To use chat, please login.
Back to contacts

Reasons why you should NOT trade cryptocurrencies

psnowfox
Apr 17 2019 at 11:45
17 mensajes
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 mensajes
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 mensajes
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.

BluePanther (BluePanther)
Apr 18 2019 at 06:26
1351 mensajes
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
6 mensajes
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.

BluePanther (BluePanther)
May 16 2019 at 06:31
1351 mensajes
BluePanther (BluePanther)
Oct 05 2019 at 13:48
1351 mensajes
BluePanther (BluePanther)
Oct 05 2019 at 14:04
1351 mensajes
Gabriel99
Oct 08 2019 at 06:16
37 mensajes
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.

BluePanther (BluePanther)
Jan 07 2020 at 08:14
1351 mensajes
CFTC has trouble locating director of fraudulent crypto scheme Control-Finance (6 Jan 2020)
https://financefeeds.com/cftc-trouble-locating-director-fraudulent-crypto-scheme-control-finance

Por favor inicie sesión para comentar.