Learned a lot about cryptotrading today....

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Avatar for AnonSunamun
3 years ago

And i have to say i have read.cash to thank for it! I had a whole lot of nothing to do today, or yesterday to be exact, and i noticed that one of my stories that i had posted a while ago had earned me a couple of dollars worth of Bitcoin Cash; BCH.

But as some might have ran up against yourselves, an amount like that is almost impossile to get turned into money that you can receive on your bank account and spend on something. Not that the amount was high enough to actually buy anything with, worth the effort. We're talking $5,00 dollars here, but as it happened i had recently opened an account on Binance and i thought.... why not. On Binance you can also trade and do other things with small amounts, just for the fun and the learning experience.

So i transferred the BCH onto my binance account and looked around at what i could do with my huge capitol. What did i have to do to challenge Elon for the number one spot on that list he just rose to the top of??? At first i tried a form of a game, or battle, called "Short or Long", where you could buy tokens with which you could then predict if the price of a certain coin or "pair" would go up or down.

Appearantly i didn't understand the terms long and short all that well because twice i lost while i was jumping up and down behing the keyboard thinking that i had predicted exactly what the price was doing, but got notified that i had in fact lost. So that quicly lost its appeal and i took the $4 that was left in BCH back onto my "spot" wallet.

That's when i noticed that there were all kinds of different wallets, all with a different purpose. The one that i started to check out was the "Margin" wallet. Turns out that with Margin trading you can leverage an amount of coin, be it fiat (dollars or euro's and the like) or crypto coins, to place orders for larger amounts (three times or even ten times as much) than the amount you have, effectively borrowing from... eeer... i guess from Binance?

So you take your BCH, $4 in my case, and then place an order to sell that at the highest price you think the BCH course is going to reach in the time you want to wait for $12 worth of BCH. When the price then reaches thát point you set the order for you sell $12 worth of BCH. Then you can take that amount, leverage it three times, and set an order to buy BCH at a low level price you think the market's going to reach for.... right, a little under $30....

You can go back and forth all the time doing that, or try your hand at a different coing pairing. Mind you, you're borrowing each time you trade, so you have to watch out you don't get stuck with an amount of loss that you can't afford to pay back. I found that out the hard way, and i had to fork out €7 out of my bank account to pay back the borrowed money that i lost.

I lost it because i didn't pay enough attention and thought i was buying when i was selling and things like that. I also noticed that for different coins there are different rates of rent that they charge, which they charge by the hour. But, i decided to take the last 10€ from my bank account as well as i was getting a bit confident as it was the Boom Boom to the Moon period in which Bitcoin shot up to an all time high, taking BCH and simular altcoins with it.

I set the chart for the BCH/EUR price to the one minute accuracy and started to place orders. Buy when it gets to that level, then sell when it reaches this hight.... We're talking fluctuations in price that is measured (in the order volumes i was trading in) 10 to 50 cents in Euro's, don't get the wrong idea, and besides it being actually fun to watch those green and red candlesticks on that chart, willing that price to go the way you want it to go, i began to see that i was actually making profit!

In the end i made the orders with the "rapay"box ticked, meaning that when the transaction completed the debt i had gathered with the leveraging would be deducted from the total transaction amount before it got into my wallet. Making sure that all the little leftover amounts were also repayed i then transferred all the margin wallet's assets back into my spot wallet, and then converted that currency into EUR.

I was a bit astonished that not only did i recoup the $7 i had initially started with, and repayed the 7€ that i had gone down into debt. I had also not lost the 10€ that i had invested from my bank account but i could transfer 34 genuine, hard, real and very welcome € Euro's onto my bank account!

That's 24€ worth of profit!

Now i know that's not going to buy me that Lambo anytime soon, but starting out, i am not counting that 5$ of BCH or that 7€ loss that i got in the beginning, with 10€ to make 24€ profit ending up with 34€ within 6 hours of playing Wall-Street Money trader behing your computer screen is pretty cool. At least, it is to me. I'm lucky i don't have more than those amounts so i'm not tempted but if you think about it, if you do the same with say..... 1000€..... you can make that into 3400€ in a couple of hours easy. And if you go the little bit riskyer route and go the isolated margin route everything isn't trippled but you can leverage it 10x!!!!

Anyway, just wanted to thank read.cash for starting me on my cryptocurrency trading magnet career here, and maybe give some of you an insight into how you too can get started in the crypto currency trading business. You'll learn a lot about how the market moves, why the prices go up or down when they do, and how it is that some people make millions doing the same thing you do except with a couple of zero's behind the amounts you use.

(Diclaimerz: Nothing in my article should be taken as advice or as incentive or anything. I am NOT a crypto expert! I am on welfare, and client of the foodbank, up to my neck in debt. DO NOT TAKE ANYTHING I SAY AS EXPERT ADVICE!)

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(Also i am in no way connected to Binance. There's a lot of different trading platforms like it, Binance is just the one i ended up on. I am not sponsored by them nor do i know if they are the best of the options out there.)

THERE IS ONE GOOD CRYPTO CURRENCY INVESTMENT ADVICE I WILL GIVE YOU:

Never use any money you cannot afford to loose when doing ANYTHING with crypto currencies. Assume you'll loose the money you spend on it. If you don't loose it, you got lucky. When you do that, you'll never get into trouble you can't afford to get into!

I wish for an awesome 2021 for everyone!!!!

Regards,

AnonSunamun

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Avatar for AnonSunamun
3 years ago

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I've been learning how to trade on Binance too. As you say, with low amounts so it doesn't hurt that much if i lose. Nice post man, kudos on your 24 euros earning!!

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3 years ago