How to Buy Bitcoin and Trade Cryptocurrencies

Disclaimer

Introduction

Is it too late to buy cryptocurrency?

What is so special about cryptocurrencies anyway?

Can cryptocurrency be used for payments?

  • Overstock
  • Expedia
  • Microsoft
  • Wikipedia
  • AT&T
  • NewEgg
  • Shopify

What if I want to go back to cash?

How to invest in Bitcoin and trade cryptocurrencies

Education

Best resources

  • Charting and Technical Analysis is a very good general book on technical analysis for beginners.
  • How to Day Trade for a Living is great if you are considering day trading, but you will likely find some useful tips even if you don’t intend to day trade.
  • How To Swing Trade is definitely one of my favorite books on the subject. If you are not going to day trade and prefer to keep your positions for days or weeks, this is the book for you.
  • School of Pipsology is a well-organized online course. Taking the whole course might take a while and be overwhelming, you most likely won’t need all of the information provided.
  • Advanced Techniques in Day Trading is a little more advanced but I found it very good (as you may guess I love Aziz’s books).
  • Technical Analysis of the Financial Markets is a huge book and more academically-oriented, but very good and complete nonetheless.
  • Udemy also has some nice courses, but I would suggest against spending $200 on a course since they usually have 80% discounts every few weeks.

What kind of investor are you?

  • Those who buy a BTC (or ETH, or any cryptocurrency) and keep it, waiting for its value to grow over time;
  • Those who not only buy cryptocurrency, but also trade it against other coins in order to boost their holdings.

Focus on your BTC holdings, not USD

Buying Bitcoin (or any other cryptocurrency)

Trading cryptocurrencies

  • Limit: place a buy/sell order at the price you prefer (looking at the panes on the right — current sell and buy orders — may be helpful);
  • Market: you automatically place a buy/sell order at the current market price;
  • Stop-Limit: allows you to place conditional buy/sell orders.

Stay informed

  • Coinmarketcap (all the alts you can possibly buy are listed here, along with market cap, volume, price and many other indicators)
  • Reddit
  • Bitcointalk
  • Trading View
  • Telegram channels
  • Twitter and some other dedicated forums
  • What is the real value of the coin (why is it better than the other ones)?
  • What is the team behind the cryptocurrency?
  • What real problems does coin solve?
  • Is the supply limited?
  • Is there a whitepaper?
  • What about this project’s roadmap?
  • …and so on.

Final considerations

  • Never risk more than you are willing to lose
  • Don’t be scared of the high volatility. If you are aware of what you are doing, you can get unbelievable gains.
  • Never buy solely based on the fact that the value of a cryptocurrency is going up.

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