If you’re familiar with trading on the Forex or stock markets, you’ll find Bitcoin and other cryptocurrency trading even more profitable. The markets are more volatile, so profits can be made much faster with less risk.
But let’s start at the beginning. Trading cryptocurrency is similar to trading Fiat currency, like the US Dollar, Canadian Dollar, Japanese Yen, or any other currency in the world. Trades are made using currency pairs. If you were trading the Canadian Dollar against the US Dollar, your currency pair would look like this CDN/USD.
The cryptocurrency market uses the same trading pair configuration. For example, if you’re trading Ethereum against Bitcoin, your trading pair would be ETH/BTC. The two main advantages with the Cryptocurrency exchanges over Forex are:
1. Anyone can trade on a cryptocurrency platform with no experience and still make a profit using the simple Bandwagon Strategy we’ll cover in a moment.
2. Experienced traders can use candlestick analysis to make higher profits using their current trading strategies, without using stop losses or losing a trade. We’ll cover this in a moment too.
The Bandwagon Strategy is simply buying low and selling high, using other people’s momentum. If you have never traded currencies before, the Bandwagon Strategy is the easiest way to trade. You don’t have to be familiar with the markets, the platforms, or any trading formulas to trade successfully.
Here’s what a trading platform looks like:
Panel 1 – The top panel identifies the platform, GDAX, the currency pair that is being traded, ETH/BTC, the last traded price of Ethereum (how much Bitcoin(BTC) that it cost to buy 1 Ethereum coin) and the 24 hour trading volume of Ethereum
Panel 2 – The Order Form shows the account balance of Bitcoin and Ethereum. Currently this account has .00007198 Bitcoin and no Ethereum. There is Ethereum in this account, but it’s in panel 6, which we’ll discuss in a moment. The order form is also where you can Deposit and Withdraw your currency.
Panel 3 – is where you place your Bid and Sell orders. We’ll discuss this in detail in a moment when we talk about the Bandwagon Strategy.
Panel 4 – The Order Book shows you the Bid and Ask prices. This will be your main tool for this strategy.
Panel 5 – If you are an experienced trader, you’ll be familiar with the Candlestick chart. If you are new to trading, you’ve probably seen a chart like this before, but you don’t have to know anything about it to use this strategy.
Panel 6 – The Open Orders panel displays the orders that are currently active. In this example, there is one open order to sell .042 Ethereum for .101 Bitcoin.
You can use any Cryptocurrency trading platform you choose, as long as it shows you the order book that indicates how many people are trading.
So let’s make a trade in 2 simple steps
Step 1 – First, check the order book. The green numbers are Buy orders. These indicate how many people are buying Ethereum and how much they are willing to pay.
The orange numbers are a list of the people who are selling Ethereum and how much they are asking. Notice the two highlighted rows in the Sell category. Each row has an orange indicator at the left that shows a large number of buyers (200 and 201) are selling at .09750 and .09740.
If you were selling, this is how you decide what price to sell at. Simply use the market indicators that tell you what the masses are doing. In this example, you would sell at .09750 or .09740.
If you are buying, you use the same strategy, but use the green numbers. Look for indications of large numbers of people buying at a specific level and buy at that level.
Step 2 – Placing your order in the GDAX platform is simple. Other platforms may differ.
a. Select Limit from the top selection. This is very important, because it allows you to trade for free. There are no fees if you place Limit orders.
b. If you’re buying, click the Buy button. If you are selling, click the Sell button
c. Decide how much currency you want to purchase and enter it into the Amount field.
d. The Limit Price is the number you chose in Step 1, based on what the market is telling you.
e. Click the Sell Order or Buy Order button and your trade is placed. You’ll see your trade listed in the Open Orders Panel.
And now you simply wait until your order is filled. If you just placed a Buy order with a Limit Price of .09500, your next step, after your order has been filled, is to place a sell order. Follow the same Bandwagon Strategy to determine a selling price and place your order. As long as you are selling for more than .09500, you’re making money.
The Bandwagon Strategy is simple and an easy way to get your feet wet in the trading market without spending a lot of time studying the markets and learning how to read charts and graphs.
An Initial Coin Offering (ICO) in the Cryptocurrency market is similar to an Initial Public Offering (IPO) in the stock market. It’s the first time that a coin is made available for the public to buy. Many people have become very wealthy using this strategy.
If you buy a coin in a progressive company, you can easily grow your money exponentially. It works in a similar manner to people who bought Bitcoin in July 2010 for 8 cents. If they held it until December 2017, their Bitcoin was worth $20,000. If they bought $5 worth of Bitcoin in July 2010 62.5 Bitcoins) they could have sold them in December 2017 for $1,250,000. And then they could write a report about “How to turn $5 into $1 Million.”
On a more serious note, exponential growth is happening every day with some ICOs. And the timeframe is fast. Often you turn a profit in a matter of months, not years. If you choose the right ICO, you can turn a few hundred dollars into hundreds of thousands of dollars.
Like all parts of this market, there are no guarantees, so you still have to do your due diligence when you’re choosing an ICO. Even if you only double or triple your money, your Return on Investment (ROI) can be very substantial.
I follow Ian Balina and use his advice to choose the ICOs I am involved with.
The Cryptocurrency market is a modern day gold rush. There is a lot of money to be made, but the market also attracts fraudsters, so investors need to do their due diligence for every investment they are considering.
Using any of the strategies, staking, mining, lending, trading or buying ICOs, can set you up for a very comfortable retirement, whether you’re in your 20’s, your 60’s or somewhere in between. You are in the right place at the right time to build a very bright financial future for you and your family.
Your next move is up to you. I wish you a very successful journey in the Cryptocurrency market and I look forward to seeing you on the beaches of the world.
Terry Telford is not registered to provide investment advice and is only providing an opinion. Information contained in this report, on terrytelford.com, and any other published media is not an offer or solicitation to buy, hold, or sell any security.
Terry Telford is not a broker/dealer or financial adviser and is not affiliated with an investment firm. Terry Telford and/or any companies affiliated with Terry Telford are not responsible for any gains or losses that result from the opinions expressed herein. Terry Telford makes no representation as to the completeness, accuracy, or timeliness of the material provided. Material is subject to change without notice.
When making an investment decision, investors must rely on their own due diligence. It is always recommended to investigate the company, person, or entity issuing the investment before making any investment decisions.
Any type of investing involves a degree of risk and should only be considered by persons who can afford to lose their investment.
The cryptocurrency market is evolving daily. It’s a highly volatile market, so investors can make a lot of money in a short period of time, but they can lose money too.
This report does not constitute financial advice. It is based on the results that I have experienced personally and is presented only as a source of information.