Hi steemian friends.
I am very happy to be able to learn together again about crypto trading in the steemit engagement challenge contest here, I hope we are all always successful in the world of trading, here is my entry.
Explain your understanding of crypto currency trading and tell us what you understand by the word "trading"
Cryptocurrency trading is the activity of buying and selling digital currency assets or crypto tokens available on the cryptocurrency market, we can buy these digital currency tokens/assets anytime and in any market we want.
So far what I understand when we hear the word trading is that there are those who sell and those who buy, every crypto token that we sell to the cryptocurrency market there are other people who buy it, not merely that we just exchange it for money like a bartering process.
A simple example is when we convert SBD tokens into STEEM in the steemit wallet, there is also a trading process that occurs, every SBD token that we trade, there must be someone else in the world who buys it with STEEM coins.
What are the trading principles to always keep in mind as a Crypto Trader and how can you build your own crypto trading strategy
Talking about principles, everyone must have different principles, in my opinion, one principle that a crypto trader must not forget is that he must always be patient, calm and must not be greedy because the market can change at any time which will make you lose your assets in the process. blink of an eye.
In carrying out my crypto trading account, I only apply one simple strategy, namely I always read the latest news updates about the crypto coins that I want to buy and also share with my friends who are professionals in the crypto field, after all the information I got, I immediately bought coins. the crypto before the price soared.
An example is like the STEEM coin now, now is the right time to buy STEEM because the price is very low compared to last year's market price history, and in the past few weeks there has been a significant price increase, I think in the next one or two months for sure there will be a high price increase that will allow us to gain a lot of profit if we buy today.
Explain how you can use Fundamental analysis to generate your own Crypto Trading Ideas
Before buying crypto coins, it is mandatory for us to do research or fundamental analysis of these coins so that we don't feel cheated and at a loss. Before buying a crypto coin, I always carefully analyze who the founder of the coin is, on which network it operates and the most important thing is that the coin can be used on any platform.
A simple example is I bought STEEM on the cryptocurrancy market, the reason I want to buy and invest in STEEM coins is because I know I can use STEEM coins on the STEEMIT platform, so if there is a very significant price drop after I buy it I won't feel a loss because can I transfer it to the STEEMIT wallet for me to power up.
Then I can get more profit and additional STEEM coins if I regularly vote for other people's quality posts in STEEMIT.
Explain how you can use Technical analysis when trading on Crypto
My way is very simple to do technical analysis in a crypto coin, usually a week or two before I buy a coin I keep looking at trends in the movement of coins in the market, whether market demand in those two weeks is increasing or decreasing.
If the trend in demand for coins on the market continues to experience a significant increase, I will immediately buy it right away, and I will also continue to monitor further market movements if the price increase has been maximized from market history in the past 6 months to a year, usually I immediately sold my assets after getting a profit before the market went back down.
Explain the 3 key concepts of Risk Management every new Crypto Trader Should Know
For those of you who are just entering the world of crypto trading, here are 3 main concepts from me regarding risk loss management that you should know.
You must set a Stop Loss
When you have bought a crypto coin and the market has suddenly changed significantly than you predicted, then you should immediately exit the market to minimize losses on your assets.The 2% Rule
If you are a beginner you should use 2% of the money in your wallet to trade, because if you take a loss, you will only be short of 2% of your wallet.Don't Panic
This is the most important management that you have to apply, if you have bought a crypto coin and suddenly the price drops you don't need to panic by getting out of the market right away because it will make you lose big, you just need to be patient and wait for the price to return to normal so that your money is not burnt in vain.
This is my entry for this week's SEC contest, I also want to invite my friends @ismuhadiadi, buk @sailawana, pak @fadlymatch, pak @waterjoe, pak @f2i5, bang @fantvwiki and also @abialfatih to participate together in this contest.
Thank you, friend!
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Nyan kakupatis, ahli trading rupanya
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Hahaha, kontes mangat Abi 😂
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Kiban mangat hana meu tatuoh pih
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Han long pateh Abi, ilong ata yang kalheh nekubah jeh nepereno long ile cara blo 😂
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Your post has been supported with a 50% upvote by @f2i5 from TEAM 2 of the Community Curation Program. We invite you to continue sharing quality content on the platform, and continue to enjoy support, and also a likely spot in our weekly top 7.
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Terimakasih dukungannya pak @f2i5
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Well said!
Ideally it’s crucial to use risk management strategies. No matter how much research you’ve done for a particular cryptocurrency or token. Always determine your optimal entry and exit points. You can’t watch the market 24/7 so in order to avoid needless panic set a good exit point. I’m sure the Luna phenomena illustrates this well
If you have so much faith in the coin then there are zones you’d believe it shouldn’t have to touch down to. You can set your absolute exit at 30% drawdown to allow enough room for volatility. This is enough risk, further is playing roulette.
Also panic purchase and purchase are usually brought about by FOMO, another reason why your fundamental analysis shouldn’t be crypto tweets.
Nice publication my friend, it was quite a read.
If you have the time do check out my own entry
understanding crypto trading. Your feedback would be appreciated :)
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Thank you for your kind comments, I have learned a lot from your comments, I hope we will be successful in this contest
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You have explain your understanding of crypto trading which is the buying and selling of digital asset. You have also stated 3 concepts that every trader needs to be aware of and they include setting SL/TP, the 2% rule and they fact that you don't need to panic when trading. Crypto is very volatile hence the price is never stable. Traders should always be informed about that and hence not to be scared whenever the price drops. I wish you success my friend.
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Thank you friends, I am happy with the good comments you have given, I wish all of us success
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Lovely and understandable article from you friend, as you have shared the concept of trading cryptocurrency with us. As you have rightly pointed out Cryptocurrency Trading involves the activity of exchanging assets in a given Cryptocurrency marketplace and exchange.
Cryptocurrency trading can be a complex and intimidating endeavor, so with an ever-changing market and an array of strategies, it can be difficult to know where to start.
The golden rules or principles guiding Cryptocurrency trading is what would help investors to generate profits from their trades. Some of the rules as you have mentioned includes, avoid being greedy, implement risk management strategies, and remain patient.
Thanks for sharing such an educative and interesting content for us boss.
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Thank you for stopping by my post and giving your kind comments, brothers, I hope our days are always pleasant
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Great post, @ikwal! You've provided a thorough explanation of various aspects of cryptocurrency trading, including the basic principles and strategies, as well as the key concepts of risk management that every new trader should know.
I particularly appreciate the way you emphasized the importance of patience and calmness in crypto trading. The volatility of the market can be overwhelming at times, and it's important to keep a clear head and not be swayed by emotions. Your point about not being greedy and waiting for the right time to buy or sell is also spot on.
I also liked the way you used examples to illustrate your points, such as using STEEM coin as an example of how to use fundamental analysis to generate trading ideas and how to use technical analysis to make trading decisions. It's always helpful to have real-world examples to reference when trying to understand abstract concepts.
Overall, this is a great resource for anyone interested in getting started with cryptocurrency trading. Keep up the good work and Best of Luck in the Contest!
Regards, @fabiha
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Thank you guys, I really enjoyed reading your nice comments, I wish all of us continued success 😊
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Assalamualaikum brother.
I hope that you will be doing well. You have presented a very beautiful post and I commend the efforts that you have done whole creating this informative article.
You are right that the cryptocurrency trading is the process of buying the cryptos at low rates and selling them at higher prices to secure good profits.
But, I will make a bit addition to it, crypto trading is actually the process of taking advantages from the fluctuations in the cryptocurrency markets..
You are right that 2% rule is very much important for the beginner trades for the management of high risks associated with the market.
Very right, we should not be panic of the loss that we have to experience due to the fluctuations in the crypto markets. We should be calm while trading.
Thanks for sharing and good luck for the contest.
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Thank you friends, the comments you gave are very good, I hope we continue to be successful and happier.
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Hi brother @ikwal
I hope you are fine. You have shared good content with us which is full of knowledge for every trader.
You have given good example of SBD and Steem conversion that most of us do on Steemit market and it is also a trading because we are trading in pair of either SBD/STEEM or STEEM/SBD to get desired output.
You have mentioned about your strategy that is getting news about a coin and you invest in that coin if the news is positive that can increase the price of that coin.
You have also shared fundamental and technical analysis. Also you have added 3 concepts of risk management that we must memorize to get profits.
Overall, your content and presentation is good and I wish you best of luck for the contest brother :)
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Thank you brother, the comments you gave made me very happy, I hope we can all be successful in this contest
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:)
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