

Work hard and play hard
Beethoven9
Apr 11 2019 at 10:46
8 příspěvků
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 příspěvků
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.

psnowfox
Apr 17 2019 at 11:45
17 příspěvků
JuanJoel posted:
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.


Have you ever looked at daily volatility of any coin, how many times you can survive before blowing up your accounts?

If you are talking about leveraging at 1:2 or 1:3 for shorting purpose as well, it is okay. But more than that for 'high risk high return' illusion is simply just insane, a small dump/pump will blow your accounts. If you know the fundamental of any Value at Risk (VAR) model, then you know what I mean.

MotoGP
Apr 18 2019 at 06:01
10 příspěvků
Can you explain more about the 'Value at Risk (VAR) model' - I have not head of that before? is it a way to trade crypto?

psnowfox
Apr 18 2019 at 06:26
17 příspěvků
MotoGP posted:
Can you explain more about the 'Value at Risk (VAR) model' - I have not head of that before? is it a way to trade crypto?


It is a factor to consider when you build trading strategy. VAR is common risk management model.

VaR are models that study the extreme events of your investment assets (Btc,eth in this case). Basically you divide the whole history data of BTC to equal-length periods (days - weeks), pick extreme point (up or down) in each period. And then build the model to simulate those extreme points arrays.

It answers the question what is the probability you will lose x% of your accounts in next period (days-weeks) if you trade y position.

There are many VaR model. I personally use Extreme Value Theory because it is easy to apply.

You may find some useful resources here:

- https://en.wikipedia.org/wiki/Extreme_value_theory
- https://www.statisticshowto.datasciencecentral.com/extreme-value-distribution/

A bit complicated but I hope it is helpful.

Matt (BluePanther)
Apr 18 2019 at 06:26
1356 příspěvků
MotoGP posted:
Can you explain more about the 'Value at Risk (VAR) model' - I have not head of that before? is it a way to trade crypto?


https://en.wikipedia.org/wiki/Value_at_risk

Felolune (Felolune)
May 15 2019 at 12:06
14 příspěvků
So you think it's all scam all this crypto world or how it's to explain ? I haven't read whole 42 pages of this thread, but basically I see forex like more stable source of income since it depends on real currencies and that's it, it's backed by something real.

Matt (BluePanther)
May 16 2019 at 06:31
1356 příspěvků
Matt (BluePanther)
Oct 05 2019 at 13:48
1356 příspěvků
Matt (BluePanther)
Oct 05 2019 at 14:04
1356 příspěvků
Gabriel99
Oct 08 2019 at 06:16
39 příspěvků
If you don’t have an emergency cash fund, you should not invest in cryptocurrency,. Don’t treat cryptocurrencies as an equivalent. While cryptocurrencies may be ‘liquid’ to trade against other cryptocurrency, they are not so liquid in real life. Withdrawing cryptocurrency and exchanging them for fiat always takes longer than you think. It can be an extremely arduous process.

Matt (BluePanther)
Jan 07 2020 at 08:14
1356 příspěvků
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