Long time I haven’t written, here! But now that the evil of 2018 is slowly starting to fade away and the crypto markets look a bit healthier, I thought it’s time. So, here we go.
Today, I was scrolling Crypto Twitter, again, and when reading predictions from the usual crypto wizards spending time doing pseudo science, I had an idea: I will start a trading competition soon™, and I will use no technical analysis, no lines, no clouds and no other fancy stuff. Just enter and exit a position when it makes sense. Why am I doing this? Simple: to prove that technical analysis is in no way needed to be profitable in trading. And I even want to go one step further: I want to show that it’s actually a distraction which prevents you from focussing on what’s important: trading.
I will give you a list of a couple of cryptocurrency exchanges which have been around for some time and can thus be used with as little risk as possible.
Bitfinex is an exchange which offers Bitcoin, Litecoin and Ethereum trading. With those three, you can use your account to do the following:
- Spot trading: buy or sell any of these cryptocurrencies.
- Margin trading: you can also trade USD, BTC, LTC and ETH on 3.3x margin. For more information, I will include a tutorial on margin trading later.
- Lending: You can use your funds to provide liquidity to the markets (for the margin traders) and get a certain percentage paid daily.
OKCoin is a Chinese exchange which also provides an international version of its exchange. You can trade Bitcoin and Litecoin against US Dollar.
OKCoin is famous for its insane leverage (10x and 20x) on its Futures. There’s rumor (especially on Twitter) of people who made a lot of money trading OKCoin Futures, but there are also stories of users who have lost a lot of money there.
20x (well, even 10x) is a lot – even more so on a currency like Bitcoin which already has a lot of volatility on its own – and you should only trade there if you know exactly what you’re doing.