Hi guru-fam, hope you are all doing well. I have been on my crypto journey for a while now and now it is my job to help YOU start your own journey. That is why I am writing this guide for you. In this guide you will find the basics of not only crypto investing but also the basics of crypto trading. There will be subjects in here that you already know about, but there for sure will also be subjects in here that you have never heard of! I will also be showing you guys a sneakpeak of the trading method that I am using! First we will start off with the basics of crypto investing, if you already know about the subject, please skip towards the parts that you have not heard of. In the later part of this guide I will be diving into the basics of trading and leverage trading, explaining the differences about trading and investing. Also I will be explaining the basics that you should know of before you start analysing a chart and trading a currency. After reading this guide you will be ready to dive into the world of trading, but this is just the basics, for deeper and more detailed lessons and explanation you should join the VIP-channel, where I am learning my members into detail on how to trade crypto! Enjoy this guide, guru-fam. If you have any questions atfer reading this guide, hit me up! - Exchanges: If you want to be able to buy crypto, you need to sign up to an exchange. These exchanges offer you all different kinds of crypto that you could buy and sell. My favorite is ByBit, but Binance is offering the most projects on its platform, for small cap altcoins you should use KuCoin. If you want to start trading with leverage I would suggest using ByBit. - Large, mid and small cap coins: There are three different kind of coins/projects you could invest in. We have large, mid and small cap coins. Cap means: marketcap, which is refering to the total worth of all coins available of a currency/project. The larger the cap, the more trustworthy the currency is, because it means more people/money are invested into it. By growing the marketcap also the price of a currency is incrising, by picking a small cap you are thus increasing the probability of picking a 10X over a potential 5X large cap, but the risk is much bigger when picking a small cap over a large cap altcoin. Examples of large cap: Bitcoin, Ethereum, BNB, SOL. Examples of mid cap: ALGO, VET, CHZ, ENJ. Examples of small cap: ALBT, LABS. If you want to search for the marketcap of a certain currency, you can find all the statistics on https://coinmarketcap.com/ - Defi, web3, store of value and metaverse tokens: Named above are the most important type of cryptocurrencies there are. In this subject we will be discussing all of them. Defi: it means decentralized finance, which is developed as a group of financial tools on the blockchain so that people can lend, barrow and bank without going through a middleman. Defi has been growing fast over the past couple of years and some examples of DeFi-projects are: $LUNA, $AVAX and $LINK. Web3: is meant as a new kind of internet, where nobody would need permission from a provider or giving access to certain credentials, meaning it would be like a decentralized internet. Web3 is still in the beginning stages, so it has a lot of potential but also uncertainty/risk. Examples of web3 projects are: $LINK, $GRT, $FIL and $HNT. Store of value: this one speaks for itself, this is like Bitcoin, you invest into a currency like this to make sure the value of your money stays the same and doesn´t get affected by inflation and such, hoping it would even increase massively in value, like it does with Bitcoin overtime. Examples of store of value coins are: Bitcoin and Litecoin. Metaverse tokens: you have probably heard of the metaverse by now, it is like a digital world, where people are supposed to live normal lifes, without actually being outside. This has been a massive hype and still has a lot of room to grow. Examples of metaverse coins are: $MANA, $AXS and $SAND. - Dollar cost averaging (DCA): Dollar cost averaging means you are buying a currency at multiple price levels, which combined gives you an average buy in price, hoping you can get the lowest buy in price possible, making you the most amount of gains in the future. Why not just buy at the bottom? Nobody can ever predict the exact bottom, so if Bitcoin is at $60,000 and it dips to $45,000 and you have 1000$ to spend, you don´t just spend the $1000 at $45,000, but for example you spend $500 at $45,000, $250 at $40,000 and $250 at $35,000 this way you get a much better average buy in price than you would have at $45,000. So make sure not ever to put all your money in at once, but dollar cost average your way into your investment positions making sure you get the best buy in price without catching the exact bottom. But what if Bitcoin does bounce from $45,000? Make sure to wait for confirmation of a reversal, before putting the rest of your money into it. And even than, don´t put the rest of the $500 into it, but buy $250 more and make sure you save the rest of the bag for the next dip, don´t be greedy, because Bitcoin could dip again very fast! - Crypto slang: These are words everybody in the crypto space uses and you should know what these words mean! Hodl: meaning even if your investment positions are in drawdown, it is better to hold (hodl) those positions and buy more of the position at a lower price (DCA´ing) then to sell your position for a loss and try to buy back lower, that always results in big losses. FOMO: fear of missing out, means never chase a trade or a coin that is doing very well, there will ALWAYS be a retracement and wait for that retracement before stepping in! FUD: fear uncertainty and doubt, these are for example China banning crypto, but there are also a lot of news articles, that people spread as FUD, but have no impact on the price, so don´t expect every news article to have an impact on the price of cryptocurrencies. Whale: a person or institution that has a very big amount of Bitcoin or any other currency! DYOR: means do your own research, meaning don´t just follow some stupid influencer their opinion (like me hahahaha), but always do your own research before investing into a project! - BTC-pair vs USDT-pair: When trading you don´t just look at the USDT-pair, yes we trade in USDT, but before entering a trade you want to know if that coin is able to outperform Bitcoin. To find out, you always look at the currency compared to Bitcoin, called the BTC-pair. The goal of an altcoin should be to outperform Bitcoin, otherwise you could better into Bitcoin then that altcoin. The Bitcoin pair literally means how much the altcoin is worth in Bitcoin. You always want to increase your position against Bitcoin, so that is why you look at the BTC-pair as well as the USDT-pair before entering a trade. If you are looking to invest for the long-term, the Bitcoin-pair is less important and you have to look at the fundamentals of the currency you want to invest in before putting your money into it. The BTC-pair you only use if you are actively trading with your portfolio. The BTC-pair makes sure the altcoin is moving when Bitcoin is going sideways. Let´s say Bitcoin is going sideways, but ETH/BTC is increasing that means that ETH/USDT is also increasing even though Bitcoin is going sideways. When ETH/BTC and Bitcoin itself are moving up, it means that ETH/USDT is going up faster then Bitcoin, as the BTC-pair is outperforming Bitcoin. - Trading vs investing: Trading and investing are not the same thing. Trading is something you actively do every day, trying to find levels of support and resistance or patterns and entering trades based on that, often using leverage as well. Investing on the other hand, is putting money into a currency/project, because you believe in the purpose and potential of the project and you expect the price to rise over a longer period of time. You don´t look at the charts everyday for that, but you determine your targets where you want to cash out and hold (hodl) that project until your targets get reached, just like you can buy shares of a company and hold those for a longer period of time. Trading is more risky, as with investing you are counting on it that over a longer period of time you will make money, as with trading if you don´t use correct risk-management your account can get liquidated. - Leverage and risk-management: The first thing that you have to learn and understand before you start actively trading is risk-management and leverage. Leverage is a tool you can use to make more money. Let´s say you have a trading account of 1000 dollar, you don´t wanna put your complete $1000 into a trade, as you preferably want to take multiple positions to make as much gains as possible. This is what leverage is made for. You can put for example $10 in a trade with 25X leverage which is equal to a position of $250, which gives you the opportunity to take multiple positions at once. Why is leverage risky? It is risky once you don´t use the correct risk-management. By using leverage you are borrowing money from the exchange, if you have an account of $1000 and your current position are in drawdown and that drawdown reaches a total of $1000, all of your positions/your total trading account of $1000 gets liquidated and you lost all of your money. What is correct risk-management? I always advise to use a maximum of 1-1.5% of your total trading account balance on 1 trade, with a maximum of 25X leverage. If you have a trading account of $1000, 1% is $10, with a leverage of 20X, that is equal to $200. By using this riskmanagement, it is very hard to get liquidated, as long as you use a stop loss. What is a stop loss? A stop loss is the same thing as a take profit, but you use this to prefend yourself to get your position into a bigger loss. Before taking a position you ALWAYS have to determine where you place your stop loss, without a stop loss you have 0 riskmanagement. Before taking a position you want to look at your RR (risk-reward ratio). This always has to be at least 2-1, but preferably over 3-1. This means you are willing to risk for example a loss of $10 for a profit of $30. On Tradingview there is a tool called ´long-position´ or ´short-position´ which you could use for calculating a correct RR-ratio. But by using a stop loss, you make sure you know what you are willing to lose for a potential profit, never touch your stop loss after entering a position, except when you hit your first take profit target, you can change your stop loss to your entry price, making your position risk-free. Below you can see how you can use the ´long-position´ tool! - Support and resistance: Before entering a trade you need to make a full analysis of the coin your looking to trade. You are making this analysis to find potential support and resistance levels. Support is a level below the current price where the price can find support and reverse to the upside. Resistance is a level above the current price where the price can find resistance and reverse to the downside. Support and resistance don´t always get respected, keep that in mind, that is why you use a stop-loss. To find support and resistance levels I am using three methods: - Volume levels. - High term levels. - Price action levels. If you want to learn how to apply these levels you have to join our VIP-channel where I am teaching my members into detail on how to trade. Below you can see how a chart looks like with support and resistance levels on it and how those levels get respected! - Patterns: Besides trading based on support and resistance, you can also trade based on patterns. Patterns are getting formed by the price of a currency moving a certain kind of way, while moving it is forming a pattern. A lot of trades look at those patterns and trade based on those patterns. Here are the most important ones: - Triangles (ascending, descending and symmetrical) - Rising and falling wedges. - Channels. - Head and shoulder patterns. - Double tops and bottoms. If you want to learn how to trade these pattern you have to join our VIP-channel where I am teaching my members into detail on how to trade. Below you see an exaple of a falling wedge that broke-out! - Market structure (trend): ´The trend is your friend until it ends´, remember this quote. Before starting your indeep analysis you have to look at the market structure of a chart, is the market structure bullish? You preferably look for longs. Is the market structure bearish? You preferably look for shorts. You can look at market-structure on every timeframe, the H1, H4, Daily, but even on the 5minute-chart you can look at the market-structure. The higher the timeframe, the more reliable it is. That doesn´t only apply for market-structure, but also for support and resistance. The lower the timeframe, the smaller the take profits and losses should be, the higher the timeframe, the bigger the wins/losses can be. When a chart is forming higher highs and higher lows the market-structure is bullish and when it is forming lower lows and lower highs it is bearish. Below you can see 1 example of bullish and 1 example of bearish market-structure! Bullish: Bearish: Well guys, this is the first free guide I made for you guys. There will be more, but I wanted to start off with the basics. If you want to dig deeper into cryptotrading, make sure to ask me anything you want, espcially when you join the VIP-channel, I could help you become a good trader yourself! Thank you for your support and reading this guide, it is my please to help you out. k n a h T ! you !
