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Crypto Advice Guide and Help

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Here are some basic tips and tricks for investing and trading Bitcoin (and other cryptos).

Use an exchange, for example www.binance.com, good fee and top support line

When you buy/sell via an exchange, try to use limit orders (try not to use market orders). Limit orders generally have the lowest fees, market orders generally have higher fees.

Figure out if you want to go long or short. Are you going short with every penny you have to invest, or are you going to go long with some and short with some? Long term investors will pay a lower tax rate if they can hold for over 12 months, but as a trade-off they WILL have to sit through corrections (likely seeing their balance go down 50% plus on paper as often as they see it go up).

If you are going long, consider dollar cost averaging. No better way to avoid making a poorly timed trade than to dollar cost average (buying incrementally instead of all at once and thereby buying an asset at its “average” price over time).
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Consider laddering your buys and sells. In others words, instead of buying or selling everything in one chunk, set incremental buy and sell orders to buy when the price goes down and sell when the price goes up.

Remember Cryptocurrency is a 24/7 Global Market. In other words, the market never sleeps. Since you do, consider automating your investing strategy using limit orders, stops, or even APIS (AKA “trading bots”).

Dad advice: Aim to buy low, sell high… try not to buy high, sell low. Look at the price trend, if you are at the highest point it has been in the past 24 hours or so, that is inherently more risky. It can make sense to buy as the price starts to break out, but buying after a breakout at a new high while filled with excitement is a little “irrationally exuberant.” This is to say “buy the dips” and “the best time to buy is when there’s blood in the streets… even if it is your own.” Conversely, the worst time to buy is generally right after the price has shot up and everyone is overly manic. If you do buy high, consider HODLing (to “HODL” is to Hold On for Dear Life as the price goes down; it is what you do when you buy high and then neglect to set a stop… or if you are going long and can’t or don’t want to cash out yet).

You cannot “buy the dips” if you have all your money to invest already invested. That should be obvious, but consider always having some funds to the side to buy an unforeseen downturn. Even if you want to “go all in” on crypto… leave yourself at least a little money to the side just in case. If you are all in and the price takes a hard downturn, it takes lots of options off the table.

Altcoins and Bitcoin often do the opposite of each other (but not always). In other words, it is not rare to see Bitcoin go down while alts go up (and vice versa). This is because everyone who has alts has Bitcoin, so they tend to move out of Bitcoin when it goes down and move into alts. With that said, every once in a while this isn’t true and all coins go up or down together (generally following Bitcoin’s lead).

Consider Diversifying. With that above advice in mind, there is nothing worse than getting frustrated with BTC, moving to ETH and missing a price spike, then moving back into BTC and missing the ETH spike. If you have some of your funds in all the coins you trade, you’ll avoid missing out on a unicorn (a term one can use to describe an odd event, like a giant price spike in a short amount of time).

Learn Technical Analysis. Technical Analysis (TA) is the analyzing of price and volume data and trying to predict future trends based on that. If you know how to read a chart, you’ll be better able to understand how things like candles, moving averages, RSI, and the order book can clue you in to good spots to buy and sell. TIP: You don’t have to be good at this, you can just follow others who are.

Watch the Order Book. The order book (found on all exchanges) can give you a good sense of what buy/sell orders are on the books. If you see a lot of sell orders at a certain price and want to sell, you may aim to sell under that price. Likewise, if you are waiting for the price to drop to buy, look at the distribution of other people’s buy orders.

Hold some coins, range trade some coins, keep money on hand for a dip, and set some high-ball and low-ball orders. If you want to ensure you are happy no matter which direction the winds blow, then be set-up to benefit from whatever comes next. If you have some coins you hold, some coins you trade daily or weekly, some money set aside for a dip, and some high-ball and low-ball orders set… then you stand to benefit regardless of what happens. It can be tempting to cash out of crypto or go all in, but both of those can be disappointing if the market goes in the opposite direction you were hoping for.

Realize that a diverse portfolio and investing strategy will eat into gains as often as it staves off losses. The only way to make big profits most of the time is to make risky moves. If you go all in on a single coin at a given price and it goes up, that is a payday. If it goes down, your investable funds are locked into that crypto (unless you want to sell at a loss). Diverse strategies protect against this, but they will also eat into your potential gains (as it is rare for everything to go up or down at once). Know what you are looking for and know how to weight your portfolio to reflect that.
‘’ Coindesk.ch & Crypto Valley LLC are the place to go for your crypto currency exchange needs. As a crypto & blockchain consulting company, we help you invest in the right currencies so you can enjoy a high ROI. We take our client’s needs seriously, and constantly seek out innovative solutions that will drive the market forward. ‘’
Dad Advice: Don’t invest more than you can afford to lose. No really, there will be many great investments in your lifetime, there has been in Bitcoins lifetime. Bitcoin doesn’t cost $225 anymore. The chances that you’ll never have to work again if you invest you lifesavings in Bitcoin aren’t non-existent… but they aren’t as good as they used to be. If Bitcoin ends up down, you’ll be hodling the bag while others are on to better and brighter pastures.

Take profits. Some investors think “taking profits” is a dirty phrase, but it is a rather conservative strategy none-the-less. Taking profits can result in you making less money than you would have if you did nothing and just “let it ride”… but that is only true if Bitcoin goes up over the long term. If you have hefty profits, consider taking them off the table, and then waiting for a lower price in the future. Worst case, you can buy back in at a higher price later (leaving some potential profits on the table). TIP: If a coin just went up 400%… consider taking some profits. Cryptocurrency almost always corrects at some point after a big run.

Expect Price Spikes, Expect Corrections, Be Patient, and Stick to a Strategy: Cryptocurrency tends to make big moves in terms of price and volume. It is easy to get FOMO (fear of missing out) and buy high, and it is easy to get overwhelmed by FUD (fear, uncertainty, and doubt) and sell. If you miss a price jump, it isn’t necessarily time to go all-in in an emotionally charged panic. Instead wait patiently for the price to settle (which could take weeks or months) or average in or out slowly. Taking gains after the price goes way up, or making a buy after the price goes way down makes sense. Panic buying after the price just went way up, or panic selling after it went way down is rarely the right move.

Consider setting stop orders after you buy. A stop order will create a market order when a price is hit. This means stop orders are subject to slippage and fees, but this also means you can calculate your risk. One should generally set stops when not at a computer to protect their investment.

Watch the news. Did Russia and China just come out against exchanges? Fork?

Realize that Bitcoin isn’t the same as Blockchain. Blockchain technology is something many are bullish on, but that sentiment shouldn’t be confused as being sentiment about Bitcoin specifically.
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The difference between fiat money and digital currencies is that fiat money is issued by central banks, while issuers of digital currencies are decentralized.
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