Show me the money!

So, you want to know how to buy cryptocurrency?

First things first, understand the market.

I wouldn’t suggest doing what I did. I literally logged on to an online exchange checked out Bitcoin (BTC) saw that it had just had a great run up to $19,000+ and thought “Yeah, this is it! There is money to be made here, it’s going to continue going up, right?”

I was so, so wrong!

Even though Bitcoin had bounced from $13,000 to $17,000 in the same week, ultimately it was heading south.

Unknowingly, I had bought the top of a ‘dead cat bounce’.

Meh, whatever it was only beer money, huh? That maybe, but I still haven’t seen that money back, 2 years later. Bitcoin sailed down to $3,200 and took XRP with it.

I bought XRP at $1.52 and continued to buy small amounts on the way down.

This is called ‘dollar cost averaging’, which in turn has lowered my buy in price to about $0.70. This means that XRP has to return to $0.70, or more, before I can cash out and “break even”.

At the present time XRP is stuggling to hold above $0.30. – Do I advise this strategy? Not bloody likely, this was just making the best of a bad situation.

What would be the first thing I would suggest doing before buying into cryptocurrency?

View a Bitcoin chart and become familiar with Bitcoin, and other cryptocurrency, movements… Here is how:

Step 1: Head to the website called tradingview.com – Sign up – Click ‘Join For Free’. Don’t worry about any charges the site is free unless you choose to upgrade.

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Sign up for TradingView
TradingView sign up page.

For now though their free account is more than enough to get started with. TradingView have charts for literally everything that is tradable, perfect.

Step 2: Once you have signed up click on the sub menu for ‘Chart’. This will lead you to a professional looking chart area.

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TradingView. Find your chart.
Where to find your chart on TradingView.

In the top left corner of the chart box you will see an empty search box, type in BTCUSDT and a drop down will appear under it. Click the link that shows you ‘Binance’ as the online exchange ‘crypto-Binance’.

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Congratulations, this is your first view of cryptocurrency and this chart will most likely become your main chart that you will refer to, a lot.

Remember, Bitcoin is classed as the “King” of all cryptocurrencies, where he goes (most) other coins follow.

Step 3: Watch the market for a week or 2 – Unless Bitcoin is on a clear ‘bull run’ it will go up and down quick enough to wipe out any new investor, don’t risk it.

Patience at this point really does pay off.

TradingView comes equipped with ‘indicators’. These are tools that you can use to follow Bitcoin and you can use them to decide where your next trade will be.

Indicators are not fool proof and will not show you exactly what will happen next.

The indicators are using past movements and are showing you what has already happened.

The whole idea is to use these and try to lower your risk when entering your next trade.

No one knows exactly where the markets will move to day after day, you just want to have enough knowledge to be on the right side of the trade.

TradingView offer up to 3 indicators on their free charts and you can view as many charts as you like. The indicators you have previously saved will automatically load on each chart you view.

3 indicators to start with are more than enough, don’t upgrade just yet. We’re only just beginning to walk…

Step 4: Click here and we will begin to understand some of the basic indicators and how you add them to your charts.

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