Do Your Own Research – Before I take this blog any further, as I noted in the ‘What is going on here then?’ section, this blog is only setup for a bit of fun.
I will try to explain what I kind of know on every topic but I am far from an expert in any of this.
The information I talk randomly about on here is purely from doing my own research.
I do not provide financial advice, which as you may of already gathered from my recent “trading” experience is just as well.
I have a very open mind when it comes to cryptocurrency and I don’t follow any particular coins, or have any favourites.
My list of coins to trade are in the top 10 of market cap and have plenty of liquidity (good availability and are trading well).
Every coin available on the cryptocurrency market has its own reason for existing.
A lot of coins are designed to solve very real problems, or provide a service, that without the blockchain technology simply wouldn’t be possible.
There are however also many coins that are either purely setup to scam people out of their money, or end up doing so in the way of an ‘exit scam’.
Be careful where you invest any of your hard earned cash.
For example there once was a coin called ‘BitConnect’ (sounds like the beginning of a fairy tale, without a happy ending though… From fairy tale to a completely different kind of website!!).
The people behind this cryptocurrency promised returns on any investment made and basically worked on the principle of the more you invest, and the earlier you invest, the more return you will make.
Proceeds of the later investors would pay large returns to the earlier investors… This is known as a Ponzi Scheme.
BitConnect was trading at over $300 but crashed instantly to $30 when the company behind it announced it was to cease trading.
I believe that, since then, it has even gone to $1 a coin.
This was after being investigated for fraudulent behaviour.
Some people lost everything – This is why Doing Your Own Research is so important!
The red flags were out all over this one.
That being said; genuine decentralised coins have, and will continue, to make their investors lots of money.
Trading cryptocurrency can be fun, but as with any investment, only trade what you can genuinely afford to lose.
Study the markets a lot.
For every winner there has to be a loser, manage your risks well.
Always, always, if trading use a stop loss!
When you trade on the stock market you have rules and regulations, with cryptocurrency and the online exchanges you have – None!…
Some people have likened trading crypto as trading in the Wild West.
Crypto is a no rules environment and some individuals, and exchanges, have the power to move the markets in any direction.
Traps can, and do, happen.
Therefore TA (Technical Analysis) doesn’t always show the correct predicted movement.
Before I trade any coin I always research the coin and company.
I have and never will trade any coin that I am not happy with being “trapped high” in for whatever reason.
Sometimes Bitcoin can fall so fast that your stop loss doesn’t trigger in time.
For me, that isn’t a problem and then I will just HODL the amount until I can cash back out, if and when it returns. XRP & TRX = Sore points!
Doing Your Own Research on blockchain technology and some of the things it is speculated cryptocurrency can be used for is really interesting, you can learn a lot.
Cryptocurrency is open sourced and the code the coins use is freely available to inspect, analyse and study.
Cryptocurrency in my view does have a bright future, how it will be used is still a question to be answered.
Mass adoption and real world usage will take time.
10 years from now will be very interesting.