Cryptocurrency Trading & Investing: Understanding Investing, Trading, Fundamental Analysis & 6 Trading Tips: Understanding Investing, Trading, Fundamental Analysis & 6 Trading Tips

By Sean Bennett

Cryptocurrencies have been referred to as ‘Digital Gold’.  No wonder as they have continued to rise and beat expectations!

What is cryptocurrency trading? How are people making so much money from it? Can you make money trading cryptocurrencies like Bitcoin, Ethereum, Litecoin and other smaller cap coins? How will you begin? Cryptocurrency Trading & Investing offers a complete and detailed guide to getting started trading in this exciting new market with just your computer, the proper know-how, and some starting capital.

You will learn how to think like a trader, analyze the market, invest and understand trading cryptocurrencies.  With Cryptocurrency Trading and Investing you will also learn various trading and risk management strategies.

In this book you will learn about:

• What is Cryptocurrency Trading


• What is Cryptocurrency Investing


• Trading Mindset


• Trading Exchanges


• Fundamental Analysis


• How to Invest

Not only will it cover the above, you will also learn:

• Trading Pairs


• Types of Trading


• Trading Tips


• Trading Mistakes to Avoid


• Risk Management

With this guide you can go from total beginner to cryptocurrency investor. All the information you need is contained in a clear and straightforward format. It is a must-have for anyone seeking to get serious with investing in the next biggest phenomenon in digital trading. Cryptocurrency Trading & Investing is your one-stop guide to a new exciting and booming industry.

Enjoy the fifth book in the series from Cryptomasher!

What are you waiting for?  Take control of your financial future, go ahead and purchase the book!

• Language: English
• Publisher: Cryptomasher
• Release date: Mar 8, 2018

Book preview

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Introduction

You may be wondering: What separates trading from investing? By investing in crypto, you are buying and holding currency to profit from its growth. Typically, investments are held for a long period of time. By trading in crypto, you are buying and selling more frequently to make a greater return than you can by investing. Traders will buy a cryptocurrency at a lower price and then sell at a higher price to make a profit.

In this book, everything you need to know to start trading and investing cryptocurrency online like a professional will be covered. Before you buy anything at all, you will learn the proper mindset required for making a profit with cryptocurrency. Next, you will learn the ins and outs of buying coins online, and what to look out for when it comes to transaction fees. You will learn how to analyze the market effectively with fundamental analysis as well as how to recognize bullish and bearish markets.

Once you are ready to invest, you will find a myriad of investing strategies and tips explained in full detail. You will also learn how to turn your assets liquid by selling your coins for cash, what common mistakes to avoid, and how to minimize risk while investing in cryptocurrency.

Chapter 1: Trading Mindset

Covered in this chapter:

• How to think like a trader

• How to maintain discipline while trading

• Attitudes for succeeding in crypto trading

It is no surprise that the world of trading carries with it a psychological weight. You have probably seen depictions in popular media of brokers and traders cheering and madly celebrating financial victory. You have also probably seen depictions of traders having severe negative emotional reactions to a major loss. In cryptocurrency, this is no different. In this market, cooler heads prevail. Trading cryptocurrency is without a doubt exciting work, but those who maintain discipline and keep their composure are the most successful. In this chapter, discussed are: how to control greed, fear, dealing with gains, loss, and patterns of negative and positive behavior.

A lot of the cryptocurrency market is driven by emotion. The primary emotion that comes to mind when it comes to trading is greed. People will read news, see prices begin to rise or see their peers making a sizable profit and begin to be filled with a strong desire to invest and make money as soon as possible. Rushing into a seemingly promising currency or trade without first doing fundamental research and analysis is dangerous. No matter what hype or excitement surrounds the new opportunity, it is crucial that you maintain discipline and a level-headed mindset. The market is often manipulated with FUD and FOMO to make investors behave a certain way. Always do your research first.

Another emotion is responsible as the primary driver of irrational market decisions. Fear. Fear of failure, fear of major loss, and fear of price changes can all impact a trader’s decisions irrationally. For example, you just made an investment in Bitcoin of 1 coin at $10,000, a $10,000 total investment. You see the price jump up the next month to $20,000 and are afraid this sudden increase will soon correct itself, or you have been instilled with doubt from a Bitcoin article you read online. In a panic, you sell your Bitcoin for cash and make a profit of $10,000. Later, you see the BTC price rise to over $25,000 per coin and now suffer an opportunity loss of over $5,000. By staying rational and relying on fundamental analyses of the market, you can avoid these mistakes caused by fear.

It is very easy to get swept up by excitement by making a significant gain in the short term. Cryptocurrency markets can be volatile, so in certain trades and investments, you can expect to see extreme ups and downs. When making a major gain, it is crucial to maintain composure and not let excitement cloud your judgment. Being overexcited can lead to impulsive and irrational decisions that lead to loss, so try to stay detached emotionally from the swings of the market and stay focused on the technical aspect of things. At the end of the day, you will be glad that you kept calm and made the best decisions with your money.

One of the most difficult things to do psychologically in trading is accepting the loss. In trading in any market, including crypto, it is important to not let individual wins and losses get to your head and make you overexcited or depressed.