tag:blogger.com,1999:blog-84305927413322999212024-03-05T18:23:32.358+08:00Aluna Crypto Currency & TradingCryptocurrency Trading Tips, Tutorials & Strategy Insights by Alvin Lee (@onemanatatime) | Technical Analysis | Market Psychology | Crash Cycles | Bitcoin | Altcoins | CFD | Forex | Commodities | Indexalunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-8430592741332299921.post-7003348403935104072020-04-25T13:48:00.001+08:002022-09-22T21:36:48.612+08:00This blog is no longer being maintained.<div dir="ltr" style="text-align: left;" trbidi="on">
<b><span style="font-size: x-large;">This blog is no longer being maintained.</span></b><br /></div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-80105418028413647122017-11-10T13:52:00.000+08:002017-11-10T15:41:12.411+08:00Top 5 Things Cryptocurrency Traders Can Learn From Poker Players<div dir="ltr" style="text-align: left;" trbidi="on">
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<i><span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-weight: 400; text-decoration: none; vertical-align: baseline;">This article was written for the 21cryptos' magazine's first edition. If you liked this article, make sure to visit </span><span style="font-family: "arial"; font-size: 11pt;"><a href="http://www.21cryptos.com/">www.21cryptos.com</a> or reach out to their <a href="https://twitter.com/21Cryptos" target="_blank">Twitter</a> account to find out more! </span><span style="font-family: "arial"; font-size: 11pt;">As a promotion for their first edition, the magazine is going at only</span><span style="font-family: "arial"; font-size: 11pt;"> </span><strike style="font-family: arial; font-size: 11pt;">$10</strike><span style="font-family: "arial"; font-size: 11pt;"> </span><span style="font-family: "arial"; font-size: 11pt;">$5! </span><span style="font-family: "arial"; font-size: 11pt;">Without further ado, let's get straight into the article!</span></i><br />
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<a href="http://www.21cryptos.com/" target="_blank"><img border="0" data-original-height="634" data-original-width="447" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgV6Eqovg9piPcXamsQ_eG_-KpfTYgHlfnPMJCs0TDQ_mvhlPQilOt5pTHNvYNQg1lh281QhAmJu7jgYpiSuXgL9U_UXnUBrIJBfH8cze8IVp8px-XvlmDUHX-02ynt0SHrMMoziEhsoONk/s1600/Screen+Shot+2017-11-10+at+12.46.39+PM.png" /></a></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;"><span style="font-size: 14.6667px; font-weight: bold;">Introduction</span></span><br />
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Prior to trading, I played poker actively for about 6 years. When starting out and after two years of paying tuition fees, a turning point for me was when I read Dusty Schmidt’s </span><span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Treat Your Poker Like A Business</span><span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">, that helped transition my mindset and game from one of taking uninformed gambles to taking systematic and calculated risks. </span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Once I started trading, I quickly realized that many of the lessons picked up from the tables were directly applicable, familiar concepts such as bankroll management, tilt, and positive expected value, come to mind.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">In this article, we’ll go through 5 key concepts, explain how they are related to trading, and what we can learn from them to become better traders.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">1. Managing Your Bankroll & Protecting Your Capital</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">The term bankroll management in poker refers to the same risk management concept in trading.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Just like how professional poker players compete at a stake where their bankroll covers at least 100 buy-ins, professional traders typically risk no more than 1% per trade. This is only a general guideline, as more aggressive players may play with just 20 buy-ins, or a trader risking up to 5% a trade.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Protect your capital! Trading takes a lot of skill, and if you think that everyone trading is making money, think again. It’s not that making money is difficult (especially in this cryptocurrency bull market), but rather, the difficulty lies in preserving capital and keeping the profits. A common saying goes, “take care of your losses, and your profits will take care of itself.”</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Trading cryptocurrencies come with a high degree of exchange risk. Your capital is your inventory, and there's a huge risk not only in losing your money, but also your time invested if the site you're on shuts down tomorrow. Keep you money with reputable exchanges, spread it out over various locations, and never invest more than you can afford to lose!</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">2. Dealing with Variance & Playing a +EV Game</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Variance is basically that which deviates from the norm, be it good or bad. And this is where the concept of expected value comes into the picture. Short term variance is part of the game, and it is important to understand that trading is a marathon, not a sprint. The difference between gamblers and professional poker players or traders, is that the latter focus on the outcome of playing the </span><span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">long game</span><span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">. </span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">To avoid being a gambler, one must make trades that have a positive expected value. Do you know the expected value of the trades you make in the market? To really understand what are your odds of making a profit, and the expected size of that profit, requires establishing a set of rules and testing those rules over a large number of trades so you can determine the expected value of your strategy rules. </span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">You may want to buy any coin that has strong fundamentals and a market capitalization of $10m or less, or one that has retested the 200 MA support. Sounds like a good idea, but is it? Only testing that rule over many trading examples and market conditions can really tell you if this simple approach to the market is an effective one. </span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Strategies do not have to be complicated. They do need to be well tested! If you approach the market without a set of trading rules and an understanding of the expected value of your trading approach, you are a gambler. Yes, you will get lucky and could make great profits. However, in the long run, the profits of the gambling trader are just short term loans.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">3. Knowing Your Risk Tolerance </span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">As Dusty Schmidt put it, “part of growing your business is coming to an understanding of how much risk you can tolerate.”</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">If you have a mindset that you must move up [in stakes] quickly, trade a large size, risk a large amount, and manage your bankroll liberally, you’re setting yourself up for a really big mistake in the long run. That is a gambler’s mentality with which few people can succeed long term.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">I look at trading not as a gamble, but as a skill. I want to make a small business out of that skill, and like most businesses, I don’t want to risk having to close up shop. Staying open is the goal first and foremost; maximizing profit is second.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">4. Determining Your Style & Knowing When You Have an Edge</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Just like how there are different playing styles in poker, such as loose-aggressive, or tight-passive; there are various styles of trading and investing, such as day trading, scalping, position trading, growth investing, value investing, and many more. As an aspiring trader, it is important that you understand your own circumstances, risk preferences, goals, and develop a strategy that suits your style. Read the crypto trader’s essential starter kit here: </span><a href="https://alunacrypto.blogspot.sg/2017/06/essential-beginners-starter-kit-for-cryptocurrency-trading-bitcoin-altcoins-ethereum.html" style="text-decoration: none;"><span style="background-color: transparent; color: #1155cc; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: underline; vertical-align: baseline;">https://alunacrypto.blogspot.sg/2017/06/essential-beginners-starter-kit-for-cryptocurrency-trading-bitcoin-altcoins-ethereum.html</span></a></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">To find an edge in poker is to understand who the fishes are at the table. From the Rounders movie, "listen, here's the thing. If you can't spot the sucker in your first half hour at the table, then you ARE the sucker." Also, having an edge means to play hands with positive expectancy, knowing when you have a better hand than your opponent and maximizing your profit, while minimizing losses when behind.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">In trading, this is akin to first understanding the general market conditions, then taking trades with positive expectancy, that is, trades that stand to win more than they lose over the long term, so that you make more in your winning trades than lose in your losers.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">A common mistake new traders make is in being myopic about technical analysis, without factoring critical overarching concepts such as the general market conditions, market cycles, trader psychology, and risk management. Why sit at a table with 8 sharks? If general market conditions are not favourable, don’t take the trade. In poker, you typically play less than 15% of your hands in a full ring table. Similarly, in trading, sit out when you don’t have an edge.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">5. Managing Your Emotions</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Traders who have played poker should be familiar with something called “going on tilt.” In the poker world, this refers to a state of psychological or emotional frustration or confusion that causes the player to start making decisions that are less than ideal. Usually, this means adopting overly aggressive strategies that are unlikely to work, and which the player would never use in a more psychologically sound state of mind. Poker players usually go on tilt because they are frustrated with their own mistakes, with bad luck, or with other players. Does that sound familiar?</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">If we are not emotionally prepared for the possibility of losing, we are more likely to be thrown by losses. We set ourselves up for the tilt state by needing and expecting to win, rather than letting probabilities play themselves out and accept that there will be winning and losing periods.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">Emotional control can also be improved by understanding probability and variance, and setting long term monetary goals instead of short term ones. Respect your risk management plan, and lose your ego. When you know you are on tilt or off your A game, the faster you get off the tables (or stop trading for the day), the more money you will save in the long run.</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline;">Conclusion</span></div>
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<span style="background-color: transparent; color: black; font-family: "arial"; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline;">There is a multitude of lessons that traders can learn from professional poker players, since both involve similar characteristics of incentive, risk taking, strategy, probability, emotions, psychology, and mental discipline. Success is determined not so much as which strategy but the determination and discipline by the trader to carry out the plan. At the end of the day, be careful not to treat trading like gambling. Remember, trading is a business more than anything!</span><br />
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<a href="http://www.21cryptos.com/" target="_blank"><img border="0" data-original-height="634" data-original-width="447" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXmJtfQVGQY_DX6xZuUyw7Vdvk_KZ2dm1skA-x5BdbQxDo4Qm0tRzVaahx-exleIGvvSadHi9Pu7FPBSjFTgOjX6EMQZ7Zp6AHRhypMHmCqOEIXDT1Jbr1i_I_SGKlTaXwjN1m45Yn68zK/s1600/Screen+Shot+2017-11-10+at+12.48.33+PM.png" /></a></div>
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<i><span style="color: black; font-family: "arial"; font-size: 11pt; vertical-align: baseline;">This article was written for the 21cryptos' magazine's first edition. If you liked this article, make sure to visit </span><span style="font-family: "arial"; font-size: 11pt;"><a href="http://www.21cryptos.com/">www.21cryptos.com</a> or their <a href="https://twitter.com/21Cryptos" target="_blank">Twitter</a> account, to purchase their first article at an affordable price of only </span><strike style="font-family: arial; font-size: 11pt;">$10</strike><span style="font-family: "arial"; font-size: 11pt;"> $5, and enjoy </span><span style="font-family: "arial"; font-size: 11pt;">over 50 pages of cryptocurrecy market insights, analysis, and articles. Also make sure to look out for future editions as I continue to be a guest writer for 21cryptos.</span></i></div>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-18617812250818960252017-07-23T18:37:00.002+08:002017-10-08T18:19:56.315+08:00Trader Dad: What Makes a Successful Trader? Trading Advice From My Old Man<div dir="ltr" style="text-align: left;" trbidi="on">
Since I can remember, I haven't lived with my dad. I barely meet him since he worked overseas for the most part, and never knew much about him. Funnily enough, I never knew he traded financial markets, until after I got into trading and brought it up with him.<br />
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Recently, I asked my dad to write a short introduction to trading, something that would be useful for people starting out and dipping their toes into trading financial markets or cryptocurrencies. Even though he doesn't trade Bitcoin or cryptocurrencies (yet), he's had decades of experience navigating the markets, and I hope this short and simple post can give you some insight into what an old-timer has to say about becoming profitable at trading.<br />
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So here goes...<br />
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<i>Dear Trader,</i><br />
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I have been trading in the “futures market” similar to what we now refer to as the Exchange-Traded Funds (ETF) market for the last 30 years.<br />
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I would like to share my experience and knowledge with people that are interested in financial trading (*this is a short introduction and not meant to be a recommendation of any trade that anyone might like to take).<br />
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To make it simple, I will sum up the most important elements in making a successful trader. Successful traders are those that make a good and correct decision and/or action in the following:<br />
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1. Money<br />
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2. Time<br />
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3. Target<br />
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<u>1. Money</u><br />
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A trader need first to decide the amount that he is prepared to invest or the amount that he is willing to cut loss in each trade and his overall trading.<br />
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One must be disciplined with this decision making and necessary control action is very important.<br />
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Unnecessary losses usually occur when one overtrades, or holds on to a position that had a big loss for too long that eventually that he cannot afford.<br />
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<u>2. Time</u><br />
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Time is a very important factor in many ways:<br />
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1. Trader needs to spend time to analyze and decide on a particular trade.<br />
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2. Trader needs to decide if short term or long term trading that he/she will like to be working on.<br />
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Not spending enough time to understand the market that you are trading can result in unnecessary trading losses.<br />
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There are much to learn in trading such as margin requirement, historical high and low level, economic fundamental of the product, average cycle period of high and low, stop order, technical analysis, trading hours, daily swap value of the product, etc.<br />
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<u>3. Target</u><br />
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Target refers to both sides of your exit point on either profit taking or cut loss.<br />
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A successful trader is more likely to be a person who is very disciplined in his execution of trade.<br />
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Trader should always remember that “the market is always there”, which means that one should protect his margin for his future trade.<br />
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Having a clear target will eliminate the emotional trading in your trade.<br />
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<u>Other Factors</u><br />
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Other than those points in trading that I had mentioned above. I will also like to bring up some other factors and risks concerning futures trading in the modern market as follows:<br />
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<u>A. Price Manipulation</u><br />
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Trader should be aware that the globalization of the modern world and the advancement of technology in computers and the Internet had made it very easy for the banking cartel to manipulate the prices throughout all the trading platform from index to currency to commodity such as gold and silver and all other counters.<br />
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This situation had been persisting and intensified over the recent years.<br />
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The high share index, the low price in gold price and silver are the result of such manipulation.<br />
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<u>B. Stop Hunting</u><br />
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Trader will notice that there is always some sort of taking out cut loss movement occur before price is going to make a big move in the opposite direction are clear evident of the price manipulation by the major player in the market. Read more about <a href="http://www.investopedia.com/terms/s/stophunting.asp" target="_blank">stop hunting on Investopedia</a>.<br />
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<u>C. Economic Data</u><br />
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We used to depend on the economic data issued by various government department to plan our trade.<br />
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Trader should be aware that these data are no more as accurate and reliable in the recent time.<br />
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<u>D. Major Economic Situation</u><br />
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Trade should be aware of the major economic situation which is going to have a major impact of the world economic in years to come such as:<br />
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1. Excessive quantitative easing (QE) (money printing) by various government over the years<br />
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2. US national debt of 20 trillion dollars and its debt ceiling<br />
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3. The death of petro-dollar<br />
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4. The conflict between US with Russia, North Korea and other middle east countries<br />
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5. Financial difficulties in the major bank in EU and the possible breakup of EU<br />
<br />
6. The purchase of physical gold by central bank<br />
<br />
<br />
<u>Conclusion</u><br />
<br />
The present market situation is critical and it represent a good opportunity for those that have prepared for the volatile market movement ahead. Do your study, prepare yourself and this will be a <b>once-in-a-lifetime opportunity</b> for many traders. Good luck and enjoy your trading.<br />
<br />
Thank you.<br />
<br />
<i><br /></i>
<i>Yours Sincerely,</i><br />
<i>Sam Lee</i></div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-83832860058162969282017-07-09T23:36:00.000+08:002017-10-08T18:54:40.237+08:00[VIDEO] Cryptocurrency Trading Primer: Not Your Typical Trading Course or Technical Analysis Introduction - Human Emotions, Market Psychology, & Risk Management<div dir="ltr" style="text-align: left;" trbidi="on">
I recently had the pleasure of speaking about trading Bitcoin and Cryptocurrencies at the first CryptoSG meet-up in Singapore, alongside 6 others speakers who covered various other topics about Bitcoin, Altcoins, and Blockchain technology.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Invited to speak about Crypto Trading this Friday evening in Singapore. Feel free to join if you're available!<a href="https://t.co/YWBJzH27ZX">https://t.co/YWBJzH27ZX</a> <a href="https://t.co/2TZVkuBlYx">pic.twitter.com/2TZVkuBlYx</a></div>
— Alvin Lee #UASF (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/881692982516137985">July 3, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
In this presentation, I introduced an approach to trading that (I hope) is not what your typical "trading course" or "technical analysis class" would teach, and shared a method that I believe is one of, if not the only way to be able to make sense the market with a complete picture. I shared some tips and overarching concepts that I feel are <b><i>more important</i></b> than just charts and indicators, and hopefully this will be able to shorten your learning curve and help you find a footing in the market without having to go through the same mistakes I made.<br />
<br />
It summarizes my last post, <a href="https://alunacrypto.blogspot.sg/2017/06/essential-beginners-starter-kit-for-cryptocurrency-trading-bitcoin-altcoins-ethereum.html" target="_blank">An Essential Beginner's Starter-Kit for your Journey into the Cryptocurrency Jungle that is Bitcoin & Altcoins Trading</a>, while also covering some other key concepts spread throughout my blog.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria." <a href="https://t.co/YpFXipG4bR">pic.twitter.com/YpFXipG4bR</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/856838766639665154">April 25, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
Why does this methodology of "market structure" and "emotional market crash cycle" work so well? If you think about it, the only common denominator between all markets is nothing other than the people trading them. Therefore I believe it stands to reason that <b><i>human emotions</i></b> and <b><i>trader psychology</i></b> play an immensely critical role in being able to understand how markets work.<br />
<br />
I'll just leave it at that so I don't spoil the rest of the video for you. Unfortunately, the first 5 minutes or so of the live talk got cut off due to technical issues, but I also recorded it into a webinar if you're interested to watch the complete presentation. Enjoy!<br />
<br />
<br />
<div style="text-align: center;">
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/wE5OduPGR54" width="560"></iframe>
</div>
<div style="text-align: center;">
<span style="font-size: x-small;"><a href="https://youtu.be/wE5OduPGR54" target="_blank">CryptoSG First Meetup in Singapore (Part 6): Cryptocurrency Trading Primer by Alvin Lee</a></span></div>
<br />
<div style="text-align: center;">
<br /></div>
<div style="text-align: center;">
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/z83aMH5ijOM" width="560"></iframe>
</div>
<div style="text-align: center;">
<span style="font-size: x-small;"><a href="https://youtu.be/z83aMH5ijOM" target="_blank">Webinar: Cryptocurreny Trading Primer - AlunaCrypto</a></span></div>
<br />
If you just want to look at the slides, you can <a href="https://www.dropbox.com/s/2da4eh53qqf6i51/Cryptocurrency%20Trading%20Primer%20-%20AlunaCrypto%20%28clean-final%29.pdf?dl=0" target="_blank">view or download the PDF of my presentation here</a>.<br />
<br />
This presentation was merely an introduction and a very brief high-level overview of how to approach trading, where I highlighted a wide range of important things to look out for, but you probably still have a ton of more specific questions such as about how to get started, what to look out for on a chart, or how you can apply market structure and the emotional crash cycle into your trading strategy.<br />
<br />
It's impossible to condense 3-5 years of experience and knowledge into a single book or a video which you can absorb and magically become a pro trader. There's no short cut to becoming a profitable trader, except through hard work and dedication, with time and experience.<br />
<br />
Don't be afraid of getting your hands dirty; learn by executing trades and making mistakes, because nobody ever learnt how to ride a bicycle by reading a book. With the right attitude to succeed, you too can eventually become a full-time trader and achieve your lifestyle or financial goals. However, know that it is not an easy road; never give up, keep learning and improving, and you will be rewarded in the end.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
In life as in trading, many things don't go according to plan. If you fall, get back up. <br />
<br />
Regain your balance, never give up. <a href="https://t.co/ZisvJC8Igr">pic.twitter.com/ZisvJC8Igr</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/884068984311513090">July 9, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
To supplement what I covered in the presentation in my previous blog post, spend an hour to listen to this <a href="https://www.youtube.com/channel/UCdnzT5Tl6pAkATOiDsPhqcg" target="_blank">@chatwithtraders</a> podcast with Michele Koenig who has over 14 years of trading experience and shares very relatable information about how to approach trading and start out as a beginner.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Perfect for Beginners! <a href="https://twitter.com/offshorehunters">@offshorehunters</a> shares essentials to approach trading, in & outs, what & how to get started.<a href="https://t.co/8F9SwjUZDy">https://t.co/8F9SwjUZDy</a></div>
— Alvin Lee #UASF (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/884012009427050497">July 9, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
Lastly, I just want to again highlight the last but most important point about trading, and that is <b><i>risk management</i></b>. This is probably the most undervalued component of trading especially for new traders, and is coincidentally why most people continue to blow up their accounts.<br />
<br />
If you play Texas Hold'em, or some other form of poker, you may have heard about '<a href="https://www.pokerschoolonline.com/articles/Bankroll-Management" target="_blank"><i>bankroll management</i></a>' and this concept applies to trading perfectly. Just like how professional poker players compete at a stake where their bankroll covers at least 30-100 buy-ins, professional traders typically risk no more than 1-2% per trade.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
You can have the best strategy and psychology. But without proper risk management, you'll blow your account up. <br />
<br />
Not if, but when.</div>
— Rayner Teo (@Rayner_Teo) <a href="https://twitter.com/Rayner_Teo/status/882267969694441472">July 4, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
One of the most common sayings on Wall Street is to <i><b>let your winners run and cut your losses short</b></i>. Many new traders make the mistake of being patient at the wrong time, and holding onto a losing trade longer than they should. This is caused by 2 things, firstly not having a trading plan in the first place and hence allowing emotions to eventually get the better of you, and trading without a stop loss. Stop-losses can help you to quickly cut losses when a trade goes south, as well as to protect your profits as you continue to ride the trend. Read more about how to use stop-losses effectively with these tutorials by <a href="https://twitter.com/rayner_teo" target="_blank">@Rayner_Teo</a>, an esteemed financial markets trader who's also from Singapore.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
How to set a trailing stop loss to protect your profits and ride big trends<a href="https://t.co/6dg9pc0kU7">https://t.co/6dg9pc0kU7</a></div>
— Rayner Teo (@Rayner_Teo) <a href="https://twitter.com/Rayner_Teo/status/882418926189195264">July 5, 2017</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
How to place a proper trading stop loss (so you don't get stopped out prematurely)<a href="https://t.co/4AFbrLdiln">https://t.co/4AFbrLdiln</a></div>
— Rayner Teo (@Rayner_Teo) <a href="https://twitter.com/Rayner_Teo/status/883989251431464960">July 9, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
With that, I hope I have opened up your mind with a unique view on how to approach the markets and changed your perception on what trading is all about, and also provided you with some practical information that can help you kick-start your trading journey.<br />
<br />
If you have any questions or feedback, feel free to leave them in the comments section, or reach out to me on <a href="http://twitter.com/onemanatatime" target="_blank">Twitter</a>, <a href="http://t.me/onemanatatime" target="_blank">Telegram</a>, and join the <a href="http://t.me/alunacrypto" target="_blank">AlunaCrypto community on Telegram</a> to discuss Bitcoin and Altcoin markets, share price and technical analysis, and keep up to date with the cryptocurrency market.</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-23081029156345143792017-06-29T11:51:00.000+08:002017-10-08T19:04:16.738+08:00An Essential Beginner's Starter-Kit for your Journey into the Cryptocurrency Jungle that is Bitcoin & Altcoins Trading: Overview, Markets, Analysis, Emotions, Psychology, Risk & Strategy<div dir="ltr" style="text-align: left;" trbidi="on">
Made a windfall during the recent cryptocurrency bull trend?<br />
<br />
Thinking of taking out your student loan to invest long term in Bitcoin, Ethereum, or some other alternative cryptocurrency and blockchain technology?<br />
<br />
Considering to quit your day job to be a full time cryptocurrency trader?<br />
<br />
Before you take an impulsive step that will drastically change your life for better or worse, take a step back and consider what this actually means, and if you have adequately planned for what you're getting yourself into. Are you sure that you are ready to play the hardest game in the world?<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Before you actually take out that loan, or submit your resignation letter, know that most professional traders spend first 3-7 years losing. <a href="https://t.co/PSmvH1LAuh">pic.twitter.com/PSmvH1LAuh</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/876005798148587521">June 17, 2017</a></blockquote>
<div style="text-align: center;">
<i><span style="font-size: x-small;">(credits to <a href="https://twitter.com/Trader_Dante" target="_blank">@Trader_Dante</a> for this piece)</span></i></div>
<br />
<br />
<b><u>Introduction</u></b><br />
<br />
Whether you're new to this whole trading game, or if you have some experience trading traditional markets but feel like crypto "is a totally different animal", this post is for you!<br />
<br />
If you're just like most new traders, you might not even understand what a "pip" is, or have no clue where to get started in reading and interpreting charts & candlesticks, and everything may look very foreign, daunting and overwhelming at first sight, but fret not!<br />
<br />
Cryptocurrency trading is no different from trading traditional markets, and in fact provides a more level playing field with relatively less "smart money" in the game today, and if I may say, "easier" to learn too. Whether or not you have any prior trading experience, this blog post aims to provide you with a starter-pack of essential knowledge and resources to help you learn trading, and to present a framework with which you can approach trading cryptocurrencies and the global markets at large.<br />
<br />
Trading and the world of Bitcoin and Altcoins may seem like trying to navigate through a dense jungle at first, but once you learn how to read your compass, have the right lenses on with which to view the markets through, and with the right attitude and propensity to keep trying & improving, you will quickly be able to develop an eye for the market and chart patterns, and begin to make sense of it all.<br />
<br />
Indeed it is fact that most professional traders start their career by losing for the first 3, 5 or even 7 years. On the flip side, I assure you that this is no rocket science. With the right strategy, proper risk management and discipline, anyone can make trading profitable, even you! So let's get down to it...<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Perfect for Beginners! <a href="https://twitter.com/offshorehunters?ref_src=twsrc%5Etfw">@offshorehunters</a> shares essentials to approach trading, in & outs, what & how to get started.<a href="https://t.co/8F9SwjUZDy">https://t.co/8F9SwjUZDy</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/884012009427050497?ref_src=twsrc%5Etfw">July 9, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<b><u>What is a Market?</u></b><br />
<br />
No matter how you look at it, you became a trader the first day you
bought your first Bitcoin, Ethereum, or altcoin, from someone else.
Whether you're trading as a hobby, want to make this your full-time
career, or simply just dipping your toes into the world of blockchains
and cryptographic currencies, I believe it is prudent for you to at
least arm yourself with basic trading techniques and price analysis
frameworks, since trading is an integral aspect of owning
cryptocurrencies that you cannot avoid whether you like it or not.<br />
<br />
Before we get into the tutorial proper, let's start off by looking at the markets and trading from a more abstract perspective.<br />
<br />
What's the one thing in common between all traded markets, be it stocks, bonds, commodities, or even cryptocurrencies? You may have guessed it, it's none other than the human beings trading it, and it is the emotions of these people that drive prices in the market. By this logic, we can argue that price is the collective representation of human emotions, and hence emotions and psychology are a critical puzzle piece and first step to understanding the rules of the game.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
<br class="Apple-interchange-newline" />
New trader steps:<br />
<br />
#1 Don't blow up your account<br />
<br />
#2 Small draw downs<br />
<br />
#3 Break even<br />
<br />
#4 Profitability<br />
<br />
#5 Compound returns</div>
— Stephen Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/876410439869104128">June 18, 2017</a></blockquote>
<br />
<br class="Apple-interchange-newline" />
<b><u>Making Your Own Trader</u></b><br />
<br />
We all have different styles, from the clothes we wear, to the time we sleep and wake, to the type of diets we have. Similarly with trading, we all have different risk appetite and propensity, schedules, preferences, portfolio size, and it essential for someone getting into trading to first figure out what type of trader you are, to form your own unique understanding of the market, your own perception of how to analyze the market, and your own framework on how to approach the market. <br />
<br />
With that said, though there are many different parameters you can tweak to develop your own style, there are several over-arching factors that you need to take care of regardless of your strategy or style, and the path that you have taken.<br />
<br />
<div>
The rest of this post will cover these key concepts, to give you a baseline for devising your own approach to trading cryptocurrencies like Bitcoin, Ethereum, Zcash, that you can bring along with you everywhere and trade any kind of market all the same.<br />
<br /></div>
<br />
<b><u>Understanding Yourself - What Type of Trader Are You?</u></b><br />
<br />
To begin, let's start with the simple yet effective 5W1H (except the 'when', which isn't all that relevant here) questioning technique, and dig in to understand ourselves better.<br />
<br />
First and foremost, <b>WHY</b> do you trade and <b>WHAT</b> do you want to achieve?<br />
<br />
Do you want to achieve financial freedom? Make some side income? Have an interest in the technology and wish to invest in it for the long term? Or do you wish to travel the world without being bound to a desk-job?<br />
<br />
Whatever the reason, make it clear to yourself and seek the advice and support of your family and friends.<br />
<br />
<b>WHO</b> are you? <b>WHEN</b> can you trade? <br />
<br />
Do you work a 9-5 job or are you a freelancer? Do you wake up at sunrise and go to bed at sundown, or are you a night owl? What is your schedule like? Do you have a family and kids, or are you single? Are you studying, or working?<br />
<br />
I'm sure you already know all this about yourself, but have you also considered these factors in developing your trading style?<br />
<br />
<b>WHAT</b> type of trader are you?<br />
<br />
Only after figuring out the why, what, who, and when of your trading,
can you be able to tailor your strategy to suit your circumstances.<br />
<br />
Are you a <a href="https://www.forexfactory.com/showthread.php?t=24242" target="_blank">day trader, swing trader, or position trader</a>? If you're working a full-time job and can't babysit your positions throughout the day, don't attempt to be a day trader trading 15m candles but focus on higher timeframes such as 6h, 12h or 1d candle charts instead! <br />
<br />
And the million dollar question, <b>HOW</b> can you devise a profitable trading strategy, suited to who you are, to achieve your goals and live your dreams? Unfortunately, there's no straight answer here, and anyone who tells you otherwise is lying or out to cheat your money. The answer lies in you, to understand yourself, your needs and your goals, in order to create your own unique strategy. But that's not all...<br />
<br />
The art of trading is a simple yet seemingly complex task of putting together all the available bits and pieces of information to form a complete picture, in a world of incomplete information. On top of that, it involves 100s if not 1000s of hours of testing setups and strategies, finding your own way to make sense of it all, gaming probabilities, creating a plan and diligently following it, and most importantly, controlling your emotions and learning to apply proper risk management.<br />
<br />
Nobody said it was easy, but if you are ready to play the hardest game in the world, I'll try my best to hone you in the basics of the art of trading and to get you started on this adventure. <br />
<br />
For a primer on what to look out for as a beginner trader, spend some time to listen to this podcast where Jerry Robinson shares his journey, experience, and growth as a trader, and covers a wide range of diverse topics perfect for beginners, from the importance of having and following a trading plan/system, to the difference between the types of trading styles, to technical and fundamental analysis, emotions, the use of stop losses, and more. <br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
<br class="Apple-interchange-newline" />
Perfect starter kit & trading intro.<br />
Day, swing, or position trader?<br />
TA vs FA, Emotions, Strategy, & more!<a href="https://t.co/6PUAsPXa0S">https://t.co/6PUAsPXa0S</a> <a href="https://twitter.com/FTMDaily">@FTMdaily</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/875670917057085441">June 16, 2017</a></blockquote>
<br />
<br />
<u><b>How Do You Trade?</b></u><br />
<br />
Analyzing
markets can involve the use of one of or a combination of numerous
methods, such as fundamental analysis, technical analysis, quantitative
analysis, based on retail order flow, based on news, or by following
other people's tips or "insider information".<br />
<br />
Should
be obvious but I'll just emphasize anyway, you should NOT be entering a
trade based on a gut feeling, or on a coin toss, or worse
still based on a "hot tip" from your uncle, colleague, or something you
heard on the TV.<br />
<br />
Everyone has their own unique style, and the hard truth is that while some of them work, most don't. <br />
<br />
Moving forward, we'll break down trading into somewhat modular components and look at what determines a good trade, how you can start winning and be a profitable trader, look at some of the things you can do to avoid the trap of trading based off hot tips, and provide you with the necessary skills and knowledge to approach trading and conduct yourself in the market.<br />
<br />
<br />
<b><u>What Determines a "Good Trade"?</u></b><br />
<br />
1. Trend is your friend<br />
<br />
Generally, you should only take trades in the direction of the trend. i.e. only long / buy in a bull market and never try to short it until the trend has shown to reversed.<br />
<br />
2. Price <br />
<br />
What is price? Price is the representation of a value that market participants are willing to pay for a stock or commodity. (Read: <a href="http://humancond.org/analysis/economics/price_vs_worth_vs_value" target="_blank">Cost vs Price vs Worth vs Value</a>)<br />
<br />
Price should always be taken relative to something else. You are probably familiar with the BTC/USD pair, which represents the value of BTC in terms of USD, as well as the pairs with other fiat currencies. However, do not limit your perception, since price is relative, we can value BTC in terms of other commodities, such as gold (<a href="https://www.tradingview.com/chart/BTCUSD/C08nPqhS-BTC-GOLD-Ratio-Is-The-Chart-You-Want-To-Watch-Bitcoin-XAU/" target="_blank">TradingView: BTC/Gold</a>), or even big macs (<a href="http://bitcoinppi.com/" target="_blank">Bitcoin Purchasing Power Index</a>).<br />
<br />
Lastly, 'cheap' and 'expensive' are relative terms. A coin should not be seen as cheap just because it costs 1 satoshi, compared to Bitcoin for example that costs over $2000. Price should be analyzed in relation to it's market cap (supply * price), as well as the perceived value of the company, commodity, or cryptocurrency.<br />
<br />
3. Timing <br />
<br />
Market timing is an often overlooked yet hugely critical component of a good trade. As some traders would say, "when it comes to trading, timing is everything."<br />
<br />
There's no 'good' price without a 'good' timing. You can buy at a 'high' price but at a 'perfect' timing and it'll be a good trade, but if your timing is 'bad', your 'good' price could quickly go against you and end up being a 'bad' or losing trade.<br />
<br />
Here's a couple of articles for you to further digest the concept and importance of market timing in trading:<br />
<ul style="text-align: left;">
<li><a href="http://www.investopedia.com/articles/trading/06/tradingistiming.asp" target="_blank">Investopedia: </a><a href="https://www.blogger.com/null" target="_blank">Trading is Timing</a> </li>
<li><a href="http://www.morpheustrading.com/blog/market-timing/" target="_blank">Why Stock Market Timing Really Works In Any World Market</a> </li>
<li><a href="https://www.amazingaccuracy.com/investing-article-detail.php?artID=71" target="_blank">The Importance of Market Timing</a></li>
</ul>
<br />
4. <a href="http://www.investopedia.com/terms/c/chasingthemarket.asp" target="_blank">Don't chase the market!</a><br />
<br />
To chase or not to chase, that is the question. Well, not really. It is a no brainer to know that chasing price is a sure way to increase your risk, decrease your profit potential and, in time, probably blow your account.<br />
<br />
Here are 20 points to always keep in mind about the markets, trends, and prices, to remind yourself not to chase prices: <a href="http://www.gotothings.com/shares/how-to-avoid-chasing-stocks.htm" target="_blank">Trading Success - How To Avoid Chasing Stocks.</a><br />
<br />
<br />
<u><b>How To Win At Trading?</b></u><br />
<br />
If you made some good profits during this recent bull run, now is the perfect time you learn to keep it, and fast.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Not about how much you make.<br />
<br />
It's about how much you keep.</div>
— ant (@ThisIsNuse) <a href="https://twitter.com/ThisIsNuse/status/877753712395014144">June 22, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
What most new traders might find perplexing at first is that you don't have to win >50% of your trades to be profitable. There is an important concept called "<a href="https://www.babypips.com/learn/forex/reward-to-risk-ratio" target="_blank">risk-reward ratio</a>" in trading, that can make you a profitable trader even if only 25% of your trades are winners, by taking only trades with rewards that outweigh the risks by >3x. i.e. you can make 3 losing trades at a loss of $1 each, only make 1 winning trade with a profit of $3, and still end up breaking even.<br />
<br />
So back to the question, how can we win? Perhaps to answer this question, we might get some clues by studying how people lose. People lose in two ways, by being impatient and getting into trades at the wrong time, or by being patient at the wrong time and holding on to a losing trade longer than they should. Don't be that guy.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
The elements of good trading are: <br />
(1) cutting losses, <br />
(2) cutting losses, and <br />
(3) cutting losses. <a href="https://t.co/mxnsqOFF4i">pic.twitter.com/mxnsqOFF4i</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/865868550145101824">May 20, 2017</a></blockquote>
<br />
<u><b><br /></b></u>
<u><b>Cut Your Losses Short and Let Your Winners Run</b></u><br />
<br />
One of the most enduring sayings on Wall Street is "cut your losses
short and let your winners run." Sage advice, but many investors still
appear to do the opposite, selling stocks after a small gain only to
watch them head higher, or holding a stock with a small loss, only to
see it worsen.<br />
<span style="font-size: x-small;">(Source: <a href="http://www.investopedia.com/articles/stocks/08/capital-losses.asp" target="_blank">The Art Of Cutting Your Losses)</a></span><br />
<br />
It may be a
little counter-intuitive at first, but the path to winning lies simply in
managing your losses. As the saying goes,
"take care of your losses and your profits will take care of itself".<br />
<br />
Articles on this topic:<br />
<ul style="text-align: left;">
<li><a href="https://www.forextraders.com/forex-education/forex-strategy/trading-strategy-101-cut-losses-short-let-profits-run-on/" target="_blank">Trading Strategy 101 – Cut Losses Short, Let Profits Run On</a> </li>
<li><a href="https://www.quora.com/How-do-I-implement-Cut-your-losses-and-let-your-profits-run" target="_blank">Quora: How do I implement "Cut your losses and let your profits run"?</a> </li>
<li><a href="http://www.newtraderu.com/2017/06/16/cut-losses-let-winners-run/" target="_blank">Loss Aversion – Cut Losses Short & Let Winners Run</a> </li>
</ul>
<br />
<br />
<u><b>Using Stop Losses</b></u><br />
<br />
For most professional traders, <a href="http://www.investopedia.com/terms/s/stop-lossorder.asp" target="_blank">stop-losses</a>
are an integral part of any trading system, especially as you start to
automate strategies. Be it the scalper looking to buy a high momentum
breakout, or a position trader getting in at the accumulation phase,
professional traders plan their exits (both take-profit, and stop-loss
levels) <b>before</b> even entering a position.<br />
<br />
The benefits of having a stop loss include:<br />
<ul style="text-align: left;">
<li>Preventing you from blowing up your trading account</li>
<li>Limiting your losses</li>
<li>Living to “fight” another day </li>
</ul>
<br />
However, in crypto, and especially in the less mature markets, you may find it close to impossible in low liquidity markets to use stop-losses without running the risk of losing your entire accumulated position due to one careless wick. It is still advisable to use stop-losses especially when swing or day trading more liquid markets (e.g. 1000 btc daily volume or more), or at least have a plan and perhaps alerts set up to tell you when you should get out of your trade if you don't physically have a stop-loss order in place. Knowing exactly where to place your stop loss will take time & practice to hone, and there's no better way to learn than to actually get trading.<br />
<br />
Regardless, the concept of booking profits by moving stop-losses up, like a trailing stop-loss, should always be exercised to protect your profits during big trends and at the same time keep your draw-downs low.<br />
<br />
Some readings on this topic:<br />
<ul style="text-align: left;">
<li><a href="https://www.earlytorise.com/lock-in-profits-with-trailing-stop-losses//" target="_blank">Lock In Profits With Trailing Stop-Losses</a> </li>
<li><a href="https://www.tradingwithrayner.com/set-stoploss/" target="_blank">How to Set a Trailing Stop Loss Order to Protect Your Profits and Ride Big Trends</a></li>
<li><a href="http://forexop.com/strategy/stop-loss-profit-placements-max-returns/" target="_blank">How to Place Stop Losses and Take Profits Using a Maximal Strategy</a> </li>
</ul>
<br />
<br />
<u><b>Analysis Methods</b></u><br />
<br />
If trading is new to you, something basic like reading the chart might be a little confusing at first. However like I said, this is no rocket science. Learn more about the basics of reading a chart, meaning of trading terms, and other technical analysis tools and patterns to help in your analysis, with resources such as my other blog posts, <a href="http://investopedia.com/" target="_blank">investopedia.com</a> or <a href="http://babypips.com/" target="_blank">babypips.com</a>.<br />
<br />
Trading analysis methods usually fall into two distinct categories; Technical Analysis (TA) or Fundamental Analysis (FA). You can find out more about the differences between fundamental and technical analysis by reading <a href="http://www.investopedia.com/ask/answers/131.asp" target="_blank">this Investopedia article here</a> and <a href="http://www.diffen.com/difference/Fundamental_Analysis_vs_Technical_Analysis" target="_blank">this writeup on diffen.com</a>.<br />
<br />
Fundamental Analysis refers to the study of the merits of the company behind a stock, typically by looking at a company's earnings, earnings per share, revenue, profit, growth, return on equity, and etc. Or in the case of cryptocurrencies, FA would include factors such as the project's technology and product, the strength of the development team, support from the community, and etc.<br />
<br />
Technical Analysis, on the other hand, involves the study of price action, looking for structure, cycles, patterns and setups based on price data and probabilities. TA is more of an art than a science. It is a science in that there are probabilities and quantitative data to analyze, but with people involved, it becomes a social science. As pointed out above, markets are traded by people, and people are irrational. Though chart patterns have probabilities of success and failure, it is ultimately decided by the market's participants and governed by their emotions, and hence TA is unable to 'predict' the precise price or timing of a move due to the multitude of factors that affect each other in a web, and where the action of one man can change everything.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
"To be a good trader, u need to trade w ur eyes open, recognize real trends & turn, & not waste time/energy on regrets & wishful thinking." <a href="https://t.co/kf9FSX4vaL">pic.twitter.com/kf9FSX4vaL</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/857580653906345986">April 27, 2017</a></blockquote>
<br />
Most traders use a combination of both, in some manner not very different from this: Use FA to sort out the stocks that you'll actually put money into, while using TA predominantly to find entry point, to filter the stocks picked by FA, figure out which one is the right one to enter, right now. You may have a universe of great stocks, but knowing WHEN to buy them, is the key if you're a trader.<br />
<br class="Apple-interchange-newline" />
Although FA gives you an idea of which stock is a good buy, it gives zero clue on the timing of entry for the trade. It is prudent to note that not only does FA not consider stop losses, it tends to go completely against stop loss strategies by encouraging one to add to a losing position, when price decreases while the fundamentals (e.g. P/E ratio) of the company remains the same. Whereas for TA, the concept of stop-losses and cutting losses short is imbued into most all strategies, and as mentioned is a key to preventing you from blowing your accounts.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Fantastic (audio) book for beginners about how to approach trading and technical analysis.<br />
<br />
MUST (LISTEN) READ!<a href="https://t.co/Lnn33vzUTv">https://t.co/Lnn33vzUTv</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/869360655693774848">May 30, 2017</a></blockquote>
<br />
<br />
<b><u>Trading Strategy, Plan and Ruleset</u></b><br />
<br />
According to <a href="https://en.wikipedia.org/wiki/Trading_strategy" target="_blank">Wikipedia</a>, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets.<br />
<br />
Would you drive a car on the road without understanding the road rules? I'm guessing you probably wouldn't, unless you wanted to dramatically increase the chances of a crash. So why is it that we still see so many new traders, rushing into the markets with no trading rules in place? Laziness, ignorance? Who knows, but one thing is certain... if you trade without any rule based trading strategies in place, then you are positioning yourself for disaster.<br />
<br />
It may be difficult to even know where to start at first, and it will take some time looking at charts, trying out various indicators, before you can get some idea of what may or may not work. From there, find some potentially profitable setups, and add parameters to your ruleset for entering and exiting a position. <br />
<br />
Besides the technical ruleset for the execution of trades itself, you should also seek to incorporate portfolio management considerations into your strategy. This could include things like your goals, a plan to manage risk, trade size, maintaining a trade journal, or even an exercise or diet regime to keep your mind sharp.<br />
<br />
By fixing your trading plan before taking any positions, and strictly following your plan and the rules you set in place, you should be able to better handle your emotions, as you trade based on quantifiable targets instead of relying on guesswork and being lost without any predetermined targets or exit plan.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Stop focusing on the perfect entry.<br />
<br />
Instead, FOCUS ON:<br />
<br />
Risk management<br />
Trade management<br />
Position sizing<br />
Emotional control<br />
Exits</div>
— Rayner Teo (@Rayner_Teo) <a href="https://twitter.com/Rayner_Teo/status/879694632963244032">June 27, 2017</a></blockquote>
<b><u><br class="Apple-interchange-newline" /></u></b>There's a reason why 3 out of 5 of these relate to managing your losses and risk, and we'll explain that in greater detail later. Here's some readings about forming a trading plan and how to go about creating rules for your trading strategy:<br />
<br />
<ul style="text-align: left;">
<li><a href="http://www.followingthetrend.com/the-trading-system/trading-system-rules/" target="_blank">Trading System Rules Core Trend Following Rules</a></li>
<li><a href="http://www.mindfulsharetrader.com/rule-based-trading-strategies/" target="_blank">5 Things You Need To Know About Rule Based Trading Strategies</a></li>
<li><a href="http://www.investopedia.com/articles/trading/04/042104.asp" target="_blank">10 Steps To Building A Winning Trading Plan</a></li>
</ul>
<div>
<br /></div>
<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Another fantastic podcast with <a href="https://twitter.com/basso_tom">@basso_tom</a> about trader psychology, trend following, rulesets processes & automation:<a href="https://t.co/KxCY2HkUch">https://t.co/KxCY2HkUch</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/875519754689167360">June 16, 2017</a><br />
<div>
<br /></div>
</blockquote>
<br />
<div>
<b><u>Emotions & Trader Psychology</u></b><br />
<br />
You may have heard the saying, that when your neighbour (or mother) starts buying, you know it's almost time to sell. This is true because trading is a zero-sum game, meaning that for every seller there is a buyer, for every winner there is a loser. In addition, information is more valuable the less people have it. The idea is that if "dumb money", or the mom-and-pop investor, is buying and yell that it is going to be the next best thing and will make him rich, it should be time for you to sell.<br />
<br />
Again, such emotional tells work in a market, based on our assumption that human emotions and trader psychology are drivers of prices, and critical components or puzzle pieces in understanding how this game works. Other than your neighbour or mom buying, other tell-tale signs include even things like tattoos.<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Remember this one? Posted 2 days after the Bitcoin ATH of $1,163 in 2013. Imo tattoos like this are a pretty good indicator of exuberance. <a href="https://t.co/wsnJLP1IjK">pic.twitter.com/wsnJLP1IjK</a></div>
— Tuur Demeester (@TuurDemeester) <a href="https://twitter.com/TuurDemeester/status/879250526101151744">June 26, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Ethereum is not a bubble. Etherium is not a bubble. Eterium is not a bubble. Etheriem is not a bubble. Ehtireum is not a bubble. <a href="https://t.co/GgpaIty0mw">pic.twitter.com/GgpaIty0mw</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/878975122916298752">June 25, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
When people start getting overconfident or complacent, to the point where they get so deeply and emotionally attached to the stock/coin, you should take a step back and realize that euphoria is kicking in and the top may be near or already in. Examples would be people talking about buying lambos, mansions, yachts, or calling the investment a "store of value", "long term investment" after a 10x rise in price, or saying things like "i just need to hold for 1 year and i'll be rich".<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Nothing says sell more than this. <a href="https://twitter.com/search?q=%24XRP&src=ctag">$XRP</a> <a href="https://t.co/7A77yfIr5Y">pic.twitter.com/7A77yfIr5Y</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/866183099968765954">May 21, 2017</a></blockquote>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrQ-MClrvbz7XtmKZvu04rWhlxqLdpY0aEvR6MlGiZfPHSxuUesLzuBL21g3_t6jcAzmFdzg6yddYUYjWMtPtSqSfKGlq9zek4jZKGmrFZkHyo2pqbuwrYfcX7SEIMO0FAh9kduCegsf1B/s1600/Screen+Shot+2017-06-29+at+9.10.53+AM.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt=""I think ripple is becoming a store of value"" border="0" data-original-height="458" data-original-width="837" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrQ-MClrvbz7XtmKZvu04rWhlxqLdpY0aEvR6MlGiZfPHSxuUesLzuBL21g3_t6jcAzmFdzg6yddYUYjWMtPtSqSfKGlq9zek4jZKGmrFZkHyo2pqbuwrYfcX7SEIMO0FAh9kduCegsf1B/s400/Screen+Shot+2017-06-29+at+9.10.53+AM.png" title=""I think ripple is becoming a store of value"" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">"I think ripple is becoming a store of value"</td></tr>
</tbody></table>
<br />
Contrarian investing is epitomized by <a href="http://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp" target="_blank">Baron Rothchild's quote, "the time to buy is when there's blood in the streets."</a> The name of the game here, keeping the emotional crash cycle in mind, would be to buy the fear, and sell the greed. Burn this chart into your mind, because it is the single most important concept you need to know about markets and trends, in order to get the big picture and make sense of it all.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria." <a href="https://t.co/YpFXipG4bR">pic.twitter.com/YpFXipG4bR</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/856838766639665154">April 25, 2017</a></blockquote>
<br />
Watch the video below by <a href="https://www.twitter.com/cryptopicasso/" target="_blank">@cryptopicasso</a> who explains succinctly why and how this cycle is relevant to all of trading. If you like the video, you can subscribe to his webinar tutorial package for 0.5 BTC. Make sure to mention that you were referred by @onemanatatime, to enjoy $100 off your subscription fee.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
So who wants a glimpse of how to trade these coins ?<br />
Enjoy!!<a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="https://twitter.com/hashtag/altcoin?src=hash">#altcoin</a> <a href="https://twitter.com/hashtag/cryptocurrency?src=hash">#cryptocurrency</a> <a href="https://twitter.com/hashtag/ripple?src=hash">#ripple</a> <a href="https://twitter.com/hashtag/ethereum?src=hash">#ethereum</a> <a href="https://t.co/KGfRvZm1hw">https://t.co/KGfRvZm1hw</a></div>
— $Picasso (@cryptopicasso) <a href="https://twitter.com/cryptopicasso/status/865889951912783872">May 20, 2017</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Thx guys Enjoy !<br />
took me 8 yrs to put these puzzle pieces together <br />
To understand how to win you need to understand loss and mrkt structure</div>
— $Picasso (@cryptopicasso) <a href="https://twitter.com/cryptopicasso/status/865916867508154368">May 20, 2017</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Understanding this is the ONLY way i have ever made money in the markets without pure luck</div>
— $Picasso (@cryptopicasso) <a href="https://twitter.com/cryptopicasso/status/865918175875149825">May 20, 2017</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
To delve deep into trader psychology, listen to this interview with Mark Douglas, author of "Trading in the Zone", where he discusses trading psychology and risk management, as well as another podcast, How to master trading psychology with Brett Steenbarger by <a href="https://www.youtube.com/channel/UCdnzT5Tl6pAkATOiDsPhqcg" target="_blank">@chatwithtraders</a>.<br />
<br />
<div style="text-align: center;">
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/GhKJ9P3agRc" width="560"></iframe>
</div>
<div style="text-align: center;">
<span style="font-size: x-small;"><a href="https://youtu.be/GhKJ9P3agRc" target="_blank">Mark Douglas - MIND OVER MARKET (Full length Interview)</a></span></div>
<br />
<br />
<div style="text-align: center;">
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/rD5nQzbm0iI" width="560"></iframe>
</div>
<div style="text-align: center;">
<span style="font-size: x-small;"><a href="https://youtu.be/rD5nQzbm0iI" target="_blank">How to master trading psychology | Brett Steenbarger</a></span></div>
<br />
<br />
<b><u>Risk & Trade Size Management</u></b><br />
<br />
<a href="https://www.babypips.com/learn/forex/summary-risk-management" target="_blank">Risk Management</a> is undoubtedly the #1 most underrated trading philosophy, and also the most disregarded by new traders, who incidentally continue to blow up their accounts until they fix this.<br />
<br />
You can have the best strategy with insanely high gains, but if you are risking 20% or 50% on every trade, or if you cannot keep your draw-downs low, it is a risk management disaster and is not a good trading strategy! As a guide, in traditional markets, profitable ETFs and hedge funds look for draw-downs of no more than 7-10% per month, averaging about 10-20% or more profits per year.<br />
<br />
Rule number one of trading is you want to let your winners run, and cut your losses short. And back to our earlier point that if you manage your losses, your profits will take care of themselves. Sure, crypto is a different animal altogether, and your profits could be in the 100s or 1000s of %, but if you don't cut your losses to aggressively protect your bottom line and drawdowns, it'll only be a matter of time before you blow your account.<br />
<br />
In terms of trade size management - never go all in on one trade! Set rules so that you risk only 2% (or 5%, or 10%, or more depending on your risk appetite) of your portfolio in a single trade. And lastly, <b>don't overtrade!</b><br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
"Major mistake made by novice traders is their bet size is too large -- often they risk 5%, 10% or more of capital on an individual trade."</div>
— Peter Brandt (@PeterLBrandt) <a href="https://twitter.com/PeterLBrandt/status/879742877626245124">June 27, 2017</a></blockquote>
<br />
<div>
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
If you manage your risk, your profits will take care of itself.<br />
<br />
If you don't, your parents will take care of you.</div>
— Rayner Teo (@Rayner_Teo) <a href="https://twitter.com/Rayner_Teo/status/875563724131622912">June 16, 2017</a></blockquote>
<br />
<div>
Some platforms offer up to 100x or even 500x leverage. With margin trading, small moves in price in the wrong direction can wipe you account (<a href="http://www.investopedia.com/terms/m/margincall.asp" target="_blank">Read: Margin Call</a>) if you're overleveraged or trading too big a position than you can afford.<br />
<div>
</div>
<br />
Friendly piece of advice, don't use more than 10x leverage, or even 3x for that matter, especially if you are not familiar with Margin Trading!<br />
<br /></div>
</div>
<br />
<b><u>Your Attitude</u></b><br />
<br />
Your attitude is everything, not just in trading, but also in life. So let me just leave you with a couple of last points and my personal thoughts about the attitude of a good trader:<br />
<br />
1. Don't think you're better than anyone else, or that you know it all. Be humble!<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Making money in bull trend is easiest part of trading. Humble yourself, learn from the legend himself <a href="https://twitter.com/PeterLBrandt">@PeterLBrandt</a>.<a href="https://t.co/0Ac90SaBVV">https://t.co/0Ac90SaBVV</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/872616162604888064">June 8, 2017</a></blockquote>
<br />
2. Be open to new ideas that may not necessarily agree with yours. Be objective with all kinds of information, remove bias and emotions when analyzing a chart.<br />
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
"A true genius admits that he/she knows nothing."<br />
<br />
- Albert Einstein <a href="https://t.co/7Iy7xxZCcB">pic.twitter.com/7Iy7xxZCcB</a></div>
— Aluna Cryptocurrency (@AlunaCrypto) <a href="https://twitter.com/AlunaCrypto/status/867623058487390208">May 25, 2017</a></blockquote>
<br />
3. Must have a passion to learn and to improve yourself.<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Excellent podcasts for listening on your commute to and from work, about everything trading.<a href="https://twitter.com/chatwithtraders">@chatwithtraders</a><a href="https://t.co/MSLfhIw7fB">https://t.co/MSLfhIw7fB</a></div>
— Alvin Lee 🚀🚀🚀 (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/872617953467838464">June 8, 2017</a></blockquote>
4. Never give up! <br />
<br />
<br />
I hope this post has given you the essential knowledge to find your way around in this cryptocurrency trading jungle, and has provided you with some practical insight into starting your own trading journey, and how to go about approaching trading and analyzing markets. Will go in depth into technical analysis in one of my next posts, but for now, let me just leave you with this...<br />
<br />
<div style="text-align: center;">
<span style="font-size: large;">The name of the game is survival -- <b>STAY ALIVE! </b></span></div>
<span style="font-size: large;"><b><br /></b></span>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com2tag:blogger.com,1999:blog-8430592741332299921.post-51299729901426602202017-03-09T17:06:00.000+08:002019-05-27T13:50:28.659+08:00BTC Exchange Tutorial: BitMEX Trading Platform - Beginners Guide on How to Margin Trade BTC & Altcoins Derivatives & Futures Contracts, and other Prediction Markets<div dir="ltr" style="text-align: left;" trbidi="on">
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" imageanchor="1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="BitMEX: The Next Generation of Bitcoin Derivatives" border="0" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh91rl7V3dBaqeKiLzQ3OlPlpLzPDhg_QUQKZgXToirklVBDZof51ls_mbUaAAtueWO9D1BVhpBVNsM9-gCkK5MGFl8x7JsF7VN1dW7yWphv4okUrFIOKxY3hK7s-5KbvzfyHjaA-dMQMfS/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+introduction1.JPG" title="BitMEX: The Next Generation of Bitcoin Derivatives" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX: The Next Generation of Bitcoin Derivatives</a><a href="https://www.bitmex.com/register/cYGy1I" target="_blank"><br /></a></td></tr>
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</h3>
<h3 style="text-align: left;">
Introduction to The Bitcoin Mercantile Exchange (BitMEX)<b><u> </u></b></h3>
<br />
The <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">Bitcoin Mercantile Exchange (BitMEX)</a> is a leading digital currency exchange platform that offers Derivatives, Futures, and Prediction contracts and markets for margin trading cryptocurrencies.<br />
<br />
<a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX </a>offers a
variety of contract types, and all contracts are bought and paid out in
Bitcoin. It is the only platform that offers a "Perpetual P2P Swap", a contract that
trades like a future but never expires!<br />
<br />
BitMEX touts itself to be a provider of "The Next Generation of Bitcoin Derivatives", and quite rightfully so. The platform has been able to grow significantly, no doubt partly due to their ability to open traders up to various kinds of interesting derivative markets, and keeping their customers happy with transparency, open communication, having strong security in place, and most importantly, a highly advanced yet user-friendly trading platform.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" target="_blank"><img alt="BitMEX: Perpetual P2P Swap Contracts Do Not Expire" border="0" height="125" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGnOtqCSn1NVPL5CZCUhCbj33mLDyAeo7ZFH19hxylxsYsQRYWNRyXgC9C7qN46ZmLuWv5ahJju112c6tJ24kdb66rcJ5JOkYQtIS6l6YawFhIsD_mJ4-vT77FYQezuL8vqeMpXXfXbOeY/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+introduction2.JPG" title="BitMEX: Perpetual P2P Swap Contracts Do Not Expire" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX: Perpetual P2P Swap Contracts Do Not Expire</a></td></tr>
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BitMEX offers 3 bitcoin markets, namely, Bitcoin/USD
(XBT). Bitcoin/CNY (XBC), Bitcoin/JPY (XBJ), a variety of other
alternative cryptocurrency markets, and even prediction markets.<br />
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Alternative cryptocurrency markets include Zcash (ZEC), Ethereum (ETH), Ethereum Classic (ETC), Monero (XMR), Ripple (XRP), Augur (REP), Litecoin (LTC), Factom (FCT), Dash (DASH), as well as other derivative prediction markets such as the likelihood of Bitcoin ETF Approval (COIN).<br />
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They also offer <a href="https://testnet.bitmex.com/" target="_blank">demo accounts </a>for you to test trading strategies without risking any funds. <br />
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<h3 style="text-align: left;">
How Does Margin Trading on BitMEX Work? </h3>
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<tr><td style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" imageanchor="1" style="margin-left: auto; margin-right: auto; text-align: center;" target="_blank"><img alt="BitMEX: Margin Trading Bitcoin up to 100x Leverage" border="0" height="153" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggtEryI1mUL9rSu-KMzCVXz7IQERE4bbUvv2IKun54SXz6V9Sy7Th8pne-oJznbjZmFIaVbBxhwtBwYI-4o9tEw8_Imt61lI2xqDraIpOBp8g1gAXorYX1NOOiYedojEf2dSM1qZApPAdE/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Trading+Dashboard.png" title="BitMEX: Margin Trading Bitcoin up to 100x Leverage" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX: Margin Trading Bitcoin up to 100x Leverage</a></td></tr>
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<a href="http://www.investopedia.com/university/margin/margin1.asp" target="_blank">Margin Trading</a> refers to borrowing from the broker (trading platform) to either buy or sell a stock. <br />
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Depending on which market, <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX </a>offers a flexible leverage of up to 100x for Bitcoin markets and up to 33x for Altcoin markets. But that doesn't mean that you should use the maximum available leverage, and in fact, you shouldn't unless you really know what you are doing!<br />
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My suggestion for the new traders here is to stick to a leverage of 5x or less, before moving to 10x or higher when you are more comfortable.<br />
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<h3 style="text-align: left;">
Getting Started - Sign Up & Fund Your BitMEX Account</h3>
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</h3>
The need for KYC/AML only arises when you need to deposit or withdraw FIAT currency from the exchange. Example, for <a href="http://alunacrypto.blogspot.com/2017/02/bitcoin-exchange-tutorial-bitfinex-beginners-guide-how-to-margin-trade-bitcoin-altcoins.html" target="_blank">Bitfinex</a>, you can trade any market using your BTC deposits and withdraw Bitcoin perfectly fine without filling up any forms. You only need to get your account approved when you want to deposit/withdraw USD or Euro etc..<br />
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For <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a>, like most Bitcoin and cryptocurrency exchanges, there is no need to go through KYC/AML
document submission and approval process, and you can start trading
immediately just by signing up and funding your account! <br />
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<h3 style="text-align: left;">
Keep Your Account SECURE!</h3>
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After you set up your account, the first thing you should do is to <u><b>k</b><b>eep your account secure</b></u>, and I can't emphasize this enough! Here are some things you should do to keep hackers at bay:<br />
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<li> MUST DO: 2FA on both exchange and email account. Once this is done, you should not be able to get compromised, except in rare cases such as sim-jacking. Highly suggest using Google Authenticator / Authy type of 2FA, instead of SMS 2FA which is susceptible to sim-jacking with some social engineering and one lazy telco service operator customer care assistant.</li>
<li>MUST DO: Use strong passwords; minimum 20 characters with a mix of upper- and lower-case letters, numbers, and characters.</li>
<li>Optional: Use a separate email address for Bitcoin and cryptocurrency only.</li>
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<h3 style="text-align: left;">
BitMEX Trading Dashboard Walk-through</h3>
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Now that we've got that out of the way, lets dive straight into navigating around the <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a> exchange trading dashboard. Below is the landing page you'll see upon logging into your <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a> account.</div>
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For your easy reference, I have split the interface up into three segments:</div>
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A) Market Information</div>
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B) Account Information</div>
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C) Trading Tools & Management</div>
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A) Market Information</h4>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Walkthrough: Market Information</td></tr>
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1. Market Overview</div>
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Right at the top, you can find the ticker symbols of all the available markets. Clicking on the symbols on the left will toggle between showing the market data of the relevant market, namely current trading price and 24h % gain/loss.</div>
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2. Market Selection</div>
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You can find a row of markets and their associated tickers in this section. Clicking on each of the markets will load the relevant market information as below.</div>
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3. Market Information</div>
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In this section, you can find the charts powered by <a href="http://tradingview.com/">tradingview.com</a>, the order book, and recent trade history. The market that is shown here is the market is chosen in the "Market Selection" section.</div>
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4. Market Contract Details</div>
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Here you will be able to see information about the contract or market that is chosen in the "Market Selection" section.</div>
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B) Account Information</h4>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Walkthrough: Account Information</td></tr>
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5. Dashboard Tabs</div>
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Trade, Account, Contracts, References, API</div>
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6. Balance</div>
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You can view your balance at the top right.</div>
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Alternatively, your available trading balance is also shown on the left side under the "Place Order" section. </div>
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7. Account Information & Settings</div>
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You may access your account information by clicking on your username at the top right, where you can change your currency denomination display, color theme, dashboard layout, and access other account/security and site preference settings.</div>
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Alternatively, you can also click on "Account" in the dashboard tabs section to access your account settings.</div>
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<h4 style="text-align: left;">
C) Trading Tools & Management</h4>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqKuEgr9h50cjgFgx7RXG6LZofa_NESRU29T6ysmfc38vFuVlouJvS7Q9O2ZhaO46eoW0cS7QhujXJTRKBynIVgDZgwo831ZJHOBQ5yLmODUD6aMvjbToZcolp7Bl33QysodSZQZyhUYtz/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Dashboard+2+Trading+Tools.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Walkthrough: Trading Tools & Management" border="0" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqKuEgr9h50cjgFgx7RXG6LZofa_NESRU29T6ysmfc38vFuVlouJvS7Q9O2ZhaO46eoW0cS7QhujXJTRKBynIVgDZgwo831ZJHOBQ5yLmODUD6aMvjbToZcolp7Bl33QysodSZQZyhUYtz/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Dashboard+2+Trading+Tools.jpg" title="BitMEX Trading Dashboard Walkthrough: Trading Tools & Management" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Walkthrough: Trading Tools & Management</td></tr>
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8. Place Order<br />
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This is where you place your orders by inputting the quantity, price, and other parameters where required.<br />
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9. Position Overview<br />
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Here you can see the overview of your open positions, including the number of contracts, entry price, Return on Equity (ROE), liquidation price, and leverage used. You are also able to adjust the leverage used in your open position.<br />
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10. Manage Orders & Positions<br />
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Active orders and open positions will appear in this section. <br />
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It also shows a history of your orders and fills.<br />
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<h3 style="text-align: left;">
BitMEX Trading Dashboard - Order Types</h3>
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Now that you are familiar with how to navigate <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a>'s platform, let's move on to the various order types, placing an order, and get to the actual trading proper! Click on the image below to view it in full size.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMf7HlQAVBbAvPKny1HUT2zluLNpC__bwvhyphenhyphenMu0jX3e73aQkNZJgZk2CgP9jM4MlvWJFNxmV2EPO4u3sek1IubmiX0lskLd0jFOnO71YxpTZuqYqIk7HsZo7XWR-dTiyaatGaG4KJWQFvt/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Order+Types.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Order Types: Overview" border="0" height="172" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMf7HlQAVBbAvPKny1HUT2zluLNpC__bwvhyphenhyphenMu0jX3e73aQkNZJgZk2CgP9jM4MlvWJFNxmV2EPO4u3sek1IubmiX0lskLd0jFOnO71YxpTZuqYqIk7HsZo7XWR-dTiyaatGaG4KJWQFvt/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Order+Types.png" title="BitMEX Trading Dashboard Order Types: Overview" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Overview</td></tr>
</tbody></table>
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Again, for easy reference, I have split the 7 available order types into 3 groups:<br />
A) Market & Limit Orders<br />
B) Stop Orders<br />
C) Take Profit Orders<br />
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Let's go into more detail for each order type below.<br />
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<br />
<h4>
A) Market & Limit Orders</h4>
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Market and Limit orders are the most common types of orders used by traders to enter into a trade/position. These orders are immediately entered into the order book once opened.</div>
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1. Market Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Market Order</td></tr>
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Straightforward. Buys/sells at the nearest available price.<br />
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After clicking Buy or Sell, there will be a confirmation page, where you can adjust your desired leverage for the trade.<br />
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2. Limit Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Limit Order</td></tr>
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Next most commonly used order would be the Limit Order, which basically allows you to place a buy/sell at your desired price.<br />
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Similarly, there is a confirmation page where you adjust your desired leverage for the trade.<br />
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<h4>
B) Stop Orders</h4>
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Stop orders, unlike market or limit orders, do not appear on the order book immediately upon opening. These orders are associated with a trigger price, or "stop price" in the case of <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a>, whereby your order is only entered into the order book after the stop price is hit. As I shared in my last post about <a href="http://alunacrypto.blogspot.com/2017/02/bitcoin-exchange-tutorial-bitfinex-beginners-guide-how-to-margin-trade-bitcoin-altcoins.html" target="_blank">Bitfinex</a>, stop orders are usually used as "stop losses" to get out of a bad trade, but are also extremely effective in buying into breakouts. <a href="http://alunacrypto.blogspot.com/2017/02/bitcoin-exchange-tutorial-bitfinex-beginners-guide-how-to-margin-trade-bitcoin-altcoins.html" target="_blank">To read more about how buy breakouts with stop orders and let your winners ride, check out </a><a href="http://alunacrypto.blogspot.com/2017/02/bitcoin-exchange-tutorial-bitfinex-beginners-guide-how-to-margin-trade-bitcoin-altcoins.html" target="_blank">this post about margin trading</a>.<br />
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3. Stop Market Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Stop Market Order</td></tr>
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A Stop Market Order is a market order that is triggered (opens) when your stop price is hit. </div>
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For example, if today's BTC price is $1150, and you place a stop market buy order at $1200, your position will not trigger if price trades anywhere below $1199. Once a trade occurs on the market at $1200, your stop market buy order will trigger and a market buy is made.</div>
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4. Stop Limit Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Stop Limit Order</td></tr>
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In the same way that a market order differs from a limit order, a Stop Limit Order works in the same way as a Stop Market Order, except with an additional "limit price" parameter that is triggered only when your stop price is hit.</div>
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Further to the example above, if you enter $1200 as the stop price, and $1175 as the limit price, and when a trade occurs on the market at $1200, a limit order at $1175 will be placed.</div>
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Alternatively, if you enter $1200 as the stop price, and $1210 as the limit price, this will act almost like a market buy when your trade is triggered (unless there are not enough sells for your purchase quantity up to the limit price - in which case you need to increase the limit price or simply use a stop market order).</div>
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5. Trailing Stop Order</div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqQBUwAVrGgQPOmKeci_8xfzbHsUik7Kz9spHtfbYCgk9Iq4ZejYz14eBTpY4h2knkICM3wqMlf6z7_sIkzCHsC8HpDn0Pcg3hm3Bs23TuXtV9S1JB_eZ6c9vGVUc1_CCccR7a7O6Ydgc9/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Order+Types+-+5+Trailing+Stop+Order.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Order Types: Trailing Stop Order" border="0" height="325" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqQBUwAVrGgQPOmKeci_8xfzbHsUik7Kz9spHtfbYCgk9Iq4ZejYz14eBTpY4h2knkICM3wqMlf6z7_sIkzCHsC8HpDn0Pcg3hm3Bs23TuXtV9S1JB_eZ6c9vGVUc1_CCccR7a7O6Ydgc9/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Order+Types+-+5+Trailing+Stop+Order.png" title="BitMEX Trading Dashboard Order Types: Trailing Stop Order" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Trailing Stop Order</td></tr>
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Instead of setting a stop price, a Trailing Stop Order makes use of a "Trail Value" parameter to determine when a market order gets triggered. This "Trail Value" is calculated against the market's price at which you entered the position.</div>
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For example, if BTC price is $1150 and I have an active buy position, and I open a Trailing Stop Order by entering a "Trail Value" of $5, my active buy position will close when price goes to $1145. Whereas if BTC price is $1200, opening the same trailing stop order will close my active buy position when price goes to $1195.<br />
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C) Take Profit Orders</h4>
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Take Profit Orders, as the name suggests, enables you to set a target price on an existing open position to close it and "take profit". This can be done in the form of a market order or limit order.</div>
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It simply works in the same way as placing a limit order in the opposite direction of your active position (i.e. placing a limit sell order if you have an active buy position). </div>
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Interestingly, just like using a stop to buy a breakout, this order type can also be used to set an entry point for a new position. But unlike a stop order, triggers are set in the opposite direction. To use it in this way, untick the "Close on Trigger" option as this is for closing orders only and will automatically cancel any orders if used to enter/open a position.</div>
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See below for a closer look at the Take Profit Market Order and Take Profit Limit Order.</div>
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6. Take Profit Market Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Take Profit Market Order</td></tr>
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7. Take Profit Limit Order</div>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Order Types: Take Profit Limit Order</td></tr>
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<h3 style="text-align: left;">
BitMEX Trading Dashboard - Manage Orders & Positions</h3>
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Upon placing your order or if you have any open positions, you can view and manage them in the middle bottom section of the trading dashboard. You can also view your order history, fills, and closed positions in this section.<br />
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Positions Overview</td></tr>
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<h4 style="text-align: left;">
1. Active Orders</h4>
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Once you place a limit order (and it doesn't immediately trigger), they will appear in this "Active Orders" tab. You can edit the quantity and price while the order is still open, although you can't change a buy into a sell.<br />
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Stop orders and take profit orders will appear in the "Stops" tab.<br />
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Active Orders</td></tr>
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<h4 style="text-align: left;">
2. Open Positions</h4>
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<span style="font-weight: normal;"> </span></h4>
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<span style="font-weight: normal;">Once your active order triggers, or when you place a market order, they will appear here in "Positions". You are able to add/remove margin to your position, which changes the liquidation price of your position, as well as to easily place a limit or market order to close your position instead of having to place the order through the "Place Order" section.</span></h4>
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<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Open Positions</td></tr>
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If you want to change your leverage used on a particular position, you can adjust it with the slider on the left side of your dashboard, just below the "Place Order" section.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkHIMN3f0BstSsazKorQd3LdHMCfrL7bKnwsr1eUqO1-e-4nXZJ3rXi33XSBxUHsfwgkeW05btQnBW83tHT5-IWLmEi3KVqN-YEIu7EvJsNm1-UaU603kGUTpgxKzshZ2u5i_P2NKBlKpx/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+%2526+Positions+-+3+Positions+Leverage.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Manage Orders & Positions: Your Position" border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkHIMN3f0BstSsazKorQd3LdHMCfrL7bKnwsr1eUqO1-e-4nXZJ3rXi33XSBxUHsfwgkeW05btQnBW83tHT5-IWLmEi3KVqN-YEIu7EvJsNm1-UaU603kGUTpgxKzshZ2u5i_P2NKBlKpx/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+%2526+Positions+-+3+Positions+Leverage.png" title="BitMEX Trading Dashboard Manage Orders & Positions: Your Position" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Your Position</td></tr>
</tbody></table>
<br />
<h4 style="text-align: left;">
3. Stop Loss & Take Profit</h4>
<br />
Active stop orders and take profit orders will appear here in the "Stops" tab. You can also edit some parameters, including the quantity, stop price, and limit price, as well as cancel the order.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8ru_QvYjf5ti6lpKVboeIxhevwWKDJGFT7X59cNilp1BtnpiDK8A31rQAO7qOXtDTc08vSj_L2Oa-wG2o-IgjEIpBTxKWvMG_G2JJFsfQ7zAsqgo1oRadf2FV7StxF0MhfNPbeb_z6TYg/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+Positions+-+Chart+with+Stops+and+Take+Profit+Orders.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Manage Orders & Positions: Stop Loss & Take Profit" border="0" height="205" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8ru_QvYjf5ti6lpKVboeIxhevwWKDJGFT7X59cNilp1BtnpiDK8A31rQAO7qOXtDTc08vSj_L2Oa-wG2o-IgjEIpBTxKWvMG_G2JJFsfQ7zAsqgo1oRadf2FV7StxF0MhfNPbeb_z6TYg/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+Positions+-+Chart+with+Stops+and+Take+Profit+Orders.jpg" title="BitMEX Trading Dashboard Manage Orders & Positions: Stop Loss & Take Profit" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Stop Loss & Take Profit</td></tr>
</tbody></table>
<br />
<h4 style="text-align: left;">
4. Order History</h4>
<br />
Lastly, you will be able to view all your order history, executed or not, in this "Order History" tab. You can then find all your filled order history in the "Fills" tab, and "Closed Positions" in the corresponding tab.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3w8lw9ciltx_fbJ6ZR24FDnmAXZ3iDqP3FRItyJ-xIBEriaR0nhMPgXnFKmd6xtLcooRgHZv38DTwJKOAWTtClhKuAUcKvcnzePaht73X1zB38MWiHN-BRK8RLwvlVHdS_LmqEwvuqYtv/s1600/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+%2526+Positions+-+5+Order+History.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="BitMEX Trading Dashboard Manage Orders & Positions: Order History" border="0" height="61" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3w8lw9ciltx_fbJ6ZR24FDnmAXZ3iDqP3FRItyJ-xIBEriaR0nhMPgXnFKmd6xtLcooRgHZv38DTwJKOAWTtClhKuAUcKvcnzePaht73X1zB38MWiHN-BRK8RLwvlVHdS_LmqEwvuqYtv/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+Manage+Order+%2526+Positions+-+5+Order+History.png" title="BitMEX Trading Dashboard Manage Orders & Positions: Order History" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">BitMEX Trading Dashboard Manage Orders & Positions: Order History</td></tr>
</tbody></table>
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<h3 style="text-align: left;">
BitMEX Funding, Trading & Withdrawal Fees </h3>
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Find below a snapshot of the funding, deposit, withdrawal, order execution, and swap fees. See it here: <a href="https://www.bitmex.com/app/fees" target="_blank">https://www.bitmex.com/app/fees</a>.</div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://www.bitmex.com/app/fees" imageanchor="1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="BitMEX Funding Trading & Withdrawal Fees" border="0" height="188" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFxAfVvC7aoy0QvpVYM6SJjbAJXhJD0oFzbXbbZ4LdEoBBoIQ48lns_F7RL6zR2tTCY6KV1gJNXewXPCqWwGYskWOgj25RsPiMNDl4xbhDPXSyZeacJLQWCJzkSOSf0WmU4YlljrOF1BsB/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+fees2.JPG" title="BitMEX Funding Trading & Withdrawal Fees" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitmex.com/app/fees" target="_blank">BitMEX Funding Trading & Withdrawal Fees</a></td></tr>
</tbody></table>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://www.bitmex.com/app/fees" imageanchor="1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="BitMEX Funding Trading & Withdrawal Fees" border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRjEIM1RgIljMLd0N4yUhpyUghyKzTnyh5ubn3cCrKxvS5cLXZlYfDamhPtQtEZwxubByj5diL15VxhRQ9FbKs-RNctwn0OIacqpQu6x-NPfLVKMDvpJ2OdMkV5uGMIxn7cwqfWg_h3ZNZ/s400/Bitmex+Margin+Trading+Exchange+Bitcoin+Derivatives+Alunacrypto+-+fees1.JPG" title="BitMEX Funding Trading & Withdrawal Fees" width="388" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitmex.com/app/fees" target="_blank">BitMEX Funding Trading & Withdrawal Fees</a></td></tr>
</tbody></table>
<br />
<h3 style="text-align: left;">
BitMEX Security</h3>
<br />
Read about the security measures in place on BitMEX from wallet and trading engine security, to system and communication security: <a href="https://www.bitmex.com/app/security" target="_blank">https://www.bitmex.com/app/security</a>.<br />
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<br />
<h3 style="text-align: left;">
BitMEX API</h3>
<br />
The platform offers a fully featured REST API and a powerful streaming WebSocket API, making available all market and user data and updates in real-time: <a href="https://www.bitmex.com/app/apiOverview" target="_blank">https://www.bitmex.com/app/apiOverview</a>. <br />
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<br />
<h3 style="text-align: left;">
BitMEX Information Library</h3>
<br />
Bitmex has their own library of guides and tips
on trading on their platform, which cover an extensive range of topics.
So I tried to make this post more visual, and cover only what BitMEX themselves did not.<br />
<br />
Take a look at these links to learn more about the BitMEX platform:<br />
<ul style="text-align: left;">
<li>Trading Overview: <a href="https://www.bitmex.com/app/tradingOverview">https://www.bitmex.com/app/tradingOverview</a></li>
<li>Futures Guide: <a href="https://www.bitmex.com/app/futuresGuide">https://www.bitmex.com/app/futuresGuide</a></li>
<li>Swaps Guide: <a href="https://www.bitmex.com/app/swapsGuide">https://www.bitmex.com/app/swapsGuide</a></li>
<li>FAQ: <a href="https://www.bitmex.com/app/faq">https://www.bitmex.com/app/faq</a> </li>
</ul>
<br />
<ul style="text-align: left;">
</ul>
<br />
<br />
They also have in-depth information about how their platform differs from competitors, for various parameters including liquidation events, contract loss mechanisms, max leverage, initial margin, maintenance margin, settlement mechanisms, minimum contract sizes, and many more!<br />
<br />
See the comparison here: <a href="https://www.bitmex.com/app/whatsDifferent">https://www.bitmex.com/app/whatsDifferent</a><br />
<br />
<h3 style="text-align: left;">
Conclusion</h3>
</div>
<div>
I hope that this post gives you a good overview of how to use BitMEX trading exchange platform to view markets, open orders, enter into positions, as well as teach you how to use each of the different order types. </div>
<div>
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.1brokerbtc.co/" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="1Broker: Trade Global Markets with Bitcoin - Forex, Stocks, Indexes, Commodities" border="0" height="48" src="https://1broker.com/img/banner1-728x90.png" title="1Broker: Trade Global Markets with Bitcoin - Forex, Stocks, Indexes, Commodities" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://1broker.com/?r=2710" target="_blank">1Broker: Trade Global Markets with Bitcoin - Forex, Stocks, Indexes, Commodities</a></td></tr>
</tbody></table>
<div>
</div>
<div>
</div>
<div>
</div>
<div>
</div>
<div>
In my next post, I will prepare a similar tutorial for using <a href="https://1broker.com/?r=2710" target="_blank">1Broker</a>, which offers something different from <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex </a>or <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a>, by having global markets such as Forex, Stocks, Indexes and Commodities available to traders. In addition, I also hope to share some tips on crafting your perfect trading strategy, and the importance of risk management and position sizing management. Stay tuned!</div>
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<div>
If you have any suggestions or comments, please feel free to leave them below.</div>
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<div>
Thank you for reading, and good luck trading!</div>
</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com4tag:blogger.com,1999:blog-8430592741332299921.post-11875321001645886742017-02-26T21:55:00.004+08:002018-08-22T17:01:10.677+08:00BTC Exchange Tutorial [Updated]: Bitfinex Trading Platform - Beginners Guide on How to Margin Trade Bitcoin & Altcoins<div dir="ltr" style="text-align: left;" trbidi="on">
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
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<div>
</div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank"><img alt="Bitfinex - Advanced Bitcoin Trading Platform" border="0" height="315" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgE7_o8ChrV39ysYk7AvHkcpEljrJHjMBNJsqvH_ogQ2LkHnBNr-dnbpHCKFNIV6DehdZu23hVMbjX05Zsacg1aVAzNjCkD4i83pJxylQ9vDyWY-6cEs4W42TSUCeUAC1s_NNsqe4rSrhiX/s400/bitfinex+intro1.JPG" title="Bitfinex - Advanced Bitcoin Trading Platform" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex - Advanced Bitcoin Trading Platform - Margin Trading</a></td></tr>
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<h3 style="text-align: left;">
Introduction to Bitfinex</h3>
<div>
<br /></div>
<div>
<a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex </a>is an exchange platform that offers margin trading of Bitcoin and other alternative Cryptocurrency markets (altcoins). It is one of the world's leading Bitcoin USD exchanges by volume.</div>
<br />
The platform allows trading participants to use third-party peer-to-peer financing from other participants on the platform to trade Digital Tokens. This enables users to buy or sell in a digital token market, without owning the token itself.<br />
<br />
Bitfinex also provides a <a href="https://support.bitfinex.com/hc/en-us/articles/214441185-What-is-Margin-Funding-" target="_blank">lending (funding) market</a> with daily interest payouts, suitable for individuals who do not trade and have lower risk appetite or prefer safer investments.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYJ1gsuXs-oAJIWnULnluiE5Pj_DQ4kGASwAqF_JgG0nEF6tuGjoSp_6lxO29rQyDyAbAQPvfVAjzsIZipA0JhR0p21y-QlS-fQ_E8prsatB5nRireqKE2X_VCyo4lxpMLbfwGmAbb3TYm/s1600/bitfinex+intro2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="352" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYJ1gsuXs-oAJIWnULnluiE5Pj_DQ4kGASwAqF_JgG0nEF6tuGjoSp_6lxO29rQyDyAbAQPvfVAjzsIZipA0JhR0p21y-QlS-fQ_E8prsatB5nRireqKE2X_VCyo4lxpMLbfwGmAbb3TYm/s400/bitfinex+intro2.JPG" width="400" /></a></div>
<br />
<br />
The platform's UI has changed significantly since 3 years ago and it's about time I updated <a href="http://alunacrypto.blogspot.sg/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html" target="_blank">my old Bitfinex guide</a>. So let's get right to it.<br />
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<h3 style="text-align: left;">
How does Margin Trading on Bitfinex work?</h3>
<div>
<br /></div>
<div>
<a href="http://www.investopedia.com/university/margin/margin1.asp" target="_blank">Margin Trading</a> refers to borrowing from the broker (trading platform) to either buy or sell a stock. This is made possible on <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex </a>by their Peer-to-peer Financing mechanism, as explained here: <a href="https://www.bitfinex.com/howitworks">https://www.bitfinex.com/howitworks</a>.</div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/howitworks" target="_blank"><img alt="Bitfinex: Peer-to-Peer Financing" border="0" height="92" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxHv_n37MzUoFhZhR5GwgZGb351aYJMJLL6sP_qaISxhiq3_qEfdWQZDKZ9ppesQCAg2mbiSSY0am2hZi26ojtvFIU2Vab2HpAYMkXvE6V6NISOILm7R6L3slkXmfKMzIx8qdjwTIUBwZ0/s400/bitfinex+p2p+financing.JPG" title="Bitfinex: Peer-to-Peer Financing" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/howitworks" target="_blank">Bitfinex - Peer-to-Peer Financing</a></td></tr>
</tbody></table>
<br />
<br />
<a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex </a>offers 3.3x leverage, meaning that for every $1.00 you have in your account, you can margin trade up to a sum of $3.30 across all available markets. The leverage offered here is fairly conservative, with other platforms offering 10x, 25x, or even 100x and up to 500x in some cases.<br />
<br />
By borrowing funds, you'll be subjected to interest charges which are automatically factored in when you close your position.<br />
<br />
If you're new to margin trading in general, it is imperative that you understand some key mechanics of margin trading platforms, and to keep a lookout for these when choosing your trading platform:<br />
1. <a href="http://www.investopedia.com/terms/m/margincall.asp" target="_blank">Margin Call</a><br />
2. Margin Rules - <a href="http://www.investopedia.com/terms/m/maintenancemargin.asp" target="_blank">Maintenance Margin (e.g. 15%)</a> etc.<br />
3. <a href="http://www.investopedia.com/terms/l/leverage.asp" target="_blank">Leverage</a><br />
4. Commissions & Spreads - Order Execution Fees & Deposit/Withdrawal Fees (More at the end of the post)<br />
<br />
If you are not careful (over-leveraged, position sizing too large, no stop loss, etc.) and a trade moves against your favour for too much and beyond your liquidation price, your whole account can get wiped out, or 'margin called'. Again I want to emphasize, if all this is new to you, make sure you understand the implications before getting started on margin trading.<br />
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<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank"><img alt="Bitfinex - Trading Platform Dashboard" border="0" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiW7Ov5CAuzsAwonVuNwMgPcr_7XizDUZzeP4QVx6JNc2m8R5FrAkkybpphEAxQj4gxSD4StP_gyPBB2nAl2Ol0Wt4uzeO0XinW_6qDHQtwRHgLpP_0FpbJ3rImAihHJ53_JsZ6WFiSXbD-/s400/Screen+Shot+2017-02-25+at+5.39.24+PM.png" title="Bitfinex - Trading Platform Dashboard" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex - Trading Platform Dashboard</a></td></tr>
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<h3 style="text-align: left;">
Getting Started - Sign Up For Your Bitfinex Account</h3>
<div>
<br /></div>
You'll only be able to see the above screen or landing page after logging into your account. <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">So sign up for one</a>, and fund your account to get started!<br />
<br />
Bitcoin deposits do not require any personal information or KYC and AML. Only fiat currency deposits and withdrawals do.<br />
<br />
With Bitcoin, fees and minimum withdrawals, deposits, and trades are negligible and opens up immense opportunity to trade without traditional restrictions.<br />
<br />
By using my referral code, you get to enjoy 10% off trading fees for 30 days! So here you go, EVERYONE is a winner, here is your link: <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj">https://www.bitfinex.com/?refcode=aQBHcxVPzj</a>.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCP8vScbZTRzwGprGbt1g9E7UNyfQ6c_e__vAqhXBfNMmfn4GCRUCYL406i5MqGdTZrCRfzd6ool7ahyl9uKy2mSYgBEviYJFdW8WEp90ZRddJ1TtjEVeTACIbtpLpWgw1asY1jMC0IV_v/s1600/bitfinex+1.1.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitfinex - Trading Platform Dashboard Explained - Market & Account Information" border="0" height="162" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCP8vScbZTRzwGprGbt1g9E7UNyfQ6c_e__vAqhXBfNMmfn4GCRUCYL406i5MqGdTZrCRfzd6ool7ahyl9uKy2mSYgBEviYJFdW8WEp90ZRddJ1TtjEVeTACIbtpLpWgw1asY1jMC0IV_v/s400/bitfinex+1.1.png" title="Bitfinex - Trading Platform Dashboard Explained - Market & Account Information" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Market & Account Information</td></tr>
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<br />
<h3 style="text-align: left;">
Bitfinex Trading Dashboard Walk-through</h3>
<div>
<br /></div>
Once logged in, you'll arrive at a neat trading dashboard that is user-friendly with easy-to-use tools to track the market, place positions, and manage those positions. You can click on the "Interface Settings" icon on the bottom left to change between Light and Dark theme.<br />
<br />
To start off, let me walk you through the different sections of the trading dashboard, before going into trading proper.<br />
<br />
<h4 style="text-align: left;">
1. Market Information</h4>
<div>
<br /></div>
Apart from Bitcoin, Bitfinex offers a variety of alternative cryptocurrency token markets for trading.<br />
<br />
Altcoin markets available for trading on Bitfinex today include Ethereum (ETH), Ethereum Classic (ETC), Zcash (ZEC), Litecoin (LTC), Monero (XMR), Bitfinex Token (BFX), and Recovery Right Token (RRT).<br />
<br />
Click on the three dots on the top left to access these alternative digital token markets.<br />
<br />
<h4 style="text-align: left;">
2. Trading Balance & Summary</h4>
<div>
<br /></div>
Once you fund your account, you'll be able to view your balance here.<br />
<br />
Bitfinex offers three types of trading, namely Exchange, Margin, and Funding. They each have separate wallets so you will need to transfer your funds to the relevant wallet by clicking on the "Transfer" button at the top right.<br />
<br />
As you can see in the picture above, my margin buying or selling balance is 3.3x of the actual amount I have in my account (across all wallets).<br />
<br />
<h4 style="text-align: left;">
3. Chart</h4>
<div>
<br /></div>
Self-explanatory. Bitfinex's Charts are powered by the very robust TradingView engine, and offers a complete suite of tools and indicators you can tailor to your own trading needs.<br />
<br />
<h4 style="text-align: left;">
4. Orderbook</h4>
<div>
<br /></div>
Self-explanatory. Shows the live order book and trades that occur on the platform in real time. You can also view details of your recent trades by clicking on the "Mine" button at the top left of the "TRADES" box.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvdnC17qVvMXMIzYSViVaV4VlyVD6sbFl2YgRWjAim3QjcRc7SGTdCJ6lJ5rAJGM5c55DZmugHR3h-e4s8HGizaiz8ojlesg8C-KzHLK3OFN_qsg0gXh4W8LiAnz7ZMm0CgyNQCYesx5-2/s1600/bitfinex+1.2.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitfinex - Trading Platform Dashboard Explained - Open Orders & Position Management" border="0" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvdnC17qVvMXMIzYSViVaV4VlyVD6sbFl2YgRWjAim3QjcRc7SGTdCJ6lJ5rAJGM5c55DZmugHR3h-e4s8HGizaiz8ojlesg8C-KzHLK3OFN_qsg0gXh4W8LiAnz7ZMm0CgyNQCYesx5-2/s400/bitfinex+1.2.png" title="Bitfinex - Trading Platform Dashboard Explained - Open Orders & Position Management" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Open Orders & Position Management</td></tr>
</tbody></table>
<br />
Now that you have a good idea of how to navigate the trading dashboard, let's jump straight into the actual trading!<br />
<br />
<h3 style="text-align: left;">
Bitfinex Trading - Opening & Managing Orders </h3>
<div>
<br /></div>
<h4 style="text-align: left;">
5. Open Order</h4>
<div>
<br /></div>
In the Order Form section, you can create new trades (open a new order) here.<br />
<br />
Exchange trading refers to spot trading, where an actual transaction of BTC and USD take place and the asset in question changes hands. You can buy BTC with your USD, or you can sell your BTC into USD.<br />
<br />
Margin trading is where you don't have to actually own BTC to sell BTC, or own USD to buy BTC. With margin trading, you can go 'long' or 'short' on any market by using your leveraged funds.<br />
<br />
<br />
<u>Order Types</u><br />
<br />
Whether you're trading on Bitfinex's spot exchange or margin platform, the types of orders you can open remain the same. There are 7 types of orders available, namely:<br />
<ol style="text-align: left;">
<li><a href="http://www.investopedia.com/terms/l/limitorder.asp" target="_blank">Limit Order</a></li>
<li><a href="http://www.investopedia.com/terms/m/marketorder.asp" target="_blank">Market Order</a></li>
<li><a href="http://www.investopedia.com/terms/s/stoporder.asp" target="_blank">Stop Order</a></li>
<li><a href="http://www.investopedia.com/terms/s/stop-limitorder.asp" target="_blank">Stop Limit Order</a></li>
<li><a href="http://www.investopedia.com/terms/t/trailingstop.asp" target="_blank">Trailing Stop Order</a></li>
<li><a href="http://www.investopedia.com/terms/f/fok.asp" target="_blank">Fill or Kill Order</a></li>
<li>Advanced Orders</li>
</ol>
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicFK54jqAGKkoDQrmrvzei-bCcbHknuCclENrGznMNfzNEthHNsXTn2SbfGXLBXi5AurmfVIMvAFaBw3_fFN3oCJTvwcp0peU3hZ-t5SNSdvJkBjIjD4hE2Iw8ThZukIov62k1Zp_URDKj/s1600/bitfinex+1.341.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitfinex - Open Order Types" border="0" height="269" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicFK54jqAGKkoDQrmrvzei-bCcbHknuCclENrGznMNfzNEthHNsXTn2SbfGXLBXi5AurmfVIMvAFaBw3_fFN3oCJTvwcp0peU3hZ-t5SNSdvJkBjIjD4hE2Iw8ThZukIov62k1Zp_URDKj/s400/bitfinex+1.341.png" title="Bitfinex - Open Order Types" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Open Orders Types</td></tr>
</tbody></table>
<br />
The most familiar ones would probably be a Market order, Limit order, and a Stop (loss) order:<br />
<br />
<ul style="text-align: left;">
<li>A market order executes a buy or sell at the nearest available price.</li>
<li>A limit order is simply a buy or sell order at a price of your desire, and is usually placed under the market price for a buy and above the market price for a sell.</li>
<li>A stop order is placed when you have an active position, in order to close your position when it goes in the opposite direction of where you intended it to, so as to minimize your losses.</li>
</ul>
<br />
<a href="https://support.bitfinex.com/hc/en-us/articles/213892769-What-types-of-orders-does-Bitfinex-offer-" target="_blank">Read in detail about how these various order types work on Bitfinex in their FAQ</a>.<br />
<br />
<b><u>* Take note that Market Orders have no confirmation or warning messages. Once you enter the amount and click on buy/sell, the order is immediately executed. Beware the fat finger.</u></b><br />
<br />
The other 3 order types are rarely used, but are useful for some specific circumstances. For example, Stop Limit orders are especially useful for capitalizing on breakouts, and I will explain how we can do that later.<br />
<br />
If you're interested to learn more about the various order types, how Stop orders compare to Stop Limit orders, or how and when to use Trailing Stop orders, here are a few links that may be useful for you:<br />
<ul style="text-align: left;">
<li><a href="https://www.fool.com/investing/2014/11/21/market-or-limit-order.aspx" target="_blank">Market or Limit Order?</a></li>
<li><a href="http://www.investopedia.com/ask/answers/04/022704.asp" target="_blank">Stop & Stop Limit, what's the difference?</a></li>
<li><a href="http://www.investopedia.com/articles/active-trading/091813/which-order-use-stoploss-or-stoplimit-orders.asp" target="_blank">Which Order To Use? Stop-Loss Or Stop-Limit Orders</a></li>
<li><a href="http://www.investopedia.com/video/play/stop-limit-orders/" target="_blank">Video: Stop limit orders</a></li>
<li><a href="http://www.moneycrashers.com/trailing-stop-loss-order-example/" target="_blank">How to Place a Trailing Stop-Loss Order – Example, Pros & Cons</a></li>
<li><a href="http://www.investopedia.com/video/play/how-use-trailing-stops/" target="_blank">How to Use Trailing Stops</a></li>
<li><a href="http://www.investopedia.com/ask/answers/050115/when-should-i-use-trailing-stop-order.asp" target="_blank">When should I use a trailing stop order?</a></li>
</ul>
<br />
<br />
<u>Order Options</u><br />
<br />
These additional options give you more control over your orders, by allowing you to toggle specific pre-set parameters. They are limited to the following:<br />
<br />
1. <a href="http://www.investopedia.com/terms/o/oco.asp" target="_blank">One-Cancels-the-Other (OCO)</a> - Allows to place both a take profit and stop loss target with cancels the other out once one is filled.<br />
2. <a href="http://www.investopedia.com/terms/i/icebergorder.asp" target="_blank">Hidden order aka Iceberg order</a> - Hidden in order book, and always pay the taker fee.<br />
3. <a href="https://support.bitfinex.com/hc/en-us/articles/213892769-What-types-of-orders-does-Bitfinex-offer-" target="_blank">Post Only</a> - Ensures that your limit order does not match with an existing order, and always pay the maker fee.<br />
4. Funding Options - Change some variables for how you borrow funds when you open margin positions, namely yes/no to including variable rate, and adjusting maximum margin rate (%/day).<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZG18WpmpL1wj3b6nbZuVdGMmRzNO1_EZ7YSX1iY3gM-Co0mdA_TYaa5sxTzy-O2_m-dvxBejEzPVGmSACwM5yXG1epGSDWHAU396DRfycj4J0varYgvMAYssoaNm_wAa7PldWgtZTThfA/s1600/bitfinex+1.33.png" imageanchor="1" style="margin-left: auto; margin-right: auto; text-align: center;"><img alt="Bitfinex - Open Order Options" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZG18WpmpL1wj3b6nbZuVdGMmRzNO1_EZ7YSX1iY3gM-Co0mdA_TYaa5sxTzy-O2_m-dvxBejEzPVGmSACwM5yXG1epGSDWHAU396DRfycj4J0varYgvMAYssoaNm_wAa7PldWgtZTThfA/s400/bitfinex+1.33.png" title="Bitfinex - Open Order Options" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: 12.8px;">Bitfinex - Trading Platform Dashboard Explained - </span>Open Order Options</td></tr>
</tbody></table>
<br />
<u>Advanced Order - Scaled Orders</u><br />
<br />
Scaled Orders enable a user to spread 1 order over several different positions in the order book. This is used so that the trader does not stick out like a sore thumb in the order book, especially for large amounts.<br />
<br />
For example, if a high net worth individual wanted to buy $1,000,000 worth of BTC at $1000 each, he may have to manually place 100 orders so each order is only worth a much less significant amount, in order to mask his true position from other traders. In fact, it is good practice to do this no matter how large an amount you are trading.<br />
<br />
Scaled orders allow a user to easily place such an order, by submitting the order only once and in a rather simple manner. As Poloniex puts it: <i>The "scaled order" tool is an algorithm for creating multiple limit orders over a given price range. This allows traders to spend less time entering orders and more time focusing on their strategy.</i><br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid0uDVAnoy4PgHvfX2UJGI-bDAWiF4v06rTnsUGtkrYIuEqo00-LZ4WmTaEtwY8zXWGSv1XfNFAWBf_c0SIPJd2ShyphenhyphenFVV3Q3ZPm2CgCTp57fJLGtLwXmnmYmjGHMckVc_cg0mMZBrhG5J1/s1600/bitfinex+1.342.png" imageanchor="1" style="margin-left: auto; margin-right: auto; text-align: center;"><img alt="Bitfinex - Open Special Order - Scaled Orders" border="0" height="170" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid0uDVAnoy4PgHvfX2UJGI-bDAWiF4v06rTnsUGtkrYIuEqo00-LZ4WmTaEtwY8zXWGSv1XfNFAWBf_c0SIPJd2ShyphenhyphenFVV3Q3ZPm2CgCTp57fJLGtLwXmnmYmjGHMckVc_cg0mMZBrhG5J1/s400/bitfinex+1.342.png" title="Bitfinex - Open Special Order - Scaled Orders" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: 12.8px;">Bitfinex - Trading Platform Dashboard Explained - Open Orders Special - </span>Scaled Orders</td></tr>
</tbody></table>
<br />
<h4 style="text-align: left;">
6. Managing Positions & Orders</h4>
<div>
<br /></div>
Lastly, after placing an order, you will be able to view and manage them from here. This is made up of three sections, namely open orders, open positions, as well as your order history.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIT5CLDysYdUR2YBf9Ed55w3r9SJwcaXLx2M9OSxIMKsQrt8vPY3QGs37ywhp9v4CX7tHovxjOXk-B4CQ0oKZC681dB59dQAeLicnesGG8WrH2utpvvXoA201ZHDBJ9ssZsDTmbSHmFM0_/s1600/bitfinex+1.352.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitfinex - Trading Platform Dashboard Explained - Position & Order Management" border="0" height="202" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIT5CLDysYdUR2YBf9Ed55w3r9SJwcaXLx2M9OSxIMKsQrt8vPY3QGs37ywhp9v4CX7tHovxjOXk-B4CQ0oKZC681dB59dQAeLicnesGG8WrH2utpvvXoA201ZHDBJ9ssZsDTmbSHmFM0_/s400/bitfinex+1.352.png" title="Bitfinex - Trading Platform Dashboard Explained - Position & Order Management" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Position & Order Management</td></tr>
</tbody></table>
<br />
<div class="separator" style="clear: both; text-align: left;">
<u>Position Management Options</u></div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<div class="separator" style="clear: both; text-align: left;">
When you open a new order and it is immediately triggered (i.e. market order, or limit order buy for above market price), they will appear in the 'POSITIONS' section. When you have an open position, you can view the pair, amount, base price, liquidation price, current Profit/Loss, funding cost, funding type, and actions you can take include toggling the funding type (daily or term only), closing the position at market, and claiming the position.</div>
<div class="separator" style="clear: both; text-align: left;">
<u><br /></u></div>
<div class="separator" style="clear: both; text-align: left;">
Here's a closer look at the 'POSITIONS' section.</div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9DBLQ0ahAdnIPX3XdDu7b3JplzU05JlEeShJBkZEyu6b4DBPlVy8uNaobX8hZ44OjHM1DjFoaP9Mz6RSNPRJLFzhUHi_HJ1oRiA-u7tRMeicooApHsgpLay7eWJF9oWILMM3_dIbjn7l6/s1600/bitfinex+1.351.png" imageanchor="1" style="margin-left: auto; margin-right: auto; text-align: center;"><img alt="Bitfinex - Trading Platform Dashboard Explained - Position Management" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9DBLQ0ahAdnIPX3XdDu7b3JplzU05JlEeShJBkZEyu6b4DBPlVy8uNaobX8hZ44OjHM1DjFoaP9Mz6RSNPRJLFzhUHi_HJ1oRiA-u7tRMeicooApHsgpLay7eWJF9oWILMM3_dIbjn7l6/s400/bitfinex+1.351.png" title="Bitfinex - Trading Platform Dashboard Explained - Position Management" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Position Management</td></tr>
</tbody></table>
<u><br /></u>
<br />
<div>
<u>Order Management Options</u></div>
<div>
<br /></div>
<div>
When you open a new order but it has not yet been triggered, they will appear in the 'ORDERS' section. When you have an open order, you can view the pair, context (exchange or margin), order type, amount, price, status, date & time placed, and actions you can take include editing the amount or price or context or hidden option, cancelling the order, and opting to receive email notifications when an order fully executes.<u><br /></u><br />
<div>
Here's a closer look at there 'ORDERS' section, and how it ties in with the 'ORDER FORM' section.</div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhohGnKcpXNAzQfHu3LQAKR6bSfuGnyPInXul61hJOkl2UrjJVOn-dDPJud4TbgDT06WlInPxU_Wikum4j32w2tzJlccVTYVI6v4v_roVCEDRB7OxKNVIuFMLlzjsvcTM4ZKFjB2YOdxEBk/s1600/bitfinex+1.352.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitfinex - Trading Platform Dashboard Explained - Order Management" border="0" height="253" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhohGnKcpXNAzQfHu3LQAKR6bSfuGnyPInXul61hJOkl2UrjJVOn-dDPJud4TbgDT06WlInPxU_Wikum4j32w2tzJlccVTYVI6v4v_roVCEDRB7OxKNVIuFMLlzjsvcTM4ZKFjB2YOdxEBk/s400/bitfinex+1.352.png" title="Bitfinex - Trading Platform Dashboard Explained - Order Management" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitfinex - Trading Platform Dashboard Explained - Order Management</td></tr>
</tbody></table>
<br />
<h3 style="text-align: left;">
Optimizing Your Order-Entry Strategy - How & When To Use Each Trade Type</h3>
<div>
<br /></div>
<h4 style="text-align: left;">
How to Use Limit Orders</h4>
Limit orders are effective for opening a position, but they’re problematic for exiting a position. For example, if you need to exit your position because the breakout has failed, you simply need to exit the position without trying to finesse the price. Failed trades recover infrequently, and they often get worse. You have no reason to be patient when things are going against you.<br />
<br />
Read more about how to use limit, stop, and stop limit orders here: <a href="http://www.dummies.com/personal-finance/investing/stocks-trading/how-to-devise-an-effective-order-entry-strategy-in-trading/" target="_blank">How to Devise an Effective Order-Entry Strategy in Trading</a>.<br />
<br />
<h4 style="text-align: left;">
Using a Stop Order</h4>
When placing a stop order, your limit price may be higher or lower than your trigger price. This effectively allows you to do two things; have a limit order be placed when your trigger price hits, or market buy (by placing limit order above trigger price) when your trigger price hits.<br />
<br />
Find out more about how to effectively utilize stop and stop limit orders, and order types such as Fill or Kill, OCO, and others in this article: <a href="http://www.trade-futures.com/tradersguide.php" target="_blank">A Trader's Guide To Orders and Their Effective Use</a><br />
<div>
<br /></div>
<h4 style="text-align: left;">
Using Stop Orders to Open a Position</h4>
The first thing that comes to mind about stop orders is that it is used to 'stop out' of a losing trade when price goes against you beyond a set threshold.<br />
<br />
Yes, Stop & Stop limit orders are especially good for exiting positions when they go against you. However, some of you may not know that stop orders can also be highly effective for opening a position, particularly to enter markets on breakouts. If you identify the stock that you want prior to an actual breakout, you can enter a buy stop at a price above the breakout point.<br />
<br />
Although it is generally recommended that you wait a few days to confirm the breakout, using this strategy at times may be more appropriate than others.<br />
<br />
However, you need to be much more tentative when the market is only in a bullish transition or pullback phase, or when you’re monitoring second and subsequent breakouts. When that’s the case, make sure the breakout is confirmed — that means the stock remains above its breakout price for a bullish breakout — within a few days before entering your order. If you have any doubt, wait for confirmation.<br />
<br />
<h4 style="text-align: left;">
"Cut Your Losses and Let Your Winners Ride"</h4>
Have you ever heard of this phrase? This popular trading quote is best embodied by the use of a (trailing) stop loss for profit taking.<br />
<br />
When your position is in profit, employing a trailing stop loss will allow you to ride your winner, while protecting your profits by closing your position if the market moves x pips in the opposite direction. Read more about how to use stop and trailing stop orders effectively here: <a href="http://www.investopedia.com/articles/trading/08/trailing-stop-loss.asp" target="_blank">Trailing-Stop/Stop-Loss Combo Leads to Winning Trades</a>.<br />
<br />
However, when it comes to stop losses, it is important to note that there is no guarantee you will receive the price of your stop loss order. If the stock price drops quickly, your order may not get filled at your predetermined stop price. Thus, you may be forced to sell at a lower price than you expected. This is particularly true with illiquid stocks or in fast-moving markets.<br />
<br />
<h3 style="text-align: left;">
Bitfinex Deposit/Withdrawal, Funding, and Order Execution Fees</h3>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/fees" target="_blank"><img alt="Bitfinex - Deposit & Withdrawal Fees" border="0" height="384" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNf9nEYMIFSOQS_XuGwDVmpHXDlqRjm__MMjm4lXxMU305J3rnWn8mNLa86Hoxeshd-ba7amIUrJ9xx5Ei4PZERTZemSQGEyddHIbjO5PKTHM8kfUNiWcvFJgG8KvxJlv7hCQlx-I9iy5l/s400/bitfinex+fees2+deposit+withdraw.JPG" title="Bitfinex - Deposit & Withdrawal Fees" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/fees" target="_blank">Bitfinex - Deposit & Withdrawal Fees</a></td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/fees" target="_blank"><img alt="Bitfinex - Margin Funding Fees" border="0" height="120" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWRmWkgXLpt7ktLRb1uhzGETGY-Bw-lVprww5JH4CIYE2YLWpxbOorZiDqXbFuve9NRfATMAB1HDvOcHe5W0alkKQZJsrcWR2tVFXNFOOH4Ib0696wRGy_Q-PdW56lZ8xly2ptbOck4Vty/s400/bitfinex+fees3+margin.JPG" title="Bitfinex - Margin Funding Fees" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/fees" target="_blank">Bitfinex - Margin Funding Fees</a></td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/fees" target="_blank"><img alt="Bitfinex - Order Execution Fees" border="0" height="314" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHU7HkNtb_dOMqDUbRPdcv7RohdvAJ3gs0NIM25W4yUBaApv8LYG0obin2ZW90ij22B2y3UBoIgLNNFFhbIbeCqRtnN7ZLRHIwKanKa7Kmj4YNvWRpLKIX_2j0h0u4h_DbFZzD1pX5DeJN/s400/bitfinex+fees1+order+execution.JPG" title="Bitfinex - Order Execution Fees" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/fees" target="_blank">Bitfinex - Order Execution Fees</a></td></tr>
</tbody></table>
<br />
<h3 style="text-align: left;">
Bitfinex Value Added Services: Mobile App and API</h3>
<div>
<br /></div>
Bitfinex has an iOS and Android app, giving you the option to watch markets, monitor and make trades while on the move, ensuring you never miss another Bitcoin move.<br />
<br />
Their API also offers an easy and efficient way to build digital asset trading applications and tools, trading bots, and more!<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank"><img alt="Bitfinex - iOS / Android App & API - Seamless Trading On The Go" border="0" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyoYZ3hlx70i9s9AUIkG8XtLmTdwkrtdDQ53HAC1NMSCwvmFd5zLTCPLAEsP1c4yFWzSp3qQUxB1b8PmtvNE8OrUbGnICfbOz6zZ-UBvQUh38EtWhUzrmqKp0iwePk06n4fcErJIQgEP8H/s400/bitfinex+intro3.JPG" title="Bitfinex - iOS / Android App & API - Seamless Trading On The Go" width="400" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex - iOS / Android App & API - Seamless Trading On The Go</a></td></tr>
</tbody></table>
<br />
If you would like to find out more, visit <a href="https://support.bitfinex.com/hc/en-us/categories/201774745-Knowledge-Base" target="_blank">Bitfinex's support portal knowledge base</a>, and reach out to their support team if you need any assistance.<br />
<br />
<h3 style="text-align: left;">
Conclusion</h3>
<div>
<br /></div>
I hope that this tutorial helps you to understand better how Margin and Leveraged Trading works, and especially how it applies on Bitfinex. It also gives you an idea of when to employ what type of order and how to execute it, and I trust that this is able to takes you one step further in developing your winning trading strategy!<br />
<br />
If you haven't already created a Bitfinex account by now, sign up with this link and get to enjoy 10% off trading fees for the next 30 days: <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj">https://www.bitfinex.com/?refcode=aQBHcxVPzj</a>.<br />
<br />
In my next posts, I will be writing similar tutorials for other Bitcoin exchanges such as <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX </a>and <a href="https://1broker.com/?r=2710" target="_blank">1Broker</a>. If you have any suggestions, feel free to leave a comment below.<br />
<br />
Thank you for reading, and good luck trading!</div>
</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com5tag:blogger.com,1999:blog-8430592741332299921.post-56660073644893149352016-03-30T23:10:00.000+08:002020-04-25T13:53:01.432+08:00Bitcoin & Altcoins Trading: A Complete Guide of How To Ride this Cryptocurrency Rocket to the Moon! Tutorial of Trading Strategy Insights, Fundamental Analysis, Technical Analysis Frameworks & Tools.<div dir="ltr" style="text-align: left;" trbidi="on">
<h2 style="text-align: left;">
<span style="font-size: x-large;"><b><span style="font-size: large;">We updated this guide on our <a href="https://blog.aluna.social/" target="_blank">new blog</a>, check out the new and improved </span></b><b><span style="font-size: large;"><b><span style="font-size: large;"><a href="https://blog.aluna.social/how-to-trade-cryptocurrency/2020/03/01/how-to-trade-crypto-bitcoin-altcoins-complete-guide-cryptocurrency-trading/" target="_blank">Complete Guide To Crypto Trading here</a></span></b>.</span></b></span> </h2>
<br />
<br />
Have no prior experience, but want to learn the ropes of trading markets?<br />
<br />
Bought some bitcoins and not sure what to do with it?<br />
<br />
You've come to the right place!<br />
<br />
Here's a complete guide to trading cryptographic currencies such as Bitcoin & Altcoins, tailored to suit both beginners and advanced traders, whether you're familiar with or new to cryptocurrencies.<br />
<br />
This tutorial includes topics ranging from the basics of Bitcoin as a technology and trading instrument, a technical analysis framework for approaching trading, basic and advanced technical analysis tools, fundamental analysis of cryptocurrencies including altcoins, and tips for developing an effective and personal trading strategy. The full outline of the contents is as follows:<br />
<ol style="text-align: left;">
<li>Bitcoin as a Technology, Currency, and Trading Instrument: What is Bitcoin?</li>
<li>Introduction to Trading: How it Applies to Bitcoin and Cryptocurrencies</li>
<li>Bitcoin & Altcoin Markets: Introduction to Cryptocurrency Trading</li>
<li>Altcoin Markets & Trading: Introduction</li>
<li>Altcoin Markets & Trading: Strategy Insights</li>
<li>Altcoin Markets & Trading: Market Overview & Analysis</li>
<li>Technical Analysis Framework: Market Structure & Crash Cycle</li>
<li>Technical Analysis Framework: Mass Market Psychology & Emotional Cycle</li>
<li>Technical Analysis Tools: Basics</li>
<li>Technical Analysis Tools: Advanced</li>
<li>Fundamental Analysis: Cryptocurrency Characteristics</li>
<li>Fundamental Analysis: Picking the Next Profitable Altcoin</li>
<li>Developing a Profitable & Effective Trading Strategy</li>
</ol>
<h3 style="text-align: center;">
</h3>
<h3 style="text-align: center;">
</h3>
<h3 style="text-align: center;">
I hope this post and other material on my blog and twitter teaches you how to approach trading markets such as Bitcoin and Altcoins, provides you with valuable, practical, and effective tutorials and insights that is easily understood and applied, and enables you to develop a profitable trading strategy that is tailored to your personal requirements and risk appetite. </h3>
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<h3 style="text-align: center;">
Thank you for your support! If you like my work and would like to see more, consider contributing a coffee in Bitcoins to me at:<br /><u>1Hbodfhu7Nx1RJZmpudVfiiDTpG2o24mMi</u></h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV-R9qZbobBYhi2OMjgz7Ywq_M9McX7LRmnxha6YvF5NEbr4mZDGOjQ6efx5jMHeN_A4-wBxLFLQlQjrdPRiFdGZj35X_7BEhsSKNR9mtZ6UltMU1yD4fmw2nocMYJ5228OY6ervj5RGHS/s1600/Bitcoin+Accepted+Here+Donations+1Hbodfhu7Nx1RJZmpudVfiiDTpG2o24mMi+Aluna+Crypto.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="307" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV-R9qZbobBYhi2OMjgz7Ywq_M9McX7LRmnxha6YvF5NEbr4mZDGOjQ6efx5jMHeN_A4-wBxLFLQlQjrdPRiFdGZj35X_7BEhsSKNR9mtZ6UltMU1yD4fmw2nocMYJ5228OY6ervj5RGHS/s320/Bitcoin+Accepted+Here+Donations+1Hbodfhu7Nx1RJZmpudVfiiDTpG2o24mMi+Aluna+Crypto.png" width="320" /></a></div>
<br />
<b><u>Bitcoin as a Technology, Currency, and Trading Instrument: What is Bitcoin?</u></b><br />
<br />
Before we get into trading, let's go through the basics of what Bitcoin actually is, as a technology, as an alternative to FIAT currencies, its implications, and what makes it a potentially revolutionary technology.<br />
<br />
In <a href="http://www.artbyte.me/explaining-digital-currency-to-the-layman/" target="_blank">this recent article by the ArtByte team, "Explaining digital currency to the Layman"</a>, the seemingly complex idea of Bitcoin is broken down and explained in two short and simple paragraphs. Here's the explanation extracted as below:<br />
<br />
<i><b>How are digital currencies created?</b></i><br />
<i>Just like physical currencies, digital currencies like Bitcoin don’t just pop into existence; they have to be made. In physical currencies, paper bills are printed and coins are minted by government agencies, then distributed into the banking system. In the same way, digital currencies must be created and distributed to users. For a digital currency like Bitcoin, the currency is created by a software application. This software runs on each computer connected to the Bitcoin network. All of the computers connected to the network work together, sharing the complex calculations necessary to create each Bitcoin, and a certain number of bitcoins are created each day. This process is called mining, and is not free, as it costs computer power and electricity. To compensate computer owners for their work, bitcoins are paid to the software users connected to the network.</i><br />
<i><br /></i>
<i><b>How are balances kept and transactions processed?</b></i><br />
<i>Just like at your bank, your account balance and transactions are stored on a server. At your bank, the bank owns the server. But, as a digital currency, Bitcoin's account data resides on a peer-to-peer (computer-to-computer) network that consists of all the computers logged into the network. This allows for additional security as there is no single server that hackers can attack, and each transaction is verified by all the computers on the network. Just like logging into your bank account with your browser, you can see your Bitcoin balance and spend it using a Bitcoin Wallet App. The wallet gives you all the info you need, just like using your browser for banking transactions. The Wallet App is available in several versions: Online, MAC, Windows, Android, and IOS.</i><br />
<br />
Chris Dunn goes into great detail about the basics of Bitcoin and the blockchain technology and trading, while keeping it non-technical and simple to understand. I'll be quoting him a lot for the first portion of this post. From his book, he explains the technology behind Bitcoin, what determines its money supply, and how that differs from our current monetary systems where governments print money and the banks distribute it:<br />
<div>
<br /></div>
<i>"Bitcoin is not governed by political whims, instead it is governed by the laws of mathematics. Its source code uses advanced cryptography to secure the network and regulate the process of new Bitcoins created. </i><i>The source code is completely open source, which means anyone who understands coding language can review it. Nothing is hidden.</i><br />
<i><br /></i>
<i>When you purchase Bitcoin, your money is locked on the public ledger and can be accessed anytime with your private keys. </i><i>For this reason, there is no limit to how many Bitcoins you can send or receive, and there is no third party that can restrict your Bitcoin transactions. </i><i>Financial institutions cannot counterfeit or arbitrarily create more Bitcoins because the core protocol of the blockchain times the flow in which new coins are created."</i><br />
<br />
He goes further to discuss decentralization and how Bitcoin puts the power back into YOUR hands.<br />
<br />
<i>"Usually all our money or data is stored on centralized servers, which requires trust in a third party. Traditionally, when your money is in your bank account, your bank's servers are a single point of failure to be attacked, which makes your data extremely vulnerable.</i><br />
<i><br /></i>
<i>In a decentralized network, information can be broken into pieces and encrypted. This creates multiple points that need to be attacked in order to access information to take down the network.</i><br />
<i><br /></i>
<i>Bitcoin truly is a revolutionary technology that is changing the rules of society. Now is the time to take a couple of steps ahead of the herd and place yourself on the cutting edge of this transformation. I promise it will pay off. With that many advantages Bitcoin offers, the market is growing exponentially. The growth creates massive opportunity for traders.</i><br />
<i><br /></i>
<i>Opportunities like this don't come around often, and I hope you are beginning to see the very potential Bitcoin has created."</i><br />
<br />
He then goes on to discuss the viability of Bitcoin "mining" today, and explains how it compares with trading:<br />
<br />
<i>"And while you may have heard about the opportunity to profit from mining, for small scale operations it is actually cheaper to buy Bitcoins than it is to mine them. Only major industrial operations can make money from mining.</i><br />
<i><br /></i>
<i>By far the easiest and most profitable way to make money in this industry is by trading Bitcoin with an effective strategy. </i><i>This requires no setup expense whatsoever -- all you need is a strategy that works. And we have a proven strategy which we're willing to share with anyone who's serious about learning it."</i><br />
<br />
<br />
<b><u>Introduction to Trading: How it Applies to Bitcoin and Cryptocurrencies</u></b><br />
<br />
Buying Bitcoin opens up the doors to trading - bitcoin itself is a tradable asset against the USD and other currencies. As a result, being involved in Bitcoin naturally introduces one to trading markets, because from the offset, the price volatility creates the need for users to make a bitcoin purchase at a favourable target price. Therefore it is crucial that you learn the basics of trading and arm yourself with the necessary skills to maintain or even grow the value of your investments.<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
If you're looking for a "stock" to buy in 2016, <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> is one of e best choices. Only 3-6 mths timeframe, w immense potential profit. <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/702409213478354945">February 24, 2016</a></blockquote>
<br />
Chris Dunn, one of my favourite trading gurus and experts in Bitcoin Trading recently sent me a copy of his book, titled "<i><a href="https://secure.bitcoinmastery.com/free-bitcoin-book" target="_blank">Bitcoin: How to Trade it for Serious Profit (Even If You're A Complete Beginner)</a></i>". It's a really good read with very practical strategies and easy-to-apply techniques that you can use today to improve your trading.<br />
<br />
He also has a ton of training material and useful resources about trading strategies and market calls, and I highly recommend you check out his work on his <a href="http://chrisdunn.com/" target="_blank">website</a>, <a href="http://www.youtube.com.sg/user/chrisdunntv" target="_blank">youtube</a> and <a href="http://twitter.com/ChrisDunnTV" target="_blank">twitter</a> accounts!<br />
<br />
I'll be using some his material for this portion of my post, because honestly, I can't think of a better way to say it than the way he did. So here goes; I compiled what I think is the most important and applicable concepts that you ought to know for trading Bitcoin and cryptocurrencies, which can also be applied to trading any other market.<br />
<br />
<span style="font-style: italic;">"Trading is about making emotionless decisions to buy or sell an asset based on probabilities. Just like a casino knows the odds are in their favour, professional traders use strategy and risk management to tip the scales in their favour.</span><br />
<i><br /></i>
<i>Trading is a zero sum game. Every trade has two investors taking opposite positions on the price -- one on buys, the other sells. Because of this, someone is bound to lose.</i><br />
<i><br /></i>
<i>When two people agree on a price, a trade is executed and the market valuation is set. Usually buyers set orders lower than people who want to sell. This creates 2 sides of an order book between buyers and sellers. When there are more buyers than sellers the prices goes up, and when there's more sellers than buyers the price goes down.</i><br />
<i><br /></i>
<i>The constant exchange of prices forces the market into periods of equilibrium followed by bursts of volatility.</i><br />
<br />
<i>Many people think the only way you can make money trading Bitcoin is to buy low and sell high. </i><i>But that's only half the equation! You can long, or you can short. </i><i>When you long, you're betting that the future price of Bitcoin will be higher than your original position. So you're BUYING Bitcoin. </i><i>When you short, you're betting that the future price will be lower than your position. So you're SELLING first with the goal of buying back at a lower price in the future.</i><br />
<i><br /></i>
<i>Find the trend early. </i><i>At any given time, the market is only doing one of three things: trending, channeling, or breaking out. </i><i>Markets don't go straight up and down. A trending market is when a market is stair-stepping up or down. The easiest type of trade for most people to take is a "trend trade".</i><br />
<i><br /></i>
<i>There are 8 basic components to a trade:</i><br />
<i>1) Order book</i><br />
<i>2) Reading the market</i><br />
<i>3) Candlesticks</i><br />
<i>4) Reading charts</i><br />
<i>5) Margin trading</i><br />
<i>6) Long and Short trades</i><br />
<i>7) Margin call</i><br />
<i>8) Stop order</i><br />
<i><br /></i>
<i>Reading the Markets. </i><i>Price charts are very simply the visual representation of the actions of all market participants. In other words, there's no magic behind the bars moving up or down. Rather, the driving force behind price moving up and down is the buying and selling actions from all traders. </i><i>Sometimes, market prices show signs of a general trend. A bull market happens when prices progressively increase, and a bear market shows a steady decline in value. </i><i>The movement in price is generally referred to as price action. </i><i>Looking at the swings in price and interpreting it for patterns is called technical analysis.</i><br />
<i><br /></i>
<i>New traders should learn the ropes first before trying to grow their accounts with leverage. Also, you shouldn't trade with money you can't afford to lose."</i><br />
<i><br /></i>
<br />
<i><br /></i>
<b><u>Bitcoin & Altcoin Markets: Introduction to Cryptocurrency Trading</u></b><br />
<i><br /></i>
Here's a little history lesson about Bitcoin's price since inception. Bitcoin has been through several price bubbles, characterized by exuberant buying into a parabolic price structure, and eventually correcting back down quickly and crashing over 80% from the peak over a short period of time.<br />
<br />
Over the last 8 years since Bitcoin was created, it has gone through about 3 notable bubbles, first when it climbed from under $0.01 in early 2010 to $0.80 in November 2010 and then to $32 in July 2011 before the bubble burst, sending price on a downtrend for 2 years and hit a low of $2 at one point. Our second bubble came in April 2013 and coincided with the Cyprus financial collapse, where we saw prices break above the previous high of $32 to about $260, before crashing down to about $50. And the third bubble came later the same year, where prices peaked at $1200 in November 2013.<br />
<br />
Since the beginning of 2014, Bitcoin price went on a year-long downtrend, making lows of about $160, over 80% decline since the $1200 peak. This low came in early 2015, and prices consolidated and stabilized within the $200-300 range for a large part of 2015. The 1.5 year downtrend was finally broken somewhere mid-2015, followed by a break above $300 in October 2015. Since then, we have been trading between $300 and $500, and more recently within a wedge ranging between $382 and $420. Read about my analysis of price action during the periods since September 2015 in these previous posts:<br />
<br />
<ul style="text-align: left;">
<li><a href="http://alunacrypto.blogspot.sg/2015/10/uptrend-bullish-horizon-bitcoin-2016-prehalving-pump.html" target="_blank">Uptrend Established Bullish Horizon for #Bitcoin: 2016 The "Pre-Halving" Pump (and Dump). $BTCUSD </a></li>
<li><a href="http://alunacrypto.blogspot.sg/2015/11/400-bitcoin-strong-bull-rally-final-target-600-crystalball.html" target="_blank">$400 Bitcoin - Strong Bull Rally Final Target 600s. May the #crystalball be with us. </a></li>
<li><a href="http://alunacrypto.blogspot.sg/2016/01/bitcoin-right-on-schedule-for-2016-halving-pump-altsareback.html" target="_blank">Bitcoin right on schedule for 2016 Halving Pump. Oh... and #altsareback </a></li>
</ul>
<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
On the subject of Bitcoin, this wedge offers a high probability of a big upside breakout soon. <a href="https://twitter.com/hashtag/BTC?src=hash">#BTC</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="https://t.co/1D3VrOnm5F">pic.twitter.com/1D3VrOnm5F</a></div>
— Raoul Pal (@RaoulGMI) <a href="https://twitter.com/RaoulGMI/status/703594869760122881">February 27, 2016</a></blockquote>
<i><br /></i>
<i>"Just like any world-changing market or technology, Bitcoin has gone through several crash and boom cycles in its history. It's the normal process of "price discovery", or finding the fair market value of a new asset."</i><br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
Not convinced yet... let's see how this plays out if and when Finex breaks 300. Looks good tho. <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> <a href="https://t.co/XlTj31aMsY">pic.twitter.com/XlTj31aMsY</a></div>
— Philip Francis (@philfrancis77) <a href="https://twitter.com/philfrancis77/status/658304655881957377">October 25, 2015</a></blockquote>
<br />
Will there be a 4th Bitcoin Bubble, bringing prices about $1200? And could it happen in 2016? In order to tackle this question, let's first take a look at some fundamentals of Bitcoin and its underlying technology:<br />
<br />
In 2016, you have probably heard a lot more of the term "Blockchain" than "Bitcoin" itself. The Bitcoin blockchain refers to an electronic ledger that records all transactions that take place on the Bitcoin network, that is fully open-source and transparent. There are more applications for blockchains than just money, and the fact that the blockchain can bring about revolutionary improvements to our current processes and systems is only now starting to be understood by companies and individuals at the forefront of technology and embracing change.<br />
<br />
Bitcoin and its underlying blockchain technology is becoming more widely accepted, and is currently being tested by various corporate institutions including a group of big banks and a consortium called R3, and even accounting firm Price Waterhouse Coopers (PWC). Not to forget about the exponentially increasing number of merchants, including big names like Overstock and Microsoft, that are now accepting Bitcoin as an alternative form of payment to credit cards and cash.<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
40 banks. One <a href="https://twitter.com/hashtag/blockchain?src=hash">#blockchain</a>.<a href="https://t.co/yc70qcnpAN">https://t.co/yc70qcnpAN</a></div>
— Eris Industries (@eris_ltd) <a href="https://twitter.com/eris_ltd/status/705201208915599360">March 3, 2016</a></blockquote>
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
PwC and Blockstream Announce Strategic Partnership on Blockchain Tech <a href="https://t.co/Ypbia1altc">https://t.co/Ypbia1altc</a> <a href="https://twitter.com/hashtag/cryptocurrency?src=hash">#cryptocurrency</a> <a href="https://t.co/aJle0XLSNd">pic.twitter.com/aJle0XLSNd</a></div>
— CryptoCoinsNews (@CryptoCoinsNews) <a href="https://twitter.com/CryptoCoinsNews/status/695938255657820161">February 6, 2016</a></blockquote>
<br />
Bitcoin is often referred to as Digital Gold, making it not a far-fetched proposition to compare it to physical gold. These two markets tend to work in similar fashion, from the point of view that Bitcoin may be seen as an alternative "safe haven" asset or commodity in times of economic crises, much like gold, as was demonstrated in April 2013 when Bitcoin rose to over $200 over a short period of time during the Cyprus financial crisis. In fact, proponents of Bitcoin would argue that Bitcoin is a better form of money than compared to physical Gold, especially in the 21st century, in terms of fungibility, transportability, and divisibility. Here's how Bitcoin looks compared to Gold:<br />
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
<a href="https://twitter.com/CryptOrca">@CryptOrca</a> <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="https://twitter.com/hashtag/gold?src=hash">#gold</a> <a href="https://twitter.com/search?q=%24GOLD&src=ctag">$GOLD</a> Upate<br />
<br />
Somewhere 2006 on gold chart <a href="https://t.co/bLdSHeSxyZ">pic.twitter.com/bLdSHeSxyZ</a></div>
— CryptOrca (@CryptOrca) <a href="https://twitter.com/CryptOrca/status/705832055620370432">March 4, 2016</a></blockquote>
<br />
Third thing to consider is that Bitcoin turns 8 year old in 2016. Based on the Bitcoin algorithm that determines its fixed money supply and schedule of distribution, the amount of coins that is added into the network halves approximately every 4 years, or more accurately, every 210,000 blocks with each block estimated to take 10 minutes. The next supply halving will happen in July 2016 (source: http://bitcoinclock.com/).<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Bitcoin about to Moon. Selling my wife and kid to buy <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> before March 2016. <a href="https://t.co/NjuOMbgwnX">pic.twitter.com/NjuOMbgwnX</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/702416644489003008">February 24, 2016</a></blockquote>
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
.<a href="https://twitter.com/jackfru1t">@jackfru1t</a> my moon suit is ready <a href="https://t.co/QZluOngOR3">pic.twitter.com/QZluOngOR3</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/701078459078955008">February 20, 2016</a></blockquote>
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="en">
<a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> still on track for <a href="https://twitter.com/hashtag/moon?src=hash">#moon</a>. Consolidation at $382-$400 before climbing towards a break of $500. <br />
<br />
Put on ur moon helmets boys. <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/706335824829255680">March 6, 2016</a></blockquote>
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Disbelief - The Final Dip Before Moon. <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> <a href="https://twitter.com/hashtag/HalvingPump?src=hash">#HalvingPump</a> <a href="https://t.co/oV7iEvX7fz">pic.twitter.com/oV7iEvX7fz</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/706376237275414528">March 6, 2016</a></blockquote>
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<br />
Chris Dunn shares his strategies in this insightful presentation on Trading & Investing in Bitcoin. Watch it on youtube in the link below.<br />
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How To Trade & Invest In <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> - Trader&Investor Summit <a href="https://twitter.com/ChrisDunnTV">@ChrisDunnTV</a> <a href="https://t.co/XDYofMiWXf">https://t.co/XDYofMiWXf</a> <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> <a href="https://twitter.com/hashtag/TA?src=hash">#TA</a> <a href="https://twitter.com/hashtag/daytrading?src=hash">#daytrading</a> <a href="https://t.co/EBqEw48LA7">pic.twitter.com/EBqEw48LA7</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/704173139874312192">February 29, 2016</a></blockquote>
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<b><u><br /></u></b>
<b><u>Altcoin Markets & Trading: Introduction</u></b><br />
<br />
The liquidity of the Bitcoin market is only a small fraction of real world money markets such as Forex, Gold, Oil, other commodities, and Indices like the S&P 500 Index (SPX).<br />
<br />
There are over 1000 different altcoins, and the liquidity of these markets can range from peanuts, even some with 0 trading volume over 24h, to highly liquid cryptocurrencies like Ethereum, and more recently Factom, Dash, Monero, MaidSafe, and several others that have also been trading at significant daily volumes of 1000 BTC and above.<br />
<br />
However, the number of coins that fall into this category only make up a small proportion of the total population of altcoins in existence.<br />
<br />
The altcoin market is made up largely of illiquid cryptocurrencies tradable against BTC, and sometimes other units of currencies such as the USD, LTC, or XMR. With that said, there are also several top tier alternative cryptocurrencies that are sufficiently liquid, enough to trade it without too much worry, as I have shared above. There are also less liquid coins which usually have less than 25 BTC or even 10 BTC trading volume per day, but also have potential for greater gains even though you will be limited to investing 1-2 BTCs due to the liquidity of the coin, and you'll have to keep a much closer watch on them. Keep in mind that the lower liquidity a market has, the higher the risk associated with it.<br />
<br />
With that in mind, and if you're ready to dip your toes into this exciting world of cryptocurrency trading, here are some general guidelines to trading altcoins, especially applicable if you're new to all of this:<br />
<ol style="text-align: left;">
<li>Trade altcoin markets that have significant volume. <i>With altcoins, trading volume is a must. As a rule of thumb, don't trade an altcoin market that has a 24 hour volume under 10 BTC, or up to 50 BTC if you're more risk adverse. A market with little trading volume is easily manipulated by insiders, pumpers, and bigger traders. Stick to the liquid coins and you'll have an extra layer of protection.</i></li>
<li>Trade altcoins that have community support.</li>
<li>Trade altcoins that offer innovation over existing coins.</li>
</ol>
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Btw, if you've been hiding in a cave last couple of weeks, Altcoins are looking <a href="https://twitter.com/hashtag/extremelyfuckingridiculouslybullish?src=hash">#extremelyfuckingridiculouslybullish</a> <a href="https://t.co/sfQUO0KRFC">pic.twitter.com/sfQUO0KRFC</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/697303751346905088">February 10, 2016</a></blockquote>
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<div>
The altcoin market is one of the most inefficient markets out there, so there are many profit opportunities that you can take advantage of, but this also requires a large amount of time and effort to research and spot such opportunities.<br />
<br />
Forget all that you currently know about trading. Only two things can happen in a trade, either the price goes up, or it goes down. Simple as that, and everything else is just a matter of perspective. You will need to first decondition yourself from any prior understanding of trading, and undo any bad habits you have accumulated. The following chapters, especially about the technical analysis framework that I'm about to teach you is designed to decondition your mind to see price action and charts for what they simply are; a representation of human behaviour, while price is simply put; the perceived value of a stock by its market participants. Keep these very important points in mind as you read the remainder of the post.<br />
<br />
With the right state of mind to maintain your discipline, a keen interest to learn the ropes, and the willingness to work hard and put in 100% effort, anyone, even you, will be able to become a profitable trader after learning and applying the skills taught in my blog and especially this post.<br />
<br /></div>
<div>
<br />
<b><u>Altcoin Markets & Trading: Strategy Insights</u></b><br />
<br /></div>
<div>
Here's a quick summary of how to approach trading cryptocurrencies like Bitcoin and other altcoins like Ethereum (ETH), Dash (DASH), Monero (XMR), MaidSafe (MAID) or Factom (FCT), and many others. Even for beginners, this should give you a good idea of what goes through my mind as I plan and execute my trades, and how technical analysis can be effectively applied to trading. And at the end of the post, I'll discuss about developing a trading strategy that is both effective and tailored to your own style.<br />
<br />
I personally stick mostly to high market cap coins and those with higher liqudity, because risk is much lower with such coins. For example, I think that Ethereum will never drop back to ATL at least not for the next 6 months, although when the pump is actually over, it should drop about 70-80% or more. That said, I also use a small portion of my funds to dabble in higher risk trades with low liqudity coins, provided they meets certain requirements.<br />
<br />
In terms of how long I hold each trade, only because of the current market condition and environment being a hotbed for pumps, I've been buying some coins and holding them for anywhere up to 2-3 months. While some trades can last a short few minutes to a day or two. Generally, I feel comfortable holding about 3-5 altcoins at once, although it is common for me to now have about 10 different altcoins at one time. Personally, having more than 5 becomes rather difficult to handle so I always try not to spread myself too thin and manage too many different trades at once.<br />
<br />
As an example, in December 2015, I bought Dash and held for a few weeks. I also bought ETH in late January 2016 when it broke above 0.005 and rode it for about three waves, selling after each wave and buying back later or another breakout and bullish confirmation, so I held for less than a week each time. I went into MaidSafe (MAID) in late January 2016 or so, and held it for about a month all the way to the new All-Time-High (ATH) of around 26-28k, which also took about a month. In late Jan and early Feb, I bought Monero (XMR) at about 110-120k, and held for a month before selling at about 300k in early March. March was also an action packed month, and some of my bigger profits came from VanillaCash (XVC), New Economy Movement (XEM), and SiaCoin (SC). To be fair, I also have some trades currently underwater that I have bought and held for a long time, some as long as three months, including Lumens/Stellar (STR/XLM), Peercoin (PPC), DarkNet (DNET),<br />
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<a href="https://twitter.com/CryptoChrisG">@CryptoChrisG</a> gotta use those fib extensions for future price targets when it's at an all time high</div>
— Chris Dunn (@ChrisDunnTV) <a href="https://twitter.com/ChrisDunnTV/status/704751525801775104">March 1, 2016</a></blockquote>
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To give you a better idea of how to know when to exit your trade, or set targets and take profit, I'll discuss my MaidSafe trade in greater detail. When MAID pumped hard past 17k (previously ATH), the large volume indicated that there was good momentum behind the pump, but I also knew that it had to top out somewhere because parabolic moves generally don't end well. So I did a <b>Fibonacci Extension</b> from previous ATH (17k) to the bottom (4k-ish), which gave me two exit targets: 50% Fibonacci Extension was at 25k and the 61.2% Extension was at 31k. I then placed some sell orders at 25-26k and 30-32k.<br />
<br />
As buyers chomped at my sell orders, I managed to unload about 1/3 of my total holdings with my 25-26k orders, while I remained open to both possibilities; that this was either the top, or it'll continue to break ATH and head towards my next target of 31k. At this point, I watched the price action of MAID closely, looking out for a big fat red candle with large volume which is commonly referred to as an "exit candle" and indicates the end of a pump. True enough, I soon saw the <b>big volume red candle</b>, and made a quick decision to sell everything so pulled all my higher sells and sold off some at 24k. Prices then went below a <b>critical support</b>, which was my confirmation signal for a trend reversal and the beginning of a downtrend, so I just waited for it to bounce back to 24k-ish before I dumped the rest of my coins.<br />
<br />
All this took only about an hour or so, from when it peaked at 26k, to the point when it broke below 24k. MaidSafe eventually went on to make a new ATH of 29k, and is currently consolidating in a healthy range, with potential for another move up. This was the exact same method I used when trading Monero (XMR) to determine a target of 300k satoshi; my point being that it is definitely replicable, and even you can, with enough training be able to identify such signs and know how to act on them accordingly.<br />
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Refer to my tweet and charts below regarding the big volume red candle and critical support I mentioned above.<br />
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I'm 1/3 out at 25-26k, dropped a bit more at 24k, and dumping the rest when this retraces to 24ish. Buying bk later. <a href="https://t.co/bVowKDKB3I">pic.twitter.com/bVowKDKB3I</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/703897385332662272">February 28, 2016</a></blockquote>
<br />
<b><u>Altcoin Markets & Trading: Market Overview & Analysis</u></b><br />
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Kinda getting the hang of how <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> profits flow into and out of the Altcoin markets. Ride the waves & profit! <br />
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FYI: <a href="https://t.co/8yyHKLoGNR">pic.twitter.com/8yyHKLoGNR</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/706410238082097152">March 6, 2016</a></blockquote>
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Some trades I hold for hours, some for days, some for weeks and even months. Keep in mind I'm only holding so long (weeks to months) because of current market condition (being that BTC is just starting its bull run). In a downtrend, you will want to be largely in USD/FIAT, because although opportunities to profit from buying an altcoin will also be available, it will happen at a much lower frequency than today.<br />
<br />
When asked about how to know which altcoin to buy, when to sell it, or the classic "how to become a better trader", this is my usual reply: It's a combination of a complex and inter-related web of factors, including understanding the market crash cycle structure, learning about the different phases of the emotional cycle, analyzing price action, understanding price structures that represent various phases of a crash cycle, such as accumulation, distribution, pump, dump, and how they look like.<br />
<br />
To keep things simple, you should look at 2 things only, price action (candlesticks or others), and volume. And of course, context is always important, e.g. what coin, what is the situation of the development and new projects, of the environment etc. I will discuss these technical and fundamental analysis frameworks and tools in this and the following chapters.</div>
<div>
<br /></div>
<div>
For now, here's a generalized idea of how the Altcoin markets as a whole has been performing since mid 2015 to now. Since that time, several altcoin markets have moved up a couple of legs; some breaking ATHs, some breaking multi-month and multi-year downtrends and major resistances, mostly getting ready to continue on this recent bullish uptrend, fueled by a fresh influx of funds currently flowing across different altcoins in waves. With the Bitcoin halving just around the corner, it is safe to say we have at least another 3 to 5 months of bull market action in the Bitcoin and Altcoin markets that we can capitalize on.<br />
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My take on Bitcoin & Altcoin market right now: Fractals, Market Structure, Crash Cycle, & Halving Pump. <a href="https://twitter.com/hashtag/altsareback?src=hash">#altsareback</a> <a href="https://t.co/q5fwvmoq91">pic.twitter.com/q5fwvmoq91</a></div>
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— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/697654441361563648">February 11, 2016</a></div>
</blockquote>
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From my personal analysis, altcoin markets in general bottomed out in tandem and have progressively moved up since September 2015. You can see how various altcoin markets bottomed out around September to December 2015, and began to form an uptrend in early 2016, and we're currently at the foot of a major bull market waiting to erupt. This can be represented as one whole market or Cryptocurrency Index, if you will, as in my two charts below. </div>
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Pretty much how every altcoin chart looks like right now: <a href="https://t.co/5hAxNN414S">pic.twitter.com/5hAxNN414S</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/697307060631769088">February 10, 2016</a></blockquote>
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Altcoin market as a whole moving up a leg. Coins like <a href="https://twitter.com/search?q=%24ETH&src=ctag">$ETH</a> <a href="https://twitter.com/search?q=%24FCT&src=ctag">$FCT</a> leading into leg 3, moving market into Hope phase. <a href="https://t.co/2YK68n4oca">pic.twitter.com/2YK68n4oca</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/703828096533733377">February 28, 2016</a></blockquote>
<u><br /></u>
<br />
<u><b>Technical Analysis Framework: Market Structure & Crash Cycle</b></u><br />
<br />
As I discussed in the introduction chapter of Altcoins Markets & Trading, perspective is everything, and I highlighted the importance of concepts such as market structure, crash cycles, market psychology, fractals, and the environmental conditions, as a framework for analysing charts and price action. IMO, this is the <b>single governing framework</b> behind TA, and we’ll discuss this in greater detail in this chapter.<br />
<br />
To understand trading, you first need to understand the anatomy of a <b>Market Cycle </b>and the <b>Crash Cycle</b>, so that you can identify a pump before it happens, and know when the party has ended, so that you can potentially profit from it. Another important concept is <b>Market Structure</b>, and being able to identify the price action and patterns that are unique to each of the various phases of trading, including accumulation, distribution, markup, markdown, breakout, consolidation, retracements, corrections, etc.<br />
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Buy low sell high; easier said than done. Familiarize yourself with market structure. <a href="https://twitter.com/QTMHoldings">@QTMHoldings</a> <a href="https://twitter.com/hashtag/QTM?src=hash">#QTM</a> <a href="http://t.co/DlOJ4yF6fE">pic.twitter.com/DlOJ4yF6fE</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/457292179862343680">April 18, 2014</a></blockquote>
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To understand the basics of market structure, start by learning how to identify patterns and support/resistances that make up market structure. One good resource is <a href="https://youtu.be/tJmMU-8yicM" target="_blank">Jason Stapleton's video about Learning to Understand Market Stucture as below</a>:<br />
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<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/tJmMU-8yicM" width="560"></iframe>
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<br />
Another concept to understand is the driving force behind price movements. "Whales" is a term used to represent individuals or groups with large amounts of funds used for trading, and sometimes also take on the role of a "Market Maker (MM)". Whales play a big part in any trading ecosystem, and are also present in the Bitcoin market and even in Altcoin markets. They contribute to a large portion of the trading activity, decide how high or low prices go, and also decide when the market will move and in what direction.<br />
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Armed with the knowledge of how whales conduct themselves in the market, and the technical analysis framework they use to manipulate the markets, you can profit by identifying smart money and analyzing their intentions. Therefore, it is imperative that you know how whales operate in the market, and you can learn a good deal from our dear friend <a href="https://cryptofrenzy.files.wordpress.com/2014/02/god.pdf" target="_blank">Wolong in his eBook about "<b>The Game of Deception</b>" that is trading</a>, and trade with an understanding of the market crash cycle, as illustrated by the "<b>Psychology of a Market Cycle</b> <b>Wall Street Cheat Sheet</b>" below.<br />
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If you haven't read this, you're missing out. <a href="https://t.co/t3uZc1NoXJ">https://t.co/t3uZc1NoXJ</a> <a href="https://twitter.com/hashtag/wolong?src=hash">#wolong</a> <a href="https://twitter.com/hashtag/marketstructure?src=hash">#marketstructure</a> <a href="https://twitter.com/hashtag/crashcycle?src=hash">#crashcycle</a> <a href="https://twitter.com/hashtag/altcoins?src=hash">#altcoins</a> <a href="https://t.co/3PgRhdNVlx">pic.twitter.com/3PgRhdNVlx</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/699459993402101760">February 16, 2016</a></blockquote>
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Another fantastic resource is <a href="http://theinnercircletrader.com/Tutorials.htm" target="_blank">this library of video tutorials by The Inner Circle Trader</a>, commonly known as ICT. His in-depth videos cover everything a trader needs to know about conducting himself in the market, ranging from the basics of trading and forming a strategy, to technical analysis tutorials from the market marker's perspective. <a href="http://theinnercircletrader.com/Tutorials.htm" target="_blank">Check out his work on his website here</a>!<br />
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Alts were here all the time.. <a href="https://twitter.com/hashtag/whalesareback?src=hash">#whalesareback</a> <a href="https://t.co/xDeg7PLO6Z">pic.twitter.com/xDeg7PLO6Z</a></div>
— MΔgUra (@magaura11) <a href="https://twitter.com/magaura11/status/697097333629198336">February 9, 2016</a></blockquote>
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How do I know if a pump is over or if it is still not done? Here's my two satoshis worth:<br />
<br />
You can never predict for certain exactly where it'll top. In fact, you should never try to predict it baselessly, but rather you should let the price action tell you the answer. If you refer to the <b>"Psychology of a Market Cycle"</b> chart as above, this is IMO one of the most important frameworks for trading, and you can find this market structure or fractal everywhere. When pumps end, it'll always look like <i>euphoria</i> to <i>complacency</i> stage. The key here, is to look out for <b>high volume price action</b>. If the dip between euphoria and complacency stages has a bigger volume bar, than compared to the euphoria top volume bar, then you might want look for an exit. Of course this is just a general guideline that only considers one aspect of a<b> trend reversal</b>, when in reality many more factors contribute to it. That said, this is still one of the key ways to determine that a bullish market has exhausted.<br />
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As discussed in the insights chapter above, it's crucial to know the exit signs that signal the beginning of a dump; a high volume pump, followed by even higher volume dump; the big fat red candle. Read my <a href="http://alunacrypto.blogspot.sg/2014/05/technical-analysis-altcoins-bitcoin-trading-market-structure-cycle-manipulation.html" target="_blank">old blog post about Market Cycle, Market Cycle, and Manipulation</a> for a more in-depth discussion about this topic.<br />
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Hopefully no one has done this before. 👋🎯😂<br />
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A classic share: <a href="https://t.co/fy2JENGuqf">https://t.co/fy2JENGuqf</a><a href="https://twitter.com/search?q=%24AAPL&src=ctag">$AAPL</a> <a href="https://twitter.com/search?q=%24SPY&src=ctag">$SPY</a> <a href="https://twitter.com/search?q=%24DJIA&src=ctag">$DJIA</a> <a href="https://twitter.com/search?q=%24TSLA&src=ctag">$TSLA</a> <a href="https://t.co/7PiOrwQXRp">pic.twitter.com/7PiOrwQXRp</a></div>
— StockTwits (@StockTwits) <a href="https://twitter.com/StockTwits/status/693562028212924416">January 30, 2016</a></blockquote>
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<u><b>Technical Analysis Framework: Mass Market Psychology & Emotional Cycle</b></u><br />
<br />
Trading is very simple; the price goes up and it goes down, that's it. But when you go to 9 different math experts, they can all tell you the answer of 1+1=2. Whereas when you go to 9 different trading "experts", nobody can tell you the same answer as to whether price is going up or down. Why do you think that is? Every trader has their own strategy and trading rules, resulting in very different analyses of the same chart. To take an example from The Matrix, "it's not the spoon that bends, it's you that bends." Why do I say that perception is everything? Charts are simply a representation of human behaviour, and price is the perceived value of a stock by the market participants. Always take this at face value and put all your perceptions and emotions aside, so that you can plan and execute your trades objectively, instead of allowing emotions and the comments of other people to affect your trade.<br />
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Trading is a zero-sum game, that is, for one to win, someone else has to lose. It's also worth knowing that all markets are manipulated, and like Wolong said, this is all but a <i>game of deception</i>. Market makers are present in every market, which also makes "whale watching" and "following the smart money" a viable strategy for trading any kind of market. Why is Mass Market Psychology and all of this relevant? Because there's only one thing common among all markets -- people.<br />
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The <a href="https://en.wikipedia.org/wiki/Pareto_principle" target="_blank">Pareto Principle</a>, also commonly known as the 80/20 rule, applies to many aspects of trading. For example, 80% of traders end up losing money, 80% of the wealth is held by 20% of the participants, and 80% of profits should come from just 20% of your trades. In a similar fashion, I agree that trading psychology + money management are the 20% which is responsible for 80% of trading success. This principle can also be applied to your trading strategy, where you should aim to eliminate 80% of your trading losses by avoiding emotional or impulse trading, day-trading during important news-release times and chasing entries. Read more about the <a href="http://www.learntotradethemarket.com/forex-articles/80-20-rule-forex-trading" target="_blank">Pareto Principle and how it applies to trading here</a>. The lesson of the story? There is value in scarcity. More specifically, information is only valuable when it is scarce; as more people know about a piece of information, the value of the information decreases.<br />
<br />
If you're serious about trading to make a sustainable income, start reading through all my blog posts, especially <a href="http://alunacrypto.blogspot.sg/2014/05/technical-analysis-altcoins-bitcoin-trading-market-structure-cycle-manipulation.html" target="_blank">this post about Market Manipulation, Crash Cycle, and Market Structure</a>. With all that in mind, let's go on to discuss <b>Mass Market Psychology</b>.<br />
<br />
Let's start off by watching a short video, first of a four part series, about <a href="https://youtu.be/5DZYwMJPQJI" target="_blank">Mass Market (Investor) Psychology in the Markets by David Driscoll on Youtube</a>. See it below:<br />
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<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/5DZYwMJPQJI" width="420"></iframe><br />
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Here are a couple of other insightful videos about Mass Market Psychology in Trading, by popular names like Mark Douglas, and Chris Dunn.<br />
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<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/GhKJ9P3agRc" width="420"></iframe>
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<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/WAhWvHh1-Yk" width="560"></iframe>
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<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/pjhoKdq_diU" width="560"></iframe>
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<i><br /></i>
<i>"You can think of it as bull trends take the stairs up, and bear trends take the elevator down. One's slow and steady, the other is quick and violent. These predictable moves in the market are mostly created by human emotion. Fear is stronger than greed. People get greedier and greedier as the price moves up, but are quick to panic at any sign of danger. Because of this, markets tend to give back their gains in a fraction of the time it took for the bull market to play out. There is no single "right way" to identify the trend, but the two most important factors are price action and volume. Price action is another word for analyzing the movement of price on a chart. Volume refers to the amount of Bitcoins traded during that price bar. For a trend to be considered healthy, there needs to be steady price action with increasing or maintained volume.</i><br />
<br />
<i>The key to being on the right side of the trade is to understand what the mass majority of people are thinking, and anticipate their next move. That's where the money is made in trading. As Warren Buffett says, "Be scared when people are greedy, and greedy when people are scared."</i><br />
<br />
<i>Sell when everyone else is Buying. Traders like to wait to buy into a market once the trend is already cut and dry. The only problem is this is normally when the trend is near its peak. The best time to sell Bitcoin or Altcoin is when the price has a parabolic spike upwards. Once a trend starts to get stronger and stronger, hype sets in and price reaches an inflection point where the amount of buying is unsustainable. Just like we see with exaggerated panics, over exuberant bullish trends also end with a strong reversal."</i><br />
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This picture shows the psychology that pretty much governs all markets. <a href="https://t.co/T6Rtm2zIUf">pic.twitter.com/T6Rtm2zIUf</a> via <a href="https://twitter.com/StockTwits">@StockTwits</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/693614470661275648">January 31, 2016</a></blockquote>
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With this information about mass psychology behind the market participants that you are competing with, you should now have a better understanding of the framework used to approach trading, be more well-versed in the structure of a pump & dump, and understand why and how price action is fueled by human behavior and their decisions.<br />
<br />
<br />
<u><b>Technical Analysis Tools: Basics</b></u><br />
<br />
While understanding market structure, crash cycles, and mass market psychology helps greatly on a macro-level by providing an overarching framework with which to approach trading, the technical analysis tools such as Support and Resistance, are critical on a micro-level, in the planning and execution phases of trading, for example to determine entry and exit prices.<br />
<br />
I previously went through this topic in greater detail in these blog posts, so please refer to them if you're interested to learn more about technical analysis basics:<br />
<ul style="text-align: left;">
<li><a href="http://alunacrypto.blogspot.sg/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">Embarking on my Bitcoin Trading Journey: Learn Basic Technical Analysis</a></li>
<li><a href="http://alunacrypto.blogspot.sg/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html" target="_blank"></a><a href="http://alunacrypto.blogspot.sg/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html" style="font-family: times;" target="_blank">How to Develop a Profitable Bitcoin & Altcoins Daytrading Strategy - Fundamental & Technical Analysis - An Intermediate Tutorial</a></li>
</ul>
Surprisingly after learning trading for 5 years, the most common tool I use is the most basic of all tools, the line and rectangle tools. I mostly look at support/resistance and volume to analyze charts and price action.<br />
<br />
So firstly, lets touch briefly on <b>Support & Resistance</b>. Although S/R lines are one of the most basic of tools, it is imperative that you learn it well. S/R is a crucial tool that you can use to determine your entry and exits, and mastering it can help you to significantly optimize your buying and selling prices, and seriously increase your profit margins.<br />
<br />
Here's an example of how I apply the fundamentals of Support and Resistance to trading altcoins, with my VanillaCash (XVC) chart below. Notice how I mark out horizontal zones which were either previous tops or bottoms, or had multiple rejections when price moved near it. The purpose of having these S/R zones in places is so that you know where price action is most likely to get rejected, and you'll be able to plan your entry and exits accordingly.<br />
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Hello <a href="https://twitter.com/search?q=%24XVC&src=ctag">$XVC</a>. Welcome the Chainblender & Rebranding Pump to <a href="https://twitter.com/hashtag/VCash?src=hash">#VCash</a>. <a href="https://twitter.com/Vanillacoin1">@Vanillacoin1</a> <a href="https://twitter.com/hashtag/VanillaCoin?src=hash">#VanillaCoin</a> <a href="https://twitter.com/search?q=%24VNL&src=ctag">$VNL</a> <a href="https://t.co/X702sWPaGe">pic.twitter.com/X702sWPaGe</a></div>
</blockquote>
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— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/703409730077618176">February 27, 2016</a></blockquote>
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If you'd like to learn more, here's a simple <a href="http://www.babypips.com/school/elementary/support-and-resistance-levels/support-and-resistance.html" target="_blank">tutorial by Babypips about Support and Resistance</a>, as well as <a href="http://www.theforexguy.com/how-to-draw-support-and-resistance/" target="_blank">another useful resource from The Forex Guy</a>.<br />
<br />
Secondly, <b>Volume</b> is another important aspect of a chart and price action. It represents market interest in a particular stock, and higher volume relative to other trading periods usually represents higher volatility. Volume and breakouts also come hand in hand, so it is crucial you understand both concepts. To learn more, visit <a href="http://www.investopedia.com/articles/technical/02/010702.asp" target="_blank">Investopedia's page about Using Volume To Improve Your Trading</a>, and <a href="http://tradingsim.com/blog/volume-analysis-technical-indicator/" target="_blank">Tradinsim's 4 Simple Volume Trading Strategies</a>. Learn about <a href="http://www.babypips.com/school/high-school/trading-breakouts-and-fakeouts/trading-breakouts.html" target="_blank">how to trade breakouts with Babypip's short tutorial.</a><br />
<br />
Thirdly, <b>Chart Patterns</b> are the bread and butter of any trader, and you must train your eyes and mind to spot these patterns, understand what they mean, and know how to act accordingly. Instead of thinking about patterns as a way of determining whether price goes up or down, think of chart patterns as regions of consolidation, whereby breaking outside of the pattern can lead to a sustained breakout with volume. Always let price action tell you what to do, rather than predict where the price is going ahead of time. If your position goes underwater, make sure to follow your trading rules and cut your losses when they go beyond your threshold, as laid out by the parameters of your trading rules and strategy. Here's an exhaustive list of chart patterns all in one place:<br />
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Trading Technical Analysis Patterns Cheat Sheet <a href="https://twitter.com/hashtag/TA?src=hash">#TA</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="https://twitter.com/hashtag/forex?src=hash">#forex</a> <a href="https://t.co/YU9g5iKxvk">pic.twitter.com/YU9g5iKxvk</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/665547006669012992">November 14, 2015</a></blockquote>
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Chart Patterns 101: <a href="https://t.co/pyzlHf5gQo">pic.twitter.com/pyzlHf5gQo</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/702292985959075840">February 24, 2016</a></blockquote>
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.<a href="https://twitter.com/slarratt1">@slarratt1</a> <a href="https://twitter.com/DianaEPatterson">@DianaEPatterson</a> <a href="https://twitter.com/hashtag/MRO?src=hash">#MRO</a> <a href="https://twitter.com/hashtag/Investing?src=hash">#Investing</a> patience & charm of breakouts <a href="https://twitter.com/omkarvaikul">@omkarvaikul</a> Some classic Chart patterns <a href="https://t.co/M4WkMXWy5N">pic.twitter.com/M4WkMXWy5N</a></div>
— conkers (@conkers3) <a href="https://twitter.com/conkers3/status/700686373129302017">February 19, 2016</a></blockquote>
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Candlestick Patterns: <a href="https://t.co/Zpb227DqAm">pic.twitter.com/Zpb227DqAm</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/707013291139149824">March 8, 2016</a></blockquote>
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Chart patterns <a href="https://t.co/4Awpy1IgMI">pic.twitter.com/4Awpy1IgMI</a></div>
— Tom Dante (@Trader_Dante) <a href="https://twitter.com/Trader_Dante/status/691581364370538496">January 25, 2016</a></blockquote>
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Basic chart patterns: <a href="https://t.co/5wl2mZREE8">pic.twitter.com/5wl2mZREE8</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/703617219905921025">February 27, 2016</a></blockquote>
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<blockquote class="twitter-tweet" data-lang="en">
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The anatomy of 8 basic chart patterns and their optimal entry -> <a href="https://t.co/y2qfU1RzLk">pic.twitter.com/y2qfU1RzLk</a> via <a href="https://twitter.com/StockTwits">@StockTwits</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/689981771795030016">January 21, 2016</a></blockquote>
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Bulkowski's candlestick odds: <a href="https://t.co/FdiKcShCG1">pic.twitter.com/FdiKcShCG1</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/699049911531237376">February 15, 2016</a></blockquote>
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I'd like to highlight just one particular chart pattern that's pervasive throughout the cryptocurrency markets, has a high probability setup, and is highly effective. I'm not entirely sure what it's called, but it is similar to <a href="http://thepatternsite.com/BustTripleTops.html">Bulkowski's Busted Tripe Tops</a> chart pattern. What I've noticed over the last couple of months is that 4 times seems to be a magic number for breakouts. Notice how in the following charts, price action remains within a certain zone as boxed up in the photos below, and it challenges resistance at least 4 times before breaking out strongly. How you can trade this, is to buy towards the end of the rectangle, once relatively higher volume starts to kick in after a period of relatively low and stable volume.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgP3cSKludFlPpPBeeNz3bGcjSaa_nl0iyvPPXs0qPU5vliLwzOSbtjoVUSlIsy1FiaP1Bju4dOjC3S1NsPhaUJpKUJR2Rlyu74FtXnuHK3wEMcmsXOeRyUedhOh8JUhIRb2iJ-vzM8dw3E/s1600/20160330+Triple+Top+BTC.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="286" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgP3cSKludFlPpPBeeNz3bGcjSaa_nl0iyvPPXs0qPU5vliLwzOSbtjoVUSlIsy1FiaP1Bju4dOjC3S1NsPhaUJpKUJR2Rlyu74FtXnuHK3wEMcmsXOeRyUedhOh8JUhIRb2iJ-vzM8dw3E/s400/20160330+Triple+Top+BTC.PNG" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEia-25xQk5x_i-v67BPXLn7aJpXozzFDNCDxbq_SzV4AaWf_Hytr4VZZRTcPg1kuNzx94TugAFNUqUh1PiS8yCPszcRSUrUURNc-by7NOmzm5L0VoJv98379bqgnu_3V9aZt2HlPDNn4Iaw/s1600/20160330+Triple+Top+XVC.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="278" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEia-25xQk5x_i-v67BPXLn7aJpXozzFDNCDxbq_SzV4AaWf_Hytr4VZZRTcPg1kuNzx94TugAFNUqUh1PiS8yCPszcRSUrUURNc-by7NOmzm5L0VoJv98379bqgnu_3V9aZt2HlPDNn4Iaw/s400/20160330+Triple+Top+XVC.PNG" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjutCGFrobtlOpRDsWWev93X4DzljZTOpfo47XEbStB8V4zJN8bicwM25RMIRM6ky6OaPBDOWzJ2uEHeuvSeRy6Fuwbroe7G3CnDWYBGiEPJMx8R2-f20driErhVURlIKfv21vnp3Qcvdh4/s1600/20160330+Triple+Top+XEM.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjutCGFrobtlOpRDsWWev93X4DzljZTOpfo47XEbStB8V4zJN8bicwM25RMIRM6ky6OaPBDOWzJ2uEHeuvSeRy6Fuwbroe7G3CnDWYBGiEPJMx8R2-f20driErhVURlIKfv21vnp3Qcvdh4/s400/20160330+Triple+Top+XEM.PNG" width="400" /></a></div>
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More recently, Digibyte DGB has also formed this area of consolidation, and is looking very similar to XEM before it broke above 200, as shown in the 2nd box as above. <a href="https://twitter.com/onemanatatime/status/715036718525755392">Will history repeat itself again?</a><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmYWoFtdLTjpadGQ1zbXkl4JOT6Imfv5Yy_hcWf6ld77kO_yJ-16qImcY8fs6YVvS1gEqrmmhH-gTmIdFzq8lVFJTmKQsci6Eb5U5_XsEivPIQgMA-fwoUs0nhBlVsEEHebqjm16RwClKC/s1600/20160330+Triple+Top+DGB.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmYWoFtdLTjpadGQ1zbXkl4JOT6Imfv5Yy_hcWf6ld77kO_yJ-16qImcY8fs6YVvS1gEqrmmhH-gTmIdFzq8lVFJTmKQsci6Eb5U5_XsEivPIQgMA-fwoUs0nhBlVsEEHebqjm16RwClKC/s400/20160330+Triple+Top+DGB.PNG" width="400" /></a></div>
<br />
For more information about the basics of technical analysis and tools, make sure to check out these posts:<br />
<ul style="font-family: times;">
<li><a href="http://alunacrypto.blogspot.sg/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">Embarking on my Bitcoin Trading Journey: Learn Basic Technical Analysis</a></li>
<li><a href="http://alunacrypto.blogspot.sg/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html" target="_blank">How to Develop a Profitable Bitcoin & Altcoins Daytrading Strategy - Fundamental & Technical Analysis - An Intermediate Tutorial</a></li>
</ul>
<u><br /></u>
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<u><b>Technical Analysis Tools: Advanced</b></u><br />
<br />
When it comes to advanced technical analysis tools, the most common ones that come to mind include:<br />
<ul style="text-align: left;">
<li>Fibonacci Retracement & Extension</li>
<li>Harmonics</li>
<li>Elliott Wave</li>
</ul>
<i>"We never know where the bottom is going to be, but there is always means of seeing signs of a recovery. Fibonacci can be used for targets after breaking ATH."</i><br />
<br />
I will not go into detail about these 3 advanced technical analysis tools, as I have already covered them in my blog post: <a href="http://alunacrypto.blogspot.sg/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html" style="font-family: times;" target="_blank">How to Develop a Profitable Bitcoin & Altcoins Daytrading Strategy - Fundamental & Technical Analysis - An Intermediate Tutorial</a>.<br />
<br />
For this post, I will instead focus on the <b>Wyckoff Market Analysis</b> tool.<br />
(source: <a href="http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:wyckoff_market_analy">stockcharts.com</a>)<br />
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Wyckoff focuses exclusively on price action. Earnings and other fundamental information were simply too esoteric and imprecise to be used effectively. Moreover, this information was usually already factored into the price by the time it became available to the average speculator. Before looking at the details, there are two rules to keep in mind. These rules come directly from the book, <i>Charting the Stock Market: The Wyckoff Method</i>, by Jack K. Hutson, David H. Weiss and Craig F. Schroeder.<br />
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Rule One: Don't expect the market to behave exactly the same way twice. The market is an artist, not a computer. It has a repertoire of basic behavior patterns that it subtly modifies, combines and springs unexpectedly on its audience. A trading market is an entity with a mind of its own.<br />
<br />
Rule Two: Today's market behavior is significant only when it's compared to what the market did yesterday, last week, last month, even last year. There are no predetermined, never-fail levels where the market always changes. Everything the market does today must be compared to what it did before.<br />
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Instead of steadfast rules, Wyckoff advocated broad guidelines when analyzing the stock market. Nothing in the stock market is definitive. After all, stock prices are driven by human emotions. We cannot expect the exact same patterns to repeat over time. There will, however, be similar patterns or behaviors that astute chartists can profit from. Chartists should keep the following guidelines in mind and then apply their own judgments to develop a trading strategy.<br />
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<b>Wyckoff Price Cycle</b><br />
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According to Wyckoff, the market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time. As a broker, he was in a position to observe the activities of highly successful individuals and groups who dominated specific issues, and was able to decipher, through the use of what he called vertical (bar) and figure (point-and-figure) charts, the future intentions of those large interests. An idealized schematic of how he conceptualized the large interests’ preparation for and execution of bull and bear markets is depicted in the figure above. The time to enter long orders is towards the end of the preparation for a price markup or bull market (accumulation of large lines of stock), while the time to initiate short positions is at the end of the preparation for price markdown.<br />
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<b>Wyckoff Market Cycle</b><br />
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Before making a trading or investment decision, chartists need to know where the market is within its trend. Overbought markets are at risk of a pullback and positions taken with overbought conditions risk a significant drawdown. Similarly, the chances of a bounce are high when the market is oversold, even if the bigger trend is down. Selling short when market conditions are oversold can also result in a significant drawdown and adversely affect the risk-reward ratio.<br />
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<b>Wyckoff: Accumulation, Breakout, and Markup</b><br />
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Wyckoff notes that an uptrend starts with an accumulation phase and then enters a markup phase as prices move steadily higher. There are five possible buy points during the entire uptrend. First, aggressive players can buy on the spring or selling climax. This area offers the highest reward potential, but the risk of failure is above average because the downtrend has not yet reversed. The second buy point comes with the breakout above resistance, provided it is confirmed by expanding volume. Chartists missing the breakout buy point are sometimes given a second chance with a throwback to broken resistance, which turns into support.<br />
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Once the markup stage is fully under way, chartists must then rely on corrections, which can form as consolidations or pullbacks. Wyckoff referred to a flat consolidation within an uptrend as a re-accumulation phase. A break above consolidation resistance signals a continuation of the markup phase. In contrast to a consolidation, a pullback is a corrective decline that retraces a portion of the prior move. Chartists should look for support levels using trend lines, prior resistance breaks or prior consolidations. Alternatively, Wyckoff also looked for support or reversal signs when the correction retraced 50% of the last up leg.<br />
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<b>Wyckoff: Distribution, Breakdown and Markdown</b><br />
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A downtrend starts with a distribution phase and then enters a markdown phase as prices move steadily lower. Note that Wyckoff did not shy away from shorting the market. He looked for opportunities to make money on the way up and on the way down. As with the accumulation and markup phase, there are five potential selling points during this extended downtrend. First, a lower peak within a distribution pattern offers a chance to short the market before the actual support break and trend change. Such aggressive tactics offer the highest reward potential, but also risk failure because the downtrend has not officially started. The breakdown point is the second level to short the market, provided the support break is validated with expanding volume. After a breakdown and oversold conditions, there is sometimes a throwback to broken support, which turns into resistance. This offers players a second chance to partake in the support break.<br />
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Once the markdown phase begins in earnest, chartist should wait for flat consolidations or oversold bounces. Wyckoff referred to flat consolidations as re-distribution periods. A break below consolidation support signals a continuation of the markdown phase. In contrast to a consolidation, an oversold bounce is a corrective advance that retraces a portion of the prior decline. Chartists can look for resistance areas using trend lines, prior support levels or prior consolidations. Wyckoff also looked for resistance or reversal signs when the correction retraced 50% of the last down leg.<br />
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<a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> bulls probably crossing their fingers for this right now. <a href="https://t.co/9b79Iudubw">pic.twitter.com/9b79Iudubw</a></div>
— Pizpie (@mBTCPizpie) <a href="https://twitter.com/mBTCPizpie/status/700789262183178240">February 19, 2016</a></blockquote>
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The <b>Wyckoff Market Cycle</b> is a very powerful and practical tool that you can learn to improve your macro-level understanding of markets and price action. If you're interested to explore the Wyckoff theory further, check out <a href="http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:the_wyckoff_method" target="_blank">Stockchart's introduction and tutorial to the Wyckoff Method</a>, <a href="http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:wyckoff_market_analy" target="_blank">this detailed Stockcharts tutorial on Wyckoff Market Analysis</a>, and also the idea of <a href="http://stockcharts.com/articles/wyckoff/" target="_blank">"Distribution Power Waves"</a>, an extension of the Wyckoff Cycle, which focuses more on wave analysis, much like that of accumulation and distribution analysis.<br />
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<br />
<u><b>Fundamental Analysis: Cryptocurrency Characteristics</b></u><br />
<br />
In my most popular blog post about <span style="color: #0000ee; text-decoration: underline;"><a href="http://alunacrypto.blogspot.sg/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html" target="_blank">How to Pick & Trade the Next Profitable Altcoin: An Insight into What Goes Through my Mind</a></span>, I go into great detail about the fundamentals of cryptocurrencies, other fundamental factors that affect an altcoin's price, popularity and success, as well as some technical analysis and trading tips to help you mould an effective trading strategy. The cryptocurrency space has changed tremendously in the 2 years since that post, so I'd like to make an update of the post, explore the fundamentals of cryptocurrencies and the various types of altcoins by grouping them according to their technical specifications and functions.<br />
<br />
When it comes to the fundamentals of cryptocurrencies, there are 4 overarching factors that contribute to the technical specifications, characteristics, and technological potential of a cryptocoin.<br />
<ul style="text-align: left;">
<li>Algorithm</li>
<li>Smart contracts / DApps</li>
<li>Theme of problem altcoin is trying to solve</li>
<li>Privacy / Anonymity</li>
</ul>
<b><br /></b>
<b>1. Algorithm</b><br />
<b><br /></b>
There are more than 10 different algorithms used in the 1000s of cryptocurrencies out there, but I'll only focus on a select few.<br />
<ul style="text-align: left;">
<li>SHA-256</li>
<li>Scrypt</li>
<li>X11 / X13 / Multi-algos</li>
<li>Blake-256</li>
<li>Ethash</li>
<li>zk-SNARK</li>
</ul>
SHA-256 was developed by the NSA in 2001, and is the algorithm used to develop the first decentralized cryptographic currency, Bitcoin, as well as many others since. The SHA-256 algorithm is highly secure, and is used globally by huge financial corporations, and even for the launch codes for nuclear missiles. The downside of using this algorithm is the large amount of computing power that is "wasted" in mining Bitcoin. On the other hand, this enormous and growing computing power backing the Bitcoin network is also what keeps it secure from 51% attacks.<br />
<br />
Scrypt, as most of you should know, is the algorithm used in Litecoin. Scrypt is quicker and more simple when compared to SHA-256, making it much easier to run on a CPU and tends to use up less energy than SHA-256; as a result, it's favored by most individual miners. Read up on the <a href="https://www.coinpursuit.com/pages/bitcoin-altcoin-SHA-256-scrypt-mining-algorithms/" target="_blank">difference between SHA-2156 and Scrypt in this article on CoinPursuit</a>.<br />
<br />
X11 is a chained proof-of-work algorithm that uses 11 different rounds of hashes to secure cryptocurrencies and their transactions, namely blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd, and echo. This makes it ASIC-resistant, and more secure to 51%-attacks. It has the advantage of a multi-hash system, meaning that in order for the algorithm to fail, all eleven of its hashes would have to fail at the same time, resulting in higher security of the network. Taking into account the very minute probability that even one hash would be broken, the chance of the X11 system failing becomes almost zero. <a href="http://blockgen.net/sha256-vs-scrypt-vs-x11-algorithms/" target="_blank">Read more about the comparison of X11 with SHA-256 and Scrypt.</a> X11 was first used in DASH (formerly DarkCoin).<br />
<br />
Blake-256 is a lightweight algorithm used in Blakecoin, and mining it produces a hashrate just under 3x faster on the GPU than compared to SHA-256. Energy efficiency is a primary advantage; mining Blake-256 uses roughly 3% less electricity than SHA-256D and roughly 14% less electricity than mining Scrypt. Blake-256 is also capable of generating considerably more hashes per second than most, if not all, other hashing algorithms. <a href="https://www.reddit.com/r/CryptoCurrency/comments/1xue3t/blakecoin_blake256_optimized_faster_than_scrypt/" target="_blank">Read more about Blake-256 and Blakecoin here.</a><br />
<br />
Ethash is the algorithm used when Ethereum launched on 30 July 2015 with Proof-of-Work (PoW) mining. However, Ethereum has a mining period of only 16 months before it changes to a full Proof-of-Stake (PoS) network. I have shared some PoW vs PoS resources below for your reference.<br />
<br />
Lastly, zk-SNARK (short for "zero-knowledge Succinct Non-interactive ARgument of Knowledge") is the algorithm used in ZeroCash (ZCash) which is slated to launch in Q3 2016. zk-SNARK enables true decentralized anonymity when sending money. The algorithm allows for zero-knowledge proofs, i.e. you can prove a non-fact (you can prove something, without knowing what it is). For example, say I have the key, the network will run an agreed-upon arbitrary script to check the key is real, without any human learning the info about the key. This removes the middleman from the transaction entirely, while maintaining the integrity of the transaction such that there is no way either party can be cheated.<br />
<br />
The way it works in ZCash is I can prove I have the coins, without revealing my own address, the amount of coins or receiving address to the blockchain. What I mean by that is the network is able to prove something is true without giving away any extra information. Say you have a key for a game; it's a long string of characters, and someone wants to buy it off of you. You create a script that proves the key is valid, the script then is given to the network, and the network gives an address to each counterparty. You send the key, the other party sends a payment, and the network now acts as the middleman. The script then goes to the site of the game and asks if the key is legit. The site says yes, so the proof is returned true without anyone learning what the key is. The network then releases the payment to the seller, and the key to the buyer. If it returns false then the transaction is reversed, and at no point does either party get the address of the other person. It's a bit more complicated that that when it comes to ZCash, but that should give you the basic idea. A similar thing could be implemented on any blockchain using smart contracts, but only within the smart contracts - not the cryptocurrency itself. That's why zerocash is special and has to be made from the ground up.<br />
<br />
As far as I understand, the only real issues with ZCash is the centralized "launch" , and that if there ever is an error with the mining, distribution or transactions, we will never really know...<br />
<br />
Shoutout to <a href="https://twitter.com/Cryptopathic" target="_blank">@Cryptopathic</a> who helped me with this TL;DR on ZeroCash and zk-SNARK, follow him if you haven't already for awesome altcoin calls.<br />
<br />
<b>Proof-of-Work (PoW) vs Proof-of-Stake (PoS)</b><br />
<br />
I have explained this before in my old blog post, so I will not go into this in detail here. However, here are some resources for you to read up on if you're interested to understand the technical details of PoW vs PoS mining.<br />
<ul style="text-align: left;">
<li><a href="https://en.bitcoin.it/wiki/Proof_of_Stake" target="_blank">Proof-of-Stake Wiki</a></li>
<li><a href="https://bytecoin.org/blog/proof-of-stake-proof-of-work-comparison/" target="_blank">Bytecent: PoW vs PoS comparison</a></li>
<li><a href="https://www.coinpursuit.com/pages/proof-of-work-proof-of-stake-bitcoin-mining/" target="_blank">Coinpursuit: PoW vs PoS mining</a></li>
<li><a href="https://bitcoinmagazine.com/articles/what-proof-of-stake-is-and-why-it-matters-1377531463" target="_blank">Vitalik Buterin: What PoS is and why it matters</a></li>
</ul>
<b><br /></b>
<b>2. Smart contracts / Dapps</b><br />
<br />
Smart contracts and DApps (Decentralized Apps) have become a hot topic of discussion in cryptocurrencies especially in 2015 and 2016, ever since Ethereum popularized the idea. The possibility of smart contracts and DApps is also present in other alternative cryptocurrencies such as Expanse (EXP), and LISK which recently just competed its ICO and is slated to launch on 11 April 2016.<br />
<br />
<a href="https://en.wikipedia.org/wiki/Smart_contract" target="_blank">According to Wikipedia</a>, smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Smart contracts usually also have a user interface and often emulate the logic of contractual clauses. In short, as <a href="https://e27.co/now-herald-age-blockchain-smart-contracts-20160120/" target="_blank">Ong from e27 puts it</a>, a smart contract is a computer programme that automatically executes a contract between two parties.<br />
<br />
<a href="https://lisk.zendesk.com/hc/en-us/articles/207850395-What-is-the-difference-between-decentralized-applications-dapps-and-smart-contracts-" target="_blank">What is the difference between decentralized applications, dapps and smart contracts?</a> According to Max Kordek of LISK, decentralized applications consist of the whole package of frontend (what you see of an application) and backend (the logic in the background). A smart contract on the other hand, consists only of the backend, and often only a small part of it. That means if you want to create a decentralized application on a smart contract system (i.e. not on Lisk the dapp platform), you have to combine several smart contracts and rely on 3rd party systems for the frontend.<br />
<br />
<a href="https://en.wikipedia.org/wiki/Decentralized_autonomous_organization#Decentralized_applications_.28Dapps.29" target="_blank">Wikipedia defines a smart contract</a> as the simplest form of decentralized automation. It is a mechanism involving digital assets and two or more parties, where some or all of the parties put assets in and assets are automatically redistributed among those parties according to a formula based on certain data that is not known at the time the contract is initiated. A decentralized application is similar to a smart contract, but different in two key ways. First of all, a decentralized application has an unbounded number of participants on all sides of the market. Second, a decentralized application need not be necessarily financial. BitTorrent qualifies as a decentralized application, as do Popcorn Time, Tor, Maidsafe and Crypti (note that Maidsafe and Crypti are also platforms for other decentralized applications).<br />
<br />
New alternative cryptocurrencies that attempt to develop a working smart contract / DApp platform will garner strong support from the community. Keep a close watch for coins that fall into this category (as well as new launches), as they can potentially be highly profitable trades, provided you analyze, plan, and execute your trade well.<br />
<br />
<b>Related: </b><a href="https://www.cryptocoinsnews.com/smart-contracts-future-blockchain/" target="_blank">Are Smart Contracts The Future Of Blockchain?</a><br />
<br />
<b><br /></b>
<b>3. Theme of problem altcoin is trying to solve</b><br />
<br />
Instead of grouping coins by algorithm, we can also group them according to their "function" and "type of problem/solution". Here's a non-exhaustive list that you can use as a guide.<br />
<ul style="text-align: left;">
<li>Smart contracts - Ethereum</li>
<li>Dapps - Applications on the blockchain - ETH, EXP, LISK, VIA</li>
<li>Decentralized storage - MAID, STORJ, SC</li>
<li>Data time stamping - FCT</li>
<li>100% Proof-of-Stake networks - Plenty, e.g. NXT XEM</li>
<li>PoW x PoS combination networks - PPC pioneer, Blackcoin also pioneered and popularized the turbo PoW distribution period into full PoS model.</li>
<li>Anonymous networks - XMR, DASH</li>
</ul>
To stand out from the rest of the alternative cryptocurrencies, there should be practical real-world use attached to the coin. However, many coins lack this, while some have inherently flawed business models when you consider that most people would prefer to use BTC compared to an obscure Altcoin. Examples of coins that have some real-world value include XRP which is used as a transaction medium for financial entities, while GEO provides real world purpose to mining.<br />
<br />
<b><br /></b>
<b>4. Privacy / Anonymity</b><br />
<br />
Anonymity in cryptocurrencies is one of [if not] the most popular topics of discussion among the community. Although privacy and anonymity can be considered as a problem that altcoins are trying to solve, it deserves a whole section on its own due to the complexity of the topic.<br />
<div>
<br /></div>
<div>
Furthermore, there's no correct method to implement anonymity into a system, be it on a protocol level, or a transaction level. As far as I know, Monero currently has the best working solution for anonymity, while DASH can be argued to be second; however, this will change when ZCash launches. I shall not go into detail about this, but instead give you a brief list of the various kinds of anonymity features used by different altcoins. If you're interested, I have linked a few resources about this topic below.</div>
<ul style="text-align: left;">
<li>Cryptonote & Cryptonight - Ring signatures - Monero XMR</li>
<li>Transaction Mixing - Chainblender - VanillaCash XVC </li>
<li>Masternodes Mixing - DASH</li>
<li>Stealth addresses - Transaction level - Vertcoin VTC</li>
<li>P2P anonymization features via PoS protocol extension - Cloakcoin CLOAK</li>
<li>End-to-end encryption and trustless migration design - XCurrency XC</li>
<li>Zero-knowledge proof systems - zk-SNARK - ZCash</li>
</ul>
Resources about anonymity in cryptocurrencies:<br />
<ul style="text-align: left;">
<li><a href="https://99bitcoins.com/anonymous-cryptocurrencies-brief-history/" target="_blank">Anonymous cryptocurrencies: their history in brief</a></li>
<li><a href="http://bitcoin.stackexchange.com/questions/29471/are-there-any-true-anonymous-cryptocurrencies/29473#29473" target="_blank">Are there any true anonymous currencies?</a></li>
<li><a href="https://news.bitcoin.com/meet-top-3-coins-cryptocurrency-anonymity-race/" target="_blank">Meet the Top 3 Coins in the Cryptocurrency Anonymity Race</a></li>
<li><a href="https://m.reddit.com/r/CryptoCurrency/comments/46qrv1/is_dash_drkcoin_really_anonymous/" target="_blank">Is Dash/Darkcoin really anonymous?</a></li>
</ul>
<b><u><br /></u></b>
<b><u>Fundamental Analysis: </u><u>Picking the Next Profitable Altcoin</u></b><br />
<b><u><br /></u></b>
Fundamental analysis provides you with a framework for understanding how a cryptocurrency fares against other alternatives, but will not be able to tell you if it is a good buy or not. Prices are constantly moving up or down. Make no mistake; no matter how great the fundamentals of a cryptocurrency is, you will still need to fall back on charts and technical analysis to determine your trade entries.<br />
<br />
As a general rule of thumb, news is just a distraction and is usually already priced into the chart. However, this is not entirely true in cryptocurrency trading because most cryptocurrency markets are inefficient and information travels slower, compared to global money markets.<br />
<br />
I have previously discussed this topic in depth, in my post titled, <a href="http://alunacrypto.blogspot.sg/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html" target="_blank">How to Pick & Trade the Next Profitable Altcoin: An Insight into What Goes Through my Mind</a>, so feel free to check that out too. I'll be repeating some parts of what I mentioned in that post, while also updating the information with knowledge I have gained over the last years.<br />
<br />
In the fundamental analysis of a cryptocurrency, there are 7 critical factors to consider:<br />
<ol style="text-align: left;">
<li>Developer</li>
<li>Community</li>
<li>Technical Specifications</li>
<li>Innovation</li>
<li>Liquidity (and whales)</li>
<li>Branding & Marketing</li>
<li>Infrastructure</li>
</ol>
When researching about the technical specifications of a cryptocurrency (not to be confused with technical analysis), there is more to consider than just the algorithm. Technical specifications of cryptocurrencies were discussed in the previous chapter, namely about algorithm, but also includes several other critical specifications such as:<br />
<ul style="text-align: left;">
<li>Block time</li>
<li>Maximum coin supply</li>
<li>Distribution plan</li>
</ul>
<br />
At this point, you might be wondering, so how are all these factors related to trading Bitcoin and altcoins? As a guideline, you should stick to only trading altcoins that have "strong" fundamentals, especially if you're new to the game. One way is to score your target altcoin on the 10 factors above, on a score of 1 to 10 and add them up, and see how that fares against other similar coins using the same method of scoring.<br />
<br />
alt.report has detailed qualitative reports on some altcoins whereby they score coins based on 6 factors, not unlike the factors mentioned above, that you can reference for your fundamental analysis. Coingecko.com also has a more macro-level quantitative scoring method where they consider well over 50 factors.<br />
<br />
With that in mind, here are some tools you can use to conduct fundamental analysis when researching on how to pick the next profitable altcoin:<br />
<ul style="text-align: left;">
<li>Bitcointalk.org - for new coin launches, technical specifications of a coin, roadmap and future plans, developer activity and competency, community support and sentiment.</li>
<li>Twitter - a great tool for understanding sentiment of market participants, following market leaders, and a means of communicating with the community.<br />
<blockquote class="twitter-tweet" data-lang="en">
<div lang="en">
Gonna retire frm crypto calls, just follow:<br />
Bitcoin - <a href="https://twitter.com/jackfru1t">@jackfru1t</a><br />
Altcoins - <a href="https://twitter.com/magaura11">@magaura11</a> <a href="https://twitter.com/CointraderGuy">@CointraderGuy</a> <a href="https://twitter.com/bitcoin_dad">@bitcoin_dad</a> <a href="https://twitter.com/altcoinsking">@altcoinsking</a> <a href="https://twitter.com/Crypto_God">@Crypto_God</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/714672862846652416">March 29, 2016</a></blockquote>
Also, follow my twitter list, <a href="https://twitter.com/onemanatatime/lists/altcoin-wizards" target="_blank">Altcoin Wizards</a>, made up of a select group of cream-of-the-crop cyptocurrency traders which you can learn from.</li>
<li>Reddit - besides going to <a href="https://www.reddit.com/r/Bitcoin/" target="_blank">/r/bitcoin</a> for news, <a href="https://www.reddit.com/r/BitcoinMarkets/" target="_blank">/r/bitcoinmarkets</a> and <a href="https://www.reddit.com/r/CryptoMarkets/" target="_blank">/r/cryptomarkets</a> are also great resources for conducting FA and learning Bitcoin & altcoin trading.</li>
<li>Tools - Charts, Coinmarketcap, TradingView/Coinigy/Cryptrader, apps like Blockfolio for tracking multiple cryptocurrency prices.</li>
<li>Exchanges</li>
<ul>
<li>Altcoins: Poloniex & Bittrex are the two leading exchanges, while <a href="https://yobit.net/?bonus=dligy">Yobit.net</a> has many newly launched coins or those with small market capitalizations and liquidity. Poloniex also allows for margin trading for 11 altcoins, giving you a good chance to short altcoins like ETH, XMR and FCT when they're on a downtrend.</li>
<li>Bitcoin: <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj">Bitfinex</a> for up to 3x margin trading, and <a href="https://www.okcoin.com/?invid=2016019">OKCoin</a> for up to 20x leveraged futures trading. <a href="https://www.bitmex.com/register/cYGy1I">BitMEX</a> is a Bitcoin derivative exchange, with futures trading on Bitcoin (up to 100x leverage) and Ethereum (25x leverage).</li>
<li>Global money markets: <a href="https://1broker.com/m/r.php?i=2710">1Broker</a> and <a href="https://simplefx.com/?sfx-r=6ee37c58-f0e3-4634-aada-c2e880069cc0">SimpleFX</a> give you access to trade global markets including Forex, Indices, Commodities, and Stocks, while maintaining your balance in Bitcoin.</li>
</ul>
<li>Telegram and Slack groups</li>
<ul>
<li><a href="http://telegram.me/thecoinfarm">http://telegram.me/thecoinfarm</a></li>
<li><a href="http://telegram.blockfolio.com/">http://telegram.blockfolio.com</a></li>
<li><a href="http://slack.getjumbucks.com/">http://slack.getjumbucks.com/</a></li>
</ul>
</ul>
<div>
<div>
<br />
For a guide to margin trading Bitcoin on exchanges like <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj">Bitfinex</a>, read this post about <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj">Bitfinex</a> from 2014 (still relevant today!): <a href="http://alunacrypto.blogspot.sg/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html" target="_blank">A Beginners Guide to Margin Trading on Bitfinex: Why you Shouldn't be Trading on Exchanges</a>.</div>
<br />
Another important consideration for cryptocurrency trading is to understand how <b>environmental conditions </b>affect a market. For example, late 2013 and early 2014 was a hotbed for altcoin pumps, as Bitcoin was leading the charge in the bull market then. Thereafter, BTC went into a 1.5 year decline which led to the downtrend extending into altcoin markets as well. Similarly, we're currently in an environment similar to that of 2013, and as this BTC bull market plays out, we should continue to see a sustained pump across altcoin markets at least for another 3 months leading up to the BTC halving. In this light, take note of how major media outlets portray a particular cryptocurrency, and consider how it will affect the market, so that you can analyze on a broad scale how healthy a market is.<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="de">
March'16<br />
End: XMR (DASH)<br />
-> Accumulate AMP under 10k<br />
-> DNET under 2k<br />
-> QORA under 11<br />
<br />
April'16<br />
2: XVC (VRC & VTC)<br />
3: FCT/MAID<br />
4: ETH<br />
<br />
-MM</div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/711536387611238400">March 20, 2016</a></blockquote>
<b><u><br /></u></b><b><u>Developing a Profitable & Effective Trading Strategy</u></b><br />
<b><u><br /></u></b>This last chapter will be about applying the framework, TA and FA to develop a personal trading strategy. I'll share 8 strategy tips for you to keep in mind when you develop your trading strategy. Some of you may be asking, what should one focus on while trading, and while learning to trade? Trading can be broken down into three major activities; <b>learning, planning, and executing</b>. After going through this tutorial, I hope I contributed to your learning process, and that you are sufficiently armed with the necessary knowledge to plan your effective trading strategy, and execute it accordingly.<br />
<br />
First of all, there are generally <a href="http://www.investopedia.com/university/how-start-trading/how-start-trading-trading-styles.asp">four types of trading styles</a>, namely Day Trading, Position Trading, Swing Trading, and Scalp Trading. <a href="http://www.forexfactory.com/showthread.php?t=24242">A comparison between the styles, including the pros and cons of each, can be found in this article by ForexFactory.</a><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYaKfTDzaqn42bso79Z430Vyp9nDeKIBZj8Xv2djbSrHFhbx1XjWRbAzijy8l753I-dYjT4LTxKzozmOxs0Qd7TJ59EoIG2cRbF7flMCKcMx0ooluwnX2LqyMRpgQFUJaoTRGG2DTP-wXK/s1600/trading+styles.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="120" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYaKfTDzaqn42bso79Z430Vyp9nDeKIBZj8Xv2djbSrHFhbx1XjWRbAzijy8l753I-dYjT4LTxKzozmOxs0Qd7TJ59EoIG2cRbF7flMCKcMx0ooluwnX2LqyMRpgQFUJaoTRGG2DTP-wXK/s400/trading+styles.PNG" width="400" /></a></div>
<br />
In terms of trade execution, there are three methods of approach; accumulating, buying breakouts, and scalping. Accumulation generally has the longest holding period, while scalping has the shortest. In addition, accumulation will have a higher risk due to direction uncertainty at the point of buying, when compared to buying breakouts, even though the former will give you a better price.<br />
<br />
A common strategy used to approach trading is to "<b>trigger fundamentally, and enter/exit technically</b>". In other words, you should make a decision to trade a market based on a fundamental trigger, but rely on TA to determine your entry/exit. On the other hand, you can also approach it from the reverse way. First, look through charts to find potentially "good looking" charts that are in, or about to begin and uptrend. Thereafter, use FA to validate and justify making the trade, while eliminating potential trades that have poor fundamentals. To get a better idea, here are two short articles by <a href="http://www.investopedia.com/university/forex-rules/rule4.asp">Investopedia </a>and <a href="http://www.futuresindextrader.com.au/blog/02-18-16/trigger-fundamentally-enter-and-exit-technically">FuturesIndexTrader</a>.<br />
<br />
Next, when it comes to planning your strategy, there are two key factors to consider:<br />
<ul style="text-align: left;">
<li>Risk Management - Never risk more than you can afford to lose, and never go all-in on a single trade. </li>
<li>Money Management - Set a % limit of your BTC portfolio that you can afford on each trade. As a rule of thumb, most traders risk up to 2% of their portfolio on any single trade. However, this may be too conservative for trading cryptocurrencies, so you may want to adjust it according to your own risk appetite.</li>
</ul>
<br />
In terms of execution, an important concept is to use <b>multiple time-frames, </b>or a <b>top-down analysis</b>, to analyze charts and price action. When trading, you always want to look at at least 2 different time frames; a larger one to get a better picture of the macro trend, and a smaller time frame to determine your entries and exits. Never be so focused on the short term trend that you forget about the long term or higher time-frame trend. E.g. Bitcoin might look like a good short on a small time frame. but if you zoom out to the daily or even the 3d candles, you'll see a totally different picture; mega bull. The idea of <b>fractals </b>is also related to this, where we have a "wave within a wave within a wave"<br />
<br />
Timing is key. The trick is to know when to get in and out of the markets at the <b>right time</b>. Get out too early and you'll cut your profits short, get out too late and you'll lose money. This is why it's important to have the right timing. Furthermore, I'd very much rather buy some coin 5 minutes before it pumps, at a worse price, than buy it at a very good price, but having to wait weeks or months before it starts to move, not to mention the increased uncertainty of the move and risk associated with "buying the bottom". Afterall, markets are 99% watching/planning and 1% executing, so practice patience when trading, and wait for the "right time" to enter a trade and you will be rewarded handsomely. <a href="http://www.forextraders.com/forex-strategy/trade-timing-entry-exit-points.html">Here's a short article about trade timing and how to decide entry/exit points.</a><br />
<br />
Focus on not losing. To win at trading, as paradoxical as it seems, happens only after you’re able to come to the realization that it's really not about focusing on making a winning trade. Instead, what really matters is NOT losing, or at least to minimize losses, and that's your first step to winning.<br />
<br />
Lastly, it is essential that you plan your exit before you even enter a trade. If you don’t, you will be consumed by emotions before you can devise a logical and evolving strategy as the trade is “live”.<br />
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
<div dir="ltr" lang="en">
Riding the waves <a href="https://twitter.com/search?q=%24ETH&src=ctag">$ETH</a> <a href="https://twitter.com/search?q=%24XMR&src=ctag">$XMR</a> <a href="https://twitter.com/search?q=%24MAID&src=ctag">$MAID</a> <a href="https://twitter.com/search?q=%24XEM&src=ctag">$XEM</a> <a href="https://twitter.com/search?q=%24STR&src=ctag">$STR</a> <a href="https://twitter.com/search?q=%24BTS&src=ctag">$BTS</a> <a href="https://twitter.com/search?q=%24XRP&src=ctag">$XRP</a> <a href="https://twitter.com/search?q=%24VNL&src=ctag">$VNL</a>. <br />
And ready for the Altcoin Exit Pump. <a href="https://twitter.com/hashtag/whalewhisperer?src=hash">#whalewhisperer</a> <a href="https://t.co/EBRx4b4Qsg">pic.twitter.com/EBRx4b4Qsg</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/706031234518941696">March 5, 2016</a></blockquote>
<br />
To conclude, here are some resources that have helped me tremendously in becoming a better trader, so make sure to check them out:<br />
<ul style="text-align: left;">
<li><a href="http://www.babypips.com/school" target="_blank">Babypip's beginner's guide to forex trading</a></li>
<li><a href="https://www.youtube.com/user/chrisdunntv/videos" target="_blank">Chris Dunn's YouTube channel</a></li>
<li><a href="https://www.youtube.com/user/4xTradersLIVE/videos" target="_blank">Jason Stapleton's YouTube channel</a></li>
<li><a href="https://youtu.be/GhKJ9P3agRc" target="_blank">Mark Douglas' YouTube video about market psychology</a></li>
<li><a href="https://youtu.be/5DZYwMJPQJI" target="_blank">David Driscoll's YouTube video series about market psychology</a></li>
<li><a href="http://theinnercircletrader.com/Tutorials.htm" target="_blank">Inner Circle Trader's video tutorial series</a></li>
<li><a href="https://cryptofrenzy.files.wordpress.com/2014/02/god.pdf" target="_blank">Wolong's eBook The Game of Deception</a></li>
</ul>
With that, I have come to the end of my lengthy, but hopefully informative post about trading Bitcoin and Altcoins. I hope what I shared will be useful for you, and that you'll familiarize yourself with the concepts and tools, and eventually be able to apply them and make a profit trading anything from Bitcoin to altcoins, and even other money markets like forex, commodities, indices and penny stocks.<br />
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Having a plan is one thing.<br />
Sticking to it is another. <a href="https://t.co/e6cLoZLXCE">pic.twitter.com/e6cLoZLXCE</a></div>
— Tom Dante (@Trader_Dante) <a href="https://twitter.com/Trader_Dante/status/687955923227164672">January 15, 2016</a></blockquote>
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Learning to trade is a process: <a href="https://t.co/v5zQxzbYdK">pic.twitter.com/v5zQxzbYdK</a></div>
— Steve Burns (@SJosephBurns) <a href="https://twitter.com/SJosephBurns/status/703619885482512385">February 27, 2016</a></blockquote>
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<blockquote class="twitter-tweet" data-lang="en">
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Friendly reminder. :) <a href="https://t.co/jhhlhrq33o">pic.twitter.com/jhhlhrq33o</a></div>
— Crypto฿ull (@Crypto_God) <a href="https://twitter.com/Crypto_God/status/706131713773150208">March 5, 2016</a></blockquote>
<blockquote class="twitter-tweet" data-lang="en">
<div dir="ltr" lang="und">
<a href="https://twitter.com/hashtag/trading?src=hash">#trading</a> <a href="https://twitter.com/hashtag/funny?src=hash">#funny</a> <a href="https://twitter.com/hashtag/stocks?src=hash">#stocks</a> <a href="https://twitter.com/hashtag/meme?src=hash">#meme</a> <a href="https://twitter.com/hashtag/truth?src=hash">#truth</a> <a href="https://t.co/bMYibK88rv">pic.twitter.com/bMYibK88rv</a></div>
— Swing Trade Warrior (@SwingWarrior) <a href="https://twitter.com/SwingWarrior/status/670449540156268544">November 28, 2015</a></blockquote>
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<h3 style="text-align: center;">
Thank you for taking the time to read to the end of this lengthy post! It was a pleasure to share my experience and knowledge about Bitcoin and Altcoins trading, and I trust that I have sufficiently armed you with all the necessary tools and foundation to get you started on your cryptocurrency trading journey. All the best! </h3>
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Yours Sincerely,<br />Alvin Lee<br /><a href="http://twitter.com/onemanatatime" target="_blank">@onemanatatime</a></h3>
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I hope this post and other material on my blog and twitter teaches you how to approach trading markets such as Bitcoin and Altcoins, provides you with valuable, practical, and effective tutorials and insights that is easily understood and applied, and enables you to develop a profitable trading strategy that is tailored to your personal requirements and risk appetite. </h3>
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Thank you for your support! If you like my work and would like to see more, consider contributing a coffee in Bitcoins to me at:<br /><u>1Hbodfhu7Nx1RJZmpudVfiiDTpG2o24mMi</u></h3>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com7tag:blogger.com,1999:blog-8430592741332299921.post-31396935885060874902016-01-29T21:41:00.002+08:002016-01-29T21:41:39.269+08:00Bitcoin right on schedule for 2016 Halving Pump. Oh... and #altsareback<div dir="ltr" style="text-align: left;" trbidi="on">
<b><u>Bitcoin 2016 Outlook</u></b><br />
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Since my last post, $BTC surged to $500, then had a dramatic dump to $300 before climbing back up to $400. In terms of the bigger picture, Bitcoin has broken the 18-month downtrend in October 2015 by surging above multi-month resistance at $300.<br />
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<a href="https://twitter.com/jackfru1t">@jackfru1t</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> monthly chart looks amazing. Probably be some correction soon, January maybe, before supermoon <a href="https://t.co/WH09cP6DOp">pic.twitter.com/WH09cP6DOp</a></div>
— Jack Sparrow (@jackfru1t) <a href="https://twitter.com/jackfru1t/status/677515790673842176">December 17, 2015</a></blockquote>
I hope you're familiar with the crash cycle market structure by now, which I introduced in my <a href="http://alunacrypto.blogspot.sg/2014/05/technical-analysis-altcoins-bitcoin-trading-market-structure-cycle-manipulation.html" target="_blank">2014 post about market cycle, structure, and manipulation</a>. Based on my interpretation of the crash cycle in Bitcoin, it would seem like we are nearing the end of the cycle, or beginning the new pump cycle. According to Jack, the price action we've seen in BTC over the past year or so places us somewhere at the 'disbelief' stage.<br />
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If $500 was the top of a successful test pump...we could be here. <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="https://t.co/sy08n8nUdS">pic.twitter.com/sy08n8nUdS</a></div>
— Jack Sparrow (@jackfru1t) <a href="https://twitter.com/jackfru1t/status/662337268284325888">November 5, 2015</a></blockquote>
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<b><a href="https://www.tradingview.com/chart/BTCUSD/i9dGS8v8-Bitcoin-Market-Crash-Cycle-Comparison-Launchpad/" target="_blank">Crash Cycle Comparison</a></b><br />
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If you've been following my blog and <a href="https://twitter.com/onemanatatime" target="_blank">twitter account</a>, you'll understand very well that market crash cycles can be found in every corner of the market. With the only similarity between all markets being the human beings behind the money (price), it would be sensible to think that the <b>psychology & emotions</b> behind these humans play a pivotal role in understanding markets and trading.<br />
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If we can break this market structure down into 4 easy-to-understand parts, we would come up with something like this:<br />
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<ol style="text-align: left;">
<li>Accumulation </li>
<li>Launchpad </li>
<li>Pump </li>
<li>Dump </li>
</ol>
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Relating this to Bitcoin , it seems like the year long <b>accumulation</b> period is over, as $BTCUSD broke above major resistance $300 in October 2015. Based on this, I believe we have now moved into the <b>launchpad</b> phase with our current price action raging between $294 and $502.<br />
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<a href="tradingview: Bitcoin Market Crash Cycle Comparison - Launchpad" target="_blank"><img alt="Tradingview: Bitcoin Market Crash Cycle Comparison - Launchpad" border="0" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAIxjmT3S3MPlyccLuEEPYIzVbgKScrf0fOucC7YKddIlXxJEBRbNCk3xoTVs05Eg0yk3EYPUJS5DePbkb7FNlKpHfQln0ZCaisRMnL30gxJXvYmQDzQKTqVPB3CzCnIQvkZ9nanoIiutS/s400/BTCUSD+CRASH+CYCLE+COMPARISON+ALUNA+CRYPTO.png" title="Tradingview: Bitcoin Market Crash Cycle Comparison - Launchpad" width="400" /></a></div>
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<a href="https://www.tradingview.com/chart/BTCUSD/i9dGS8v8-Bitcoin-Market-Crash-Cycle-Comparison-Launchpad/" target="_blank"><b>Tradingview: Bitcoin Market Crash Cycle Comparison - Launchpad</b></a></div>
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If Bitcoin continues to be the leading blockchain network, it should become widely regarded and generally accepted as the base currency of other cryptocurrencies. My personal view is that Bitcoin and the blockchain are not going anywhere anytime soon.<br />
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In the shorter term, the bitcoin halving happening in Q3 2016 will set the stage for a pump, and for that to happen, MMs must maintain the uptrend structure formed since October 2015. Any breaks below structure will either delay the pump, or lead to another downtrend. Upside targets are $710, $995, and $1163. Downside is $341, $280, $220, $160.<br />
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Click <a href="https://www.tradingview.com/chart/BTCUSD/i9dGS8v8-Bitcoin-Market-Crash-Cycle-Comparison-Launchpad/" target="_blank">here to get a closer look at the crash cycle comparison</a>.<br />
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What's next? <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> | Wall Street Cheat Sheet 3.0 <a href="https://twitter.com/search?q=%24btcusd&src=ctag">$btcusd</a> <a href="https://t.co/9nWXTasxVY">pic.twitter.com/9nWXTasxVY</a></div>
— fractalhedge (@fractalhedge) <a href="https://twitter.com/fractalhedge/status/681490755752427520">December 28, 2015</a></blockquote>
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Will BTC/USD break ATH in 2016? <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/685256092272570368">January 8, 2016</a></blockquote>
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After the dump from $500, the shockwave and general sideways in the 3-500 range gave time for traders to consolidate their crypto holdings and we have since seen funds flow into altcoins.<br />
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<b><u>Alternative Cryptocurrencies - Are altcoins back?</u></b><br />
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Are Altcoins back or what? I suppose it pretty much depends on big daddy Bitcoin. <a href="https://twitter.com/hashtag/moonsoon?src=hash">#moonsoon</a> <a href="https://t.co/nEv75bIFox">pic.twitter.com/nEv75bIFox</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/691298008797872128">January 24, 2016</a></blockquote>
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Notice that the altcoin charts in accumulation all look like Bitcoin from 2015 Jan to 2015 Oct. Now that's what I call a bullish chart! Coincidentally, notice that Bitcoin's pump above $300 in Oct'15 was the same time when many altcoins had their final dump and formed a low, before slowly moving up to break out in December/January and later.<br />
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2016 Pump Schedule
Jan - FCT -> DASH -> ETH
Feb - DOGE -> VRC -> VNL
Mar - XEM -> XMR
Apr - BTC
May - Dump it.
- MM <a href="https://t.co/JT7c5t4Tde">pic.twitter.com/JT7c5t4Tde</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/687634154607919105">January 14, 2016</a></blockquote>
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Here's a look at some charts of the alternative cryptocurrencies that are the leading the charge in this pump. I would consider these to be Tier-1 altcoins. Presenting: Dash, Factom, and king Ethereum.<br />
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Dashing <a href="https://twitter.com/search?q=%24DASH&src=ctag">$DASH</a> charts. Feels like <a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> in Aug-Sep 2015.
<a href="https://twitter.com/22loops">@22loops</a> <a href="https://twitter.com/pterion2910">@pterion2910</a> <a href="https://t.co/gKSwvel9FH">pic.twitter.com/gKSwvel9FH</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/680448643732668416">December 25, 2015</a></blockquote>
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Woah it's been 1 month since the <a href="https://twitter.com/search?q=%24FCT&src=ctag">$FCT</a> pump started. Amazing work. <a href="https://twitter.com/factomproject">@factomproject</a> <a href="https://t.co/vna6egY2X5">pic.twitter.com/vna6egY2X5</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/691310001281900545">January 24, 2016</a></blockquote>
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MMs painting textbook crash cycle formations all over <a href="https://twitter.com/hashtag/altcoins?src=hash">#altcoins</a>. Pump mode much? <a href="https://twitter.com/search?q=%24ETH&src=ctag">$ETH</a> <a href="https://twitter.com/hashtag/Ethereum?src=hash">#Ethereum</a> <a href="https://twitter.com/feudalmondays">@feudalmondays</a> <a href="https://t.co/Ip5hscB0nt">pic.twitter.com/Ip5hscB0nt</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/687274787383541761">January 13, 2016</a></blockquote>
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And you should have noticed about 3 days ago that MMs decided to pump just about every coin out there:<br />
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It's easy when everything's just going up.. <a href="https://twitter.com/hashtag/altsareback?src=hash">#altsareback</a> <a href="https://t.co/FkptScs4ti">pic.twitter.com/FkptScs4ti</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/691874521675100161">January 26, 2016</a></blockquote>
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<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>So here's a few other coins I thought are a good pick for the upcoming altcoin pump. I would consider these to be Tier-2 altcoins, based on technical factors such as trading volume and other fundamental factors like technology, innovation, developer, and community. These include: Monero (XMR), MaidSafe (MAID), VanillaCoin (VNL), and our old buddy DogeCoin (DOGE).<br />
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While everybody is busy looking at <a href="https://twitter.com/search?q=%24ETH&src=ctag">$ETH</a> and <a href="https://twitter.com/search?q=%24DASH&src=ctag">$DASH</a>, panic buy <a href="https://twitter.com/search?q=%24XMR&src=ctag">$XMR</a>! <a href="https://twitter.com/Poloniex">@Poloniex</a> <a href="https://t.co/MoGAcFaXvg">pic.twitter.com/MoGAcFaXvg</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/690950418667433984">January 23, 2016</a></blockquote>
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<a href="https://twitter.com/hashtag/Vanillacoin?src=hash">#Vanillacoin</a> making moves and moving into Top 10 highest volume on <a href="https://twitter.com/Poloniex">@Poloniex</a>. Got Bags? <a href="https://twitter.com/search?q=%24VNL&src=ctag">$VNL</a> <a href="https://twitter.com/search?q=%24XMR&src=ctag">$XMR</a> <a href="https://twitter.com/search?q=%24MAID&src=ctag">$MAID</a> <a href="https://twitter.com/search?q=%24DOGE&src=ctag">$DOGE</a> <a href="https://twitter.com/search?q=%24BLK&src=ctag">$BLK</a> <a href="https://t.co/dEavq0n1J5">pic.twitter.com/dEavq0n1J5</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/691545527842811904">January 25, 2016</a></blockquote>
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Of all those charts out there, I'm liking <a href="https://twitter.com/search?q=%24MAID&src=ctag">$MAID</a>'s chances of blowing a 10x from here. 5k on the verge of breaking. <a href="https://t.co/A8hIxIEMkp">pic.twitter.com/A8hIxIEMkp</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/692039277459288065">January 26, 2016</a></blockquote>
Other Tier-3 alternatives would include, DigiByte (DGB), BlackCoin (BLK), VeriCoin (VRC), as well as other "Crypto 2.0" alternatives such as New Economy Movement (XEM), NXT, Lumens (STR), Ripple (XRP), Counterparty (XCP), Bitshares (BTS).<br />
<br />
With this, it seems like we're still on schedule for the pump leading up to the 2016 Halving in Q3, and it is likely we will see profits from the BTC pump flow into the altcoins. Did you notice that Altcoin volume has surged since October 2015, in the same way that Bitcoin volume has dramatically increased since August 2015? I'm picturing MMs and bulls beefing up their stacks, getting ready to slaughter the bears once and for all.<br />
<br />
The altcoin market is very much different than how it was two years ago. There are now so many choices in the market, with all kinds of different innovations, it's hard to keep track anymore. There's hardly 10 coins that look like they can last another 5 years, while the rest are mostly junk clones with various marketing gimmicks, and I believe many of them will die out; those with little innovation will eventually be weeded out by the stronger coins such as Ethereum, and the market should normalize towards having only 1% of the altcoins dominating 99% of the market. And who knows what's to come in the coming years?<br />
<br />
In line with the BTC halving in 2016 Q3, ZCash is launching and they're currently the strongest contender for leading the pump for the altcoin markets then, with many big names backing it. So stay tuned and keep a close eye on this one.<br />
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Zcash, an Untraceable Bitcoin Alternative, Launches in Alpha <a href="https://t.co/3zZ1jYTR56">https://t.co/3zZ1jYTR56</a>
<a href="https://twitter.com/hashtag/zcash?src=hash">#zcash</a> <a href="https://twitter.com/hashtag/privacy?src=hash">#privacy</a> <a href="https://twitter.com/zooko">@zooko</a> <a href="https://t.co/odVOf4fyFD">pic.twitter.com/odVOf4fyFD</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/690378692674084868">January 22, 2016</a></blockquote>
My advice is to be versatile and stick to coins with good liquidity, and don't get yourself emotionally attached with any particular coins. Remember that at the end of the day, your goal is to grow your number of Bitcoins, or to increase the FIAT value of your portfolio. Markets, they go up, they go down, so always take profits and forget about the "what ifs". Good luck and may the force be with us.<br />
<br />
P.S. Don't forget to sell at the end of the pump. Dump it. All of it.<br />
<br />
<b><u>Money Markets</u></b><br />
<br />
I know the cryptocurrency markets have been going crazy the last couple of weeks/months, but let's not lose track of the money markets that are driving our current economic system. I'll just briefly touch on three major markets: Crude Oil, Gold, and the S&P 500 Index.<br />
<br />
Oil has tumbled to a 12-year low of $28 a barrel on the 20th January 2016, amid tensions in the Middle East, and news of excessive supply. Someone said that this is good for the people because we'll have cheaper gas prices, but heck although oil prices have dropped almost 4-fold, my petrol prices here in Singapore are the still the same!<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi46oeqg15f8P0JrnmdrUlYBFCQYukFrJS7q_hl8PXP6gFF2H046Q_RJbHubpZqma0ByA44k3DAGEC_AOUqIGo9iDU-RmbhawvBnGjWCPJwSpHcoEqlUPSvFlGm37I1QjrISXXumxfEBGSO/s1600/Oil+hits+12+year+low+dips+below+%252430+aluna+crypto.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="215" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi46oeqg15f8P0JrnmdrUlYBFCQYukFrJS7q_hl8PXP6gFF2H046Q_RJbHubpZqma0ByA44k3DAGEC_AOUqIGo9iDU-RmbhawvBnGjWCPJwSpHcoEqlUPSvFlGm37I1QjrISXXumxfEBGSO/s400/Oil+hits+12+year+low+dips+below+%252430+aluna+crypto.jpg" width="400" /></a></div>
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<br />
Gold rebounded strongly off $1050/oz, barely keeping structure above the critical psychological $1000 level.<br />
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<a href="https://twitter.com/CryptOrca">@CryptOrca</a> <a href="https://twitter.com/search?q=%24GOLD&src=ctag">$GOLD</a> Breakout from 1110 .... so far so good. <a href="https://t.co/g76Uha1lFI">pic.twitter.com/g76Uha1lFI</a></div>
— CryptOrca (@CryptOrca) <a href="https://twitter.com/CryptOrca/status/691877559051653120">January 26, 2016</a></blockquote>
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Will BTC/GOLD ever reach parity again? <a href="https://twitter.com/search?q=%24btc&src=ctag">$btc</a> <a href="https://twitter.com/search?q=%24gld&src=ctag">$gld</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/685256383738941440">January 8, 2016</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>Since I last mentioned that $SPX was ready for a short back in early November 2015, it topped out at $2109.79 before sliding back down and breaking below the August 25th 2015 low of $1867.61 to form a new low at $1859.33 on January 20th 2016. Doesn't look too good on the $SPX, and this could spell the beginning of yet another major economic crisis.<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
<div dir="ltr" lang="en">
Well.. you know. <a href="https://twitter.com/search?q=%24SPX&src=ctag">$SPX</a> <a href="https://twitter.com/hashtag/lennyanalysis?src=hash">#lennyanalysis</a> <a href="https://twitter.com/hashtag/TA?src=hash">#TA</a> <a href="https://t.co/JqguHWWzpc">pic.twitter.com/JqguHWWzpc</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/687641605512167424">January 14, 2016</a></blockquote>
<blockquote class="twitter-tweet" lang="en">
<div dir="ltr" lang="en">
<a href="https://twitter.com/search?q=%24SPX&src=ctag">$SPX</a> longer term average sloping down has not been a good thing that last 2 times we've seen it <a href="https://twitter.com/hashtag/TA?src=hash">#TA</a> <a href="https://twitter.com/search?q=%24spy&src=ctag">$spy</a> <a href="https://twitter.com/dogedradio">@dogedradio</a> <a href="https://t.co/LSgGb6sPXT">pic.twitter.com/LSgGb6sPXT</a></div>
— Kazonomics (@kazonomics) <a href="https://twitter.com/kazonomics/status/691365507681886208">January 24, 2016</a></blockquote>
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To end off, let me just leave you with this classic scenario:<br />
<blockquote class="twitter-tweet" lang="en">
<div dir="ltr" lang="en">
Having a plan is one thing.
Sticking to it is another. <a href="https://t.co/e6cLoZLXCE">pic.twitter.com/e6cLoZLXCE</a></div>
— Tom Dante (@Trader_Dante) <a href="https://twitter.com/Trader_Dante/status/687955923227164672">January 15, 2016</a></blockquote>
<br />
Related Post: <a href="http://alunacrypto.blogspot.sg/2015/10/uptrend-bullish-horizon-bitcoin-2016-prehalving-pump.html" target="_blank">Uptrend Established Bullish Horizon for #Bitcoin: 2016 The "Pre-Halving" Pump (and Dump). $BTCUSD </a><br />
<br />
Related Post: <a href="http://alunacrypto.blogspot.sg/2015/11/400-bitcoin-strong-bull-rally-final-target-600-crystalball.html" target="_blank">$400 Bitcoin - Strong Bull Rally Final Target 600s. May the #crystalball be with us. </a><br />
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-77851371003634670182015-11-04T01:34:00.000+08:002015-11-04T20:37:13.505+08:00$400 Bitcoin - Strong Bull Rally Final Target 600s. May the #crystalball be with us.<div dir="ltr" style="text-align: left;" trbidi="on">
Ladies and gentlement, the FOMO is real. $BTCUSD price action has been picking up steam over the last weeks, with a year long accumulation prior to the rise which has broken $318 convincingly.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
<div dir="ltr" lang="en">
Goodbye $300 Bitcoin! Hope we won't see you again for a long time.
<a href="https://twitter.com/search?q=%24BTC&src=ctag">$BTC</a> <a href="https://twitter.com/hashtag/Pump?src=hash">#Pump</a> <a href="https://twitter.com/hashtag/Moon?src=hash">#Moon</a> <a href="https://t.co/LeQRayAwGM">https://t.co/LeQRayAwGM</a> <a href="https://t.co/HiecJ2v10v">pic.twitter.com/HiecJ2v10v</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/661151347404763136">November 2, 2015</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
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Over the last week, we broke above $318 and made a high of $334.67 and consolidated for a moment before breaking above structure again, creating a new 2015 high of $342.06 on 2nd Nov. I went into greater detail on my <a href="https://twitter.com/onemanatatime/status/661211054135840769" target="_blank">Twitter post</a> and <a href="https://www.tradingview.com/chart/BTCUSD/lKYOvDHx-Bitcoin-In-Uptrend-Breaks-Major-Resistance-318-400-Beyond/" target="_blank">Tradingview chart</a> last night, saying that <b>this move has legs</b> and can potentially <b>rally to $400 and beyond</b>.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr1KQPXun6qrX_GM10zX4FQ9woWTdC7FNVODILWhSpN1SKfVS_lX2g9YwEMSKfjjip89X6YBLQIgVgiBMqgyQrh94XJzSZ3yY2VaUcCC9_V4wlfn7IAwFixiKesAHVy1JTmOJ1YDJSeMxk/s1600/short+term+uptrend+confirmation+%2524318.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img alt="Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation" border="0" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr1KQPXun6qrX_GM10zX4FQ9woWTdC7FNVODILWhSpN1SKfVS_lX2g9YwEMSKfjjip89X6YBLQIgVgiBMqgyQrh94XJzSZ3yY2VaUcCC9_V4wlfn7IAwFixiKesAHVy1JTmOJ1YDJSeMxk/s400/short+term+uptrend+confirmation+%2524318.png" title="Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation</td></tr>
</tbody></table>
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Since then, we have rallied past the 340s and $BTCUSD (Bitstamp) is currently trading at yet another new 2015 high of $396. We're currently seeing the bulls and bears battle it out within the 386-396 zone.<br />
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<i>Edit: Bitcoin has now broken $400 and is trading at $406.</i><br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7JqrBUCjNLkjvc9VTjaYbnG3u-Wi4oWNgXNZ-_8AR2NHZwK1lI6QFiLjmFvv0FjUghryooRoYs1mC3zDQx8JX5TVv1mccGGpsCel5uz8x0NMpRMG_N_8IZ0-xP_mbyZSN05ZL439d4dKI/s1600/short+term+uptrend+390.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation - Trading at 400+" border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7JqrBUCjNLkjvc9VTjaYbnG3u-Wi4oWNgXNZ-_8AR2NHZwK1lI6QFiLjmFvv0FjUghryooRoYs1mC3zDQx8JX5TVv1mccGGpsCel5uz8x0NMpRMG_N_8IZ0-xP_mbyZSN05ZL439d4dKI/s400/short+term+uptrend+390.png" title="Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation - Trading at 400+" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitcoin Major Resistance Broken: Short-term Uptrend Confirmation - Trading at 400+</td></tr>
</tbody></table>
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<br />
So what's the cause of this insane bitcoin price rise? There's been positive news about bitcoin going on for a few months now, mostly revolving around the "blockchain not bitcoin" idea. Some news include:<br />
<ul style="text-align: left;">
<li>Banks experimenting with Blockchain</li>
<li>Gemini - $240s - Oct 8th</li>
<li>Economist cover - $318 - Oct 31st</li>
</ul>
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<blockquote class="twitter-tweet" lang="en" style="-webkit-text-stroke-width: 0px; color: black; font-family: Times; font-size: medium; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px;">
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Do you know what blockchain technology is? It could make the future a very different place <a href="https://t.co/5TCBtnhG51">https://t.co/5TCBtnhG51</a> <a href="https://t.co/NkF6xgZKZi">pic.twitter.com/NkF6xgZKZi</a></div>
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— The Economist (@TheEconomist) <a href="https://twitter.com/TheEconomist/status/660812569876291584">November 1, 2015</a></div>
</blockquote>
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<div class="separator" style="clear: both; text-align: center;">
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As I mentioned in my <a href="http://alunacrypto.blogspot.sg/2015/10/uptrend-bullish-horizon-bitcoin-2016-prehalving-pump.html" target="_blank">previous blog post</a>: "this marks the beginning of a new uptrend as we head into 2016, with news outlets ready to paint a bullish picture as the market requires new buyers to get into pump mode."<br />
<br />
I'm sure there's still plenty of news pieces in store, ready to be unleashed at appropriate times over mass media channels in the next months to attract new money into the bitcoin economy.<br />
<br />
Looking forward to next week's weekly candle and seeing this Triple EMA turn green. Everything has been looking good since re-entering bitcoin in August and with the crazy price action since breaking out of $240.<br />
<br />
Will have my sight set on $600+ if 420/450/480 levels are blown through. 657/670 will be my final targets for this run and I may be looking for a short into the 400s before loading up again. Trade safe, and may the power of the #crystalball be with us.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6xqJINzrEYfcKy-HuJ284X9HWnGsdIZo4osm6RoxwuSFy-YgHmYs_cZWck4CEa2_-0TveSdGBdYRlm0Eben-INQ3AUqQshUjn4OZ6OvmkCDS9lHScYhRvehb70m2hg6Er7KKSBSraIGKn/s1600/Weekly+Triple+EMA+turning+Green.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Bullish Bitcoin: Weekly Triple-EMA Turning Green - First Time Since August 2014" border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6xqJINzrEYfcKy-HuJ284X9HWnGsdIZo4osm6RoxwuSFy-YgHmYs_cZWck4CEa2_-0TveSdGBdYRlm0Eben-INQ3AUqQshUjn4OZ6OvmkCDS9lHScYhRvehb70m2hg6Er7KKSBSraIGKn/s400/Weekly+Triple+EMA+turning+Green.png" title="Bullish Bitcoin: Weekly Triple-EMA Turning Green - First Time Since August 2014" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bullish Bitcoin: Weekly Triple-EMA Turning Green - First Time Since August 2014</td></tr>
</tbody></table>
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I think we're gonna see the 2015 high broken a few more times, so remember, the trend is your friend. Get yourself in a favourable position during the bitcoin rally, and leverage this opportunity on <a href="https://www.okcoin.com/?invid=2016019" target="_blank">OKCoin</a>, <a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX</a>, or <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex</a> for margin trading up to 100x.<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
<div dir="ltr" lang="en">
<a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> Made New Highs Again! Capitalize on Bitcoin uptrend with 100x Futures <a href="https://twitter.com/BitMEXdotcom">@BitMEXdotcom</a> <a href="https://t.co/2dmNMgcC1q">https://t.co/2dmNMgcC1q</a> <a href="https://t.co/4CM8kqlDdp">pic.twitter.com/4CM8kqlDdp</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/661171049418002432">November 2, 2015</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
On a separate note, the S&P 500 ($SPX) looks almost ready for a short entry. I've been eyeing this one for a while now.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPsDSilGjRvNaOHqUtBNIreInWWamQS212IbT2XqoSOhVt76WgTwTMPenyJHk6hVdDykgmRp1pp2DhdyqO9GTpCy-OFNaBsugmXSYaCl0u0m9tgkbHHfeXeln75ZI-hSVlMiqZ0b0HgcYx/s1600/%2524spx+bearish+soon%253F.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="S&P 500 Index ($SPX) Daily Chart - Looking for a short position" border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPsDSilGjRvNaOHqUtBNIreInWWamQS212IbT2XqoSOhVt76WgTwTMPenyJHk6hVdDykgmRp1pp2DhdyqO9GTpCy-OFNaBsugmXSYaCl0u0m9tgkbHHfeXeln75ZI-hSVlMiqZ0b0HgcYx/s400/%2524spx+bearish+soon%253F.png" title="S&P 500 Index ($SPX) Daily Chart - Looking for a short position" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">S&P 500 Index ($SPX) Daily Chart - Looking for a short position</td></tr>
</tbody></table>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRa8FgY32tlkWSuxNj00pnqRYcmgUzcjNPAXYGnANq5XS2VaHhqdfgy64XVETdwguBNn4lKiacNkxfIJdObPDfMOptJUmiRXgkZcY0Vtuza-XZWTAQo4751YRqPrUVyw3U7Pn6RlrQPg7J/s1600/%2524spx+bearish+soon%253F+tripleema.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="S&P 500 Index ($SPX) Weekly Chart - Support & Resistance Triple EMA" border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRa8FgY32tlkWSuxNj00pnqRYcmgUzcjNPAXYGnANq5XS2VaHhqdfgy64XVETdwguBNn4lKiacNkxfIJdObPDfMOptJUmiRXgkZcY0Vtuza-XZWTAQo4751YRqPrUVyw3U7Pn6RlrQPg7J/s400/%2524spx+bearish+soon%253F+tripleema.png" title="S&P 500 Index ($SPX) Weekly Chart - Support & Resistance Triple EMA" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">S&P 500 Index ($SPX) Weekly Chart - Support & Resistance Triple EMA</td></tr>
</tbody></table>
<br />
Watching the Triple EMA on the weekly closely.<br />
<br />
Capitalize on this with <a href="https://bit4x.com/invite/37bea052" target="_blank">Bit4x</a>, <a href="https://1broker.com/m/r.php?i=2710" target="_blank">1Broker</a>, and <a href="https://simplefx.com/?sfx-r=6ee37c58-f0e3-4634-aada-c2e880069cc0" target="_blank">SimpleFX</a>, and trade in global capital markets stocks indices forex using bitcoins.<br />
<br />
<br />
<b>References:</b><br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
<div dir="ltr" lang="en">
UPDATE: Bitcoin In Uptrend, Breaks Major Resistance $318, $400 & Beyond <a href="https://t.co/QuFO4UIR7F">https://t.co/QuFO4UIR7F</a> <a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> <a href="https://twitter.com/tradingview">@tradingview</a> <a href="https://t.co/s4TKQ2p4vT">pic.twitter.com/s4TKQ2p4vT</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/661211054135840769">November 2, 2015</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
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<a href="http://alunacrypto.blogspot.sg/2015/10/uptrend-bullish-horizon-bitcoin-2016-prehalving-pump.html" target="_blank">Previous Blog Post: Uptrend Established Bullish Horizon for #Bitcoin: 2016 The "Pre-Halving" Pump (and Dump). $BTCUSD</a><br />
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Share your thoughts and questions in the comments section below, or send me a direct email by filling out the form at the bottom of the page.<br />
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-17834143394824701622015-10-18T02:51:00.000+08:002015-11-02T17:11:27.646+08:00Uptrend Established Bullish Horizon for #Bitcoin: 2016 The "Pre-Halving" Pump (and Dump). $BTCUSD<div dir="ltr" style="text-align: left;" trbidi="on">
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<b>Bitcoin 2015 Outlook - Pretext for the Pre-halving Pump</b></h3>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLmbpb3xX7AQMdslzWkRt3xKhRGUzqe_xAQZ_XmZcCWrx9QmdmfbBblpfvxyS1auweMw_69utFsGz3hUejph01Ol1z9d6aQ9Y1n9_WoC09acHQyS_ssmnVw3qSwxO6KDfbKzH1rt_WrDiX/s1600/BTCUSD+2015+May+to+October+last+leg+down.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="2015 bitcoin crash cycle last leg down accumulation" border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLmbpb3xX7AQMdslzWkRt3xKhRGUzqe_xAQZ_XmZcCWrx9QmdmfbBblpfvxyS1auweMw_69utFsGz3hUejph01Ol1z9d6aQ9Y1n9_WoC09acHQyS_ssmnVw3qSwxO6KDfbKzH1rt_WrDiX/s400/BTCUSD+2015+May+to+October+last+leg+down.png" title="2015 bitcoin crash cycle last leg down accumulation" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b>2015 Bitcoin Crash Cycle - Last Leg Down & Accumulation</b></td></tr>
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Bitcoin made a low on 14th January 2015, and has broken its 18 month downward trendline around June/July 2015. This marks the beginning of a new uptrend as we head into 2016, with news outlets ready to paint a bullish picture as the market requires new buyers to get into pump mode.</div>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbj3ZnzgbZcxzba27_4zmbBg7cTr57-BxAiHjr0AEBswshvOPF10mGsIuGhX9WoNTGCZtK7VAoNRhpZxzhM3kCK95WdmRybT4x94nhILqMcwUfHGdXxPhC_NDEEIuvSpslf03SQMbcRNpc/s1600/BTCUSD+2015+YTD+Reversal+%2526+Fan.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="2015 Bitcoin September Fibonacci Fan & Trendlines" border="0" height="206" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbj3ZnzgbZcxzba27_4zmbBg7cTr57-BxAiHjr0AEBswshvOPF10mGsIuGhX9WoNTGCZtK7VAoNRhpZxzhM3kCK95WdmRybT4x94nhILqMcwUfHGdXxPhC_NDEEIuvSpslf03SQMbcRNpc/s400/BTCUSD+2015+YTD+Reversal+%2526+Fan.png" title="2015 Bitcoin September Fibonacci Fan & Trendlines" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b>2015 Bitcoin September Fibonacci Fan & Trendlines</b></td></tr>
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$BTCUSD began rallying up since breaking out of the 240-243 range on 6th October 2015, accompanied by a sustained large surge in volume since the last recent low of 25th August 2015.</div>
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<blockquote class="twitter-tweet" data-conversation="none" lang="en" style="font-size: medium; font-weight: normal;">
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<div style="text-align: center;">
<a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> Breakout for <a href="https://twitter.com/hashtag/Gemini?src=hash">#Gemini</a> here we go! <a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> <a href="https://twitter.com/winklevoss">@winklevoss</a> <a href="http://t.co/TMS8601d8g">pic.twitter.com/TMS8601d8g</a></div>
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— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/651396037324570625">October 6, 2015</a></div>
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<span style="text-align: left;">Accumulation has picked up pace since August 2015 and it looks like we're heading to retest $300 for the 4th time since the 2015 Low (<a href="https://www.tradingview.com/chart/BTCUSD/2Mn0vcKn-3rd-Time-s-the-Charm-Right/" target="_blank">Related: TradingView - 3rd time's the charm, right?</a>).</span></div>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWAPTJi0bX2D-p29uUd4jXv17IEdB90EoxXjoSuzuUCRMGG2TKyd9QD9pJZN4O4VbAq1azITxDdQ46WyVcJ6kVv_Gj3KNreBE8L4yoFA6HfezTUjdMUzrFCKbnhsa3EAjT5_lbkffubEoN/s1600/BTCUSD+2014+to+2015+outlook.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="2015 2014 bitcoin crash cycle outlook pump dump accumulation" border="0" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWAPTJi0bX2D-p29uUd4jXv17IEdB90EoxXjoSuzuUCRMGG2TKyd9QD9pJZN4O4VbAq1azITxDdQ46WyVcJ6kVv_Gj3KNreBE8L4yoFA6HfezTUjdMUzrFCKbnhsa3EAjT5_lbkffubEoN/s400/BTCUSD+2014+to+2015+outlook.png" title="2015 2014 bitcoin crash cycle outlook pump dump accumulation" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b>2014-2015 Bitcoin Crash Cycle - Pump, Dump, Accumulation</b></td></tr>
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$BTCUSD currently trading at $270/273. On Oct 6 it traded between $240 and $243 for less than a day before breaking up with good volume. If this breaks 300/318 convincingly, we could see a run up to 400-450. 300 is a key level of resistance which will in future act as strong support if we trade above $300. See the <a href="https://www.tradingview.com/chart/BTCUSD/9jRrg111-Wow-look-at-the-volume-on-Bitcoin-since-August-2015-BTCUSD/" target="_blank">chart in greater detail on my tradingview post here</a>.</div>
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On the downside, if we head to break $200 and retest $160, bullish scenario may be invalidated or delayed. </div>
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Uncanny resemblance: <a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> Aug 2013 & Oct 2015. <a href="https://twitter.com/hashtag/Bitcoin?src=hash">#Bitcoin</a> volume surges since last bottom. <a href="https://t.co/cezFNbOvpL">https://t.co/cezFNbOvpL</a> <a href="http://t.co/GiGNXCcHKT">pic.twitter.com/GiGNXCcHKT</a></div>
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— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/655420877056573440">October 17, 2015</a></div>
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<b>Crash Cycle Comparison - An Uncanny Resemblance</b></h3>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPR2W50kUkA9d4pgG0JcyKlZwudh42WFk6mlSaapTYp6jaxVqf9oWU4-8neDJdCxJJxT7wRlm99qWx1B2Iv4ThUnDj8hs-uRWYQaoGJxcgJYCVEorr9hgxV1wOJZtLuYSUsoFaATqYZjjx/s1600/BTCUSD+2013+April+to+October+rejection.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitcoin $BTCUSD Crash Cycle Comparison - 2013 April aka Cyprus" border="0" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPR2W50kUkA9d4pgG0JcyKlZwudh42WFk6mlSaapTYp6jaxVqf9oWU4-8neDJdCxJJxT7wRlm99qWx1B2Iv4ThUnDj8hs-uRWYQaoGJxcgJYCVEorr9hgxV1wOJZtLuYSUsoFaATqYZjjx/s400/BTCUSD+2013+April+to+October+rejection.png" title="Bitcoin $BTCUSD Crash Cycle Comparison - 2013 April aka Cyprus" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px; text-align: left;"><b>Bitcoin $BTCUSD Crash Cycle Comparison - 2013 April aka Cyprus</b></td></tr>
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2013 July Last Low</div>
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2013 July+ Accumulation</div>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7cf8Ud4OPKr4gKK5ONLu5M9vCDiSmY-B0YESSy4kET4pv9o79V9ylwSybH3sTrAWN7LgaOJu0NKQoo8T_46tIat8EqEmKMGeF4Ns7f89NmSrGUEjyScrNwFMzOTM_XMpltUEmkFmDzjaB/s1600/BTCUSD+2013+April+to+October.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitcoin $BTCUSD Crash Cycle Comparison - 2013 Last Dump before the $1200 Pump" border="0" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7cf8Ud4OPKr4gKK5ONLu5M9vCDiSmY-B0YESSy4kET4pv9o79V9ylwSybH3sTrAWN7LgaOJu0NKQoo8T_46tIat8EqEmKMGeF4Ns7f89NmSrGUEjyScrNwFMzOTM_XMpltUEmkFmDzjaB/s400/BTCUSD+2013+April+to+October.png" title="Bitcoin $BTCUSD Crash Cycle Comparison - 2013 Last Dump before the $1200 Pump" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b>Bitcoin $BTCUSD Crash Cycle Comparison - 2013 Last Dump before the $1200 Pump</b></td></tr>
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2013 October Last Dump before the Pump</div>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLmbpb3xX7AQMdslzWkRt3xKhRGUzqe_xAQZ_XmZcCWrx9QmdmfbBblpfvxyS1auweMw_69utFsGz3hUejph01Ol1z9d6aQ9Y1n9_WoC09acHQyS_ssmnVw3qSwxO6KDfbKzH1rt_WrDiX/s1600/BTCUSD+2015+May+to+October+last+leg+down.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Bitcoin $BTCUSD Crash Cycle Comparison - 2015 Last Low before the Pre-Halving Pump" border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLmbpb3xX7AQMdslzWkRt3xKhRGUzqe_xAQZ_XmZcCWrx9QmdmfbBblpfvxyS1auweMw_69utFsGz3hUejph01Ol1z9d6aQ9Y1n9_WoC09acHQyS_ssmnVw3qSwxO6KDfbKzH1rt_WrDiX/s400/BTCUSD+2015+May+to+October+last+leg+down.png" title="Bitcoin $BTCUSD Crash Cycle Comparison - 2015 Last Low before the Pre-Halving Pump" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b style="font-size: 12.8px;">Bitcoin $BTCUSD Crash Cycle Comparison - 2015 Last Low before the Pre-Halving Pump</b></td></tr>
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2015 Jan Last Low</div>
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2015+ Accumulation</div>
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<tr><td><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiXzCsgc6jhwKAVZbg-oRojttOgXNg2yOiSl8q2SbpB-ArnXQliYt37KiQWMoW13YUMkHsLil7_q3Y6a_pJfSLl47-X6zJkpSf9CzfScwZXdkDi66JKfVx17jZ0hWB7KKtbsyOKIWR2eS9/s1600/BTCUSD+2015+crash+cycle+comparison.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="2013 vs 2015 Bitcoin Crash Cycle Comparison Launchpad" border="0" height="186" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiXzCsgc6jhwKAVZbg-oRojttOgXNg2yOiSl8q2SbpB-ArnXQliYt37KiQWMoW13YUMkHsLil7_q3Y6a_pJfSLl47-X6zJkpSf9CzfScwZXdkDi66JKfVx17jZ0hWB7KKtbsyOKIWR2eS9/s400/BTCUSD+2015+crash+cycle+comparison.png" title="2013 vs 2015 Bitcoin Crash Cycle Comparison Launchpad" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b>2013 vs 2015 Bitcoin Crash Cycle Comparison - Launchpad</b></td></tr>
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Who knows what 2016 could bring? Not too sure, but I'm sure people will call it the "pre-halving" pump (and dump) anyway. What do you think? Are we ready for what's coming?</div>
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I'd love to hear what you think, so share your thoughts or questions in the comments section below!<br />
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For more questions such as how to buy bitcoin or what's the best exchange to use, send me a direct email by using the contact form at the bottom of this page.<br />
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References</h3>
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<a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> Breaks Major Resistance $245, Jump Till $258/272 is Possible. <a href="https://t.co/VXegLXF2t9">https://t.co/VXegLXF2t9</a> <a href="https://twitter.com/hashtag/bullish?src=hash">#bullish</a> <a href="https://twitter.com/hashtag/gemini?src=hash">#gemini</a> <a href="http://t.co/vI0SQH3gkB">pic.twitter.com/vI0SQH3gkB</a></div>
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/status/651698491392163841">October 7, 2015</a></blockquote>
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<blockquote class="twitter-tweet" lang="en">
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This is my thought on <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a>. :) <a href="http://t.co/waJm3uLNwM">pic.twitter.com/waJm3uLNwM</a></div>
— Frisb (@pterion2910) <a href="https://twitter.com/pterion2910/status/580980187141042176">March 26, 2015</a></blockquote>
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Gradually thinking that this is where we are. <a href="https://twitter.com/hashtag/bitcoin?src=hash">#bitcoin</a> <a href="http://t.co/lb9WqaLvD9">pic.twitter.com/lb9WqaLvD9</a></div>
— Jack Sparrow (@jackfru1t) <a href="https://twitter.com/jackfru1t/status/628992589191086082">August 5, 2015</a></blockquote>
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<h4 style="text-align: center;">
<b>Trade $USDBTC or other markets with Bitcoin:</b></h4>
<h3>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><a href="https://1broker.com/m/r.php?i=2710" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="1Broker - Trade CFD, Forex & Indices with 200x Leverage using Bitcoin" border="0" src="https://1broker.com/img/banner1-234x60.png" title="1Broker - Trade CFD, Forex & Indices with 200x Leverage using Bitcoin" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b><a href="https://1broker.com/m/r.php?i=2710" target="_blank">1Broker - Trade CFD, Forex & Indices with 200x Leverage using Bitcoin</a></b><br />
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<a href="https://www.okcoin.com/?invid=2016019"><img 20x="" alt="Leading Exchange with 20x Leverage on BTC Futures" btc="" exchange="" futures="" leading="" leverage="" okcoin:="" on="" src="https://img.okcoin.com/v_20151102001/image/new_v1/logo1.png" width="250 title=" with="" /></a></div>
<div style="text-align: center;">
<b style="font-size: 12.8px;"><a href="https://www.okcoin.com/?invid=2016019" target="_blank"><span style="font-size: 12.8px;">O</span>KCoin - Leading Exchange with 20x BTC Futures</a></b></div>
<div style="text-align: center;">
<br /></div>
</div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><span style="margin-left: auto; margin-right: auto;"><a href="https://bit4x.com/invite/37bea052" target="_blank"><img alt="Bit4x - Trade CFD Forex Indices Commodities with 500x Leverage using MT4 & ECN execution" border="0" src="http://deli8.com/wp-content/uploads/2015/10/0f5cBIT4X-Logo.jpg" height="78" title="Bit4x - Trade CFD Forex Indices Commodities with 500x Leverage using MT4 & ECN execution" width="320" /></a></span></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b><a href="https://bit4x.com/invite/37bea052" target="_blank">Bit4x - Trade CFD Forex Indices Commodities with 500x Leverage using MT4 & ECN execution</a></b></td></tr>
</tbody></table>
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<span style="font-size: 12.8px;"><br /></span></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitmex.com/register/cYGy1I" target="_blank"><img alt="BitMEX - Trade Bitcoin Derivatives & BTCUSD Futures with 50x Leverage" border="0" src="http://boringbitcoinreport.com/wp-content/uploads/2014/12/Screen-Shot-2014-12-01-at-3.42.37-PM.png" height="122" title="BitMEX - Trade Bitcoin Derivatives & BTCUSD Futures with 50x Leverage" width="320" /></a></span></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b><a href="https://www.bitmex.com/register/cYGy1I" target="_blank">BitMEX - Trade Bitcoin Derivatives & BTCUSD Futures with 50x Leverage</a></b></td></tr>
</tbody></table>
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<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td><span style="margin-left: auto; margin-right: auto;"><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank"><img alt="Bitfinex - Leveraged Bitcoin & Litecoin Margin Trading" border="0" src="https://www.bitfinex.com/assets/logo.png" title="Bitfinex - Leveraged Bitcoin & Litecoin Margin Trading" /></a></span></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><b><a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex - Leveraged Bitcoin & Litecoin Margin Trading</a></b></td></tr>
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</h3>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-34187391669326467532014-05-03T09:24:00.000+08:002014-12-07T20:03:14.994+08:00Paradigm Shift: Technical Analysis in the Altcoins & Bitcoin Market, & Introduction to Market Cycle, Structure & Manipulation<div dir="ltr" style="text-align: left;" trbidi="on">
Remember this? I bet the first time you saw it in December you laughed this picture off, but it's okay so did I. And if this is the first time you're seeing this, don't dismiss it just yet!<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3LwHX11vgKULnCLWijO3zsQBPNWfGaGwMwlZVGencLemAUjENioJqphCS8QvQ5M-fB8PLfspPI1WVZ2ql2hjZMSCs5A7Pg9tmFus7EUGvlHajYTtO4Srf5XXnXU_d0s-yv6Igvj2fVaoa/s1600/youarehere.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3LwHX11vgKULnCLWijO3zsQBPNWfGaGwMwlZVGencLemAUjENioJqphCS8QvQ5M-fB8PLfspPI1WVZ2ql2hjZMSCs5A7Pg9tmFus7EUGvlHajYTtO4Srf5XXnXU_d0s-yv6Igvj2fVaoa/s1600/youarehere.jpg" height="258" width="400" /></a></div>
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<span id="goog_1446708597"></span></div>
Because, well, the harsh truth is that its all real. And this market cycle, believe it or not, is present in every market out there, including these Bitcoin & Altcoin markets.<br />
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<blockquote class="twitter-tweet" lang="en">
All markets work the same way. Can you see it? <a href="https://twitter.com/QTMHoldings">@QTMHoldings</a> <a href="https://twitter.com/search?q=%23QTM&src=hash">#QTM</a> <a href="https://twitter.com/search?q=%23wallstcheatsheet&src=hash">#wallstcheatsheet</a> <a href="http://t.co/BXEUlu1NfQ">pic.twitter.com/BXEUlu1NfQ</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/456858637643051008">April 17, 2014</a></blockquote>
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<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
If you haven't already, check out my previous posts earlier this year about trading Bitcoins and Altcoins, which highlight <a href="http://alunacrypto.blogspot.sg/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">technical analysis basics</a>, <a href="http://alunacrypto.blogspot.sg/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html" target="_blank">fundamental analysis frameworks</a>, <a href="http://alunacrypto.blogspot.sg/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html" target="_blank">margin trading</a>, and tips on developing a cryptocurrency <a href="http://alunacrypto.blogspot.sg/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html" target="_blank">trading strategy and TA</a>. Here, I just want to point out the importance of understanding market structure, introduce you to market manipulation, and show you how technical analysis can be applied to your cryptocurrency trading.<br />
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As you read on, keep these following points in mind as these rules apply even more closely:<br />
<ul>
<li>What goes up must come down</li>
<li>Buy on rumors, sell on news</li>
<li>All markets are linked to everything else</li>
</ul>
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To take this one step further and understand the markets from an even wider perspective, the next thing to do is to put on your market manipulator hat. Check out these 2 really good resources covering this topic for a deeper understanding of what I'm trying to get at:<br />
<br />
<ul>
<li>Wolong's Game of Deception PDF: <a href="http://cryptofrenzy.files.wordpress.com/2014/02/god.pdf">http://cryptofrenzy.files.wordpress.com/2014/02/god.pdf</a></li>
<li>Pumps, Dumps, and Manipulated Markets: <a href="http://altcoinnewsletter.com/pumps-dumps-and-manipulated-markets/">http://altcoinnewsletter.com/pumps-dumps-and-manipulated-markets/</a></li>
</ul>
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The whole point of learning about how market manipulators operate is not to actually manipulate the markets yourself or conduct pump and dumps, but to actually spot when others are trying to do so. This can help your trading strategy in various ways such as to:<br />
<ul>
<li>Have a better understanding of the ebbs and flows of the market</li>
<li>Avoid getting caught in their squeezes</li>
<li>Identify a suspicious (potentially profitable) market</li>
<li>Know what the "smartest man in the room" is doing, and follow the "smart money"</li>
</ul>
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From Wolong's ebook, he broke down the market cycle into 7 stages, namely:<br />
<div>
<ol>
<li>Position Building </li>
<li>Suppressing prices</li>
<li>Test Pump</li>
<li>Actual Pump</li>
<li>Shakeouts</li>
<li>Re-allocation and distribution</li>
<li>Exiting - The Dump</li>
</ol>
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If you compare the psychology chart above and the Pump & Dump cycle pointed out by Wolong, to the market structure chart below, you can see how they have very similar structures even though they use different terms to explain the phases.<br />
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<blockquote class="twitter-tweet" data-conversation="none" lang="en">
Buy low sell high; easier said than done. Familiarize yourself with market structure. <a href="https://twitter.com/QTMHoldings">@QTMHoldings</a> <a href="https://twitter.com/search?q=%23QTM&src=hash">#QTM</a> <a href="http://t.co/DlOJ4yF6fE">pic.twitter.com/DlOJ4yF6fE</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/457292179862343680">April 18, 2014</a></blockquote>
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And from this market structure chart, you can see that the stages can be further simplified to 4 phases:<br />
<ol>
<li>Accumulation</li>
<li>Markup (Pump)</li>
<li>Distribution</li>
<li>Decline (Dump)</li>
</ol>
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So why is this important, or how does it apply to the cryptocurrency markets? By understanding the market cycle chart, you will be able to better pick altcoins by spotting accumulation zones to join the breakout and profit, and to make your exit when you reach distribution zones. For example:<br />
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<blockquote class="twitter-tweet" lang="en">
Hope you managed to get some <a href="https://twitter.com/search?q=%23MYR&src=hash">#MYR</a> at that 350-400 floor I mentioned <a href="https://twitter.com/search?q=%23crystalball&src=hash">#crystalball</a> <a href="https://twitter.com/search?q=%23QTM&src=hash">#QTM</a> <a href="http://t.co/W6NOjRFiBk">pic.twitter.com/W6NOjRFiBk</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/462276517741871104">May 2, 2014</a></blockquote>
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Although many people disregard the profitability (or possibility) of using technical analysis to trade the Bitcoin and especially Altcoins markets, it is most definitely possible. I think the problem lies predominantly in the limitation that some of you have put on the term 'technical analysis'.<br />
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<blockquote class="twitter-tweet" lang="en">
If Technical Analysis to you means chart patterns, candles, and indicators; you're missing the big picture. <a href="https://twitter.com/search?q=%23QTM&src=hash">#QTM</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/458980139226120192">April 23, 2014</a></blockquote>
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Every piece of information on that chart you use is part of technical analysis; but the bigger question is how to make sense of it all. To better understand TA, we should think of the price charts as simply a <b>graph of human behaviour</b>.<br />
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Although the tools to do so efficiently are sorely lacking at this point in time, here's just a few examples of TA used on Altcoins and Bitcoin.<br />
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The first ever Technical Analysis chart applied to altcoins on Dogecoin, from way back in January 2014:<br />
<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/kazonomics">@kazonomics</a>: <a href="https://twitter.com/search?q=%23doge&src=hash">#doge</a>. Watch new formation & levels of interest 255/280 <a href="http://t.co/CPI5GOvoud">pic.twitter.com/CPI5GOvoud</a>”
Prep for 300 satoshi with accurate break levels<br />
— BigdaddyɃtc (@Bigdaddybtc) <a href="https://twitter.com/Bigdaddybtc/statuses/425715704029908992">January 21, 2014</a></blockquote>
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Example of a markup on Blackcoin BC last month:</div>
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<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/search?q=%23BlackCoin&src=hash">#BlackCoin</a> downward price correction complete after rapid expansion. Price increasing steadily with rising support. <a href="http://t.co/reuhaYzexz">pic.twitter.com/reuhaYzexz</a><br />
— Mr Coins (@CryptoDabbler) <a href="https://twitter.com/CryptoDabbler/statuses/456709645143248897">April 17, 2014</a></blockquote>
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How a Dump looks like and when you should exit:<br />
<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/search?q=%23wolong&src=hash">#wolong</a> exit <a href="https://twitter.com/search?q=%23blackcoin&src=hash">#blackcoin</a> <a href="http://t.co/gW4ONES1Ea">pic.twitter.com/gW4ONES1Ea</a><br />
— Esteban Saa (@estebs) <a href="https://twitter.com/estebs/statuses/456091932306182144">April 15, 2014</a></blockquote>
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Bitcoin on a Logarithmic scale:<br />
<blockquote class="twitter-tweet" lang="en">
To the moon!!! ┗(°0°)┛ <a href="http://t.co/8a7u4AQPdd">pic.twitter.com/8a7u4AQPdd</a><br />
— ToTheMoonGuy (@ToTheMoonGuy) <a href="https://twitter.com/ToTheMoonGuy/statuses/454771096718278656">April 12, 2014</a></blockquote>
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Once you can wrap you head around the following facts, and combine them with what I have covered in the previous posts, you should be well on your way to developing a profitable cryptocurrency trading strategy. So here's a recap of the key takeaways:<br />
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1) Markets are fundamentally fractal in nature; for every one up or down trend, you can zoom in/out too see the same wave cycles. Read more about <a href="http://www.sunshineprofits.com/recherche/dictionary/elliott-wave-theory/" target="_blank">Elliott Wave Theory here</a>.</div>
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2) Price charts are merely a graph of human behaviour. It doesn't matter if you're looking at a 3h chart or a 30m chart, they all tell the same story. Make sure to always compare two different time frames to better understand the macro and micro trend.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYxTyHIdmtZs8jHJnwnFtTufu4Vd2Dc4T1MZ6ajwM9fIrGLPHzwQJbP4A9bbeAvsd_QY4YOunC3pV6nK9xJScbwTw5NJ3qam3qU5uxafplndOlAkU8LvkXKOFSE3Y_CD_38aMoD7j7qg8y/s1600/Screenshot+2014-04-22+17.00.36.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYxTyHIdmtZs8jHJnwnFtTufu4Vd2Dc4T1MZ6ajwM9fIrGLPHzwQJbP4A9bbeAvsd_QY4YOunC3pV6nK9xJScbwTw5NJ3qam3qU5uxafplndOlAkU8LvkXKOFSE3Y_CD_38aMoD7j7qg8y/s1600/Screenshot+2014-04-22+17.00.36.png" height="213" width="400" /></a></div>
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3) All markets are linked to each other, and affect each other in a dynamic fashion to create one over-arching ecosystem. Don't forget those crash cycle charts I showed you at the beginning; they're everywhere.</div>
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4) All markets are manipulated. Ride the waves and profit with the whales; don't fight the macro trend.<br />
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<blockquote class="twitter-tweet" data-conversation="none" lang="en">
<a href="https://twitter.com/BDBOn1">@bdbon1</a> Crptyo might be dead tonight….but fx is busy…does this look familiar lol. Professional Pnd double ann <a href="http://t.co/a9iebbCotK">pic.twitter.com/a9iebbCotK</a><br />
— Kazonomics (@kazonomics) <a href="https://twitter.com/kazonomics/statuses/458909620593905664">April 23, 2014</a></blockquote>
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With that, I'll just end off with a few words of wisdom.<br />
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<blockquote class="twitter-tweet" lang="en">
First you know. Then you learn. Then you don't know.<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/451361901797470208">April 2, 2014</a></blockquote>
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<blockquote class="twitter-tweet" lang="en">
Continue studying to improve your trading: BTT #34 by <a href="https://twitter.com/DarvasTrader">@DarvasTrader</a> <a href="http://t.co/XzTAjGXVPA">pic.twitter.com/XzTAjGXVPA</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/454285021579190272">April 10, 2014</a></blockquote>
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<blockquote class="twitter-tweet" lang="en">
This Chart Shows Exactly How NOT To Invest. Read more: <a href="http://t.co/P4vANGGH4f">http://t.co/P4vANGGH4f</a> <a href="http://t.co/7OW4KvXBhL">http://t.co/7OW4KvXBhL</a> <a href="http://t.co/MnQBobnfGz">pic.twitter.com/MnQBobnfGz</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/459021366381932544">April 23, 2014</a></blockquote>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com7tag:blogger.com,1999:blog-8430592741332299921.post-51494337999858407062014-03-28T04:24:00.000+08:002014-06-19T19:43:57.821+08:00How to Develop a Profitable Bitcoin & Altcoins Daytrading Strategy - Fundamental & Technical Analysis - An Intermediate Tutorial<div dir="ltr" style="text-align: left;" trbidi="on">
<b><u>Fundamental Analysis</u></b><br />
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I believe that for an Altcoin to be worth anything at all, it MUST first have technical aspects which are built with the future in mind. This is what solely determines if a cryptocurrency has the potential for the mid to long term. Even with 5 new altcoins launching everyday, you barely see 1 a month that can last even the mid-term.<br />
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Then, after that I judge the coins based on 7 mediating factors; developers, community, branding/marketing, popularity/virality, novelty, infrastructure, and liquidity. For more about fundamental analysis and an explanation of these factors, read up on the first few sections in my <a href="http://alunacrypto.blogspot.nl/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html" target="_blank">previous post about picking and trading the next profitable altcoin</a>. In this post, I will focus more on technical analysis and trading strategies instead.<br />
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With so many coins out there, I like to use these above factors to weed out all the weaker shitcoins, and focus on altcoins which are substantially different from others, and more importantly, provide more value than other cryptocurrencies. After which, I use Technical Analysis to judge entry/exit positions for trading them.<br />
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What else do you think makes a cryptocurrency fundamentally better than another, and more sustainable as a currency?<br />
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<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/search?q=%23FoodForThought&src=hash">#FoodForThought</a>: What makes a cryptocurrency better than another? What purpose does Money serve? <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a> <a href="https://twitter.com/search?q=%23Altcoins&src=hash">#Altcoins</a> <a href="http://t.co/kdv5i072UM">pic.twitter.com/kdv5i072UM</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/442911553273491456">March 10, 2014</a></blockquote>
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<b><u><br /></u></b>
<b><u>Technical Analysis</u></b><br />
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Many will probably agree when I say that the Altcoins market is akin to the "penny stocks" of cryptocurrencies. In this sense, most altcoin markets have much lower liquidity, but have much higher volatility. Since there are over 200 different cryptocurrency markets to date, I prefer to narrow down my list of altcoins to a small handful, and buy under-valued coins or trade the breakouts. You're going to find it really tough to be watching more than 5 altcoins at the same time, so I highly suggest keeping your list small, and adapt your watchlist to the fast changing markets.<br />
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If you're new to technical analysis, here's a really good beginner's video on daytrading Penny Stocks, which also explains the basics of chart reading and an introduction to basic trading jargon that I'll be using throughout this post. The important concepts to take note of are resistances & supports, breakouts that coincide with high volume, and the general idea that "what goes up must come down".<br />
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/HYK2a77TjvU?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<span style="font-size: x-small;">How To Trade Penny Stocks (Part 1): <a href="http://www.youtube.com/watch?v=HYK2a77TjvU" target="_blank">http://www.youtube.com/watch?v=HYK2a77TjvU</a></span></div>
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So after you get the basics sorted out, you should be ready to learn how to trade! I'm gonna break this intermediate technical analysis tutorial down into five main portions, and have compiled videos from other trading experts to give even beginners a better overall idea, and teach you all you need to know to devise your own Bitcoin & Altcoins trading strategy.<br />
<div>
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<u>1. Top Down Analysis</u><br />
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Firstly, lets look at the <i>top down analysis</i> method of reading charts. I always begin by trying to understand the market from a bird eye's view. Compare both charts from a long term period (e.g. 1d) against one from a shorter period (e.g. 15m) to get a holistic view of the market. This will help give you a general perspective of market trends, while peaks & troughs give you an idea of market resistances & supports.</div>
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Use these basic resistance & support levels to judge entry/exit prices. In general, previous high and low points are new resistances or support depending on where the price is, and points where u can see big breakouts will be the new short term resistance/support. To get a better idea of what I mean, watch these videos by <a href="https://twitter.com/Jason_Stapleton" target="_blank">Jason Stapleton</a> who explains top down analysis, resistances & supports, and structure.<br />
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/M9yCc7lD21Q?feature=player_embedded' frameborder='0'></iframe></div>
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<span style="font-size: x-small;">Forex Trading: Higher Time Frames and Top Down Analysis: <a href="http://www.youtube.com/watch?v=M9yCc7lD21Q" target="_blank">http://www.youtube.com/watch?v=M9yCc7lD21Q</a></span></div>
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/tJmMU-8yicM?feature=player_embedded' frameborder='0'></iframe></div>
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<span style="font-size: x-small;">Learn to Understand Structure: <a href="https://www.youtube.com/watch?v=tJmMU-8yicM" target="_blank">https://www.youtube.com/watch?v=tJmMU-8yicM</a></span></div>
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Here's another video which points out some keys to being a successful trader; namely to<b> learn the set-ups</b>, and to<b> learn risk-management</b>. Watch it here: "<a href="http://www.youtube.com/watch?v=TzsVTvA9DoE" target="_blank">3 Keys to Day Trading Success: http://www.youtube.com/watch?v=TzsVTvA9DoE</a>".<br />
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<u>2. Retracements</u><br />
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The concept of <a href="http://www.investopedia.com/terms/r/retracement.asp" target="_blank">retracements</a> is, in my opinion, the most important one that any trading enthusiast must grasp in order to understand how the markets flow. In essence, a retracement is a <i>temporary</i> price movement against the established trend, and helps us understand that the markets move in wave patterns as highlighted by the <a href="http://www.investopedia.com/articles/technical/111401.asp" target="_blank">Elliott Wave Theory</a>. One way to look at it, as highlighted by this video below, is that most price-actions follow a pullback rule to fibonacci retracement levels (38%, 50%, 62%).<br />
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/7VSWqM0jfIQ?feature=player_embedded' frameborder='0'></iframe></div>
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<span style="font-size: x-small;">The 50% Rule: <a href="http://www.youtube.com/watch?v=7VSWqM0jfIQ" target="_blank">http://www.youtube.com/watch?v=7VSWqM0jfIQ</a></span></div>
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The most important concept to take away from this is "what goes up must come down"; that price movements in one direction are always followed by retracements in the opposite direction. Of course, not all movements will follow the same pullbacks, and these levels should only be used as a guide. Here's another video: "Understanding Fibonacci retracement lines: <a href="https://www.youtube.com/watch?v=KzHjxPxGzMw" target="_blank">https://www.youtube.com/watch?v=KzHjxPxGzMw</a>".<br />
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So the question then is, how will we know if this counter-movement price action is a <a href="http://www.babypips.com/school/high-school/market-environment/retracement-or-reversal.html" target="_blank">retracement or a reversal</a>? There is no way to say for certain, but there are several patterns that have a high probability in indicating a <a href="http://www.investopedia.com/articles/trading/06/retracements.asp" target="_blank">reversal</a>; such as double tops/bottoms & head-and-shoulder patterns, and large selling volume after periods of bounded movement. Keep in mind that trading is a game of probability, consistency, risk-management and profitability over the long-term; not about making the right trade every single time.<br />
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<u>3. Trading on Volume</u><br />
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Another important concept you need to understand is that large price movements almost always coincide with high trading volume. Take the recent spike in Bitcoin price on 3rd March 2014 for example:<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3Wi_CQHbUfD4LlPVNRvtSMEgO2NdajPquNod3G6pLeuD9xoIRdTGmmh-HCXmpi-azPqZJC0Oo0NoOYumvUVxjQI3bE8WsS04sS-J4WhfcTkQztqVX9lhk_S9SBp8lb85jxthyKqx09yVK/s1600/140326+Bitcoin+spike+high+volume.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3Wi_CQHbUfD4LlPVNRvtSMEgO2NdajPquNod3G6pLeuD9xoIRdTGmmh-HCXmpi-azPqZJC0Oo0NoOYumvUVxjQI3bE8WsS04sS-J4WhfcTkQztqVX9lhk_S9SBp8lb85jxthyKqx09yVK/s1600/140326+Bitcoin+spike+high+volume.jpg" height="220" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bitcoin price spike coincides with high trading volume: 3rd March 2014. (<a href="http://bitcoinwisdom.com/" target="_blank">Bitcoinwisdom.com</a>)</td></tr>
</tbody></table>
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With this in mind, this is where the liquidity of an altcoin also comes into play; the higher the trade volume of an altcoin, the lower the spreads, and the more likely you will be able to make some profitable trades from it. In general, the trade volume is a good indicator of, and is proportional to the popularity of the altcoin at the current time.<br />
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Apart from the actual trading volume itself, another good indicator is the <i>change</i> in volume over time; if you realize that the trading volume of an altcoin has been steadily increasing over the last few days, it could be an indication that a big price movement is coming up. "24 Hour Volume" data is usually shown on the exchanges, such as <a href="https://www.mintpal.com/" target="_blank">MintPal</a> or <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a>, while another good website to use is <a href="http://www.cryptocoincharts.info/v2/markets/info" target="_blank">Cryptocoinchart's Market Comparison Chart</a>, <a href="http://coinmarketcap.com/volume.html" target="_blank">Coinmarketcap</a>, and <a href="http://crypto-coins-table.com/" target="_blank">Crypto Coins Table</a>.<br />
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Do also check out these 2 videos about trading on volume, that I'm sure will be useful for your altcoins and bitcoins daytrading:<br />
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<ol style="text-align: left;">
<li>Trading Volume Indicator on Your Day Trading and Swing Trading Charts: <a href="http://www.youtube.com/watch?v=byrjmP7DQJc" target="_blank">http://www.youtube.com/watch?v=byrjmP7DQJc</a></li>
<li>How to Analyze Stocks Trading on Volume: <a href="http://www.youtube.com/watch?v=lzfo-mh1Zv0" target="_blank">http://www.youtube.com/watch?v=lzfo-mh1Zv0</a></li>
</ol>
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<div>
<u>4. Breakout Patterns</u></div>
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The last concept I want to share is <i>breakout patterns</i>. Although most people are familiar with this concept, many do not know how to profit from them. This is one of the best tools to use for planning your entry positions, while there are various ways to do so, which are highlighted by these first two videos below:<br />
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<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/6YZ4ORz-UJ0?feature=player_embedded' frameborder='0'></iframe></div>
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<span style="font-size: x-small;">How I Trade Breakouts: <a href="https://www.youtube.com/watch?v=6YZ4ORz-UJ0" target="_blank">https://www.youtube.com/watch?v=6YZ4ORz-UJ0</a></span></div>
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<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/3gN-6D8nH0E?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<span style="font-size: x-small;">Phil Newton's Break out Strategy | Price Action Forex Trading: <a href="http://www.youtube.com/watch?v=3gN-6D8nH0E" target="_blank">http://www.youtube.com/watch?v=3gN-6D8nH0E</a></span></div>
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On hindsight, these breakout patterns always look like the perfect indicator for entry positions. But how do we really pull it off? How can we enter positions pre-formation of a chart pattern? Watch these videos to further refine your entry & exits on your altcoin trades.<br />
<ol style="text-align: left;">
<li>Do You Trade Breakouts ? Trade Chart Patterns Simple Indicators: <a href="https://www.youtube.com/watch?v=XyR-m8aUY3I" target="_blank">https://www.youtube.com/watch?v=XyR-m8aUY3I</a></li>
<ol>
<li>Breakouts on Triangle patterns:</li>
<ol>
<li>Ascending triangle - Trade long</li>
<li>Descending triangle - Trade short</li>
<li>Symmetrical triangle - Prior to forming triangle: only take long trades on the way up, and short on the way down</li>
</ol>
</ol>
<li>High Profit Trades found with Candlestick Breakout Patterns" - Stephen Bigalow <a href="http://www.youtube.com/watch?v=1fB3EF7XeXU" target="_blank">http://www.youtube.com/watch?v=1fB3EF7XeXU</a></li>
</ol>
<br />
<u>5. Advanced Trading Strategies</u><br />
<br />
<blockquote class="twitter-tweet" lang="en">
Learning <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a> <a href="https://twitter.com/search?q=%23Altcoins&src=hash">#Altcoins</a> trading by watching Forex & Stocks trading videos on YouTube is like learning to skateboard w a bicycle manual.<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/448880954044870656">March 26, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
Now comes the fun part: how can we take all that we've learnt so far and put into good use for trading Bitcoin/Altcoins? Here are some pointers for you:<br />
<br />
<ul style="text-align: left;">
<li>What we've learnt is more of a tool to make better entry and exit positions.</li>
<li>Keep in mind trading the bitcoin & altcoin markets as you watch the rest of these more advanced videos, and I hope you'll be able to gain some insights to build up your Bitcoins & Altcoins trading strategy.</li>
<li>Granted, forex & equities trading is much different from bitcoin or altcoin markets. However, the fundamentals are the same, and you should learn to draw lessons from the strategies talked about in the videos to supplement your bitcoin/altcoins trading strategy.</li>
</ul>
<br />
In the next videos, more advanced trading strategies and chart patterns will be shared. These strategies may seem very specific, but my goal is to give you better understanding of how these analysis tools are used, and to give you an idea of how different tools can be used to develop a single trading setup. The specifics are not important; what I hope to achieve is to <b>open up your minds</b> to new ideas, <b>expand </b>your trading <b>knowledge</b>, and ultimately encourage you to <b>explore</b> a diverse variety of trading strategies.<br />
<br />
Read up more on some of the main ideas discussed:<br />
<br />
<ul style="text-align: left;">
<li><a href="http://www.learningmarkets.com/using-fibonacci-analysis-to-create-trading-strategies/" target="_blank">Fibonacci Analysis</a></li>
<li><a href="http://www.investopedia.com/terms/f/fibonacciextensions.asp" target="_blank">Fibonacci Extensions</a> vs <a href="http://www.investopedia.com/terms/f/fibonacciretracement.asp" target="_blank">Retracements</a></li>
<li><a href="http://www.investopedia.com/articles/technical/111401.asp" target="_blank">Elliott Wave Theory</a></li>
<li><a href="http://www.investopedia.com/articles/forex/11/harmonic-patterns-in-the-currency-markets.asp" target="_blank">Harmonic moves/pattern</a></li>
</ul>
<br />
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<span style="font-size: x-small;">Trading a Breakout: <a href="http://www.youtube.com/watch?v=cB-M_0ZqxG4" target="_blank">http://www.youtube.com/watch?v=cB-M_0ZqxG4</a></span></div>
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/c9faCD9V838?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<span style="font-size: x-small;">How The Pro's Trade Using Fibonacci Retracements/Extension Technical Analysis: <a href="https://www.youtube.com/watch?v=c9faCD9V838" target="_blank">https://www.youtube.com/watch?v=c9faCD9V838</a></span></div>
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<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/i8sO3buv7sU?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<span style="font-size: x-small;">Ratio Trading: How to Predict Market Moves: <a href="https://www.youtube.com/watch?v=i8sO3buv7sU" target="_blank">https://www.youtube.com/watch?v=i8sO3buv7sU</a></span></div>
<br />
If you have more time to spare, watch these 2 very good (but lengthy) videos by <a href="http://www.candlecharts.com/" target="_blank">Steve Nison</a> for more trading strategies:<br />
<br />
<ul style="text-align: left;">
<li>Profiting in Forex Disc 1: <a href="https://www.youtube.com/watch?v=RCTr8WGQDIw" target="_blank">https://www.youtube.com/watch?v=RCTr8WGQDIw</a></li>
<li>Secrets To Becoming A Samurai Trader, Steve Nison [1/2]: <a href="https://www.youtube.com/watch?v=VKtGeZUjLWo" target="_blank">https://www.youtube.com/watch?v=VKtGeZUjLWo</a></li>
</ul>
<br />
What other trading strategies and chart patterns do you use for Bitcoin & Altcoins trading? Share it with me! I'm always up for a discussion and would love to learn more & improve my trading strategy. Leave a comment below or <a href="https://twitter.com/onemanatatime" target="_blank">tweet me at @onemanatatime</a>.<br />
<br />
<b><u>Cryptocurrency Portfolio</u></b><br />
<br />
Although I've been talking about conslidating my portfolio into a largely BTC/LTC one since January, I didn't really do it until earlier this month. For me, it's back to basics: use technical specifications as the basis & utmost important factor for long-term sustainability.<br />
<br />
Hence, my cryptocurrency portfolio now consists of a largely Bitcoin one, with a large portion of the other half in longer term altcoins such as Peercoin, Litecoin, Vertcoin, and Dogecoin. Lastly, I also leave about 10-20% of my portfolio to daytrade altcoins. I have listed my cryptoportfolio on the right column of this blog, and will continue to update it as the markets evolve.<br />
<br />
Also, keep a lookout for my <a href="http://www.cryptocoincharts.info/v2/investment_club/trader/159" target="_blank">Cryptocoinchart's Investment Club</a> profile, where I share new altcoin trades.<br />
<div>
<br /></div>
<div>
<b><u>Trading strategy</u></b></div>
<br />
There are <a href="http://www.investopedia.com/articles/active-trading/11/four-types-of-active-traders.asp" target="_blank">many available trading strategies</a> to choose from to suit your own needs, such as <a href="http://www.investopedia.com/articles/trading/05/011705.asp" target="_blank">daytrading</a>, <a href="http://www.investopedia.com/terms/p/positiontrader.asp" target="_blank">position trading</a>, <a href="http://www.investopedia.com/articles/trading/02/101602.asp" target="_blank">swing trading</a>, <a href="http://www.investopedia.com/articles/trading/02/100102.asp" target="_blank">fundamental trading</a>, <a href="http://www.investopedia.com/articles/trading/02/090302.asp" target="_blank">momentum trading</a>, or <a href="http://www.investopedia.com/articles/trading/05/scalping.asp" target="_blank">scalping</a>, just to name a few.<br />
<br />
Although the Bitcoin and Altcoins markets are very similar, I trade them very differently. With Bitcoin and trading on <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex</a>, I would say my trading strategy is mainly a <i>position </i>or <i>momentum </i>trading one, and largely <i>technical</i>. On the other hand, my Altcoins trading strategy is largely <i>fundamental </i>although technical aspects play a role in selecting altcoins, and consists of a combination of <i>swing </i>and <i>momentum </i>trading. <br />
<br />
In general, I use simple technical analysis concepts like a top down analysis, resistance/support, and structure to read charts and find entry/exit positions. On Bitfinex, I typically trade using resistance/support levels, coupled with breakouts on high volume. While for most altcoin markets, I first look for rising trading volume, and typically try to predict breakouts with fundamental analysis, or buy on retracements when momemtum kicks in. <br />
<br />
Timing is everything in trading, and I typically keep my watchlist to 5 or less cryptocoins at any one time, and only spend about a day or two trading each one. In fact, I was only looking at 5 different altcoins throughout the whole month of March, but that's more than enough if each one made profits of 100-1000%. The altcoins that I were watching this month include: Heavycoin, Blackcoin, Digibyte, Fluttercoin, and Hirocoin.<br />
<br />
Lastly, I just want to share some of the tools I use for trading these dynamic Bitcoin & Altcoins markets. If you have a useful tool I didn't list here, share it with me!<br />
<br />
<ul style="text-align: left;">
<li>Charts - <a href="http://bitcoinwisdom.com/" target="_blank">Bitcoinwisdom.com</a>, <a href="http://cryptocoincharts.info/" target="_blank">Cryptocoincharts.info</a></li>
<li>Exchanges - <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex</a>, <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a>, <a href="https://www.mintpal.com/" target="_blank">Mintpal</a></li>
<ul>
<li>I try to keep off other exchanges. Although i do also use them on occasion, I keep my coins in there for a minimal amount of time, and withdraw it into a local wallet as soon as I've completed my trade.</li>
</ul>
<li>Charting - <a href="https://www.tradingview.com/u/onemanatatime/" target="_blank">Tradingview.com</a></li>
<li>Other resources for altcoin data (e.g. volume) - <a href="http://www.cryptocoincharts.info/v2/markets/info" target="_blank">Cryptocoinchart's Market Comparison Chart</a>, <a href="http://coinmarketcap.com/volume.html" target="_blank">Coinmarketcap</a>, and <a href="http://crypto-coins-table.com/" target="_blank">Crypto Coins Table</a>.</li>
</ul>
<br />
<b><u>More trading Tips</u></b><br />
<b><u><br /></u></b>
With that, let me just leave you with a few wise words and trading tips from <a href="https://twitter.com/TraderHMS" target="_blank">@TraderHMS</a> on Twitter.<br />
<br />
<u>1. What goes up must come down</u><br />
Again, I just want to emphasize this, because I constantly get asked about chasing bubbles and if an altcoin is a good buy after rallying 500%. Every big price movement is followed by a big retracement, and the next retracements will gradually become smaller and less volatile; until new movement breaks the sideways momentum & starts a new cycle.<br />
<b><u><br /></u></b><u>2. Money in the pocket is always better than potential profits</u><br />
I typically don't hold a short-term altcoin for more than a week. In fact, I usually only spend 1 or 2 days trading a particular cryptocurrency. For now, my rule for trading shitcoins is "fast in fast out", and to always "sell too early and never buy at the bottom".<br />
<blockquote class="twitter-tweet" lang="en">
Losers postpone taking losses: Trading Card 96 <a href="http://t.co/bvbPv3Fnqu">pic.twitter.com/bvbPv3Fnqu</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/441973082563940352">March 7, 2014</a></blockquote>
<br />
<u>3. Trading is 99% watching and 1% trading</u><br />
And another 1000% planning/learning/preparing. It is important not only to know <i>"how" </i>to trade, which I hope this post has helped you with, but also to know <i>"when"</i> to trade!<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Trading Card 268: You need good technique and also good tactics <a href="http://t.co/vBQqm56ceV">pic.twitter.com/vBQqm56ceV</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/443397868389289984">March 11, 2014</a></blockquote>
<br />
<u>4. A good balance is essential</u><br />
Do not be blinded by one particular type of analysis technique. Always try to couple a few different indicators in your trade setups, to improve the profit probability of your strategy. Finding a profitable strategy is easier said than done, but keep in mind that trading is a long term game where consistency is key. Think of profiting over the next 100 trades, and not just about the next 5 trades; and make sure to consider various types of analysis in your trading strategy, namely fundamental analysis, technical analysis, and market tone.<br />
<blockquote class="twitter-tweet" lang="en">
Think in terms of the next 1,000 trades you are going to make: Trading Card 165 <a href="http://t.co/jjljUNeUn6">pic.twitter.com/jjljUNeUn6</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/448584631416127488">March 25, 2014</a></blockquote>
<br />
<blockquote class="twitter-tweet" lang="en">
The Best Trades: Trading Card 266 by Michael Marcus (hedge fund manager profiled in Market Wizards) <a href="https://twitter.com/search?q=%23investing&src=hash">#investing</a> <a href="http://t.co/t6IhrEY7Km">pic.twitter.com/t6IhrEY7Km</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/441275471972425728">March 5, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
<u>5. What is your trading strategy?</u><br />
A trading plan is essential if you're thinking about becoming a profitable trader! But what constitutes a good trading plan? Firstly, fundamentals; you need a basic plan for SELECTING the coins, you don't want to be trading any old shit coin. Secondly comes the technicals to help you pick an entry/exit; devise a holistic trade setup which considers a variety of factors. And lastly, consider the market tone; is there enough liqudity in the market, or is there growing interest from the community?<br />
<br />
So, can you answer this last question?<br />
<blockquote class="twitter-tweet" lang="en">
Can you answer this trading question? : Trading Card 267 <a href="https://twitter.com/search?q=%24SPY&src=ctag">$SPY</a> <a href="https://twitter.com/search?q=%24FB&src=ctag">$FB</a> <a href="https://twitter.com/search?q=%24ES_F&src=ctag">$ES_F</a> <a href="https://twitter.com/search?q=%24QQQ&src=ctag">$QQQ</a> <a href="http://t.co/rwEPnvn99N">pic.twitter.com/rwEPnvn99N</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/443129602819362816">March 10, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
I hope this post has helped you on your cryptocurrency daytrading journey, and that you continue to learn and improve your strategy. Combine different analysis techniques, such as the ones mentioned above, and find a style that suits you; and you should be well on your way to developing your own profitable Bitcoin & Altcoins trading strategy!<br />
<br />
If you have any questions at all, feel free to <a href="https://twitter.com/onemanatatime" target="_blank">tweet me at @onemanatatime</a>, or <a href="http://ask.fm/onemanatatime" target="_blank">leave a question on ask.fm</a>.<br />
<br />
All the best & good luck!<br />
<br />
P.S. If you're new here, make sure to check out my previous posts about Bitcoin & Altcoins daytrading:<br />
<br />
<ul style="text-align: left;">
<li><a href="http://redd.it/21jafa" target="_blank">Reddit discussion about this post in /r/CryptoMarkets</a></li>
<li><a href="http://alunacrypto.blogspot.nl/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html" target="_blank">How to Pick & Trade the Next Profitable Altcoin: An Insight into What Goes Through my Mind</a></li>
<li><a href="http://alunacrypto.blogspot.nl/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html" target="_blank">A Beginners Guide to Margin Trading on Bitfinex: Why you Shouldn't be Trading on Exchanges</a></li>
<li><a href="http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">Embarking on my Bitcoin Trading Journey: Learn Basic Technical Analysis</a></li>
</ul>
</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com4tag:blogger.com,1999:blog-8430592741332299921.post-65418695765745246292014-02-10T13:44:00.003+08:002014-06-19T19:42:55.748+08:00How to Pick & Trade the Next Profitable Altcoin: An Insight into What Goes Through my Mind<div dir="ltr" style="text-align: left;" trbidi="on">
<div dir="ltr" style="text-align: left;" trbidi="on">
Congratulations on owning some Bitcoins and being a part of this Global Revolution! If you don't already own one, buy one easily from an exchange like <a href="http://bitstamp.net/" target="_blank">Bitstamp.net</a>, <a href="https://coinbase.com/" target="_blank">Coinbase.com</a>, or from someone near you at <a href="http://localbitcoins.com/" target="_blank">Localbitcoins.com</a>. Once you own Bitcoins, you can easily trade them for any available Alternative Cryptocurrency from an altcoin exchange like <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a>. I like to use <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a> because they have so many available coins, and <a href="http://www.reddit.com/r/CryptoMarkets/comments/1x4x32/any_advicetips_on_using_cryptsy_ive_never_used_it/" target="_blank">I also find them to be quite reliable</a>.<br />
<br />
So you've been seeing tons of people making money trading Altcoins, while you've been losing tons of Bitcoins buying high and selling low? Whether you're simply frustrated with your "bad luck", or just want to learn more & make more Bitcoins daytrading, I'm here to help! So here's an easy-to-understand guide to picking and trading Bitcoin and Altcoins profitably, and of course, more essential daytrading tips to help us all become profitable cryptocurrency traders.<br />
<br />
I know you're all eager to make money, but keep in mind that nothing comes for free and I can only help you so much. Just because you've made 5 good trades doesn't make you a profitable trader, and neither does making 5 bad trades necessarily mean you're a lousy trader. Anyone can flip a coin and see 'heads' 5 times in a row. What we want to look for is consistency, and to do that you'll have to start forming <i>Your Own</i> trading strategy. Before I go on, keep these following points in mind when building up your personal Trading Strategy:<br />
<br />
<ol style="text-align: left;">
<li><b>Learn the basics</b>; read my last few blog posts, and also other trading resources to learn more about Technical Analysis and other trading tips. "I don't think that you can write music if you don't know how to play an instrument. You have to know the basics, then you can go forward." ~Alber Elbaz</li>
<li><b>Discipline is key</b>; be patient and build up a fundamental understanding of the markets, and more importantly, hone that keen trading sense of yours. We all have it in us, just takes a little discipline and practice.</li>
<li><b>Markets are ever-evolving</b>; don't treat it like its static because past actions are not an indication of future performance. Always be open to and learn from other's opinions, be objective about it, and constantly adapt and improve your strategy.</li>
<li><b>Lazy = poor</b>; Nobody can help you but yourself, don't expect to be spoon-fed. Be an active learner and constantly seek new ways to improve your strategy. Reflect on what went wrong and don't make the same mistakes again. When in doubt, ask Google.</li>
<li><b>There's only so much you can learn from reading</b>; you don't learn how to ride a bicycle by reading a book, go out there and put your knowledge into practice. Start small to test your strategy and build your confidence.</li>
</ol>
<br />
<blockquote class="twitter-tweet" lang="en">
3 methods to learn wisdom: by reflection, which is noblest; by imitation, which is easiest; and by experience, which is the bitterest.<br />
— Confucius (@ConfuciusPosts) <a href="https://twitter.com/ConfuciusPosts/statuses/431623363283677184">February 7, 2014</a></blockquote>
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<b><u><br /></u></b><b><u>How to Find new Altcoins?</u></b><br />
<b><u><br /></u></b>
So the first thing is to actually find new altcoins and to read up more about what it has to offer. To begin with, I always browse through the <a href="https://bitcointalk.org/index.php?board=159.0" target="_blank">Alternative Currency announcements page on Bitcointalk</a> to see what's popular. All new coins are definitely posted here so you shouldn't miss anything, and since threads with the newest post always appear on top, you usually don't have to look further than 2 pages. Things to look out for include the added value a coin brings (as I'll explain more in the next section), as well as the popularity and virality of the altcoin (i.e. high number of pages in a short time).<br />
<br />
Another place to look at is <a href="https://cryptocointalk.com/" target="_blank">Cryptocointalk</a> where you can find a long list of altcoins available, sorted according to new coins or by algorithm. This list is not completely updated, but is organized much better if you want to find out more about a particular coin.<br />
<br />
Secondly, you also want to cross-check your information about these coins on social media sources such as <a href="http://www.reddit.com/" target="_blank">Reddit </a>and <a href="https://twitter.com/search-home" target="_blank">Twitter</a>. Start off on <a href="http://www.reddit.com/search?q=" target="_blank">Reddit by doing a search</a> for the coin, as well as looking at the number of subscribers on the altcoin's subreddit. I bought a ton of Dogecoin at 30 satoshi when I first saw the <a href="http://www.reddit.com/r/dogecoin/" target="_blank">/r/Dogecoin</a> community grow to 2500 subscribers 1 week after launch, which was way more than most other coins at that time (most new altcoin subreddits get less than 50 subscribers in 1 week). Dogecoin has even surpassed Litecoin to be the second largest cryptocurrency subreddit <a href="http://www.reddit.com/r/dogecoin/" target="_blank">with over 50k rich shibes right now</a>. I'd love to go on talking about why Dogecoin has much future, but I'll leave that for another post.<br />
<br />
And of course, <a href="https://twitter.com/search-home" target="_blank">search for the altcoin on Twitter</a> and see what other people have to say about it. If you aren't already on Twitter, I must say that you're missing out on the best available source of cryptocurrency news. Start following a few users like those listed in the Tweet below, and also follow my <a href="https://twitter.com/onemanatatime/lists/bitcoin-trading-tips" target="_blank">Bitcoin Trading Tips</a> and <a href="https://twitter.com/onemanatatime/lists/altcoin-trading" target="_blank">Altcoin Trading</a> lists where I try to compile the best Cryptocurrency trading advice available on Twitter. Leave a comment below or tweet me <a href="https://twitter.com/onemanatatime" target="_blank">@onemanatatime</a> <span id="goog_1828109261"></span><span id="goog_1828109262"></span><a href="https://www.blogger.com/"></a>& tell me who else should be on those lists!<br />
<br />
<blockquote class="twitter-tweet" lang="en">
BTC/ALT Trading <a href="https://twitter.com/search?q=%23FF&src=hash">#FF</a> <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a> <a href="https://twitter.com/ActualAdviceBTC">@ActualAdviceBTC</a> <a href="https://twitter.com/BitInvest">@BitInvest</a> <a href="https://twitter.com/ChrisDunnTV">@ChrisDunnTV</a> <a href="https://twitter.com/CryptoCobain">@CryptoCobain</a> <a href="https://twitter.com/crypto_trader">@crypto_trader</a> <a href="https://twitter.com/altcoin_invest">@altcoin_invest</a> <a href="https://twitter.com/cryptotipz">@cryptotipz</a> <a href="https://twitter.com/traderberg">@traderberg</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432664705862074369">February 9, 2014</a></blockquote>
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And yes, that's all. I probably use less resources than most of you, but what's important is quality over quantity. It's crucial to learn how to spot a needle in a haystack. Make use of power of <a href="http://www.youtube.com/watch?v=b7tdgDRUufU" target="_blank"><b>Social Media</b> (a.k.a. Word-of-mouth on Steroids - Gary Vaynerchuk)</a>; ask the right questions, and you'll always get the right answers.<br />
<br />
<b><u>What to Look Out For?</u></b><br />
<b><u><br /></u></b>
With so many alternatives out there, we <i>really</i> need to be <b>picky</b> when choosing the next altcoin because you don't want to <a href="http://www.psfbuzz.org.uk/2013/04/10-top-forex-trading-tips-for-people-who-want-to-make-money/" target="_blank">spread yourself too thinly</a>. Firstly, clones of existing ideas/coins are mostly not worth holding for anything more than the short-term. In this sense, there's a few different kinds of coins with their respective leaders in each category, each with their own pros & cons:<br />
<ol style="text-align: left;">
<li>Bitcoin; SHA-256.</li>
<li>Litecoin; Scrypt.</li>
<li>Quark; Multi-algorithm for higher security.</li>
<li>Dogecoin; Memecoin, also Scrypt.</li>
<li>Nxtcoin; 100% Proof-of-Stake coin - no mining involved.</li>
<li>Ethereum; A Layer/Protocol separate from Bitcoin, called Bitcoin 2.0 by some.</li>
<li>Mastercoin; Not really an altcoin, more like a Layer/Protocol on top of Bitcoin.</li>
<li>Vertcoin; Anti-ASIC, using Adaptive N-factor in Scrypt.</li>
<li>Peercoin; Proof-of-Work + Proof-of-Stake combination.</li>
</ol>
While their blocktimes do not really make much difference, anything below 2.5 minutes is good enough, and anything below 30 seconds is worth looking at. Special technical differences make or break an altcoin, and can really shine when they add sufficient value ontop of Bitcoin; you can see much interest in Anti-ASIC coins, Layers, 2nd generation POS coins, and (less so) Multi-Algorithm coins. Another interesting to note is that many altcoins are now updating with <a href="http://redd.it/1wc0sr" target="_blank">Kimoto Gravity Well (read the comments here for more)</a>, tl;dr difficulty readjusts after every block, improves difficulty adjustment and makes mining fairer, more secure, and smoother.<br />
<br />
I just want to add that not all <b>pre-mines</b> are bad. As long as the pre-mine is well justified and actually carried out by the developers, I think it helps altcoins to better market themselves and build up a community. On the other hand, some developers use this as an excuse to insta-cash out early, so be weary. Secondly, although there's a lot of negativity surrounding <b>insta-mines</b> like QRK, I'd just like to point out that these coins actually help make prices much more stable more quickly, and will not be subjected to volatility as much as Bitcoin. Withholding judgement, these two instances can be seen as simply different attempts to tackle the rampant problem of unfair distribution in cryptocurrencies.<br />
<br />
Lastly, besides the technical innovation and specifications itself, it's also important to analyze a few other Fundamental factors that may affect the price of an Altcoin. It's also important to recognize that these factors usually take longer to reflect in prices:<br />
<ol style="text-align: left;">
<li><a href="http://alunacrypto.blogspot.nl/2013/12/behind-cryptocurrency-marketing.html" target="_blank">Branding & Marketing</a>. The most obvious case for Branding is Dogecoin, which literally went viral <i>just</i> because it was already a <a href="http://knowyourmeme.com/memes/doge" target="_blank">popular online meme</a>. On another note, I also like the WorldCoin branding, and more so their marketing efforts. Although prices have been dipping for WDC, keep in mind that so has every other altcoin (Bitcoin up, altcoins up; bitcoin down, altcoins down).</li>
<li><a href="http://alunacrypto.blogspot.sg/2013/12/behind-cryptocurrency-marketing.html" target="_blank">Community</a>. This includes popularity among public, general consensus about the altcoin, as well as the <i>supportiveness </i>of the community. The last bit is important, and a prime example is Dogecoin's altruistic community, as well as the <a href="http://www.reddit.com/r/dogemarket/" target="_blank">growing market for Dogecoin services</a>. With no other coin can you find such a large & liquid pool of people waiting to sell all kinds of goods/services for crypto.</li>
<li><u>Developers</u>. Just like how technical specifications make or break an altcoin, developers are the backbone of the whole cryptocurrency's ecosystem.</li>
<li><u>Infrastructure</u>. With a good team of developers and community, infrastructure around the altcoin will quickly follow. I like to take Dogecoin as an example because they have grown so much and so quickly, but you'll see it pay off in the sense that the community and developers are working together to build all kinds of services for the Dogecoin ecosystem; USD exchanges, marketplaces, movements, apps etc.</li>
</ol>
<b><u>Where to Buy?</u></b><br />
<b><u><br /></u></b>
The only way to get new coins pre-exchange is through P2P trades. High risk of getting scammed. Don't trade with new users, always trade with trusted users and gain a reputation until you can get others to send first. I've been scammed 3 times and had to learn the hard way. Best way is to totally avoid this method unless you're really dying to get a coin pre-exchange.<br />
<br />
First few exchanges that adopt a new coin vary, but they're usually the smaller ones. Very high risk. Always try to leave funds in there for as short a time as possible. I.e. freshmarket hack etc. Look for the relevant information on the altcoin's Bitcointalk thread, Google it, or ask someone on Twitter.<br />
<br />
Second exchanges, and they take up new coins pretty quickly too, include sites like <a href="https://coinedup.com/" target="_blank">Coinedup.com</a> and <a href="https://openex.pw/" target="_blank">OpenEx.pw</a>. Thirdly, the biggest exchanges include sites like <a href="https://www.vaultofsatoshi.com/" target="_blank">ValutOfSatoshi</a>, <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a>, <a href="http://coinex.pw/">Coinex.pw</a>, <a href="http://bter.com/" target="_blank">BTER</a>. For a (updated but not full) list of which exchanges trade a particular altcoins, use <a href="http://www.cryptocoincharts.info/" target="_blank">Cryptocoincharts.info</a>.<br />
<br />
For Daytrading pairs of Bitcoin/Litecoin/USD, I highly recommend using <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Bitfinex </a>where you can Margin Trade, i.e. Short sell or Long buy without actually having to own USD. Read up how on <a href="http://alunacrypto.blogspot.nl/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html" target="_blank">my previous blog post</a>, and <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">create an account with me to get 10% off trading fees for 30 days</a>. If you have already created an account, but haven't used a referral code, you can still enjoy the discount by emailing <a href="mailto:support@bitfinex.com" target="_blank">support@bitfinex.com</a> and quoting the code '<b>aQBHcxVPzj</b>'.<br />
<br />
<b><u>When/What's a Good Price to Buy/Sell?</u></b><br />
<br />
For new altcoins, and especially clones, all you'll need is to find a good price to buy, since there's no charts for you to do any TA yet. I found a pretty useful formula for calculating a fair price, and have found it to be pretty accurate. Use it, let me know what you think about it, and how we can improve it to apply to different coin types etc. by <a href="http://twitter.com/onemanatatime" target="_blank">Tweeting me</a> or leaving a comment below.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Here's the Secret Formula to calculate a Fair Price for new altcoins: (Total BTC Supply ÷ Total Altcoin Supply) ÷ 5000to10000. <a href="https://twitter.com/search?q=%23crystalball&src=hash">#crystalball</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/431198852671352832">February 5, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
Just to clear things up, by total supply, I mean maximum supply. Of course, this varies by coin type, but is a good starting point for calculating a fair value for a new altcoin. For a more accurate estimation, also compare to similar coins "of the same type", or coins with similar maximum quantities. Example:<br />
<ul style="text-align: left;">
<li>Dogecoin & Kittehcoin - Memecoin</li>
<li>Quark & Particlecoin - Multi-algorithm</li>
<li>NXTcoin & NEMcoin - 100% PoS</li>
<li>Mooncoin & Astrocoin - Based off the same "to the moon" philosophy</li>
</ul>
Secondly, like it or not, you'll have to learn more Technical Analysis basics if you really want to find the sweet spot for entry/exit prices. It'll also help to have a better understand of how markets in general work, and apply the knowledge to your crypto trading.<br />
<blockquote class="twitter-tweet" lang="en">
This is why I don't buy into Hype. When others are greedy, be fearful; when others are fearful, be greedy. <a href="https://twitter.com/search?q=%23LEAF&src=hash">#LEAF</a> <a href="https://twitter.com/search?q=%23MAXcoin&src=hash">#MAXcoin</a> <a href="https://twitter.com/search?q=%23BuyLowSellHigh&src=hash">#BuyLowSellHigh</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432547173918441472">February 9, 2014</a></blockquote>
<b><u><br /></u></b>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<b><u>How to Trade?</u></b><br />
<b><u><br /></u></b>
Obviously, the most important rule in trading is to "buy low sell high". Unfortunately, that's usually harder to execute than it sounds because of panic and greed. Haven't you learn enough from bubbles? Whatever goes up must come down. Markets will always look for a correction after a big spike. Don't chase the bubble! <i>EVERY </i>parabolic curve/rise is a bubble, and a chance for you to sell your altcoins for a profit. Just wait for it and always set sell positions ready to eat up those buys.<br />
<br />
Although learning all the basic trading theories are important to give a more wholesome idea of chart reading, I really only use support/resistance to judge price levels. If you want to get more in depth into Technical Analysis, here's two very good resources and must-reads for people working in hedge funds & the financial industry (courtesy of <a href="https://twitter.com/ActualAdviceBTC" target="_blank">@ActualAdviceBTC</a>):<br />
<br />
<ul style="text-align: left;">
<li><b>Wyckoff Schematics: Visual templates for market timing decisions: </b><a href="http://www.hankpruden.com/MTWyckoffSchematics.pdf" target="_blank">http://www.hankpruden.com/MTWyckoffSchematics.pdf</a></li>
<li><b>The Day Trader's Bible:</b> <a href="http://www.beursplaza.com/ebook6.pdf" target="_blank">http://www.beursplaza.com/ebook6.pdf</a></li>
</ul>
<br />
If you have the time, also invest some of it reading the whole of my blog, and also this <a href="http://www.reddit.com/r/BitcoinMarkets/comments/1uedc5/technical_analysis_weekly_review_1_technical/" target="_blank">6 part series on Technical Analysis for Beginners</a> from a fellow cryptotrader, <a href="http://www.reddit.com/u/ClydeMachine" target="_blank">ClydeMachine</a>.<br />
<blockquote class="twitter-tweet" lang="en">
Start by reading my blog & /r/CryptoMarkets for trading resources. Nth beats a keen sense for learning <a href="https://t.co/OdZTQpewoo">https://t.co/OdZTQpewoo</a> <a href="https://twitter.com/LibertiBella">@LibertiBella</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432552887965597697">February 9, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<b><u><br /></u></b>
<b><u>Trading Tips</u></b><br />
<b><u><br /></u>
#0: Don't join <a href="http://en.wikipedia.org/wiki/Pump_and_dump" target="_blank">Pump & Dumps</a>, period.</b> For someone to make money, someone else has to lose. Don't be the one caught with the short end of the stick.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Stay away from pumps organized in twitter. Either its big and you will never get a buy in or its small and you will become a bag holder<br />
— CryptoOracle (@CryptoOracle) <a href="https://twitter.com/CryptoOracle/statuses/430492491700117504">February 4, 2014</a></blockquote>
<b><br /></b>
<b>#1: Always trade with a plan.</b> Before entering a trade, plan not only your entry but also your exit. Don't fall into the trap of panic buying/selling. Once you get over that, everything will start to come together.<br />
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script><b>
#2: Discipline.</b> Be patient and wait for good setups. Plenty of opportunity everyday, don't spread too thin. On a side note, I can't wait for a <a href="https://twitter.com/onemanatatime/status/428708770420494336" target="_blank">margin platform for altcoins</a> to be built. If you're building one, hit me up and let see how we can work together (I'm a Business Development and Online Marketing Major).<br />
<br />
<b>#3: Money management.</b> Don't spend more than 5-10% of your entire BTC portfolio on a single Altcoin, unless you're damn sure it's gonna be profitable in the mid-long term.<br />
<br />
<b>#4: Understand human psychology.</b> Here's a good 5 part series to get you started:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/xEcZQdCEiKE?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<a href="http://www.youtube.com/watch?v=xEcZQdCEiKE" target="_blank">Source: Mark Douglas- Trading Psychology #1</a></div>
<br />
<br />
<b><u>Most Common Pitfalls</u></b><br />
<ol style="text-align: left;">
<li><b>Placing too much importance on:</b></li>
<ul>
<li>Buy/Sell Walls. I barely look at buy/sell walls because these can be manipulated so easily especially for lower volume altcoins. I only use this, if ever, to have a better idea of support/resistance levels, although I know many people will tell me these work wonders and I trust you too.</li>
<li><a href="http://coinmarketcap.com/" target="_blank">Market Capitalization</a>. Market caps are nothing more than two numbers multiplied by each other; total supply and price. It gives you a good judgement of how a crypto is currently doing, but in no way does it say if an altcoin is a good buy/sell now. I think what's more important when looking for long-term buys is the total hashrate (and rate of growth) of the cryptocurrency. </li>
<li>News Stories. More often than not, news is already factored into price by the time you read about it. Of course, exceptions include "big" pieces of news such as <a href="http://www.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html" target="_blank">China's government intervention</a>, recent <a href="http://www.cryptocoinsnews.com/2014/01/28/russian-ban-significant-attack-bitcoin-charlie-shrem-arrest-side-show/" target="_blank">Russia's ban</a>, and <a href="http://www.cryptocoinsnews.com/2014/02/07/mt-gox-suspended-bitcoin-withdrawals-end-mt-gox/" target="_blank">issues with (then) leading exchanges</a>.</li>
</ul>
<ol>
</ol>
<li><b>Overtrading. </b>I'll let the guy whom I learnt all my Bitcoin trading fundamentals from speak about this: <a href="http://www.youtube.com/watch?v=oJ-xROFn0zg" target="_blank">Bitcoin Trading Webinar - How To Make Money Trading Bitcoin</a> (<a href="https://twitter.com/ChrisDunnTV" target="_blank">@ChrisDunnTV</a>). Long video, but worth it if especially for beginners.</li>
<li><b>Not having a plan beforehand.</b> I can't emphasize this enough. Many people jump into buying an altcoin without thinking about their exit plan. What is your target, when you do sell and take profit, when do you sell and cut losses, or do you have more funds/positions ready to buy more if it continues to dip? Are you holding this for the short term or long term? These are all important questions to ask yourself <b><i>before</i></b> making a trade. If you don't have a sound and comfortable strategy before entering trades, more likely than not, you're going to end up losing Bitcoins over the (not so) long run.</li>
<li><b>Trying to predict a bottom/top.</b> Nobody can predict exactly where the price is going next, only a better and more informed guess. I personally think this is the toughest problem to tackle, because when greed takes over, you always think "I could have made so much more if only I sold higher or bought lower".<br /><br />
<blockquote class="twitter-tweet" lang="en">
"Great Traders never buy at the Bottom and always Sell too Early."<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/430895252275081216">February 5, 2014</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
</li>
<li><b>Chasing the bubble.</b> What goes up must come down.<br /><br />
<blockquote class="twitter-tweet" lang="en">
Presenting: The <a href="https://twitter.com/search?q=%23Maxcoin&src=hash">#Maxcoin</a> Bubble. Of course. Don't ask me what's a good price to buy; wait and see. Probably drop 10x+ <a href="http://t.co/bdL4HBx5gm">pic.twitter.com/bdL4HBx5gm</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432546827196305408">February 9, 2014</a></blockquote>
<br />
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
</li>
<li><b>Getting emotionally attached to a particular altcoin. </b>I have to admit this is still a problem for me, and I'm still holding onto bags of WDC, ZET, EAC, MSC, that are currently unprofitable. I bought them earlier on, and didn't take profits from the bubbles. But most important thing is that we learn from our mistakes, and that's why I now like to sell some positions to get into a position to "<a href="http://en.wikipedia.org/wiki/Freeroll" target="_blank">freeroll</a>".</li>
<li><b>Using Technical Analysis as the sole determinant for making trades. </b><a href="http://www.chrisdunn.com/why-all-indicators-are-useless/" target="_blank">Every indicator is useless - by itself.</a> The market is not stagnant, and prices are affected by everything we can, and <i>cannot</i> think of. Don't be bound by one system of analysis; use every single piece of information you can find, and objectively analyze the markets with a bird's eye view.</li>
</ol>
<br />
<b><u>My Cryptocurrency Trading Strategy</u></b><br />
<b><u><br /></u></b>
Firstly, I must emphasize that I'm VERY Bullish on Bitcoin for the Long Term. I've invested every single FIAT dollar I have into Cryptocurrencies since November 2013, and I literally have to start selling Bitcoins 2 months later to pay my rent (or wait for a Bitcoin ATM to appear here). Because of this, I spend a ton of time & effort researching Bitcoin and Altcoins to constantly look for ways to grow my number of Bitcoins. I also have a high risk propensity and so not all my trades will be comfortable for you. My point basically is that nobody's situation is exactly the same, so keep in mind that you'll have to build your own strategy to suit your personal needs, risk preference, available resources, and environment.<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
My suggestion is to buy BTC @ Bitstamp/Coinbase. Take say 50% to daytrade in <a href="https://twitter.com/search?q=%23Bitfinex&src=hash">#Bitfinex</a>. Rest look for altcoin opportunities <a href="https://twitter.com/1badpug">@1badpug</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432433699271872512">February 9, 2014</a></blockquote>
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<br />
<br />
To give you a better idea of how I manage my cryptocurrency funds, I'll share a breakdown of the coins I own. I have 50% of my funds in Bitcoin, which is split into two portions. Half of them (25%) is in Bitfinex and used for Daytrading, and is also the Bitcoin I will never be selling. The other 25% of my funds is in various Bitcoin wallets/exchanges, either waiting to be traded for an Altcoin, <a href="https://cryptostocks.com/">Cryptostocks</a>, or even for Poker on <a href="https://sealswithclubs.eu/aff.php?aff=595">SealswithClubs</a>. As for the rest of the 50%, I have them split over ~15 altcoins right now but I'm looking to weed out the weaker ones as soon as I find a good exit point, and hopefully only hold on to 5 or so for the longer term (and these will probably keep changing).<br />
<br />
<b>Super short-term</b> strategy usually consists of Shitcoins; less than 2% investment per altcoin. Look for cheap entry price, sell portions as it increases, and I'll let go all during the first bubble that comes (sell all at a retracement after highest peak). Look to get in and out quickly. If you miss the boat, you might just end up holding a bag of coins with decreasing worth, and will probably take you months to break-even, if ever.<br />
<br />
<b>Short-term</b> altcoins are usually those that offer something more than useless clones; willing to risk less than 3-5% of total portfolio. These usually include the leading clones of the 7 types of coins I mentioned in the second section from the beginning. Look for cheap entry price, and sell portions as it increases. I usually sell until I break-even my initial Bitcoin investment in the altcoin, and then <a href="http://en.wikipedia.org/wiki/Freeroll" target="_blank">freeroll</a> the rest. Depending on the coin, I may or may not sell all my coins after we double-peaked in a bubble, and bring some coins to the mid-term.<br />
<br />
<b>Mid-term</b> altcoins include those that provide various distinct and valuable features, such as NXT, VTC, DOGE, QRK. They're usually also the leader in their altcoin category, although it could be interesting to see which alternative eventually emerges as the Silver to each of these Altcoin's Gold. Layers and added protocols also for me fall under this category, and could be added to my long-term portfolio depending on how they perform (e.g. Ethereum). I'm willing to risk up to 10% of my total BTC on a single mid-term altcoin.<br />
<br />
My <b>long-term</b> portfolio really only consists of Bitcoin and Litecoin, solely based on the <a href="http://en.wikipedia.org/wiki/Network_effect#Benefits">Network Effect</a> that these two cryptocurrencies have garnered thus far. I agree to some extent that Litecoin will remain the second to Bitcoin and eventually live out its prophecy as Silver to Bitcoin's Gold. I have 10% of my portfolio in Litecoin and I'm just holding them for the long haul. I'm just waiting to sit through my second Bitcoin bubble and make some money. I feel bad for saying this, but I can't wait for the economic meltdown.<br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
My biggest prediction for 2014 is another huge bubble to a peak of $3-6000. Possibly June or later. Maybe China reverses Ban. <a href="https://twitter.com/bmsmashout">@bmsmashout</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/431626860532105216">February 7, 2014</a></blockquote>
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<a href="https://www.tradingview.com/v/srT1Ca85/">Cheap Bitcoin from $440/$688. Last few days of Discount b4 ATH!</a> by <a href="https://www.tradingview.com/u/onemanatatime/">onemanatatime</a> on <a href="https://www.tradingview.com/">TradingView.com</a><br />
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<b><u><br /></u></b>
<b><u>My Current Altcoin Watchlist</u></b><br />
<b><br /></b>
<b>Long Term</b><br />
<ul style="text-align: left;">
<li><a href="https://bitcointalk.org/index.php?topic=428589.0" target="_blank">Ethereum</a></li>
<li><a href="http://www.zerohedge.com/contributed/2014-01-21/enter-ultracoin-it-banks-peer-peer-file-sharing-music-industry" target="_blank">Reggie Middleton's UltraCoin layer</a></li>
</ul>
<br />
<blockquote class="twitter-tweet" lang="en">
More on <a href="https://twitter.com/ReggieMiddleton">@ReggieMiddleton</a>'s UltraCoin Layer <a href="http://t.co/2rxS7uOWnL">http://t.co/2rxS7uOWnL</a>: <a href="http://t.co/0VJKog0mTC">http://t.co/0VJKog0mTC</a> <a href="http://t.co/l0jt3pBilc">http://t.co/l0jt3pBilc</a> <a href="http://t.co/dreryIxJr0">http://t.co/dreryIxJr0</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432723551636844544">February 10, 2014</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script><b>
Mid Term</b><br />
<ul style="text-align: left;">
<li><a href="https://bitcointalk.org/index.php?topic=404364.0" target="_blank">VertCoin</a></li>
<li><a href="https://bitcointalk.org/index.php?topic=413978.0" target="_blank">UltraCoin</a></li>
<li><a href="https://bitcointalk.org/index.php?topic=450381.0" target="_blank">MintCoin</a></li>
</ul>
<b>Others (Not so impressive but still watching)</b>:<br />
<br />
<ul style="text-align: left;">
<li><a href="https://bitcointalk.org/index.php?topic=438150.0" target="_blank">MaxCoin</a>. Way overpriced. Could probably fall 10x-100x. Wait and see where the bottom is.</li>
<li><a href="https://bitcointalk.org/index.php?topic=447657.0" target="_blank">KarmaCoin</a>. Decently priced. I think 1 to 2 Satoshi is definitely a steal. Provided this coin can gain enough traction for a bubble. </li>
</ul>
<br />
<br />
Check out the rest of my current & updated watchlist at <a href="http://www.cryptocoincharts.info/v2/investment_club/trader/12" target="_blank">Cryptocoinchart Investment Club</a>. Don't forget to stop by periodically and bookmark my <span id="goog_1828109646"></span><a href="http://www.cryptocoincharts.info/v2/investment_club/trader/12" target="_blank">Cryptocoinchart Investment Club profile</a> for updates on which coins I'm eyeing/buying.<br />
<blockquote class="twitter-tweet" lang="en">
Playing ard w <a href="https://twitter.com/cryptocoinchart">@cryptocoinchart</a>'s social tradg feature. Bookmark! <a href="http://t.co/rg43h5UBra">http://t.co/rg43h5UBra</a> <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a> <a href="https://twitter.com/search?q=%23Altcoin&src=hash">#Altcoin</a> <a href="https://twitter.com/search?q=%23Daytrading&src=hash">#Daytrading</a> <a href="http://t.co/W3qWS4JWkU">pic.twitter.com/W3qWS4JWkU</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/432701800680935424">February 10, 2014</a></blockquote>
<br />
<b><u>FAQ</u></b><br />
<b><u><br /></u></b><u>
1. How do you feel about XYZ coin?</u><br />
<br />
First of all, there are over 100 altcoins out there, so don't expect me to know about every coin. If it's an exactly clone of Bitcoin, Litecoin, or anything already available, chances are,<b> it's not worth either of our time</b>.<br />
<br />
Secondly, read my tweets and do your own research (lazy = poor). If its worth mentioning, I probably did mention it. If you can't find it on my timeline because its too cluttered, again, do a Twitter search for the Altcoin and find out what the World has to say about it.<br />
<br />
Thirdly, there's 100s of altcoins out there for you to choose from. Don't spread yourself too thin and buy into every possible bottom. Leave the shitcoins to die, and stick to altcoins with a <a href="http://alunacrypto.blogspot.nl/2013/12/a-new-wave-of-2nd-generation.html" target="_blank"><i>stronger </i>fundamentals</a>.<br />
<br />
<u>2. If I'm holding a bag of XYZ coin, should I just wait or sell for a loss now?</u><br />
<br />
Rule #1 of the game: Buy Low Sell High. But obviously easier said than done.<br />
<br />
If you think the coin isn't going make it to the mid-term, and want to liquidate them, you have two options. Sell now and take the loss; that's the hardest thing to do, but also what every good traders knows he needs to do. Or if you think the coin has potential, buy more at where you think is a low, so your average buy price drops, and you can liquidate some/all as soon as it bounces back up. Think <a href="http://en.wikipedia.org/wiki/Martingale_(betting_system)" target="_blank">Martingale (doubling) strategy</a>.<br />
<b><br /></b>
<b>Got more questions? Leave a comment below!</b><br />
<br />
<br />
P.S. I recently came across an idea of a Cryptocurrency Hedge Fund; form a network/team of crypto traders to synergistically work together and achieve profitable returns. Different teams mining, selling altcoins, buying altcoins, looking for potential entry positions, trading bitcoin etc. If you'd like to discuss the idea, feel free to email me at alvinlee133(at)gmail.com or hit me up on twitter <a href="https://twitter.com/onemanatatime" target="_blank">@onemanatatime</a>.<br />
<br />
P.P.S. This post took 5 months of hard work and research, and one full work day (with overtime) to write. Feel free to donate some coins my way on the donate link below, or send some altcoins to my <a href="https://www.cryptsy.com/users/register?refid=244857" target="_blank">Cryptsy</a> Trade Key: 9c1e289981a685bf0b8a4e48bc00b35eb1380afa.<br />
<br />
<script src="http://coinwidget.com/widget/coin.js"></script>
<script>
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wallet_address: "16ka98tnhs9fAjWEXRmEWVrPfTEwmr9orV"
, currency: "bitcoin"
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wallet_address: "LW4qr8aSfgTwGuU6uvEjnhNKRyJJR9iUbR"
, currency: "litecoin"
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, lbl_button: "Donate"
, lbl_address: "My Litecoin Address:"
, lbl_count: "donations"
, lbl_amount: "LTC"
});
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<!-- btc coinbase wallet, ltc offline wallet osx -->
<br />
<br />
Cheers and hope I've helped you in some way, and hopefully more than just making money. Peace ^_^V</div>
</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com15tag:blogger.com,1999:blog-8430592741332299921.post-19587254613429323082014-01-19T13:57:00.000+08:002014-02-28T06:41:26.066+08:00A Beginners Guide to Margin Trading on Bitfinex: Why you Shouldn't be Trading on Exchanges<div dir="ltr" style="text-align: left;" trbidi="on">
So I've been talking a lot about Bitfinex recently, since I started using it about 2 weeks ago. Up until now, I've been using a variety of exchanges including Bitstamp and BTC-E to trade my Bitcoin. I just want to point out that there is a big distinction between exchanges, and trading platforms like Bitfinex. On exchanges, all I could do was sell Bitcoin at a high, and buy them back at a low, or hold some USD in the hopes of snatching up some cheap Bitcoin. In fact, I'm sure all of you reading this have been trying to do exactly that for the last few months. If you haven't heard of Margin trading, get ready to be blown away; you'll be kicking yourself for not doing so earlier.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Why does everyone like selling BTC into FIAT, instead of Margin Trading Short/Long??? Trust me, you're MISSING OUT. <a href="https://t.co/i5PliWJiz6">https://t.co/i5PliWJiz6</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/424560290462584832">January 18, 2014</a></blockquote>
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<br />
When I first started trading on Bitfinex, I was totally tripping out about how I didn't find out about this platform and trade on it earlier. Trust me, when you start using Bitfinex to Margin Trade, you'll be wondering wtf you've been doing on those exchanges for the last few months. Because that's exactly how I felt, and that's also why I'm so excited to share it with you. Since then, quite a few people have been asking me on Twitter to cover some Margin Trading and Bitfinex trading material. So here goes nothing.<br />
<br />
<b>DISCLAIMER: As much as I like Bitfinex and recommend them for Trading, I do not endorse the site in any way. I do not know if they'll close down today, tomorrow, or a year from now. I also do not know how they handle their funds internally and whether that will pose a problem in the near future. Please trade with caution, and only use money you can afford to lose. If you hear anything negative (e.g. withdrawl issues etc.) about Bitfinex on Reddit/Bitcointalk/Twitter, please make sure to let me know too! </b><br />
<br />
<blockquote class="twitter-tweet" data-conversation="none" lang="en">
<a href="https://twitter.com/Vinnigar1">@Vinnigar1</a> Yes understand. My point is, you can do what you're already doing, but BETTER, with Bitfinex.<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/424605232371220480">January 18, 2014</a></blockquote>
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<br />
You must be wondering, first of all, what exactly is <a href="http://www.investopedia.com/university/margin/margin1.asp" target="_blank">Margin Trading</a>? In a nutshell, <a href="http://www.investopedia.com/university/margin/margin1.asp" target="_blank">margin trading</a> is basically borrowing money from the broker (trading site) for trading. Bitfinex currently offers a leverage of 1:1 up to 2.5:1, meaning that you can borrow 1 up to 2.5 Bitcoin for every 1 Bitcoin deposited. For beginner traders, I suggest changing your leverage right after you set up you account to 1:1. Keep in mind that by borrowing funds, you'll be subjected to interest charges (10-13%) which is automatically factored in when you close your position. If you're inexperienced, please listen to my advice, or you could get burnt badly (although 2.5 leverage is pretty decent). For example, if you use 2.5:1 leverage, and short sell your whole account from $800, but price goes up by $800/2.5=$320 to $1120, you're going to lose ALL your Bitcoin in your account (even lower than that actually, because of a platform's <a href="http://www.royal-forex.com/cfd_terms.htm" target="_blank">stop-out level</a> and <a href="http://www.investopedia.com/terms/m/margincall.asp" target="_blank">margin call</a>). Of course, this can be easily managed with a good trade size & risk management strategy, which I will cover later.<br />
<br />
There are 3 options to choose from on Bitfinex; Exchange, Margin Trade, and Liquidity Swaps. If you head to their <a href="https://www.bitfinex.com/pages/howitworks" target="_blank">'how it works'</a> page, you'll be able to find a good explaination of each of the 3 different functions available. More importantly, I will only focus on Margin Trading, because that's all you'll need to get started on Bitcoin/Litecoin trading.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWVZGKwYaQ0LxHf4P0hI_li4iUyg3I9-ysIueQDo6-y-J9uKDDzQyhFfofHrG0CMhZwGXk_7rqIMqQpnukLU8oxbQty5k5j9aehODLA_8-qCkGvpJL05g__LcMbI4FVpCIgkZDEV-iF7py/s1600/140119+Bitfinex+Aluna+margin.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWVZGKwYaQ0LxHf4P0hI_li4iUyg3I9-ysIueQDo6-y-J9uKDDzQyhFfofHrG0CMhZwGXk_7rqIMqQpnukLU8oxbQty5k5j9aehODLA_8-qCkGvpJL05g__LcMbI4FVpCIgkZDEV-iF7py/s1600/140119+Bitfinex+Aluna+margin.jpg" height="560" width="520" /></a></div>
<div style="text-align: center;">
<a href="https://www.bitfinex.com/pages/howitworks" target="_blank">What is Margin Trading? Abstract from Bitfinex.</a></div>
<br />
Let me just orientate you the site before we go on further. Once you create your Bitfinex account, you'll arrive at this page as you see below. So first of all, click on Margin Trade, and select the currency pair that you would like to trade. Secondly, you can see your active positions held, for example I have a sell order (indicated by the '-' sign) at a price of $845, and I'm making ~5% on my trade at the time of posting. You can also see a 'close' action available, which allows you to close your position at the current market price. Thirdly, you can see some of my active orders; red is sell, and green is buy. I have already set 5 different buy positions on $BTCUSD at $701, $688, $622, $555, $471, and 3 sells at $850, $899, and $988. You can see already, that there's much more room to play around with trading on Bitfinex as compared to a traditional exchange. And lastly, the 4th section is where you place your orders. There's 5 different kinds of order types, namely <a href="http://www.investopedia.com/terms/l/limitorder.asp" target="_blank">Limit</a>, <a href="http://www.investopedia.com/terms/m/marketorder.asp" target="_blank">Market</a>, <a href="http://www.investopedia.com/terms/s/stop-lossorder.asp" target="_blank">Stop</a>, <a href="http://www.investopedia.com/terms/t/trailingstop.asp" target="_blank">Trailing Stop</a>, and <a href="http://www.investopedia.com/terms/f/fok.asp" target="_blank">Fill or Kill</a>. Do read the links provided for an explaination of each different order type.<br />
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<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu1lTff518BZho-YPK2aR0t-y3sGnYVV5rzg5PhG9q_2kLYyWPYWMkW8732fXvIgP_ar6LiUUc7U-G1Il_0OAVe_86rh3Ai5luleAAdXgt0qjcMghpvtLDr7UoSnwoUPML8XqOU88KvGTB/s1600/140119+Bitfinex+Aluna.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu1lTff518BZho-YPK2aR0t-y3sGnYVV5rzg5PhG9q_2kLYyWPYWMkW8732fXvIgP_ar6LiUUc7U-G1Il_0OAVe_86rh3Ai5luleAAdXgt0qjcMghpvtLDr7UoSnwoUPML8XqOU88KvGTB/s1600/140119+Bitfinex+Aluna.jpg" height="600" width="532" /></a></div>
<br />
So what we'll focus on here is how to actually place orders, and how to manage your orders on Bitfinex. For more about <a href="http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">technical analysis and an introduction to trading strategies</a>, visit my <a href="http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html" target="_blank">previous blog post here</a>. If you're thinking of starting out on trading, I highly advice reading the linked article, as well as <a href="http://www.reddit.com/r/BitcoinMarkets/comments/1uedc5/technical_analysis_weekly_review_1_technical/" target="_blank">this set of very good resources by Reddit user ClydeMachine</a>.<br />
<br />
Let's say we deposit 10 Bitcoins into Bitfinex for trading, and we think that the general trend is going down, and want to place a short sell to capitalize on the fall. You'll place a Limit Order, enter your price say $850, for a total of 1 Bitcoin, and click the Margin Sell button. Let's also say from Technical Analysis you figure out that the next support levels are at $760, and $700. So at the same time, you can also place a Limit Buy order for something like 0.5 BTC at $760, and 0.5 BTC at $700. On top of that, if you think that there's a strong resistance at $900 and feel that it may break up to $900 but not beyond that, you can also place a Stop Buy Order at $910, or a Trailing Stop Order for $60 (provided it's currently $850, it will add on the market price -- they both work the same way, only different in the way the position is entered). And if you're going long (buying because you think the market is bullish), it'll be the exact opposite of a short sell as mentioned above.<br />
<br />
When your $850 sell order is reached, it will then appear on your Active Orders (section 2) list. From there, if the price moves in your favour, and reaches $700, you'll make 0.5*($850-$760) + 0.5*($850-$700) for a total profit of $120. Point to note is that your Limit orders will cancel each other out. On the other hand if market moves against your favour, and completes your Stop or Trailing stop orders at $910, you'll lose $60 on your trade.<br />
<br />
With regard to choosing a suitable leverage for yourself, this is really up to your own personal risk preference, as well as how much you have to trade with. If you have more BTC to play around with, you can choose to deposit more and use a low leverage, unless of course you're in the mood to gamble. But again, please trade safe. This more or less covers Bitcoin trading on Bitfinex. Sign up with me and get 10% off your trading fees for 30 days <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">here</a>. If you have more questions, feel free to tweet me @onemanatatime.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Trust me, just try it out. Shoot away with any questions you have. <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a> <a href="https://twitter.com/search?q=%23Margin&src=hash">#Margin</a> <a href="https://twitter.com/search?q=%23Trading&src=hash">#Trading</a> <a href="https://t.co/i5PliWJiz6">https://t.co/i5PliWJiz6</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/424569210816045056">January 18, 2014</a></blockquote>
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<br />
With that, I just want to also cover some of the basics of Bitcoin Trading and share what I think are the most important tips for you traders out there. If you're thinking, why should you listen to me; I have to be honest and say that I've only been trading Bitcoin since September 2013, although I have some experience from <a href="http://autoforexsg.wordpress.com/" target="_blank">Forex Automated Trading</a> since November 2012. On the other hand, since making my first few mistakes trading, I've been putting a lot of effort into researching the topic, and I believe I have a pretty good fundamental understanding of the Bitcoin market. I like to think that I learn pretty fast, but who knows, I could just be getting lucky. Either way, I've made a few pretty good predictions since early December 2013, and I'm just here to help all of you who are interested to learn more.<br />
<br />
As mentioned right at the start, one of the most important traits of a good trader is to be disciplined in your trade sizes and plan a risk management strategy that suits your risk-propensity and style. Before you dismiss the importance of this statement, I just want to add that I've been playing poker for over 5 years, and I know how important money management is in being successful as a poker player; and trading is no different. In Equities/Forex trading, traders typically risk 1-2% of their whole portfolio on any single trade. On the other hand, I understand that this % is wayyyy too small for any of you reading this (all you gamblers...). I'll just point out that I typically risk about 10% of my whole portfolio on each position, and up to 50% for active trades. If Bitcoin goes to $400-500 within the next 4 weeks, I'll be sure to be going all-in on a long position.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Keep your risks small and constant : Trading Card #44 <a href="http://t.co/6f0rRXAgow">pic.twitter.com/6f0rRXAgow</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/423802446402433024">January 16, 2014</a></blockquote>
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Secondly, the markets are ever evolving. Don't rely on static indicators or use past price-actions as a judgement of the future. Bitcoin is a largely free-floating market with no party controlling it per say (although you can argue that governments can manipulate prices, such as China's ban), and as such the price is truly an average price based on the sentiment of market participants. What comes as a surprise to me, is that there is still a very large uncertainty among the general adopter of bitcoin regarding its future potential. As such, we're currently seeing the tanking/falling of price I have been predicting for a week. On the other hand, any critical news (government level more than anything else) can affect Bitcoin price drastically and we'll have to see how China acts over the next weeks. I personally believe we'll see a last dip, before prices start climbing up, and finally breaking $1200 around March or April (start of the financial year, and we'll see huge businesses follow Overstock's lead, as well as investor and Wall St $$ pour into Bitcoin) this year and we'll probably see the start of the next bubble. In fact, I would make another bold prediction for 2014, that China will reverse this current ban. Things are heating up, and will get crazy. This time, be smart!<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Your trading strategy must be dynamic and ever evolving: Trading Card #37 <a href="http://t.co/ZSSO4Bkzc9">pic.twitter.com/ZSSO4Bkzc9</a><br />
— Trading Cards (@TraderHMS) <a href="https://twitter.com/TraderHMS/statuses/424356509032517632">January 18, 2014</a></blockquote>
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Lastly, plan your trades well! Don't jump into a trade without having planned out not just your entry position, but your exit plan (stop loss) as well as your target price. If you can't determine either one, wait for a better setup! Always look for a setup where you have a higher reward to risk ratio, of at least 2:1. Meaning that your stop loss is $50 away, while your take profit is $100 away.<br />
<br />
I've also compiled a few of the most commonly asked questions I came across over the last few days:<br />
<ol style="text-align: left;">
<li>How do you judge price levels / How do you do Technical Analysis?<br /><br />First of all, please take TA only as a supplement to fundmental analysis, and more importantly with general market sentiment and psychology. For now, all I use is Fibonacci, and some basic resistance/support based on previous price-action. Nothing spectacular at all. As you can see, I'm not a very experienced trader, and really don't pay much attention to TA (but it helps, although too much TA is not good either). That's why I prefer to use a crystal ball.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
.<a href="https://twitter.com/manekari">@manekari</a> I should also point out that almost no TA was involved. I bought a crystal ball yesterday instead. <a href="http://t.co/fSLbPpTlEH">pic.twitter.com/fSLbPpTlEH</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/421638790487097344">January 10, 2014</a></blockquote>
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</li>
<li>Why do you think price is going down now?<br /><br />I think news is factored in by the time you hear about it (more or less), and this only becomes more true as time goes on. It is more important to look at the market as a whole, from a bird's eye view. Think about the psychology of the market. For example, currently markets are bearish (since the huge drop 5th December 2013, coupled with a lower low on the 18th Dec, and a double top at around $1000) and many are uncertain of how China is going to act moving forward, and hence are generally uncertain about Bitcoin's future. We'll need some big news for prices to start climbing up again, but that'll just be a matter of time.<br /></li>
<li>I have lost a bunch of coins in the past from stupid trades. I have lost confidence in trading.<br /><br />Learn to manage your trades & crypto portfolio. My general guideline to everyone is to keep at least 50% in BTC/LTC and largely for the long haul, maybe about 20-30% for trading, and use the rest for your favourite Altcoins. Altcoin prices are highly volatile, and when prices of Bitcoin fall, you'll see that Altcoins fall much much harder. On the other hand, when Bitcoin goes up, you'll see Altcoins climb much faster. Considering that, now'd be a perfect time to stock up on cheap altcoins until Bitcoin starts climbing again.<br /></li>
<li>I (think I) believe in Bitcoin's future. Should I be worried about the price dropping?<br /><br />If you really believe in Bitcoin's future, gather as much FIAT as you can right now and buy your Bitcoin while we still have prices under $850. We probably won't be seeing such prices again once Bitcoin starts to skyrocket past $1200, making the November 2013 bubble look like nothing; just think how the April 2013 bubble looked like in November. Oh, and Bitcoin is going to change the world.</li>
</ol>
<br />
So there you go, I hope this post can help you get started on Bitcoin Margin Trading. If you haven't got your account by now, sign up with my referral code and enjoy 10% off your trading fees for the first 30 days. <a href="https://www.bitfinex.com/?refcode=aQBHcxVPzj" target="_blank">Click here to get started on Bitfinex</a>.<br />
<br />
Lastly, I'm building a list of very strong Bitcoin traders on Twitter, and looking to find only the best thought leaders on the topic. Do check it out the <a href="https://twitter.com/onemanatatime/lists/bitcoin-trading-tips" target="_blank">Crypto Trading List</a> and feel free to give any feedback or suggestions for who else should be in there. Also feel free to visit <a href="https://www.tradingview.com/u/onemanatatime/" target="_blank">my TradingView profile</a> where I chart out my Bitcoin (and some Litecoin soon) predictions. If you haven't watched this video by @ChrisDunnTV, highly recommend checking it out!<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
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<div style="text-align: center;">
Bitcoin Basics (Part 5) - "How To Make Money Trading Bitcoin"</div>
<br />
I'm thinking of a few topics for my next blog post. Would you like to see something about Bitcoin Daytrading & Technical Analysis, a revisit & review of Altcoins, Poker & Daytrading, or something about Dogecoin? Drop a comment, send me a message with the form right at the bottom, or tweet me at @onemanatatime.</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com13tag:blogger.com,1999:blog-8430592741332299921.post-47070870487780625282014-01-08T23:45:00.000+08:002014-01-08T23:45:57.003+08:00Embarking on my Bitcoin Trading Journey: Learn Basic Technical Analysis<div dir="ltr" style="text-align: left;" trbidi="on">
<u>My Trading Experience</u><br />
<br />
I first dabbled with Trading and Technical Analysis back in November 2012, when I first got into Forex Trading. Back then, I was <a href="http://autoforexsg.wordpress.com/2013/01/13/an-unfamiliar-journey/" target="_blank">introduced to an Automated Forex Robot</a> that could rake in passive income of about 5-10% a month, and used a <a href="http://en.wikipedia.org/wiki/Martingale_(betting_system)" target="_blank">Martingale (doubling) strategy</a> for trading. In less than 3 months, <a href="http://autoforexsg.wordpress.com/2013/01/17/burnt/" target="_blank">half of my account went </a><b><a href="http://autoforexsg.wordpress.com/2013/01/17/burnt/" target="_blank">bust</a> </b>because I was using too high of a risk-reward setting, coupled with a highly volatile GBP/USD market on the 4th of January 2013.<br />
<br />
I did a fair share of Finance courses during my Business studies, and had a basic understanding of the Equity and Forex markets, and thought that I knew what I was doing. But oh was I so wrong! After this setback, I began to learn more about Technical Analysis to supplement my Auto Trading, and more importantly, to really understand what I was investing in.<br />
<br />
I continued using the Forex Robot for the next 10 months up till November 2013, as I began to shift out my funds into Bitcoin after <a href="http://autoforexsg.wordpress.com/2013/08/01/super-leo-ea-forex-automated-trading-robot-software/" target="_blank"><i>finally </i>turning a profit</a> in August. Since then, I have been following Bitcoin more closely, and have been super interested in learning how to trade Bitcoin.<br />
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<blockquote class="twitter-tweet" lang="en">
.<a href="https://twitter.com/steveomarburg">@steveomarburg</a> I would if I had more $$$. I'm ALL-IN <a href="https://twitter.com/search?q=%23Bitcoin&src=hash">#Bitcoin</a>.<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420718977686331392">January 8, 2014</a></blockquote>
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<u><br /></u>
<u>Getting Started</u><br />
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Back when I was learning more about Forex trading, I went to <a href="http://www.babypips.com/school" target="_blank">Forex school at Babypips</a>, and learnt some of the fundamentals of chart reading and trading, such as reading candles and trading concepts. Unfortunately, I dropped out somewhere through Elementary School, after they lost me with all kinds of different indicators I could not see the use for. On the other hand, I still do think Babypips is a fantastic resource, especially for beginners who are keen to learn how to trade and better understand the Bitcoin market.<br />
<u><br /></u>
More recently, since I made my first few panic buys and sells and lost some Bitcoins trading, I have been picking up again on Technical Analysis and Trading strategies. I'm not an expert at this, and neither should you take my words as investment advice, but I'm here to share some of my thoughts on Bitcoin trading, and I hope it is of great help to you!<br />
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If you have any questions, feel free to tweet me at <a href="https://twitter.com/onemanatatime" target="_blank">@onemanatatime</a>.<br />
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<u>Learn the Basics of Trading</u><br />
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If you're a beginner trader, first thing you should learn is to read charts. <a href="http://www.investopedia.com/university/charts/charts1.asp" target="_blank">Chart patterns</a> signal to traders that the price of a security is likely to move in one direction or another when the pattern is complete. I'd like to bring your attention three chart patterns that will appear very often. I also took the time to show you how these relate to Bitcoin trading with the charting tools I use on <a href="https://www.tradingview.com/u/onemanatatime" target="_blank">TradingView</a>. Enjoy!<br />
<ul style="text-align: left;">
<li><b>Head & Shoulders</b><br /><a href="http://www.investopedia.com/university/charts/charts2.asp">http://www.investopedia.com/university/charts/charts2.asp</a></li>
</ul>
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<a href="https://www.tradingview.com/x/SRZiWJ2S/" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="238" src="https://www.tradingview.com/x/SRZiWJ2S/" width="400" /></a></div>
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<ul style="text-align: left;">
<li><b>Double Top/Bottom</b><a href="http://www.investopedia.com/university/charts/charts4.asp" target="_blank"><br />http://www.investopedia.com/university/charts/charts4.asp</a></li>
<ul>
<li>If price pops past Top #1, we'll see an uptrend.</li>
<li>If price doesn't pop up, we'll fall back down.</li>
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<li><b>Triangles</b><br /><a href="http://www.investopedia.com/university/charts/charts5.asp">http://www.investopedia.com/university/charts/charts5.asp</a></li>
<ul>
<li>Sideway movements</li>
<li>Stagnation</li>
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Secondly, another analysis tool I think is very useful, is the Fibonacci Extension. Fibonacci is pretty tough to understand, and more so to chart with Bitcoin due to the lack of available tools which allow for it. But in essence, the <a href="http://www.goldennumber.net/fibonacci-series/" target="_blank">Fibonacci sequence</a> is a unique string of numbers which adds the sum of the two numbers before it, and is the deravitive of the <a href="http://www.mathsisfun.com/numbers/nature-golden-ratio-fibonacci.html" target="_blank">Golden Ratio</a>. People like to call them the "magic" numbers, and very aptly so, as they're <a href="http://io9.com/5985588/15-uncanny-examples-of-the-golden-ratio-in-nature" target="_blank">present all throughout Nature</a>.<br />
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<a href="http://www.youtube.com/user/4xTradersLIVE/videos" target="_blank">Jason Stapleton</a> shares the secret of Fibonacci Trading; that is to understand that Fibonacci (extension) is simply a <i>tool</i>. But when employed properly, and in conjunction with other indicators, it can present enourmously profitable, high reward low risk trading opportunities. Watch his video here:<br />
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Lastly, I'd like to share a trading pattern called the <a href="http://en.wikipedia.org/wiki/Elliott_wave_principle" target="_blank">Elliott Wave Principle</a>. It emphasizes an understanding of Investor Psychology, and explains why prices fluctuate in zig-zag patterns. If you thought Fibonacci was tough to understand, let's have <a href="http://www.babypips.com/school" target="_blank">Babypips </a>put this in perspective. <a href="http://www.babypips.com/school" target="_blank">Babypips</a> teaches <a href="http://www.babypips.com/school/elementary/fibonacci" target="_blank">Fibonacci </a>in Elementary school Grade 3, whereas <a href="http://www.babypips.com/school/summer-school/elliott-wave-theory/elliott-wave-theory.html" target="_blank">Elliott Wave</a> is taught in "Summer School". In that sense, Eliott Wave would be a great concept to learn and understand, as a supplement to your foundational understanding. Click on the links above to read and learn more about both theories!<br />
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<u>Bitcoin Trading</u><br />
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By now, you'd probably be saying: "Sure, these resources all give me a good basic understanding of trading markets, but how does that apply to Bitcoin?" Since learning the fundamentals, I've been looking around for good resources to learn Bitcoin Trading from but with not much luck. Here I'll be sharing some handy videos to guide you on your Bitcoin trading journey.<br />
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I didn't get around to learning proper Bitcoin trading strategies, until early December when I chanced upon Chris Dunn's first Bitcoin trading video and prediction.<br />
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I watched <a href="https://twitter.com/ChrisDunnTV" target="_blank">@ChrisDunnTV</a>'s first Bitcoin prediction video on the 6th of December 2013, and the rest of his <a href="http://www.youtube.com/watch?v=Egz-p77578I" target="_blank">"How To Day Trade" 5 part series videos</a>. Somehow, I had a gut feeling that he was the <b>ONLY </b>guy trading Bitcoin who <i>actually knew </i>what he was talking about. </div>
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<blockquote class="twitter-tweet" lang="en">
Guys, <a href="https://twitter.com/search?q=%23bitcoin&src=hash">#bitcoin</a> is already up 20%+ from my buy zone last night. Read this post to profit! <a href="http://t.co/CLS2Jkv7UU">http://t.co/CLS2Jkv7UU</a> <a href="http://t.co/dY3aGHkJhR">pic.twitter.com/dY3aGHkJhR</a><br />
— Chris Dunn (@ChrisDunnTV) <a href="https://twitter.com/ChrisDunnTV/statuses/409378982874730496">December 7, 2013</a></blockquote>
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<blockquote class="twitter-tweet" lang="en">
Another spot-on prediction as Bitcoin falls to $817 Bitstamp. "<a href="https://twitter.com/ChrisDunnTV">@ChrisDunnTV</a>: Scaling into a short position for BTC - <a href="http://t.co/HpkdB6KnZL">http://t.co/HpkdB6KnZL</a>"<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420558386342932480">January 7, 2014</a></blockquote>
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Since then, he's made and <i>nailed </i>5 back-to-back Bitcoin predictions, each with 15-30% profit. Watch his last prediction play out with immaculate precision. Watch the video here: <a href="http://www.youtube.com/watch?v=ncGd7JEvefY" target="_blank">Incredible Live Bitcoin Trading!</a><br />
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<blockquote class="twitter-tweet" lang="en">
Made 15% on my Bitcoin "short sell" listening to <a href="https://twitter.com/ChrisDunnTV">@ChrisDunnTV</a>'s tip. If you're thinking of trading Bitcoin, don't forget to stop by!<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/412582181848879104">December 16, 2013</a></blockquote>
This is a long one, but here's another great video I highly recommend watching: <a href="http://www.youtube.com/watch?v=3oSBISMVLuA" target="_blank">60 Minute Stock Trading Blueprint Webinar</a>.<br />
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If you liked his content, watch his other videos on his <a href="http://www.youtube.com/user/chrisdunntv/videos" target="_blank">YouTube channel</a> and follow him on twitter <a href="https://twitter.com/ChrisDunnTV" target="_blank">@ChrisDunnTV</a> for the latest updates!<br />
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Lastly, I also very much believe in Chris Dunn's trading perspective. I think more than analyzing news articles, or technical analysis, the most important aspect of trading is to <b>understand the market sentiment</b>. Hence, I also want to highlight how many Bitcoin traders are currently looking at certain time frames (e.g. in 12 hours from now) to determine a price for entry. I'd just like say that that's <i>not going to work</i>! Instead of narrow time frames, and random $ amounts; think about <b>Price-Action</b>, <b>Resistance</b>, and <b>Support</b>.<br />
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Another piece of advice, is to <b>match </b>the<i> Price-Action </i>of both a long term-time period as well as a short-term one, when trying to make judgement calls. I personally use Bitcoinwisdom.com for reading a chart, and use anything from a <b>6h </b>to <b>1d </b>Time Interval for a <i>long-term period</i>, and anything from a <b>5m </b>to <b>30m </b>chart for <i>short-term analysis</i>.<br />
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<blockquote class="twitter-tweet" lang="en">
.<a href="https://twitter.com/supershares">@supershares</a> $777 or lower? who knows. 12h time frame is too narrow. think price action, resistance & support; not hours and $.<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420860387181867008">January 8, 2014</a></blockquote>
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<u>Past Trades & Predictions</u><br />
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My very first prediction about Bitcoin came in my first blog post about Bitcoin hitting $1000 by the end of 2013. I wrote the post on 14 November 2013, and you can read it here: <a href="http://alunacrypto.blogspot.nl/2013/11/is-bitcoin-train-ever-turning-back-1000.html" target="_blank">Is the Bitcoin train ever turning back? $1000 by year end</a>?<br />
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Then on 28 November 2013, I wrote another blog post about an <a href="http://alunacrypto.blogspot.nl/2013/11/alternate-cryptocurrency-prices-surge-litecoin-crash-coming.html" target="_blank">incoming Litecoin crash</a>. I related the price surge during that time, to the <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDRCZvychALpSs5V6ZoyFPxu1j9p16t-GL0VdHOTMRxsntFyyQYbZRqZCTG14ps0HknMUB8gpC7MqqPpMYIYYZzQIS4l9JdLldunTMZSvkwr6PzS2ATO4S1AA_6zuNqhnMSZUFNt1ThDZ1/s1600/131128+ltcbtc+crash+comparison.jpg" target="_blank">Bitcoin bubble of April's Cyprus fiasco</a>. At that time, I had no clue how to judge resistance and support, but interestingly, the <i>wisdom of crowds</i> (more or less) pulled through with the right answer. Litecoin peaked at $50, before crashing down over 50%.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidouHUFU0nw6RC4EHH9Iz53ygakZpXpG5dZL7ilMePQ7TyiqdhewWBRpxV3JlQKqO2dltumQzf8xp0WEO_V_ueZEm2AypFtb7C0e1XQyl_Ay6PYanidZpQ1Z6HW1WOg7Guw4FuzBGBhPwB/s1600/140108+litecoin+crash+poll.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidouHUFU0nw6RC4EHH9Iz53ygakZpXpG5dZL7ilMePQ7TyiqdhewWBRpxV3JlQKqO2dltumQzf8xp0WEO_V_ueZEm2AypFtb7C0e1XQyl_Ay6PYanidZpQ1Z6HW1WOg7Guw4FuzBGBhPwB/s1600/140108+litecoin+crash+poll.JPG" /></a></div>
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Since I began learning to trade, the added market understanding has given me a better insight into estimating a fair price for altcoins, as well as to judge support/resistance levels to look for entry/exit points. I have made a few spot-on Altcoin predictions of my own over the last weeks, as you can see on my previous blog posts about <a href="http://alunacrypto.blogspot.nl/2013/12/new-cryptocoins-to-keep-eye-on.html" target="_blank">WorldCoin, NXTcoin, and DogeCoin here</a><a href="http://alunacrypto.blogspot.nl/2013/12/new-cryptocoins-to-keep-eye-on.html" target="_blank"> </a>and <a href="http://alunacrypto.blogspot.nl/2013/12/a-new-wave-of-2nd-generation.html" target="_blank">eMunie and EarthCoin here</a>. Follow me on <a href="https://twitter.com/onemanatatime" target="_blank">Twitter</a> or <a href="http://alunacrypto.blogspot.com/" target="_blank">my blog</a> to get the latest updates on Altcoin opportunities!<br />
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And last but not least, here was my first Bitcoin prediction. Click the link to <a href="https://www.tradingview.com/v/9q04ab1Q/" target="_blank">see how my first prediction panned out on TradingView</a>. I didn't know what I was doing, but I guess that's what they call <a href="http://www.goodreads.com/quotes/613685-every-search-begins-with-beginner-s-luck-and-every-search-ends" target="_blank">Beginner's Luck</a>. ;)<br />
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<blockquote class="twitter-tweet" data-conversation="none" lang="en">
Thanks <a href="https://twitter.com/baihk">@baihk</a>. It's not my first, and definitely not my last. I'm still learning too! Here was my first w/ 25% gain <a href="https://t.co/FQEIiBLI8O">https://t.co/FQEIiBLI8O</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420861312415985664">January 8, 2014</a></blockquote>
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<u>Today's Prediction</u><br />
I think Bitcoin will be looking to retest the $544 support level of Bitstamp, before picking up for a new All Time High. But before we can go the Moon, Earth's gravity is causing a small nosedive into the $650-$720 levels, and I'll enter if my Sell order goes through at $850.<br />
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<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/search?q=%24BTCUSD&src=ctag">$BTCUSD</a> chart: Bitcoin looking for a retest of the $544 levels, before new ATH.. <a href="http://t.co/c0B1F0Of4B">http://t.co/c0B1F0Of4B</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420851818873102336">January 8, 2014</a></blockquote>
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And here's a friendly reminder about following Bitcoin or Altcoin predictions:<br />
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<blockquote class="twitter-tweet" lang="en">
also dont reply to my tweets from 8 hours ago saying "thx for the tip, buying now!" are you fucking insane this is a highly volatile market<br />
— CryptoCobain (@CryptoCobain) <a href="https://twitter.com/CryptoCobain/statuses/420716372960612352">January 8, 2014</a></blockquote>
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Follow me on <a href="https://www.tradingview.com/u/onemanatatime/" target="_blank">TradingView</a> as I create new charts with Buy/Sell opportunities, or<a href="https://twitter.com/onemanatatime" target="_blank"> Twitter @onemanatatime</a> for the latest updates! Don't forget to enter your vote for the Bitcoin price poll on the right column of this blog. Here's my vote, what's yours?<br />
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With that, I'd like to end off with this; good luck trading, and <a href="http://answers.yahoo.com/question/index?qid=20090211231305AAQpxj6" target="_blank">HUAT AH</a>! And here's a quote from <a href="http://www.amazon.co.uk/The-Alchemist-Fable-About-Following/dp/0722532938/ref=sr_1_1?ie=UTF8&qid=1389190818&sr=8-1&keywords=the+alchemist" target="_blank">The Alchemist, by Paulo Coelho</a>.<br />
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<blockquote class="twitter-tweet" lang="en">
“Every search begins w beginner's luck. And every search ends with the victor's being severely tested." Paulo Coelho. <a href="http://t.co/SQHXxc9cD1">pic.twitter.com/SQHXxc9cD1</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/420922718649737216">January 8, 2014</a></blockquote>
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com8tag:blogger.com,1999:blog-8430592741332299921.post-58209971308546142002013-12-24T14:20:00.001+08:002013-12-29T02:55:43.248+08:00A New Wave of 2nd Generation Cryptocurrencies: NXT, eMunie, SkyCoin, EarthCoin<div dir="ltr" style="text-align: left;" trbidi="on">
<b><u>Recap</u></b><br />
<b><u><br /></u></b>
In my <a href="http://alunacrypto.blogspot.sg/2013/12/new-cryptocoins-to-keep-eye-on.html" target="_blank">last blog post</a>, I recommended three alt coins to look out for: WorldCoin (WDC) , NXTcoin (NXT), and DogeCoin (DOGE). For those of you who followed my recommendations, I hope I helped you to make a decent profit. But for those of you who didn't, fret not, because there were 10 altcoins launched in the last 2 weeks alone, and so definitely more opportunities & recommendations coming your way!<br />
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I think one of the best ways to trade altcoins is to invest early in <i>new</i>, <i>technically</i> <i>innovative</i>, and <i>strong</i> (community, branding, developers) cryptocurrencies. Typically, I look out for certain technical aspects in a cryptocoin, including fast transaction times (1 minute or less), higher security, being able to overcome certain limitations Bitcoin possesses, or factors that can potentially give the altcoin more value. I also covered some important aspects of a cryptocurrency, such as <a href="http://alunacrypto.blogspot.sg/2013/12/behind-cryptocurrency-marketing.html" target="_blank">marketing, branding, development and community in an earlier post her</a><a href="http://alunacrypto.blogspot.sg/2013/12/behind-cryptocurrency-marketing.html" target="_blank">e</a>.<br />
<blockquote class="twitter-tweet" lang="en">
New Cryptocoins to Keep an Eye on: WorldCoin (WDC), NXTcoin (NXT), DogeCoin (DOGE) <a href="http://t.co/S7w525tRgy">http://t.co/S7w525tRgy</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/412636321975246848">December 16, 2013</a></blockquote>
Since I recommended them on the 16th of December, we have seen a nice growth from each of them:<br />
<ul style="text-align: left;">
<li>WDC has risen from 0.0003 WDC/BTC to its current rate of about 0.0006; a <b>2x increase</b>.</li>
<li>NXT has risen from 800 <a href="http://bitcoin.stackexchange.com/questions/4097/is-the-value-of-satoshi-fixed-or-dynamic" target="_blank">Satoshi</a>s (0.00000800) per NXT, to a current price of 5500 Satoshis; a <b>6.8x increase</b>.</li>
<li>DOGE has risen from a low of 30 Satoshis per DOGE, to a high of 200 Satoshis (<b>6x increase</b>), and is currently trading at 85 Satoshis (<b>3x increase</b>).</li>
</ul>
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As you can see from the previous post, both new coins (NXT, DOGE) made a good 6 fold increase, and I believe that we can expect the same huge growth for almost all subsequent new <i>potential</i> altcoins. The altcoin scene is growing at an exponential rate, and I will do my best to keep up with new coins and give you guys good recommendations. On a side note, it is interesting to see that even new clones (with no innovation) can end up gaining 10x or more value, so maybe it's all just a matter of first-mover advantage? And I'm not referring to DogeCoin, because I personally think DogeCoin has tremendous value in it's reach and backed up by a large community with a common emotional bond to the <a href="http://knowyourmeme.com/memes/doge" target="_blank">Doge meme</a>, which matters A LOT in branding.<br />
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<b><u>Introduction</u></b><br />
<br />
So in this post, I want to cover another 3 cryptocoins to watch out for over the next weeks and months. 2 of them are so-called "2nd generation" cryptocurrencies, which have gained popularity recently since NXTcoin's rise to fame. It could be very interesting to see how these (and other newer) 2nd generation altcoins will develop over the next year, and what they can bring to the cryptocurrency table. Will these 2nd generation coins really be the beginning of something new, and spawn a new era of cryptocoins that have significantly more value/benefits than Bitcoin? I only found out about these 3 coins yesterday, and am excited to share them with you! Tell me what you think about them in the comments section below.<br />
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Credit goes to Twitter user @Tasorrog for introducing me to 2 of the coins I will be talking about here; <b>eMunie</b>, and <b>SkyCoin</b>. Lastly, I will also discuss another interesting altcoin, <b>EarthCoin</b>, that has some unique technical specifications, and also gained much attention since the 20th of December.<br />
<blockquote class="twitter-tweet" lang="en">
Thanks 4 recommending these 2nd gen cryptocoins: eMunie (eMu) & SkyCoin (SKY). Researching now; look out for my next blog post! <a href="https://twitter.com/Tasorrog">@Tasorrog</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/415345866480697345">December 24, 2013</a></blockquote>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguQk0psi8Bi2oiQKdSwy4e41VCdRWB63FMV3cNhM_po70CpMzftCeneZ3a2Ob2FS6np3IpoBJJ0GS2VHs6Rsl-E0ZhwmMWSBuCgQr9jo8KUmvP785fTQR4SZ7OkAoJniG6wGiW9p026PYX/s1600/Screenshot+2013-12-24+15.56.22.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="eMunie (EMU)" border="0" height="105" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguQk0psi8Bi2oiQKdSwy4e41VCdRWB63FMV3cNhM_po70CpMzftCeneZ3a2Ob2FS6np3IpoBJJ0GS2VHs6Rsl-E0ZhwmMWSBuCgQr9jo8KUmvP785fTQR4SZ7OkAoJniG6wGiW9p026PYX/s320/Screenshot+2013-12-24+15.56.22.png" title="eMunie (EMU)" width="320" /></a></div>
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<a href="http://emunie.com/" target="_blank">eMunie (eMu)</a> was first announced sometime in June 2013, and has been in Beta testing since. It kinda went into hiatus for a few months, before picking up some momentum and attention again this month as people anticipate its official launch in January 2014.<br />
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Like NXT, there is no mining involved. But unlike NXT, eMunie has an infinite supply of coins, which interestingly is dependent on the demand of the coin. It is rather complicated, but user <i>windjc</i> succinctly explains it in an <a href="http://forum.emunie.com/index.php/topic/962-how-many-emus-will-there-be/?p=9007" target="_blank">eMunie forum thread here</a>:<br />
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<i>"The entire beginning total of Emus will be created in 1 genesis block. </i><br />
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<i>Anyone can invest during the 30 day pre-launch investment period. The cost is .10 cents per Emu. So if the entire investment is $1 million, then the genesis block will contain 10 million Emus. </i><br />
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<i>Later as demand for emus increase, to keep price for going up dramatically, more emus will be "hatched" and those will be dispersed to both hatchers and coin holders. So by owning coins you will receive a % of the new coins. </i><br />
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<i>So there is eventually a limitless amount of Emu that will be created. It will depend on demand."</i><br />
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This will in turn keep prices more consistent, with a more sustainable growth compared to existing cryptocurrencies. In addition, it is also an attempt to improve fairness in coin distribution, and reduce susceptibility to <a href="http://alunacrypto.blogspot.sg/2013/12/quarkcoin-qrk-is-pump-dump-or-is-it.html" target="_blank">Pump & Dump schemes</a>.<br />
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To achieve this, eMunie will be launching with a pre-sale. <i>Timb</i>, a beta tester, pointed out on <a href="http://forum.emunie.com/index.php/topic/954-where-will-prebuy-emus-come-from/#entry9028" target="_blank">this thread about the pre-buys</a> that there will be 100,000 EMUs available for the public during this pre-sale, and also discussed how the initial developers, contributors & beta testers will be rewarded for the work thus far. The pre-sale will last for 30 days. The exact date of pre-sale has not been confirmed, and was mentioned it will be delayed and would take a few more weeks, and that there's <a href="http://forum.emunie.com/index.php/topic/961-when-does-the-presale-start/?p=9009" target="_blank">"no rush to completion by the developer"</a>.<br />
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I'm assuming this will be sometime end January, or early February, but don't take my word for it. To get the latest updates, <a href="http://forum.emunie.com/index.php/topic/907-emunie-pre-sale-email-notification-list/" target="_blank">sign up and be part of the pre-sale for eMunies</a> by simply sending an email to prelaunch@emunie.com and they'll add you onto the list. For more information about the Pre-sale, please visit this <a href="http://forum.emunie.com/index.php/topic/944-pre-sale-faq-and-other-info/" target="_blank">comprehensive eMunie Pre-sale FAQ thread</a>.<br />
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For more information on eMunie, here are a few more good sources to get your started:<br />
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<ul style="text-align: left;">
<li>What is eMunie</li>
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<li><a href="http://forum.emunie.com/index.php/topic/842-the-next-generation-digi-coins/">http://forum.emunie.com/index.php/topic/842-the-next-generation-digi-coins/</a></li>
<li><a href="http://www.reddit.com/r/eMunie/comments/1g5z72/emunies_original_post/">http://www.reddit.com/r/eMunie/comments/1g5z72/emunies_original_post/</a></li>
<li><a href="http://forum.emunie.com/index.php/forum/3-emunie-discussion/">http://forum.emunie.com/index.php/forum/3-emunie-discussion/</a></li>
<li><a href="http://forum.emunie.com/index.php/topic/115-newbies-read-me-first/">http://forum.emunie.com/index.php/topic/115-newbies-read-me-first/</a></li>
</ul>
<li>Investing in eMunie</li>
<ul>
<li><a href="http://forum.emunie.com/index.php/topic/619-as-an-early-investor-can-i-still-make-a-profit-from-holding/">http://forum.emunie.com/index.php/topic/619-as-an-early-investor-can-i-still-make-a-profit-from-holding/</a></li>
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<li>Pre-sale</li>
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<li><a href="http://forum.emunie.com/index.php/topic/611-basic-questions-ahead-of-pre-sale/">http://forum.emunie.com/index.php/topic/611-basic-questions-ahead-of-pre-sale/</a></li>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuoXRNBmEUh_Jf1IBV4bfE64kV8jbB1mCBk7n0N3Ng0RgTm4u3KFpEMeQGqD6bcJ07KmclmgSMpMrKQD8OsxbqkC63FxvSfqbgkjHqSEJQiVDRfC3ZaHpeDM9VYLJRIMJFg1LPSX4j3bq6/s1600/Screenshot+2013-12-24+16.13.02.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="112" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuoXRNBmEUh_Jf1IBV4bfE64kV8jbB1mCBk7n0N3Ng0RgTm4u3KFpEMeQGqD6bcJ07KmclmgSMpMrKQD8OsxbqkC63FxvSfqbgkjHqSEJQiVDRfC3ZaHpeDM9VYLJRIMJFg1LPSX4j3bq6/s320/Screenshot+2013-12-24+16.13.02.png" width="320" /></a></div>
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<a href="https://bitcointalk.org/index.php?topic=380441.0" target="_blank">SkyCoin (SKY)</a> made its prelaunch announcement on the 22nd of December 2013. It has a total supply of 100 million coins, which like <a href="http://nxtcrypto.wikia.com/wiki/Nxt_Wiki" target="_blank">NXTcoin</a>, requires no mining and all coins are already on the market. It uses the <a href="http://en.wikipedia.org/wiki/Proof-of-stake" target="_blank">Proof-of-stake (PoS)</a> system instead the <a href="http://en.wikipedia.org/wiki/Proof-of-work" target="_blank">Proof-of-work (PoW)</a> system used by Bitcoin, and hence completely removes the mining process.<br />
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SkyCoin brands itself as a second-generation cryptocoin, and also boasts a quick transaction time of under 15 seconds, a higher level of security, and improved ease of use. Some of its features are listed as follows:<br />
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<li><b>Uses protocol called Obelisk instead of PoW.</b> Obelisk is a provably secure PoW alternative for creating fair total orderings in decentralized systems with adversarial nodes. Obelisk was chosen over other proposals because it is provably secure and can be layered over Bitcoin's existing security model to eliminate the possibility of 51% attacks. </li>
<li><b>Transactions are free</b>. Users receive coin-hours for each hour they hold a coin. Coin-hours are spent on transaction fees. Transactions bid to enter a fixed sized block. </li>
<li><b>Transactions are fast.</b> Most transactions are executed within fifteen seconds. Off blockchain transactions are instant. </li>
<li><b>Inflation capped at 2% per year. </b>Inflation will be used to fund open-source projects which enrich the community. Skycoin stakeholders will have per-project governance over project funding.</li>
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Depending on SKYcoin's entry-to-market price, we could see it grow in a similar fashion to NXT, as they both have rather similar specifications. I'm still unsure when SKY will officially launch, if someone out there knows, please let me know!<br />
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Note: This should not be confused with a dying altcoin, also named <a href="https://cryptocointalk.com/forum/200-skycoin-syc/" target="_blank">SkyCoin (SYC)</a>, but with a different ticker name.<br />
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Watch out for the new Altcoin; EarthCoin (EAC). Marketing & Branding looking good, Dev team & Community growing. <a href="https://t.co/yCrGSLwFF6">https://t.co/yCrGSLwFF6</a><br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/415255816698994688">December 23, 2013</a></blockquote>
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<a href="http://earthcoin.biz/earthcoin_branding_logo2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="91" src="http://earthcoin.biz/earthcoin_branding_logo2.png" width="320" /></a></div>
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<a href="http://earthcoin.biz/" target="_blank">EarthCoin (EAC)</a> also recently launched less than a week ago, and a <a href="https://bitcointalk.org/index.php?topic=379236" target="_blank">Bitcointalk forum post</a> that started on the 20th of December has generated large amounts of attention and discussions, with over 75 pages of replies as of today. Apparently, the launch also attracted so much attention that the <a href="http://www.reddit.com/r/Earthcoin/comments/1tdpua/looks_like_the_earthcoin_launch_was_a_failure/" target="_blank">mining difficulty increased</a> from 1 to 9 on the first day, before falling back down to 6.<br />
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EarthCoin is a Scrypt algo coin, with 60 second block target, a total of 13.5 billion coins, and a premine of 2% for support purposes. For more information on EarthCoin's technical specifications, visit this <a href="https://cryptocointalk.com/topic/2347-earthcoin-eac-information/" target="_blank">cryptocointalk introduction post</a>. Although this altcoin is not as innovative as the previous two mentioned, it does have some very interesting technical differences. <i>Cryptomaster</i> highlights very well <a href="http://cryptosource.org/earthcoin-launches-neat-idea/" target="_blank">in an EarthCoin post on his blog</a>, and an abstract is shown below:<br />
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<i>"EarthCoin uses a 365 day period. It will start with 10,000 coins per block, and it varies in a sine curve with amplitude of 2,000, with a period of one year (like the Earth moving around the Sun). </i><br />
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<i>This means that you start with 10,000 coins, and it adjusts at each block, reaches a maximum of 12,000 coins per block after about 3 months, then it will descend gradually to approx 10,000 coins per block again at about 6 months. Then a new minimum of 8000 coins per block at about 9 months. </i><br />
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<i>Then we reverse that – to climb and return to 10,000 coins per block at one year, before finally cutting the payout in half."</i><br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://images.weserv.nl/?url=www.earthcoin.biz/payout-chart.png&fnr" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="248" src="https://images.weserv.nl/?url=www.earthcoin.biz/payout-chart.png&fnr" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Source: <span style="font-size: small; text-align: left;">http://cryptosource.org/earthcoin-launches-neat-idea/</span></td></tr>
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Lastly, I just wanted to comment on the issue of premining around EarthCoin. In again another of <a href="http://cryptolife.net/scam-alert-earthcoin/" target="_blank"><i>Hazard</i>'s post</a>, this time calling EarthCoin a scamcoin because of the premine. There have been tons of coins with premines popping up lately, and it's sad to see that many have simply dismissed some potential altcoins because of the failure of others. Here's another <a href="http://www.reddit.com/r/Earthcoin/comments/1tg2vm/earthcoin_will_it_fail_or_succeed/" target="_blank">discussion about the premine on Reddit</a>.<br />
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In the case of EarthCoin, only 2% is premined, and is said to be "for promotions, giveaway, bounties, dev and long term support." First of all, they were transparent about it, and I think it is a rather reasonable rate. Of course, this is provided that the developers use the funds wisely, and aim for a fair distribution of the premined coins in exchange for a larger adoption/reach.<br />
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I have no clue how this is going to go in the end, but I don't have incredibly high hopes for it either. The main reason I have highlighted EarthCoin is because it is <i>new</i>, there is <i>large interest</i> in it, and is not <i>currently on any exchange</i> which means that we can expect a <b>large growth as an early adopter</b>.<br />
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This is only a preliminary investigation into these 3 cryptocurrencies. Please invest at your own risk. If you have questions or comments, feel free to leave them in the comments section below!<br />
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Always remember, Buy Low, Sell High! Avoid the herd mentality, and like Warren Buffet likes to say:<br />
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<i>"Be fearful when others are greedy; and be greedy when others are fearful."</i></h4>
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To end off, I'd like to share a video by Chris Dunn, a technical analysis & short term trader, whom I have been following for the last 3 or so weeks. He has made very good Bitcoin predictions over the last weeks (whether it's just luck or not, you decide for yourself), and also gives very good insight into <i>understanding market psychology</i> as a way to beat the market. If you like it, watch his other videos as well, and follow him on twitter @ChrisDunnTV.<br />
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Good luck trading. Peace.<br />
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com1tag:blogger.com,1999:blog-8430592741332299921.post-51914695356057126882013-12-17T01:32:00.000+08:002013-12-18T02:39:24.351+08:00New Cryptocoins to Keep an Eye on: WorldCoin (WDC), NXTcoin (NXT), DogeCoin (DOGE)<div dir="ltr" style="text-align: left;" trbidi="on">
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Over the last few days, I have been looking into a few potential alternative cryptocurrencies that have caught my eye. <a href="https://twitter.com/onemanatatime">Follow me on Twitter</a> to get the latest updates. </div>
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Researching into more potential alt coins: NXTcoin (NXT), SecureCoin (SEC), Noirbits (NRB), YACoin (YAC), Argentum (ARG), WorldCoin (WDC).<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/411877938624073728">December 14, 2013</a></blockquote>
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Alt coins that interest me: NXTcoin (NXT), WorldCoin (WDC), Globe (GLB), Dogecoin (DOGE). Anyone know anything, tell me more!<br />
— Alvin Lee (@onemanatatime) <a href="https://twitter.com/onemanatatime/statuses/412361929424773121">December 15, 2013</a></blockquote>
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<b><span style="color: red;">Disclaimer: Invest at your own risk!</span></b></div>
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<a href="http://worldcoinfoundation.org/"><img alt="" border="0" height="220" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXC-doLNFcztuuopaFBjdhE7QI2uZuKPqwSiiNUMm_4zcN7VF35hjG3FSVHPqnsBGq_v10k2OqGhJ5PMQNXKoVXBTEmbXjHYg-z_XT_mhVIte7Uh1YHYHX6W-tVixwHD4Sle4ZnVZpEM40/s400/131216+worldcoin+website.JPG" title="WorldCoin Foundation" width="400" /></a></div>
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Among those that I tweeted about, I think that there are a few worth mentioning. One of them is is <b>WorldCoin</b> (<a href="http://worldcoinfoundation.org/">check out their really awesome homepage here</a>). I have not examined it thoroughly, but it does look like they have a strong development and marketing team behind them. What is distinct about WDC is that it boasts a block time of only 30 seconds, and is currently tied with Franko as the coin with the fastest transaction times. Read WorldCoin's <a href="https://cryptocointalk.com/topic/182-worldcoin-wdc-information/">full specifications on Cryptocointalk</a>.</div>
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In addition, The Worldcoin Foundation is about to launch <i>Scharmbeck</i>, an "an online FinCen approved Worldcoin financial service", that acts as a secure online wallet and exchange, much like Coinbase. Read more about Scharmbeck on <a href="https://www.facebook.com/worldcoinfoundation/posts/170093913200318">this Facebook post</a>, and<a href="http://www.reddit.com/r/worldcoin/comments/1suvax/i_dont_get_it_y_scharmbeck_has_an_impact_on_wdc/"> this Reddit discussion</a>. However, there are also some bad points about this coin, <a href="http://cryptolife.net/exposing-the-worldcoin-scam">including a premine (read more here)</a>, as pointed out by Hazard. </div>
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In response to Hazard's post, a Worldcoin representative, Sagefit, has come forward to address the issue. In his comment to this post, he mentioned:</div>
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<i>"We would like to comment on the Hazard post if you will allow us. Please recognize that Hazard is a known Worldcoin hate-monger and has twisted much into a smear campaign. I will quickly rebuttle a few things he brings up. </i></div>
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<i>Number one there are many people involved in Worldcoin. This means that if we were in fact going to insta or premine then 400k would not even be close to a suitable level. Let's keep in mind there was 35 million coins. 400k divided by 10+ early adopters would mean but 40k, or less, each. This was hardly a pre or insta mine, nor was it an unfair release. There are no "whales" holding more then 1% of WDC unless they have done so fairly. </i></div>
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<i>Secondly our connection to real solid was that of a bug fix. He did help us fix a 51% attack but we otherwise have no connection. We are also in the midst of releasing a fix to stop 51% attacks completely. Lastly I would like to clarify why Hazard dislikes us. He was an early supporter of UNOCS and lost money in it. UNOCS was a failed business attempt but certainly not a scam. No one came out on top during it, it just did not come to fruition as intended. Many people lost money during it's collapse but I must reassure everyone that we are NOT UNOCS. Yes a developer was involved but no that is not the direction we are taking with this. Scharmbeck is real and about to enter beta, with a huge media release. It is not a failed attempt as it is already fully working. </i></div>
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<i>Please reconsider using any "Hazard" posts as an example of Worldcoin information. We can promise you that his "news" is nothing but false claims and negative hype."</i></div>
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WorldCoin does indeed have some controversial issues surrounding it. But I personally believe in its potential for growth, based on the work that the development team and community are putting in. If you'd like to purchase WorldCoins with Bitcoin and Litecoin, head on to <a href="https://www.cryptsy.com/users/register?refid=36784">Cryptsy.com</a> and get trading! </div>
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WorldCoin has already been around since May 2013, and has only recently picked up more traction with the new marketing and a growing community. However, and more interestingly, I want to investigate these very new cryptocurrencies; NXT, and DogeCoin. </div>
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<a href="http://www.thenxtcoin.com/sites/default/files/nxtcoin/nxtcoin.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="140" src="http://www.thenxtcoin.com/sites/default/files/nxtcoin/nxtcoin.png" width="320" /></a></div>
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<a href="http://www.thenxtcoin.com/"><b>NXTcoin (NXT)</b></a> is a new cryptocurrency that is branding itself as a 2nd generation crypto that uses "a 100% new Proof of Stake currency with many exciting features in the pipline". It has 1 billion total coins, that are ALREADY fully in circulation. Mind-boggling huh. <a href="https://cryptocointalk.com/topic/1752-nxt-nxt-information/">Read NXTcoin's specifications here on Cryptocointalk here</a>. In fact, NXT has not officially launched yet. Read more about NXT on<a href="http://nxtcoin.wikia.com/wiki/The_Nxt_Wiki"> this wiki</a>.<br />
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If it's still too confusing, here's a few videos that explains how NXT is different from Bitcoin:<br />
Youtube: <a href="https://www.youtube.com/watch?v=f8dLMoZLMzM">Introducing Next Coin - Bitcoin Litecoin - Nextcoin</a><br />
Vimeo: <a href="http://wideo.co/view/1302961386354824506-nxt">What is NXT?</a><br />
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Here are also some points brought up by Reddit user <i>Olliby </i>in his post, <a href="http://www.reddit.com/r/nxtcoin/comments/1sihdk/how_i_think_nxt_could_be_a_greater_success/">How I think NXT could be a greater success</a>:<br />
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<li style="background-color: #fafafa; font-family: verdana, arial, helvetica, sans-serif; font-size: small; margin: 0px; padding: 0px;">No promotional webite - every coin needs a basic 'go to' official website to show they're a genuine product.</li>
<li style="background-color: #fafafa; font-family: verdana, arial, helvetica, sans-serif; font-size: small; margin: 0px; padding: 0px;">No Cryptsy support - traders of smaller crytpo-currencies love using Cryptsy, so talks need to begin to get this started.</li>
<li style="background-color: #fafafa; font-family: verdana, arial, helvetica, sans-serif; font-size: small; margin: 0px; padding: 0px;">Poor GUI - The actual visuals are great but the need to load a command prompt first makes the whole thing seem clunky, a single executable file is needed.</li>
<li style="background-color: #fafafa; font-family: verdana, arial, helvetica, sans-serif; font-size: small; margin: 0px; padding: 0px;">Tech support - A single email you could contact (on an official website) for all tech support issues would be great. I honestly think someone who has a big investment in NXTCoins could dedicate 30mins of their day to answer questions.</li>
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Lastly, this <a href="https://nextcoin.org/index.php">unofficial NXT forum</a> is also a great treasure trove of information about this new cryptocoin. Read more <a href="https://nextcoin.org/index.php">here</a>. If you are interested in purchasing some NXT, you can do so at this exchange, <a href="http://dgex.com/index.htm?1750">Dgex.com</a>. I have tried it myself and seems to be legit, although it is quite difficult to get a position closed. If you have any questions, feel free to ask in the comments section below. You can also view NXT market prices on <a href="https://docs.google.com/spreadsheet/ccc?key=0AmpuZa3xuvmzdFVVZjRrRi1zYXdwSENsaFRkd3lCTmc&usp=sharing#gid=0">this spreadsheet</a>.<br />
<br />
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<a href="http://static.tumblr.com/ppdj5y9/Ae9mxmxtp/300coin.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://static.tumblr.com/ppdj5y9/Ae9mxmxtp/300coin.png" /></a></div>
<br />
<br />
<b><a href="http://dogecoin.com/">DogeCoin (DOGE)</a> </b>is a totally ridiculous coin that is basically a clone of Litecoin with a shorter block time of 60 seconds (Source: <a href="https://cryptocointalk.com/topic/2016-dogecoin-doge-information/">Cryptocointalk - Dogecoin</a>). In the short time since its launch, the <a href="http://www.reddit.com/r/dogecoin/">DogeCoin Subreddit</a> has grown to a size of 2500 subscribers, or as they like to call it, "rich shibes". You can find the current trading prices of DogeCoin at these sites, <a href="http://dogepay.com/">Dogepay</a>, and <a href="http://www.dogetools.com/calc/">DOGE Calc</a>. I don't know how this is going to go, and it still sounds ridiculous to me. But in the alternative cryptocoin scene, I've found out that, albiet unfair, early adopters always win.<br />
<br />
If you're interested to buy them, there are currently two options. Buy them from other sellers on forums, such as <a href="http://www.reddit.com/r/dogemarket/">this subreddit</a>, or this <a href="http://doges.org/index.php/board,11.0.html">doge forum here</a>. I personally don't recommend the first option, because there are lots of scammers out there on the Internet. The second option is to buy them from an exchange, currently there's only one that I know of; <a href="https://coinedup.com/">CoinedUp</a>.<br />
<br />
<b><span style="color: red;">Disclaimer: Invest at your own risk!</span></b><br />
<br />
Well, this is just a preliminary investigation into these potential alt coins. Please do not take this as investment advice. Do your own research before investing in any cryptocoin!<br />
<br />
If you're interested to see how other crypto enthusiasts' portfolios look like, check out this Reddit discussion: <a href="http://www.reddit.com/r/CryptoMarkets/comments/1sv7rx/what_does_your_crypto_portfolio_look_like/">What does your Crypto Portfolio look like?</a><br />
<br />
I hope this post was helpful for you. If you have any questions, please shoot away in the comments section below! Wishing you an awesome week ahead, peace.<br />
<br />
<b><u>Fancy a donation?</u></b><br />
WDC: Wc9MN3SURdTHyBJ2G4s2fPYNgyxEyi9LoF<br />
NXT: 6635869272840226493<br />
DOGE: D97CRC3JDgpdBZJppuDKHxRG6BSniLnkzS<br />
<br /></div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com5tag:blogger.com,1999:blog-8430592741332299921.post-11086984293809147072013-12-11T21:53:00.003+08:002013-12-11T22:34:01.628+08:00Behind a Cryptocurrency: Marketing & Branding - A case of Quark, Zetacoin, and Megacoin<div dir="ltr" style="text-align: left;" trbidi="on">
As I have mentioned in my previous post, there are two main arguments against <a href="http://www.qrk.cc/">Quark (QRK)</a>.<br />
<b><br /></b>
First of all, the biggest argument lies in the "premining" issue. Let me clarify again, that <b>Quarks were not "premined"</b>! Instead, Quark was launched such that only a small number of early adopters were able to mine a majority of coins within 6 month timespan (99.64% already mined). However, the interesting thing about having almost all the supply out there, is that the <i>price of Quark will stabilize much much faster</i> than Bitcoin. Because Bitcoin will take another 20 odd years to be completely mined out, we could be speculating on the price for much longer than Quark.<br />
<br />
Secondly, having a few people own a large number of coins leads to our second argument. How then, can we ensure a <i>fair distribution</i> of Quarks to the rest of the market, following the 6 month accelerated mining period? Sure, we can argue that it's unfair because the early miners get to sell the Quarks for massive profits. But doesn't that also apply to any other cryptocoin? In fact, the issue of fairness is as prevalant in Bitcoin as well as other cryptocoin mining. Bitcoin's mining power is currently being hoarded by the ASIC miners, which in turn gives GPU & CPU miners very little room for profitability. By limiting Quark mining to CPUs only, this can be argued to actually be more beneficial to the community, although it also does bring about a potential problem of <a href="http://en.wikipedia.org/wiki/Botnet">Botnets</a> mining from user's computers without their permission.<br />
<br />
On another note, besides the technical specifications of each cryptocoin, I have also come to find that there are several other factors that affect a cryptocurrency's adoption, price, and eventual success. This includes:<br />
<br />
<ol style="text-align: left;">
<li>Infrastructure</li>
<li>Community & Development team</li>
<li>Branding & Marketing</li>
</ol>
<br />
If we look at Bitcoin, it is clear that first-mover advantage is crucial as we can see with Bitcoin's clear lead in the Cryptocurrency market. However, this is not the only reason behind Bitcoin's success. Looking at the landscape chart below, we can see that the Bitcoin infrastructure is well developed with many services competing in various sectors, who are ultimately cooperating to build an ecosystem currently unrivalled by any other cryptocurrency.<br />
<br />
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<a href="https://drive.google.com/uc?export=download&id=0B6bJtOL3osHWYl9XQkwybklRdjA" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="300" src="https://drive.google.com/uc?export=download&id=0B6bJtOL3osHWYl9XQkwybklRdjA" width="400" /></a></div>
<br />
In the context of Quark, the community has also been working hard to build up an extensive infrastructure and network. They have revamped <a href="http://www.qrk.cc/">their website</a> to make it look much cleaner, and are already in the midst of launching <a href="http://quarkspend.com/">Quarkspend</a>, an ecommerce platform that uses Quark as currency of choice.<br />
<br />
I love the energy coming from the Quark community. The work of the community is commendable, and is a prime example of the power of crowdsourcing. The community, not unlike the currency itself, is decentralized and each individual contributes his expertise with a common goal of developing the Quark ecosystem.<br />
<br />
This closely knit group of Quark supporters have bonded together in the discussion forums (<a href="http://forum.qrk.cc/board/1/community-discussion-ideas-development">Quark Forum</a>, and <a href="http://quarktalk.com/">Quark Talk</a>), and are currently developing an introductory video for Quark under their <a href="http://forum.qrk.cc/thread/364/branding-marketing-education-team-thread?page=2">marketing thread here</a>. Also, a user in the forums, Konrad pointed very aptly that the Quark community needs to:<br />
<br />
<i>"find out the path Megacoin took to promote Mega and build on it. Megacoin adds nothing new to Altcoins but look at the price, they are doing their marketing perfectly. Since Quark actually has something new to offer in the world of Cryptocurrency building upon Megacoin's marketing plan will increase the price at least 5x over."</i><br />
<i><br /></i>
Before we investigate the factors driving the success of MegaCoin, I'll first discuss about ZetaCoin. Like Quark,<a href="http://www.zeta-coin.org/"> Zetacoin (ZET) </a>has a supply of 160 million coins that will be mined out within a year, with a "small yearly inflation" (<a href="https://cryptocointalk.com/topic/953-zetacoin-zet-information/">as can be seen here</a>). And as such, will also see a quick consolidation in price, followed by a deflationary price for ZetaCoin. In this sense, we can similarly argue that ZetaCoin is to Quark, as Litecoin is like silver is to Bitcoin's gold. Over the last week, ZetaCoin has skyrocketed to its current 11th position on <a href="http://coinmarketcap.com/">Coinmarketcap</a>. ZetaCoin's value has grown about 5 fold over the last 4 days against BTC, from a low of 0.012 to a high of 0.12 and a current rate of 0.07. Moreover, the ZetaCoin dollar value has also increased from its sub $0.01 price to a current value of $0.065.<br />
<br />
I also like the work of the development and community team at ZetaCoin. Unlike most other cryptocoin communities who use Forums to collaborate on their projects, ZetaCoin uses the Cryptocoin Social Network, <a href="http://nobs.is/">Nobs.is</a>, to discuss and develop their marketing efforts. The team is still young and there's still much work to be done, but I believe that they have a strong and motivated community, and are on the right track to making ZetaCoin succeed.<br />
<br />
Quark, similarly, has also exploded into 4th place on <a href="http://coinmarketcap.com/">Coinmarketcap</a>. I still stand by my prediction that Quark prices will soon experience the <a href="http://www.maxkeiser.com/2013/11/the-keiser-report-effect-litecoin-spikes-to-200m-market-capitalization-in-five-hours/">Keiser Effect</a>. And in the context of the analogy of ZetaCoin to Quark, I do believe that there is a huge potential for ZetaCoin to follow Quark's price. Just saying.<br />
<i><br /></i>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixd2HsQ1pV84o65M45fRVBnNBi3A8Ia1KR5IsSkCjvUIDcMxzD9Yr-halmXMeUJYCAKxvsNxSbrSZ6XCY3lns5OPF4IMgiZO7iRegPbG-L9EWKU93KXHdlWE7-XZTe7C8cFeDTggS3Fr17/s1600/131210+coinmarketcap+top+11.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="383" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixd2HsQ1pV84o65M45fRVBnNBi3A8Ia1KR5IsSkCjvUIDcMxzD9Yr-halmXMeUJYCAKxvsNxSbrSZ6XCY3lns5OPF4IMgiZO7iRegPbG-L9EWKU93KXHdlWE7-XZTe7C8cFeDTggS3Fr17/s400/131210+coinmarketcap+top+11.JPG" width="400" /></a></div>
<i><br /></i>
<i><br /></i>
<a href="http://www.megacoin.co.nz/">MegaCoin (MEC)</a> launched in June 2013, and is a clone of Litecoin's scrypt crypto. It has a rather interesting <a href="https://cryptocointalk.com/topic/475-megacoin-m%CF%83c-information/">specification </a>which generates half of the total 42 million coins in the first 5 months, while the rest will be released over the decades with increased difficulty. The intriguing thing about MegaCoin is that it has climbed to the 7th position on Coinmarketcap in the short time that it has been around. As such, we will take MegaCoin as a case study to explore how the other cryptocurrencies can learn from them to better brand and market their cryptocoins.<br />
<br />
With a quick content analysis of the <a href="http://www.megacoin.co.nz/">MegaCoin website</a>, we can see a well-built website, with a clean simple design, and full of useful links. Apart from the usual informational and download links, I want to also highlight how they have implemented a "shopping & services" tab to allow users to easily spend MegaCoin, a community link for easy access by users, as well as links to their social media accounts. The website also boasts a wide range of translated versions, with 15 different languages, including English, Mandarin, Korean, and many other European languages. We can also find an active community of MegaCoin supporters on their <a href="https://forum.megacoin.co.nz/">forum</a> and the <a href="http://www.reddit.com/r/megacoin">Reddit page</a>.<br />
<br />
With this, I would like to make a few suggestions for the Quark and Zetacoin community.<br />
<br />
<ol style="text-align: left;">
<li>Revamp homepage to include more links to community sites</li>
<li>Social Media integration on website</li>
<li>Increase engagement on existing networks such as Reddit (instead of focusing on internal community platforms)</li>
<li>ZetaCoin should build a platform to allow users to spend their cryptocoins.</li>
</ol>
<br />
I hope this article has helped you better understand some of the external factors that drive a Crytpocurrency's adoption and price. It will also be interesting to also examine and compare the other leading alternative cryptocurrencies. With most of them being simply a fork of or a clone of Bitcoin/Litecoin, I'm really curious about what determines a certain cryptocurrency's price (besides it's technical characteristics). Of course, first-mover advantage is crucial, as we can see with Bitcoin's clear lead. But I have a hunch that the community, branding, and marketing of a cryptocurrency also play a big role in its success.</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com6tag:blogger.com,1999:blog-8430592741332299921.post-17526170887447458602013-12-03T23:13:00.000+08:002013-12-03T23:13:12.555+08:00Quarkcoin (QRK) is a Pump & Dump - Or Is It Really?<div dir="ltr" style="text-align: left;" trbidi="on">
If you still don't know what Quarkcoin (QRK) is, Jason explains it pretty well in his recent video below.<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/U5aSOOApSWI?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
<a href="http://www.youtube.com/watch?v=U5aSOOApSWI">http://www.youtube.com/watch?v=U5aSOOApSWI</a></div>
<br />
Since Bill Still talked about Quark in his recent video, it has exploded within the Bitcoin community and has received huge critism, with many dismissing it as a "scamcoin" or a "pump and dump" scheme. See the Reddit discussions below for more information.<br />
<br />
Reddit: <a href="http://www.reddit.com/r/CryptoCurrency/comments/1ryw9c/are_we_being_mislead_by_quarkcoin_propaganda/">Are we being mislead by Quarkcoin Propaganda? </a><br />
Reddit: <a href="http://www.reddit.com/r/CryptoMarkets/comments/1rsjre/pump_and_dump_schemescam_nice_profit_though_going/">Pump and Dump scheme</a><br />
<br />
<blockquote class="twitter-tweet" lang="en">
nice to see someone else hasn't lost their fucking mind. <a href="http://t.co/IrMJjUG094">http://t.co/IrMJjUG094</a> attacking <a href="https://twitter.com/search?q=%23quark&src=hash">#quark</a> and the fraud it's built on. <a href="https://twitter.com/search?q=%23nicejob&src=hash">#nicejob</a><br />
— BitcoinSachs (@BitcoinSachs) <a href="https://twitter.com/BitcoinSachs/statuses/407629603046297601">December 2, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
Apart from Quark being more secure by using 6 different hashing algorithms, I have yet to be able to find any substantial evidence that this coin is "not a scam" or "better" than most other alts out there. The conversations about Quark have exploded in Reddit over the last few days, and the most asked question is regarding the issue of 98.9% of the Quarks being already mined out.<br />
<br />
In fact, almost everyone in the Bitcoin community has been calling Quark a scam, and saying that the heavily vested (Max Keiser & Bill Still) are overhyping a premined coin for their own profits. However, someone like Bill Still or Max Keiser pumping a "useless" coin solely for their own benefits seems like a stupid thing to do. In my opinion, there has to be a better reason as to why they really believe so!<br />
<br />
Also, I want to emphasize that Quarks were NOT pre-mined! Instead, the 98% of Quarks that have already been mined were mined by a community of ~100 or so people, who in the case of Quark, will be the central nodes of distribution for Quarks. This then leads to the more important question, how can the Quarks held by 100 people be <i>fairly </i>distributed among the rest of the new adopters?<br />
<br />
This was covered in depth in a few discussions that I found, but there is still no concrete answer to the question posed.<br />
<ol style="text-align: left;">
<li><a href="http://quark.freeforums.net/thread/13/2-biggest-decentralization-supply">Quark Forum: Decentralization and Supply of Quark</a></li>
<li><a href="http://www.reddit.com/r/QuarkCoin/comments/1rx9xf/how_to_answer_the_premining_question/">Reddit Discussion: How to answer the Premining question</a></li>
<li><a href="http://quark.freeforums.net/thread/61/question-pre-mining?page=3">Quark Forum: Question Pre-Mining</a></li>
</ol>
<br />
The closest answer we have lies in Quark's design. <i>QRK is designed in a way that only CPU mining is efficient</i>. Quark is being mined during a short period of time, which discourages GPU or ASIC miners and keeps the coin fair since Developing ASIC miners takes considerable time and man power. Quarks are mostly mined by early miners, and have been well distributed before the value of this coin goes high like Bitcoin. So there are no ASIC miners and hence we don't have a case where a minority of privileged people mining using specialized hardware gain big profits. From this point of view, Quark is more decentralized since virtually everyone (rather than certain groups of people with special hardware) can mine it; the likelihood of monopolization is smaller.<br />
<br />
[Source: <a href="http://quark.freeforums.net/thread/13/2-biggest-decentralization-supply">Quark Forum: Decentralization and Supply of Quark</a>, <a href="http://quark.freeforums.net/thread/61/question-pre-mining?page=3">Quark Forum: Question Pre-Mining</a>]<br />
<br />
Secondly, from the <a href="https://cryptocointalk.com/topic/865-quark-qrk-information/">official information posted on Cryptocointalk</a>, it is interesting to note that the <b>supply</b> of QRK is inflationary, wtih a<i> total of 247 million QRK will be mined in ~ 6 months, after that ~ 1 million QRK p.a. (~ 0.5% p.a inflation)</i>. This is interesting because it is a completely opposite take on Bitcoin's limited supply. And this means that the <b>value </b>of QRK is deflationary.<br />
<br />
Thirdly, Quarkcoin also brings with it several technical benefits when you compare it to Bitcoin, as pointed out by user <i>majormax </i>(<a href="http://quark.freeforums.net/thread/5/quarkcoin-different-currencies">see the discussion here</a>). Some of them are listed below:<br />
<ol style="text-align: left;">
<li>Secure and different Hashing algorithm. 9 rounds of hashing from 6 hashing functions, rather than a single Hash function, which most coins use. Although the single hash function is considered sufficient at present, the multiple hash gives a further layer of security against future unknowns.</li>
<li>Rapid block generation times. The block generation time for QRK is 30 seconds against 10 minutes for BTC.</li>
<li>A rapid decrease in the Mining Subsidy. This increases scarcity at a greater rate: the newly mined coins available for sale do not affect market price as much as other alternative currencies.</li>
</ol>
<br />
I have also compiled some Quarkcoin related news, which I recommed you watch/read before investing in Quark.<br />
<br />
<br />
<ol style="text-align: left;">
<li><a href="http://www.reddit.com/r/Bitcoin/comments/1rvcpd/bill_still_to_talk_about_cryptos_on_the_max/">http://www.reddit.com/r/Bitcoin/comments/1rvcpd/bill_still_to_talk_about_cryptos_on_the_max/</a></li>
<li><a href="http://dailysilverupdate.com/blog/2013/12/max-keiser-bill-still-on-bitcoin-litecoin-quarkcoin-prices/">http://dailysilverupdate.com/blog/2013/12/max-keiser-bill-still-on-bitcoin-litecoin-quarkcoin-prices/</a></li>
<li><a href="http://www.youtube.com/watch?v=7daKwO3cgiU&feature=youtube_gdata">http://www.youtube.com/watch?v=7daKwO3cgiU</a></li>
<li><a href="http://www.reddit.com/r/Bitcoin/comments/1rwfni/shame_on_you_bill_still_you_hate_on_bitcoin_for_2/">http://www.reddit.com/r/Bitcoin/comments/1rwfni/shame_on_you_bill_still_you_hate_on_bitcoin_for_2/</a></li>
<li><a href="http://www.reddit.com/r/Bitcoin/comments/1rr4eg/keiser_promoting_another_scamcoin_pump_and_dump/">http://www.reddit.com/r/Bitcoin/comments/1rr4eg/keiser_promoting_another_scamcoin_pump_and_dump/</a></li>
<li><a href="http://www.reddit.com/r/QuarkCoin/comments/1rxcs4/stop_pulling_out_of_quark_there_is_nothing_to/">http://www.reddit.com/r/QuarkCoin/comments/1rxcs4/stop_pulling_out_of_quark_there_is_nothing_to/</a></li>
</ol>
<br />
<br />
After doing this preliminary research, I still have no clue as to whether or not Quark will be here to stay. On the other hand, Quarks will soon experience the <i><a href="http://www.maxkeiser.com/2013/11/the-keiser-report-effect-litecoin-spikes-to-200m-market-capitalization-in-five-hours/">Keiser Effect</a></i>, and I'm not going to miss this boat. I will continue to research into Quark, and buy more (as the price decreases, just my prediction) until it rises after the 19th of December, when Keiser Report airs. Don't forget to vote on my Quark poll on the right column! Also, please tell me what you think in the comments section. Whether not you agree or disagree with me, I just want to know what you think, so shoot me!<br />
<br />
Another coin to watch is <a href="http://www.zeta-coin.org/">Zetacoin</a>, which also has an infinitely inflationary supply. Read up more about <a href="https://cryptocointalk.com/topic/953-zetacoin-zet-information/">Zetacoin by clicking here</a>. Also, watch out for <a href="http://www.bitcoinsachs.us/category/editorials/">Bitcoinsachs' upcoming blog post</a> or follow his <a href="https://twitter.com/BitcoinSachs">Twitter account @BitcoinSachs</a>. Might cover that over the weekend. Stay tuned!</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com12tag:blogger.com,1999:blog-8430592741332299921.post-58584975234995460982013-12-03T01:57:00.000+08:002013-12-03T01:57:28.774+08:00My First Bitcoin Meme: To Le Moon<div dir="ltr" style="text-align: left;" trbidi="on">
All this Bitcoin craze has inspired me to make my first Meme ever! I call it To Le Moon, enjoy!<br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrDO8LDxJcu7K9fGHUc212rFgQ3AckLgQMH03SYoI58ubNCBZ63pXenkZ8WZ1kDMOVsdOJP3vx6dUgaS9Vp9aPKPiuNWAW2lIRgvAXusiyh_An8G7VAK0QwwpNIl1fXC0VUtRDNP9LW5aC/s1600/to+the+moon+meme.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrDO8LDxJcu7K9fGHUc212rFgQ3AckLgQMH03SYoI58ubNCBZ63pXenkZ8WZ1kDMOVsdOJP3vx6dUgaS9Vp9aPKPiuNWAW2lIRgvAXusiyh_An8G7VAK0QwwpNIl1fXC0VUtRDNP9LW5aC/s640/to+the+moon+meme.jpg" width="576" /></a></div>
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Do you wanna be this guy?</div>
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<br /></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyACZ_hjSrWN_xzWr7WJe7N9aqGJZmfZsT9bJ3UxqM50V33-lcynn_Le6kEy2bHrtUfsBf6JXajLJVaZpguMsLq0OD-Q6kYocp3LM8rBNSXqhIrzxWl9mi1yOXEawBsItgNdrpXFEeHa0P/s1600/to+the+moon+meme+2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyACZ_hjSrWN_xzWr7WJe7N9aqGJZmfZsT9bJ3UxqM50V33-lcynn_Le6kEy2bHrtUfsBf6JXajLJVaZpguMsLq0OD-Q6kYocp3LM8rBNSXqhIrzxWl9mi1yOXEawBsItgNdrpXFEeHa0P/s640/to+the+moon+meme+2.jpg" width="576" /></a></div>
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Or this guy?</div>
</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0tag:blogger.com,1999:blog-8430592741332299921.post-53863602066863558462013-12-02T09:26:00.001+08:002013-12-13T02:49:48.718+08:00Insider News and Predictions: Eyes on Quarkcoin & Zetacoin - The Future of Crytpo Currency?<div dir="ltr" style="text-align: left;" trbidi="on">
Since I mentioned a resistance/support of $50/$25 for LTC in <a href="http://alunacrypto.blogspot.nl/2013/11/the-altcoin-craze-what-coin-should-i.html">my post from 2 days ago</a>, LTC prices have found it's support at $23.51, and has risen over the last 4 hours to it's current BTC-e price of about $32. Hold on tight to your Litecoins because I think prices are going to continue going up and break the $50 resistance by Friday, probably earlier. I wasn't thinking of writing a post today, and I still owe you a post about Panic selling/buying & Bull/Bear traps, but I found some interesting topics to write about that will interest you altcoin and crypto junkies.<br />
<br />
What really triggered this blog post was a tweet I saw by Keiser, featuring <a href="http://www.quarkcoin.com/">Quarkcoin (QRK)</a> alongside Bitcoin and Litecoin as the cryptocurrenies of choice. I first saw the word Quarkcoin when it broke into the top 10 market cap with over 300% increase in market capaitalization value overnight.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYbyNNEDhBgFVDD43EjUetr8OPCa8LqQJAChrr-5EwGgL1uO7-sjtO_N0aUaCXesAZWzpQXVrcR-UqgWf0Y-n0o4-qVhMXTHBfqyypFanzo5dfKW9SKgUXN_FXFc60GGwYgC45w_-M4Wt2/s1600/131202+coinmarketcap+top+9.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYbyNNEDhBgFVDD43EjUetr8OPCa8LqQJAChrr-5EwGgL1uO7-sjtO_N0aUaCXesAZWzpQXVrcR-UqgWf0Y-n0o4-qVhMXTHBfqyypFanzo5dfKW9SKgUXN_FXFc60GGwYgC45w_-M4Wt2/s400/131202+coinmarketcap+top+9.JPG" width="400" /></a></div>
<br />
I overlooked it even after seeing it rise from 6th to 5th, until I saw what Keiser tweeted:<br />
<blockquote class="twitter-tweet" lang="en">
If Jesus were born today, the 3 wise men would bring him BTC, LTC and Quark.<br />
— Max Keiser (@maxkeiser) <a href="https://twitter.com/maxkeiser/statuses/406758794828341250">November 30, 2013</a></blockquote>
<br />
If Keiser said it, it has to be worth something. With his reach and influence within the Bitcoin community, we could see a huge jump in Quark prices soon, <i>even</i> if it doesn't have much value. From my research so far, I found out that <a href="http://www.quarkcoin.com/">Quark</a> <i>uses nine rounds of secure hashing from six different algorithms </i>to make Quark transactions super secure. Many programmers have been worried about whether or not the Bitcoin protocol is hackable, but Quark has just made it even closer to impossible by using a mix of algorithms. On the other hand, what intrigues me is that 98.9% of the Quarks have already been mined (see the <a href="http://www.reddit.com/r/Bitcoin/comments/1rmuf8/quark_coin_is_up_450_since_yesterday_got_any/">Reddit discussion here</a>), which makes me wonder how this is a good thing. If you know how this is beneficial to the community, please drop a comment down below! Greatly appreciated!<br />
<br />
Apparently the prices surged after a video of Bill Still, a legendary Economics cult figure went viral among the Bitcoin community. What's notable is that Bill will be appearing on a Keiser Report interview, which airs on the 19th of December, so keep your eyes peeled.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/2e8o-UcWY54?feature=player_embedded' frameborder='0'></iframe></div>
<div style="text-align: center;">
Source: <a href="https://www.youtube.com/watch?v=2e8o-UcWY54">Bill Still on Quark</a></div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
And lastly, we could see Quark on a Chinese exchange over the next few days. If this is true, you better get your Quarks as soon as you can!</div>
<div style="text-align: left;">
<br /></div>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" lang="en">
<a href="http://t.co/3hKy9t93DS">http://t.co/3hKy9t93DS</a> WILL INTRODUCE QRK IN THE COMING DAYS!! CHINA IS COMING!!<br />
— Mega Coin Pumper (@MegaCoinPumper) <a href="https://twitter.com/MegaCoinPumper/statuses/407058647374512128">December 1, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
During my research into Quark, I found out about <a href="http://www.zeta-coin.org/">Zetacoin (ZET)</a>. The prices of Zetacoin have increased 550% against the bitcoin, with ZET/BTC prices skyrocketing from 0.0065 at the beginning of 30th November to a peak of 0.055 and is currently hovering around 0.036 at the time of posting (Source: <a href="http://www.cryptocoincharts.info/period-charts.php?period=10-days&resolution=hour&pair=zet-btc&market=cryptsy">Cryptocoincharts.com</a>). Looking into Zetacoin, I found that it actually has an inflationary characteristic. There are a total of 160 million Zetacoins, and upon the depletion of this initial supply, 1 million additional Zetacoins will be added to the supply every year. This is quite a different take from the limited supply of all other cryptocurrencies, and could be an interesting tweak that can potentially solve some of Bitcoin's existing limitations.<br />
<br />
I'm still not entirely sure about the benefit and utility of Zetacoin, but I'm going to jump on the bandwagon and bet on the hype of the Zetacoin, while I do more research over the next few days.<br />
<br />
<blockquote class="twitter-tweet" lang="en">
Buy <a href="https://twitter.com/search?q=%23zetacoins&src=hash">#zetacoins</a>. A million of something doesn't take much increase to make a small fortune. <a href="https://twitter.com/search?q=%23zetacoin&src=hash">#zetacoin</a> up 80% today<br />
— BitcoinSachs (@BitcoinSachs) <a href="https://twitter.com/BitcoinSachs/statuses/406277241601937408">November 29, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" lang="en">
Everything is a buy right now. $0.05 zetacoin is a great price. $0.25 on Monday<br />
— BitcoinSachs (@BitcoinSachs) <a href="https://twitter.com/BitcoinSachs/statuses/407217695126347776">December 1, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<blockquote class="twitter-tweet" lang="en">
If you don't own at least 100k zetacoins you're going to spend a life time regretting that<br />
— BitcoinSachs (@BitcoinSachs) <a href="https://twitter.com/BitcoinSachs/statuses/407276644659765249">December 1, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
<br />
To buy either of these 2 cryptocurrencies, along with almost any other alt coin out there, set up an account at <a href="https://www.cryptsy.com/users/register?refid=36784">Cryptsy.com</a> to get started! I only started my account today, and I've had a pretty decent experience so far. Still some problems with the site such as:<br />
<br />
<ol style="text-align: left;">
<li>Deposits take way longer than they should. Bitcoin deposits take about 45mins to 2 hours.</li>
<li>Cancellation of open orders will result in your funds being "stuck" in limbo for up to an hour.</li>
<li>It took 45 mins for my account verification email to arrive. </li>
<li>Interface is less responsive (laggier) than I would prefer.</li>
</ol>
<br />
I think its just a problem with them being unable to handle the surge in traffic over the last 5 days, and I hope that fix it soon. But apart from these problems, looks really good, and I'm definitely using this over BTC-e from now on.<br />
<br />
I hope this post was useful for you. These are my own views and thoughts, which like the Bitcoin market, is largely driven by speculation. Follow my recommendations at your own risk. With that said, to all of you guys holding Quarks and Zetacoins, I'll see you on the moon and give lets <a href="http://www.nasaspaceflight.com/2013/12/china-change3-rover-to-the-moon/">China's Chang'e-3</a> a surprise! ;)<br />
<br />
<br />
<a href="http://bitbash.blogspot.sg/2013/11/quarkcoin.html">http://bitbash.blogspot.sg/2013/11/quarkcoin.html</a><br />
<a href="http://www.reddit.com/r/Bitcoin/comments/1rmuf8/quark_coin_is_up_450_since_yesterday_got_any/">http://www.reddit.com/r/Bitcoin/comments/1rmuf8/quark_coin_is_up_450_since_yesterday_got_any/</a><br />
<a href="http://www.reddit.com/r/QuarkCoin/comments/1rrrqe/welcome_to_quarkcoin_as_btce_would_put_it_to_the/">http://www.reddit.com/r/QuarkCoin/comments/1rrrqe/welcome_to_quarkcoin_as_btce_would_put_it_to_the/</a><br />
<br />
<br /></div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com5tag:blogger.com,1999:blog-8430592741332299921.post-5743306561368594642013-11-30T10:51:00.000+08:002013-11-30T11:00:33.116+08:00The Altcoin craze: What coin should I hold on to?<div dir="ltr" style="text-align: left;" trbidi="on">
Altcoins have been the rave over the last 5 days since Litecoin's prices surged past $10. Now that Litecoin has found a resistance at $50, and support at $25, what's next?<br />
<br />
As predicted, Litecoin was a bubble in the making, and made a mini crash which began on the 28th November from $50/LTC to about $25.56 4 hours ago. Prices look like that have begun to climb back up again, and I won't be surprised to see LTC at $50 again within a week. Unfortunately, even though I predicted the impending "mini bubble" of LTC, I didn't manage to trade them out into BTC at the peak. In fact, I actually bought some more Litecoins at 0.05 (LTC/BTC). Not the best move, but I'm still happy with my Litecoins.<br />
<br />
So if you haven't bought into Litecoins, or have sold your LTC at the peak, it's a REALLY good time to buy in right now; especially if you're thinking of doubling your money's worth in a week or two. If you're interested to get started, but need some help, email me at alvinlee133@gmail.com or leave a comment below and we'll see how we can work something out! =)<br />
<br />
More interestingly, Litecoin's price surge was tailed by all other major alternative crypocurrencies during this rise, especially those available for trading on <a href="http://www.btc-e.com/">Btc-e</a>. In my <a href="http://alunacrypto.blogspot.nl/2013/10/cryptocurrencies-are-they-here-to-stay.html">post back in October when I first found out about Altcoins</a>, I featured a snipshot of the top 6 Cryptocurrencies on coinmarketcap.com, and it looked something like this:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://autoforexsg.files.wordpress.com/2013/10/cryptocurrency.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="250" src="http://autoforexsg.files.wordpress.com/2013/10/cryptocurrency.jpg" width="400" /></a></div>
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<br /></div>
<div class="separator" style="clear: both; text-align: left;">
And then 1 month later, on the 28th of October, it looked something like this:</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-tcdG3ItUcIA5HJt5yPKl_wywJbcT8y9SRMBY9Jif80miUi-nBIAEtvsUNF0ZSoCsFL0dCOfDcG3Du6Zwp8ehwcGQn9-whV-J-7W54DrDIfy79qQfOWQ0mzChbeCMUJlFSfzUMzqfh6m5/s1600/131128+coinmarketcap+top+8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="316" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-tcdG3ItUcIA5HJt5yPKl_wywJbcT8y9SRMBY9Jif80miUi-nBIAEtvsUNF0ZSoCsFL0dCOfDcG3Du6Zwp8ehwcGQn9-whV-J-7W54DrDIfy79qQfOWQ0mzChbeCMUJlFSfzUMzqfh6m5/s400/131128+coinmarketcap+top+8.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<div class="separator" style="clear: both; text-align: left;">
Over the course of 1 month, Litecoin market capitalization increased over 2000%. The rest of the top alt coins also saw large increases in market cap with Peercoin (PPC) gaining 1100%, with Namecoin (NMC) and Primecoin (XPM) following behind with a 1700% and 850% gain respectively. During the month of November, almost all major altcoins outperformed Bitcoin's 600% increase in market capitalization during the same period.</div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
And just TWO DAYS later, at the time of posting, it looked like this:<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlXLrFoR4ihsSYrnF-4k9nDwvBpAiUug9td1LiIqrn7osUhE1iCn_Vg-PCvOB1uf7_O6qGuX6_Z1ld5B8z7aLjV_gbizXI4QYt-rNqp190wncTKAY7-cdlXwZP2Nrp0BvYZEzw2kg4N6yu/s1600/131130+coinmarketcap+top+8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="301" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlXLrFoR4ihsSYrnF-4k9nDwvBpAiUug9td1LiIqrn7osUhE1iCn_Vg-PCvOB1uf7_O6qGuX6_Z1ld5B8z7aLjV_gbizXI4QYt-rNqp190wncTKAY7-cdlXwZP2Nrp0BvYZEzw2kg4N6yu/s400/131130+coinmarketcap+top+8.JPG" width="400" /></a></div>
<br />
For your viewing pleasure, I have set them up in a nice, borderless table for a comparison of market cap gains over the last 2 days. I'm sorry to you NovaCoin fans for leaving NVC out of the equation, but I read about some pre-mining & other issues with the development team somewhere, so I'm staying away.<br />
<br />
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 492px;">
<colgroup><col style="mso-width-alt: 3949; mso-width-source: userset; width: 81pt;" width="108"></col>
<col span="6" style="width: 48pt;" width="64"></col>
</colgroup><tbody>
<tr height="20" style="height: 15.0pt;">
<td class="xl66" height="20" style="height: 15.0pt; width: 81pt;" width="108"><b>[Market
Cap]</b></td>
<td class="xl67" style="border-left: none; width: 48pt;" width="64"><b><u>BTC</u></b></td>
<td class="xl67" style="border-left: none; width: 48pt;" width="64"><b><u>LTC</u></b></td>
<td class="xl67" style="border-left: none; width: 48pt;" width="64"><b><u>PPC</u></b></td>
<td class="xl67" style="border-left: none; width: 48pt;" width="64"><b><u>NMC</u></b></td>
<td class="xl67" style="border-left: none; width: 48pt;" width="64"><b><u>XPM</u></b></td>
<td class="xl68" style="border-left: none; width: 48pt;" width="64"><b><u>FTC</u></b></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl65" height="21" style="border-top: none; height: 15.75pt;"><b>% Gain</b></td>
<td class="xl69" style="border-left: none; border-top: none;">14%</td>
<td class="xl69" style="border-left: none; border-top: none;">0%</td>
<td class="xl69" style="border-left: none; border-top: none;">131%</td>
<td class="xl69" style="border-left: none; border-top: none;">30%</td>
<td class="xl69" style="border-left: none; border-top: none;">47%</td>
<td class="xl70" style="border-left: none; border-top: none;">148%</td>
</tr>
</tbody></table>
<br />
<br />
With a quick look at <a href="http://altcoins.com/">http://altcoins.com/</a>, we can see the two greatest gainers were PPC and FTC, which have nothing in common in terms of the algorithm. Alternative Coin prices are purely based on speculation right now, as can be seen by the huge rally quickly following behind Litecoin's rise to fame.<br />
<br />
If you're planning to dabble in some alt coins besides Litecoin, and have a high risk propensity, this may be the<i> best time </i>to risk your money for the possibility of<i> massive gains</i>. By massive, I'm talking about a minimum of a 5 fold increase in USD value (or even Bitcoin value if you're lucky enough).<br />
<br />
I'm not really a person for predictions, but this situation calls for one. As mentioned, I (personally) believe that alt coin prices are following behind LTC prices, ever so slightly. You can get to see the latest price movements with my favourite Bitcoin chart to date: <a href="http://bitcoinwisdom.com/markets/btce/ltcusd">Bitcoinwisdom.com</a>. On Bitcoinwisdom, use the 1m chart to see the prices as they trade live, and you can even choose between different markets from the bar at the top making it much easier to compare prices across different exchanges. If you're new to chart reading, please check out their help page @ <a href="http://bitcoinwisdom.com/help/charts">http://bitcoinwisdom.com/help/charts</a>. If you need a better explaination, comment below and I'll be more than happy to help.<br />
<br />
Use Bitcoinwisdom's chart to see when Litecoin prices are going up (which I think is happening now, with a resistance of $50 and a support at $25), and invest in your trusted alt coins when you think it is happening! If I had to name one, I'd go with NMC! If you prefer something with a higher risk, try FTC & XPM.<br />
<br />
Trade with your heart, not with your mind. Trade safe, and <a href="http://answers.yahoo.com/question/index?qid=20090211231305AAQpxj6">HUAT AH</a>!<br />
<br />
I have my next post in mind about panic selling/buying and how you can avoid it, and a little bit about bull/bear traps. But before I go into that, let me just end off with a piece of advice for beginners. DON'T trade (unless your taking a profit) during a price spike! More likely that not, a huge up/downswing (as seen on one candle in BTC-e's charts) will end up close to it's original position, before moving off in the same direction. To get a better understanding, look at the example below:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUXlQamHkvXUJBBo_YlODilw9sfJcIGE9OTHsY5DuFWHhXeEkNpcYBSx7UbmSrbEGAzmpdSxTMFrOaz6pdX90ED4cM2Wi5uXFgzBzK8FslwWd3htRuE-eAUS-307aqHo6jHyX1M68406uW/s1600/131130+panic+bear+bull+traps.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="177" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUXlQamHkvXUJBBo_YlODilw9sfJcIGE9OTHsY5DuFWHhXeEkNpcYBSx7UbmSrbEGAzmpdSxTMFrOaz6pdX90ED4cM2Wi5uXFgzBzK8FslwWd3htRuE-eAUS-307aqHo6jHyX1M68406uW/s400/131130+panic+bear+bull+traps.JPG" width="400" /></a></div>
<br />
On the left, we have 2 candles pointed out by the blue arrows which illustrates my point. First arrow shows a candle with a huge dip downwards, and price retracts to close to the top within a minute or so. After which, prices will start to bleed downwards. This is the same for the 2nd blue arrow, but in the opposite direction (upward trending).<br />
<br />
On another note, I just wanted to also point out the candle pointed out by the red arrow. Such a significant (in size) and opposite trending candle, following a "peak" as shown by the previous 3 arrows, usually means that a downtrend is coming. Or at least that's what I've learnt from my 2 month experience analyzing Cryptocurrency charts.<br />
<br />
I also found a very interesting theory that is applicable to the crytpo markets. If you are interested in trading your Bitcoins, be sure to read up on <a href="http://en.wikipedia.org/wiki/Elliott_wave_principle">Elliott Wave Theory</a>.</div>
alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com9tag:blogger.com,1999:blog-8430592741332299921.post-56102697608657104982013-11-28T16:50:00.000+08:002013-11-28T17:27:30.506+08:00Alternate Cryptocurrency Prices Surge - Is a Litecoin Crash coming?<div dir="ltr" style="text-align: left;" trbidi="on">
BTC surpassed its all time high, reaching a milestone US$1000 per Bitcoin on Mtgox earlier today. As BTC's prices slowly inch up after the mini-crash after the Senate Hearing, we have seen a large spillover of funds pouring into alternate cryptocurrencies. Over the last 2 days alone, the prices of alt coins such as PeerCoin (PPC), NameCoin (NMC), PrimeCoin (XPM), and FeatherCoin (FTC), have at least doubled in value, some up to 500%.<br />
<br />
Most notable is Litecoin, dubbed as silver to Bitcoin's gold, which price recently surged and increased almost 10 fold in the last 10 days since it passed the $4 mark. Since the last 60 hours, Litecoin has more than tripled from $10 per LTC to its current price of US$35/LTC! Not exactly sure what's behind this surge in prices, especially in LTC, but maybe Max Keiser's Interim target of $50 for LTC played a part.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<object width="320" height="266" class="BLOGGER-youtube-video" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0" data-thumbnail-src="http://img.youtube.com/vi/oWd4G_6xI-w/0.jpg"><param name="movie" value="http://youtube.googleapis.com/v/oWd4G_6xI-w&source=uds" /><param name="bgcolor" value="#FFFFFF" /><param name="allowFullScreen" value="true" /><embed width="320" height="266" src="http://youtube.googleapis.com/v/oWd4G_6xI-w&source=uds" type="application/x-shockwave-flash" allowfullscreen="true"></embed></object></div>
<div style="text-align: center;">
<a href="http://www.youtube.com/watch?v=oWd4G_6xI-w&feature=youtu.be&t=26m24s">*Skip to 26 mins if you only want to hear Keiser talk about Litecoin</a></div>
<br />
<blockquote class="twitter-tweet" lang="en">
We are initiated coverage of litecoin with an interim target of $50. Newest <a href="https://twitter.com/KeiserReport">@KeiserReport</a> features one of the biggest players in LC<br />
— Max Keiser (@maxkeiser) <a href="https://twitter.com/maxkeiser/statuses/402362102506999808">November 18, 2013</a></blockquote>
<script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script>
<br />
Source: <a href="http://www.coindesk.com/litecoin-silver-bitcoins-gold/">http://www.coindesk.com/litecoin-silver-bitcoins-gold/</a><br />
Source: <a href="http://www.businessinsider.com/litecoin-price-2013-11">http://www.businessinsider.com/litecoin-price-2013-11</a><br />
Source: <a href="http://www.forbes.com/sites/reuvencohen/2013/11/27/the-top-30-crypto-currency-market-capitalizations-in-one-place/">http://www.forbes.com/sites/reuvencohen/2013/11/27/the-top-30-crypto-currency-market-capitalizations-in-one-place/</a><br />
Source: <a href="http://www.tradethenewsroom.com/bitcoin-breaks-1000-litecoin-sees-400-gain-4092">http://www.tradethenewsroom.com/bitcoin-breaks-1000-litecoin-sees-400-gain-4092</a><br />
Source: <a href="http://www.reddit.com/r/litecoin/comments/1qvxcu/max_keiser_has_started_covering_ltc_on_his/">http://www.reddit.com/r/litecoin/comments/1qvxcu/max_keiser_has_started_covering_ltc_on_his/</a><br />
<br />
But this insane surge has got me thinking, is a huge crash in the making?<br />
<br />
If we look back at the April crash, and compare it with the current litecoin chart, we can see some similarities. See below for a comparison.<br />
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From my understanding of the markets thus far, I am assuming that every big spike in price has to be followed by a big correction. The higher you jump, the harder you fall. And let's say that Litecoin prices are kind of mimicking Bitcoin prices (as it was back in April 2013), albiet at a much faster pace, we can assume that this crash is coming. And it's coming very soon.<br />
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But when will that happen? Where will the peak be? Will LTC prices peak at $50, $80, $100, or $200 before it takes an 80% nosedive? I can't tell for certain what price LTC will peak at before crashing, but what is your guess?<br />
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<span style="color: red;"><b>If you're holding Litecoins or thinking of buying them, read these 2 reddit discussions before doing so!</b></span><br />
Source: <a href="http://www.reddit.com/r/litecoin/comments/1rivqr/im_going_to_go_out_on_a_limb_here_and_say/">http://www.reddit.com/r/litecoin/comments/1rivqr/im_going_to_go_out_on_a_limb_here_and_say/</a><br />
Source: <a href="http://www.reddit.com/r/Bitcoin/comments/1rjv6l/my_response_to_a_litecoin_advocate/">http://www.reddit.com/r/Bitcoin/comments/1rjv6l/my_response_to_a_litecoin_advocate/</a><br />
<br />
Source: <a href="http://bitcoinwisdom.com/markets/btce/ltcusd">http://bitcoinwisdom.com/markets/btce/ltcusd</a><br />
Source: <a href="https://btc-e.com/exchange/ltc_btc">https://btc-e.com/exchange/ltc_btc</a><br />
Source: <a href="http://coinmarketcap.com/">http://coinmarketcap.com/</a><br />
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Well my plan for the next few days is to convert some of my LTC back into BTC. I think BTC prices will hold rather stable even when LTC flash crashes, and thus would rather sell my LTC into BTC than hold onto useless FIAT dollars. I currently have about 80% of my funds in LTC, and have placed sell positions for half of my Litecoins, ranging from 0.055 LTC/BTC all the way up to 0.15. And will be looking to re-enter into litecoin at the bottom of the crash, if the crash comes.<br />
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Crash or no crash; all the best for your trading everyone!<br />
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So, what's your move going to be in the case of a Litecoin crash?<br />
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com1tag:blogger.com,1999:blog-8430592741332299921.post-73451453600252285812013-11-18T07:57:00.003+08:002013-11-18T07:59:14.897+08:00Homeland Security Hearing 18th November 2013 will be Bad News for Bitcoin<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">On the 18th of November at 8PM GMT+0, Homeland Security will hold the
first of two hearings about Bitcoin and the future of cryptocurrency after
Silkroad. I believe these hearings will have a negative impact on Bitcoin
prices, and here's why.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">The FBI probed for investigations into Bitcoin, following the statement:
“Indeed, it is not clear at this point whether virtual currencies will become a
long-term, prevalent fixture of the electronic commerce world. But given the
increased demand from consumers and investors, as well as demonstrated concerns
regarding money laundering, regulators would be remiss if they turned a blind
eye to virtual currencies,” Mr. Lawsky said in Thursday’s announcement.<o:p></o:p></span></div>
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There are two panels for the meetings, on one side being Bitcoin
representatives, and the other consisting of members from the United States
government. They are:<o:p></o:p></span></div>
<ul type="disc">
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Jennifer Shasky Calvery,
director of the Financial Crimes Enforcement Network – US Department of
the Treasury<o:p></o:p></span></li>
<li class="MsoNormal"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Mythili Raman, acting
assistant attorney general – Criminal Division US Department of Justice<o:p></o:p></span></li>
<li class="MsoNormal"><span style="color: windowtext; font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Edward W.
Lowery III, special agent in charge at the Criminal Investigative Division
of the US Secret Service – US Department of Homeland Security</span><span style="font-family: "Times New Roman","serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;"><o:p></o:p></span></li>
</ul>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">A little background search of these representatives gave these results:<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Jennifer Shasky Calvery, director
of the Financial Crimes Enforcement Network – US Department of the Treasury<o:p></o:p></span></b></div>
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<span style="font-size: 13.5pt;"><a href="http://www.americanbanker.com/bankthink/the-last-straw-for-bitcoin-1059608-1.html">http://www.americanbanker.com/bankthink/the-last-straw-for-bitcoin-1059608-1.html</a><o:p></o:p></span></div>
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<span style="font-size: 13.5pt;"><a href="http://www.theverge.com/2013/8/7/4598644/bitcoin-is-real-money-rules-us-texas-district-court">http://www.theverge.com/2013/8/7/4598644/bitcoin-is-real-money-rules-us-texas-district-court</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">“Digital currencies are just a financial service and those who deal in
them are [financial institutions],” Jennifer Shasky Calvery, the director of
the Financial Crimes Enforcement Network<o:p></o:p></span></div>
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<span style="font-size: 13.5pt;"><a href="http://www.freebanking.org/2013/04/20/fincens-director-on-virtual-currencies/">http://www.freebanking.org/2013/04/20/fincens-director-on-virtual-currencies/</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">FinCEN is dedicated to learning more about digital currency systems,
along with other emerging mechanisms, to protect those systems from abuse and
to aid law enforcement in ensuring that they are getting the leads and
information they need to prosecute the criminal actors. <o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Mythili Raman, acting assistant
attorney general – Criminal Division US Department of Justice<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><a href="http://blogs.wsj.com/law/2013/11/14/regulators-looking-to-tame-unruly-bitcoin-world/">http://blogs.wsj.com/law/2013/11/14/regulators-looking-to-tame-unruly-bitcoin-world/</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">announcing that he will hold hearings that could help determine whether
virtual currency companies will need to apply for a special “bitlicense” to operate
in the state.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><a href="http://www.businessinsider.com/implications-of-liberty-reserve-for-bitcoin-2013-5">http://www.businessinsider.com/implications-of-liberty-reserve-for-bitcoin-2013-5</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Acting Assistant Attorney General Mythili Raman said: “As charged,
Liberty Reserve operated, on an enormous scale, a digital currency system
designed to provide cyber and other criminals with a way to launder their
profits without leaving a trace. The company’s very purpose was to launder
its users’ criminal proceeds through the U.S. and global financial system.<br />
</span><span style="font-family: Helvetica, sans-serif; font-size: 8pt;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-SG;">Edward W. Lowery III, special
agent in charge at the Criminal Investigative Division of the US Secret Service
– US Department of Homeland Security<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><a href="http://www.reuters.com/article/2013/05/31/us-digitalcurrency-regulation-bitcoin-idUSBRE94U17X20130531">http://www.reuters.com/article/2013/05/31/us-digitalcurrency-regulation-bitcoin-idUSBRE94U17X20130531</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">Ed Lowery, special agent in charge of the U.S. Secret Service's criminal
investigative division, said the agency is working "aggressively with our
international partners" to pursue cyber crime and the companies that
permit the misuse of digital currencies. He declined to comment specifically on
Bitcoin.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;"><a href="http://www.wired.com/wiredenterprise/2013/11/bitcoin_feds/">http://www.wired.com/wiredenterprise/2013/11/bitcoin_feds/</a><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 13.5pt;">The toughest comments came from the Department of Homeland Security.
“The anonymity of cyberspace affords a unique opportunity for criminal
organizations to launder huge sums of money undetected,” wrote DHS Acting
Assistant Secretary for Legislative Affairs Brian de Vallance. “With the advent
of virtual currencies and the ease with which financial transactions can be
exploited by criminal organizations, DHS has recognized the need for an
aggressive posture toward this evolving trend.”<o:p></o:p></span></div>
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Keiser Report: Mud Pie of State Benefits (E523)</div>
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<a href="http://www.youtube.com/watch?v=Xb1mfRD17E8&feature=youtu.be&t=20m45s">http://www.youtube.com/watch?v=Xb1mfRD17E8&feature=youtu.be&t=20m45s</a></div>
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Jeff Berwick on Fox Business: Is Bitcoin the currency of the future?</div>
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<a href="http://www.youtube.com/watch?v=UC_s3sRZFFg">http://www.youtube.com/watch?v=UC_s3sRZFFg</a></div>
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Could be a good time to sell tomorrow before the talks start. We could see prices back ab sub-300 or even sub-200 levels. Let's wait and see.<br />
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alunahttp://www.blogger.com/profile/09010010699229267288noreply@blogger.com0