February 25, 2021
Spot trading may sound so easy to do because you just need to buy when the price is low and sell when the price is high. However, this easy way of trading is also associated with risks due to the volatility of the market. Well generally, trading is really risky. That is why we need not only intensive but extensive research before investing in cryptocurrencies, knowledge in technical analysis and how the market behaves, and most especially, a lot of patience.
It was November 2020 when I started trading in Binance so I can increase my crypto earnings and diversify my crypto portfolio. Swapping in Bitcoin.com won't gonna help me achieve it and their live trade price is almost $10 lesser than the current price. I learned how to do Spot Trading In Binance through the help of reading articles about it and by some users here like @Eybyoung @Ryryry143 @BCH.Serg and @Jihan
At first, it was quite complicated to navigate the trading system of Binance, and seeing the charts made me worried that I might just lose my money. But with my perseverance and willingness to learn, I was able to perform well. As I have said to other users here, you won't learn how to navigate the system unless you will try it. Stormgain and Bityard have been my training ground for trading, but I chose to do the real trading in Binance because some of my cryptos are stored there, and they have more tools that I can use to learn the technical analysis of the market.
XRP was the first crypto I spot traded in Binance and during that time, it was booming. I was hoping to get SPARK tokens in their previous fork so I bought some using my coinsph wallet and transferred it to Binance. I even converted some of my BCH to XRP so I can have at least $100 worth of XRP in my wallet. I gained some profit during my first trades and I just hold it until the fork.
After the fork the price surge to $0.75 but I just hold it again with the expectation that it will go higher. Unfortunately, just a few days after the fork, unexpected things happened when the SEC filed a case against The Ripple Lab and its founders causing its price to plunge drastically. And I have no choice but to sell it at a lower price. The price I've got was then used to buy BCH and was thankful that during that time, BCH price goes higher, thus, making up the losses I've got from XRP.
Then with the trading principle of "buy low, sell high," I continued my spot trading journey so I can diversify my portfolio using some of my BCH. Then two months ago, I was motivated to try future trading as I saw some users were doing it. And as a NOOB in the crypto world, I want to explore this world and try other things not just basic spot trading.
Unlike spot trading, Futures Trading is more complicated and risky as you might lose your entire margin once you conquer it without enough knowledge and trading skills. The first trades were good, from a start-up capital of $5, I was able to make it $17, then it became $20, and $35. Most of the days were winning days but there are some days that I lose as well.
If I will describe my feelings in my crypto journal while doing my first live future trading, I would say that I felt nervous and scared when placing a position, I felt happy when my TP was hit, and I felt sad when my position has been liquidated. My capital was only $5, how much more if I will use a higher amount, it might gonna be heartbreaking. If it's easy to earn in future trading, it's easy to lose your profit as well, and that is once you become greedy and excited.
If you will ask me, is my live futures trading journey successful? The answer is NO.
As I have mentioned above, it's easy to earn in futures trading, IF, the market goes along with your prediction. However, if it goes in the opposite direction, you will lose your entire margin. And that was my case, I've been greedy and aiming for a higher income not even considering the next move of the market. Placing positions without studying the chart and just following what my gut says. Unfortunately, the wrong predictions and abrupt decisions led to losing my entire future trading profit.
Should I continue doing futures trading? Of course YES.
We should not give up just because we lose. Instead, make our mistakes as our inspiration to do better next. And from my failed future trading journey, I just learned that I need more practice and knowledge in the technical analysis of the market, and I need to learn more trading skills to be successful in live futures trading. But if futures trading is not your forte, then do not pursue it. There are many ways to earn more crypto anyway without risking your money. But I am a bit risk-taker, so I will pursue it until I become an expert on it.
And in regards to my Spot Trading journey, I am not successful either.
Recently, along with the surge of the market, I did spot trading using some of my cryptos such as BCH, BTC, ETH, BNB, and TWT. My trades with BNB and TWT were good because I was able to get profit from them and accumulated more coins. The BTC price reached its ATH price of $57k but I did not take that opportunity to sell because I was afraid that I might be FOMOed again if I will sell them and it goes higher. But it just drastically dropped to $47k+ when the bears took over the market.
And with ETH and BCH, I just ended up losing some of them. I was supposed to earn, how did it happen?
It was Feb 9 when I sold some of my ETH at $1800 to get some profit. I then placed a buy order at $1650 with the thought that it will go lower after the surge. But days passed by, the price just keeps on going up so I have to adjust my target price to a higher price. Until it reaches $1900+ price and some said that it will go higher than $2000. And I got worried that it won't go lower than $1800 again, so I had no choice but to buy at a higher price. My target was $1890 but due to my careless fingers and lagging Binance, I entered $1990 instead of $1890. So the order has been executed immediately at $1940, thus losing some of my profit. It went up to $2000 but I didn't bother to place a sell order because I might be FOMOed again, then you know what happened this Tuesday in the market. My start-up capital of 0.132 ETH became 0.127408 ETH.
The same thing happened with my BCH. I sold some at $500+ (and swapped some in my Bitcoin.com wallet) then placed a buy order at $450-480. But the price continued to go up to $600+. It was almost a week already but my buy order was still not executed and here goes the BCH price surging up to $700+. I thought that it won't go lower than $500 again, so I have no choice but to buy at $680-690. Then it goes higher than $700, but I just hold it because I don't want to be FOMOed again. However, it drastically goes down to $400+ this Tuesday. My wrong spot trading strategy just led me to lose 0.3+ BCH. It's a small amount for some, but for a newbie like me, it means a lot.
Should I continue doing spot trading or just HODL it?
YES. I will continue to do spot trading as it is my way to diversify my portfolio.
And YES I will HODL it once the market is unstable and wait for the right time to sell.
With the lessons I have learned in the past 4 months of trading, I will continue my journey in crypto trading and I will make sure to apply those lessons in the next chapter of my crypto journey.
This article is supposed to include the lessons I have learned but I have noticed that it's quite long already. So I decided to divide it into two and the other half would be my next topic
What about you, what have you learned from your crypto trading journey?
You are very fast in Read .cash Dear . plz some help me .