Crypto Academy Season 2 - Week 12 - For @fendit

Getting started in the world of cryptocurrency can be so confusing and difficult as there are many terms to understand which are very necessary and also understanding diagrams of which one of them is the crypto chart.

It can be very overwhelming since there are quite a large number of buzzwords to get your head around, and as soon as you’ve got to grips with those ones, you are hit with the charts. These chart that could seen so endless.

If you are interested in becoming a full fledged crypto trader, these charts could serve as a very powerful tool when they are used in the right manner. It is said that Knowledge is power, and for many traders of crypto, these charts are important in their decision making process.

A crypto chart can simply be defined as visual tool or diagram which display the necessary data so as to help traders comprehend the movement of cryptocurrency price.

These data presented on the tool are done in such a way that traders can see the patterns in the market movement and this also helps the graders to picture what the total momentum to the cryptocurrency market looks like - ie. whether it is bullish (which means that the price of coin is going up as a result people buying it) or bearish (which is means that the price of a coin is going down as a result of people selling the coin out).

So, the theory of the chart is to help know where the market is headed at some point, predict what the price will be in the future to as to help traders know when to HODL, buy or sell. This chart is of two main types which are linear charts and candlestick charts.

AFTER I BOUGHT BTC A COUPLE OF DAYS AGO AT A PRICE OF USDT 62K AND SUDDENLY, I SEE THAT THIS SITUATION OF THIS CHART IS GOING ON, WHAT WOULD I HAVE DONE BEFORE READING THE LECTURE GUIDE?

Considering the candlestick chart above, normally I will panic as a result of the sudden drop in the price of BTC from USDT 64,854.00 to USDT 54,585.22 which is of a difference of USDT 10,268.78 in just few days.

Sincerely, I would have just withdraw my remaining money since I wouldn't want to experience further loss as a result of my lack of experience.

But, as a result of me readding the Lecture guide, although I might still panic, but I understand that I made a mistake from the very start by investing more than I could afford to lose and allowed greed and my emotions to control me, because trading on cryptocurrecy, it is a normal thing for the price of a coin to rise and fall, which I must have in mind before taking any step. After reading the lecture, I will just wait for some because the price will still go back upon which I can still make a huge profit

WHAT MISTAKES MY FRIEND MADE WHEN TRADING AND WHAT I LEARNED FROM THEM?

1. He over traded: After John was introduced to cryptocurrency by a trader who made a huge gain from the platform, he was so excited that he got fully interested in cryptocurrency without even sitting down to fully understand how it works.

All he was just interested in was that he can invest his money into cryptocurrency and after few days, weeks or month as the case may be, boom, he will become a rich man.

But reverse was the case after he made the investment (of over ten million) because at the point that he invested, he bought BTC at a very high amount as many people where also buying not knowing that the price will soon go down as a result of some big companies making purchase of the coin in a large amount of which many investors will want to sell theirs.

Because my friend didn't take time to regularly study the movement of the market through the chart to know when to sell, he ended up losing a lot since he only came to find out after some time.

The lesson that I learned from his experience is that, eventhough other people make huge gain upon their investment in crypto, I shouldn't just rush to invest by allowing my emotions to control me, but I should carefully study the movement of the market before investing and even if I want to invest, I should not invest more than I can afford to lose.

THE STRATEGIES DISCUSSED IN THIS CLASS THAT I FIND THE MOST USEFUL FOR ME? AND WHY?

The strategy that I find most useful to me is never to invest money that I am not willing to lose.

This is because I have seen some situations whereby people invest money they could not afford to lose such as their school fee and house rent in school and it didn't work out well for them because they were so excited without considering some major strategies to adopt in investment after hearing that people make a lot money in cryptocurrecy and the just ended up in agony.

AFTER SEEING THE POST OF ELON MUSK OF TWITTER WHICH STATES THAT ONE CAN BUY TESLA CARS WITH BTC, WHAT WILL I DO?

Before reading the lecture, I would have just rushed to buy one for myself if I had BTC that is worth of the car that I desire.

But after the lecture, I got to understand that the movement of the price of BTC may drop as a result of so many investors wanting to sell off their BTC to the company.

But, the value will later rise as a result of scarcity. So, I will rather patiently HODL my BTC until then which will result in huge gain for me.

CONCLUSION

The cryptocurrency world is dynamite and requires that traders should carefully study it and understand the right strategies to adopt in trading on the platform so as to avoid disheartning outcome.

@fendit