Last night, I've decided to make a trade again and tried try to recover all the funds that I've lost last December. In the past month, I have lost almost a total of $30 from my own capital and also lost all the profit that I gained from my past trades.
I am currently trading in Binance Exchange, even though it is a custodial one, I have my trust in putting most of my investments in their exchange because I felt secured with them, also it is more user-friendly, easier to learn and the fees are a lot cheaper than other exchanges.
What is Binance Exchange?
Here's an accurate definition from Wikipedia.
Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. As of January 2018, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.
Binance has a lot features comparing to other exchanges, and one of it is the Stop-limit function- I will discuss about this in my next article.
Almost 3 years in Binance
Yesterday, I joined this event in Binance where you can have a review for the year 2020 in your Binance journey. Then I just learned that I am trading in this Exchange for almost 3 years. Time really flies fast but unfortunately I am still not a professional trader, because trading requires a lot of time/years to master it. And I am still starting to learn more about it.
Future Trading in Binance
Future trading is one of the most fun yet the most risky feature in trading in Binance.
In simple terms, Future trading is like guessing whether the price of the cryptocurrency will go up or go down.
As I mentioned above, future trading is very risky because in just a short amount of time, all your funds can be liquidated or lost because as we know cryptocurrency is volatile. But, if you are a lucky one, even without knowledge in technical analysis and can take the risks of losing money, and your prediction is going the way you want it, then your money can be doubled or even more in just few minutes/hours.
Even though, guessing is not just all about in future trading. You need to have a good strategy and good technical analysis for you to avoid being liquidated.
And as a starter, it is recommended to start with a minimum leverage to lessen the risk of getting liquidated.
Binance has lots of accounts in trading with them;
Spot account
Margin account
Future account
P2P account
Earn account
Pool account
But in this article I will only be focusing on my trades with my Future account.
My trades in Futures account.
BCH/USD long position
Last night, like I mentioned at the very start of this article, I decided to make a trade in my Future account.
I noticed that Bitcoin Cash (BCH) is breaking its resistance levels and then resistance levels become support levels, and making a huge uptrend so I took an advantage of this.
I use my BCH funds in my spot account and transferred it to my future (coin margin) account. Then make a long position with full 75x leverage.
Second BCH/USD long position
After BCH breaks the $400 mark, it even goes higher so I took an advantage again of this and made a long position with $10 margin using USDT with starting price from $419.40.
I closed this trade with a market price of around $425.
ETH/USDT long position
Lately, Ethereum (ETH) was making a lot of hype in the crypto space. After it breaks the $500 mark, it surges up to almost 50% in just a week.
Just this morning, I was looking for a possible entry to have a long position for ETH. Its price was just running from $980 to $988 so I decide to keep an eye in the chart.
Luckily, ETH's price goes down to nearly $970 and I quickly made a position in my Future account and had a position of $978 as a starting price.
With just around an hour, ETH's price goes up and reach $1,005. So what I did, I set a stop loss limit of $1000, so if ever ETH will go down, I have already secured my profit.
Unfortunately, ETH's price hit my stop loss limit of $1000 so it triggered my trade to close.
As the time of making this article, Ethereum is currently trading around $1,090 per coin.
My loss position
Because of my past successful trades in BCH, I was skeptical about its sudden surge. So I made a short position with $3 margin, and unfortunately, I was liquidated because the price goes even higher to $440 per coin.
So far, this is just my first loss and fortunately made some gains in future trading. And I am looking even further that I will be a successful trader in the future.
Note: Trading is very risky and can make you have huge losses. So it's better to study about it or try a small amount first before going and taking the risks.
All images belong to me.
Why don't you try margin trading?