Overview
I have been the World of Crypto Currencies for some time now, I have recently in the past month begun the journey of Crypto Trading, since I am poor, I am not able to make significant trades which in turn cuts down on the profit potential, this fact alone makes it significantly harder to make my way towards 1 BTC, which I plan to accomplish solely by trading Bitcoin alone.
If not, well, I guess I am going to lose more than I can honestly afford to while I try. The whole concept of Futures Trading is still new to me, while I am still learning while I attempt to perfect my trading, I have to admit that Futures are the way to go. Futures are more than likely the sole factor to Bitcoin price fluctuations the way we have been seeing lately. That statement, while it is speculation, I know a ton of crypto fanatics such as myself that would say, "you nailed it!"
While others would say, "while it does contribute some, it's not the driving factor," I can not really argue with either side, I gave my opinion.
What is Bitcoin Futures Trading?
Simply put, Bitcoin Futures is a form of a Trading Loan. The current exchange that I am using is Kucoin. Kucoin gives users whom are not KYC verified up to 20x trading leverage, what does that mean? Essentially you can borrow $20 per $1 that you hold. This can be dangerous on several different aspects for the borrower, I have already lost $8.00 USD by attempting to learn Futures Trading.
Last night alone, I started a trade for $5.00 USD The trade alone allowed me to turn my $5 into .003 BTC worth almost $100.00 USD The trade got liquidated at around $31K resulting in the loss of my $5.00
The "Liquidation Price" is the price at which you will lose your assets that you have leveraged. I could have set the stop loss and the take profit feature before I fell asleep which would have resulted in a decent profit, but I didn't. The assets got liquidated and I lost another $5.00.
as of this current moment, I am in a trade with almost $10.00 in assets, .006 BTC I opened the trade at $32,545 The liquidation price is $31,084 and the current price of Bitcoin is at $32,287 which means as of this moment, unless Bitcoin surges up past $32,540 I am at risk of losing up to $10.00 which would bring my total loss to $18.00
I could sell out at this current time and purchase back in shorting Bitcoin, which seems like the trend for the rest of the night. I am expecting to see Bitcoin shoot up once more before diving over the next 8 hours. While typing this, I got distracted with dinner and conversation with my mother-in-law and noticed the price has already dived down to $31,700
My Goals
I will hopefully be able to trade my way up to 1 whole Bitcoin, I started with an initial $5 and have already lost $8 I am working on losing another $10.00 at the current moment, I am ready to re-invest if need be, I am hoping to develop a better strategy sooner than later. Overall the goal one of BTC is not far fetched, I am not sure that using Futures will be the best bet to make the goal a reality, I am however giving it a go for my money.
My Final Thoughts
The main contributing success factor in every success story is all of the failed attempts before actually getting it correct. You have to be prepared to fail and learn from your mistakes in life, that is the hardest part that drives so many to accept defeat and give up on their passions in life. Greed can also be a factor that can set you up for failure in life.
I like to set down and think over my mistakes, hopefully by analyzing my mistakes in life I will be able to switch the game plan and have better results. Obviously I wasted a lot of my life before actually dedicating myself to my dreams and passions, I don't fault my parents, but they are some what to blame for this scenario. My parents are working class people, they are comfortable working a 9 to 5 job and living a normal life.
Thy didn't aspire to do anything major in life beyond raising children and enjoying life, like I said, I can't fault them for the choice they made. Ultimately, I believe I was stuck in the mind frame of being a worker, instead of actually trying to make wealth for myself. I find it especially important to influence my four children to follow their dreams and to never give up despite of failure.
Hopefully one day when they are grown and venturing out on their own they will look back at a hopefully successful father by that point in time and find motivation to continue to stand back up every time they get knocked down and continue trying. We often lose sight of being able to do anything that we set our minds to.
Thanks for reading, God Bless You and stay Healthy!
If I were you I'd save up at least $200 to put in a trading account. Using only 5 gives you almost nothing to work with and you're most likely going to lose it quick. If you can save up a couple hundred and trade at 2-5x leverage instead of the !20x youre at now, your odds of losing your account are pretty low.