CRYPTO TRADING: A Comprehensive Guide to Mastering Cryptocurrency Trading Strategies (2023)

By Jordan Wheeler

Crypto Trading: A Comprehensive Guide to Mastering Cryptocurrency Trading Strategies" is your definitive resource for navigating the dynamic world of digital asset trading, providing a comprehensive understanding of the intricacies of crypto markets and the strategies to thrive within them.

Inside this comprehensive guide, you'll e

• Language: English
• Publisher: Jordan Wheeler
• Release date: Oct 19, 2023
• ISBN: 9783988315427

Jordan Wheeler

Jordan Wheeler, based in New York City, is a seasoned cryptocurrency expert with extensive experience in trading and blockchain technology. With a keen interest in simplifying complex trading strategies, Wheeler is committed to providing comprehensive and accessible guides for both novice and experienced cryptocurrency traders.

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Jordan Wheeler

CRYPTO TRADING

Copyright © 2023 by Jordan Wheeler

All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without written permission from the publisher. It is illegal to copy this book, post it to a website, or distribute it by any other means without permission.

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Contents

1. What Exactly Is a Cryptocurrency?

2. Why Do Crypto Trading?

3. Recognizing the Cryptocurrency Risks

4. A Closer Look at Blockchain Technology

5. What Is Cryptocurrency and How Does It Work?

6. Cryptocurrency Exchanges and Brokers

7. Cryptocurrency Trading

8. Identifying High-Performing Employees

9. Cryptocurrency Mining

10. Cryptocurrency Futures and Options

11. Using Technical Analysis

12. Loss Minimization and Gain Maximization

13. Making Use of the Ichimoku and Fibonacci Techniques

14. 15 Things to Think About Before Starting with Crypto

15. 15 Moves You Could Make If Your Portfolio Is Losing Value

16. 15 Crypto Investors’ Challenges and Opportunities

17. 24 Signals Every Trader Should Be Aware Of

18. Personal Portfolio Management Resources

19. How to Get Started with Cryptocurrency

20. 5 Cryptocurrencies to Invest in 2021

21. Why Is There Such a Surge in Interest in Cryptocurrency?

22. Trading on Breakouts of Local Tops and Important Levels

23. Cryptocurrency Trading Errors to Avoid

24. Innovative Cryptocurrencies

25. Principles of Crypto Trading

26. Creating a Personalized Trading Plan

27. Glossary

1

What Exactly Is a Cryptocurrency?

Cryptocurrencies, or cryptos, are decentralized peer-to-peer digital forms of monetary transactions. In that sense, it acts similarly to currency, enabling you to give it to anybody who accepts it in exchange for goods or services. You may also exchange it for another cryptocurrency or fiat money.

The name cryptocurrency is a combination of two terms: one mathematical and one financial. Cryptology refers to the study of almost impenetrable codes and ciphers. It’s the stuff of spy flicks and thriller novels. But, at the end of the day, it all comes down to math. Because of unique mathematical concepts, cryptography is a tough topic. It boils down to encoding anything for communication that cannot be deciphered if intercepted and cannot be modified or reproduced. It nearly seems to be a fingerprint of the element, message, or underlying substance it is delivering.

Cryptography may take many shapes. If you’re using a secure internet computer, the communication is encrypted so that only the sender and recipient know the code to decode the data. Cryptography is used in the encryption to guarantee this.

The second component of the phrase is currency. Currency has only later evolved to represent the concept of fungible exchange. That is, you may exchange it for anything. You may use it to buy a vehicle one day and give the next. Because currency is used in nearly every aspect of human life, it is the most efficient means of conducting transactions. People continue to utilize the barter system, in which one set of things is exchanged for another, but they ultimately revert to using the transaction value in money. Aside from the convenience of being written on paper and carried or held as the value on a debit or credit card, cash can be used to assign a monetary value to anything from vehicles to bridges, and services to ice cream.

When you combine them, you obtain a system that uses cryptography to encrypt and value a transaction. It may be widely disseminated for consumption by encapsulating it and giving it value, making it much simpler to sell or acquire. However, it was discovered that the previous model of money was deficient in the implementation of this reality, in that the value of that currency could be controlled by governments. Because the government issuing the currency has chosen to print more money and dilute its value, what can buy one ream of paper today may only be able to buy half a ream tomorrow. We required a method to guarantee that no one authority could manipulate the world’s currencies, ensuring that everything remained stable and solely based on supply and demand.

In today’s currency market, there are arbitrary pegs and movements to keep a currency at artificial levels. The monetary and fiscal policies of one nation may have an influence on someone on the other side of the planet. This is not a drawback of decentralized currencies, which are used to do business globally. Bitcoins cannot be produced, nor can their circulation be increased just because a government mandates it.

Another feature of the cryptocurrency is that it was not intended to be increased over a certain quantity in circulation, based on the principles and methods set by Bitcoin’s founder and developers (we still don’t know who they are).

Think about that for a minute. You have a currency with a finite quantity of coins in circulation. The only thing that can happen to it is that it breaks apart into little bits. So, if 1 BTC is currently worth $10,000, 0.1 BTC is worth $1000. This has two ramifications.

The first is that no one can impact BTC’s value by adding more BTC into the system. The second scenario is that demand for BTC will ultimately surpass supply, causing the value of BTC to rise in lockstep over time while fractioning lower and lower.

As an example, we may end up breaking 1 BTC into a thousand pieces, with each fraction worth $10. This sounds suspiciously like a stock split. That’s exactly what it is when you think about it. The underlying asset’s price may alter to reflect the new reality at the moment. At the time of writing, the smallest fraction or unit of Bitcoin ever transacted is 100,000,000th of a BTC, or 0.00000001 BTC.

That equates to.01 cents in equal dollar worth at a $10,000 conversion rate.

However, because fractionating the currency is the same as creating new money, any profit you may have made is lost. This is not the case. A sovereign determines whether to issue fresh money or not. The market determines the price of Bitcoin. It is difficult to influence the market once it has become big enough unless there is a concerted, global effort.

All of these factors combine to make cryptocurrencies like Bitcoin perfect for speculative trading. For the reasons stated above, the speculative trading market, whether for FX or cryptocurrencies, is a win-win situation.

Speculative players supply the market with the liquidity it needs to operate as a solid foundation, while also providing liquidity to transactional users.

Things look unsafe and perilous in the absence of a centralized authority and the capacity of the law to safeguard the transactions. But that is exactly what Satoshi had in mind when he created the currency. Because it is free of influence from agencies and central banks, as well as treasury departments, the Bitcoin market is unaffected by short-term and short-sighted manipulation.

This throws into question the necessity to keep records.

There is no need for trust since the confidence put in public officials to do the right thing is frequently supported by law. However, all of these consequences appear after the crime, when it is too late. As a consequence, trust is not a component of the Bitcoin system. Instead, everything is managed via records. The history of each transaction is documented, from the first block of BTC to the most current transaction, which occurred only a few minutes ago.

What is the address of its preservation? Every Bitcoin transaction is recorded on each node. A node is any machine that connects to the Bitcoin network. It operates on a peer-to-peer (P2P) paradigm. Everyone on the network or using the service is a member of the P2P (peer-to-peer) system.

In this scenario, each node represents a computer that is logged into the system. Each computer has a client installed, which establishes a network channel and converts the machine into a node.

2

Why Do Crypto Trading?

Nowadays, many individuals choose to give with advance cash. This is because there is no crucial total or document to handle a portion of your money. Any sum will be enough for the venture unless you need to give a larger sum to double or triple your earnings. Shooting graphs of computerized forms of cash charges entice many people to put everything on the line.

Computerized currency rises and falls on a regular basis, so if you give thousands now, you might have millions in 4-5 years. There is also the potential of losing the money you have donated, so try to contribute only what you can afford to lose.

Bitcoin, arguably the most well-known cryptographic currency on the planet, has fueled several analysts and sellers in recent years.

Various dealers add to this coin not because it is the best crypto of the thousand years, but because it is the most profitable. If you decide to join such an industry, make sure you understand the perks and drawbacks beforehand.

Advantages

Simple access: Cryptocurrency is open and unpretentious, and it can be used by everyone. Because of the decentralized activity, monetary specialists from all over the world may easily reach them. Portion transactions have been simplified, but in a traditional portion system, there is always an expert adding expenses for each deal you make.

Private: With advance cash, you don’t need to share your information or the specifics of each deal with anybody other than the recipient.

The whole of commerce is assured of the usage of Cryptography. When a cryptographic cash move is confirmed, it cannot be reversed or charged back, protecting customers from coercion and hacking.

Fee reductions: Unlike with a Visa, where you must pay for income, cryptographic currency charges and expenses will never be a concern. You should just research what is the finest wallet to utilize that organizes the Cryptocurrency you are utilizing. This may also be a key advantage for pioneers.

Payments with mobile devices: If you’re having trouble exposing the whole of your ID while making online purchases using your cards and monetary change, cryptocurrency has just made it easier for you.

You may conduct payments and purchases from online retailers without providing any personal information to the web or receiver; just your wallet address will be visible to them.

You may do these transactions over Wi-Fi.

Disadvantages

Price volatility: The first barrier you must consider is the shakiness of electronic cash. The instrument’s risk level, where cost is determined, is peculiar. Thus, investing in Bitcoin or other online financial principles is risky because the value of your money exchanged with them has no confirmation. It may reach millions or billions of dollars, but it can also fall to nothing, no one knows since no one controls it.

Possible government involvement: The government cannot confiscate your coins; but, they may do so if they decide to ban every single one of those computerized monetary forms in a certain nation. If the public position decides to shut down online wallets and associations, all of your Bitcoins, etc., will be frozen and it will be difficult to access them.

There will be no refunds: A refund is a payment. No, you cannot expect a refund of Bitcoins if you acquire anything on the internet using cryptographic currency, particularly Bitcoins, and the dealer fails to pass on your bought items. Some cryptographic currencies, for example, Ripple, have given chargeback decisions; however, this will never exist on Bitcoins.

Best Cryptocurrency to Invest

Bitcoin is the best cryptocurrency to invest in. Despite all of its flaws, Bitcoin remains the most popular option for converting assets into digital currency. Bitcoin is the best cryptocurrency on the planet, with a market valuation of $134 billion. This cryptocurrency serves as both a store and a portion system, enabling clients to successfully transfer and receive portions over the Internet.

Bitcoin has been keeping watch for quite some time, and no one can, without a doubt, break the vulnerability of this brilliant innovation.

Ethereum: Ethereum has recently established itself as the world’s second-largest cryptographic currency. Thousands of people are currently holding such virtual cash. The limitation of Ethereum being second in the picture might be its ability to quickly bring a higher motivating force up.

Litecoin: This currency is perhaps the most established cryptographic cash stream on the market right now. It has a true component of security, data management, and trading time. Litecoin, like Bitcoin, has made tremendous progress; who knows, maybe in a couple of