Out of simple and mere curiosity, I have been learning a little about the subject of cryptocurrency trading; and I have discovered, as I already intuited, that it is a whole science that must be studied and practiced very well.
What do I mean that you have to study a lot about crypto trading?
Because it's not just about getting to the market and starting to trade it, because that would be the perfect secret to losing money; And of course nobody wants to lose money, right? But the reality is that even knowing that trading is a task or activity that must be studied and learned very well, no one will save us from losing money at first; That is something that I sense very well, although I have not yet begun to operate properly speaking.
Being clear and concise, I have realized, through my study and research on the subject, that there are a whole series of factors that we must take into account if we want to be truly successful traders, among them we could mention: Platform in which we will operate, the strategy with which we will operate, the size of the capital we have and its management, crypto assets that we will decide to operate, among others.
Is it possible to create a foolproof trading strategy?
Reading on the internet, I have noticed that a lot of people seem to be selling trading systems that are supposed to be successful. And I say "supposedly", because every person with three fingers of a brain knows very well that if it were so easy to be successful with trading, everyone would dedicate themselves to such an activity and be a millionaire, right?
But the funny thing is that when we started to investigate the topic of trading on Google, we came across thousands of offers from people who sell trading systems that promise to make us rich in no time. But looking closely, what is most surprising is not that there are all of these kind of people selling systems that promise what is impossible to deliver; but the fact that they exist only because most people think that trading is a simple activity, which can make them rich in a short time if they find the right strategy.
Well, I don't want to sound like a pessimist, but I do use common sense, and other than that, I have friends and colleagues who trade full and part time; and they have not only explained to me that there are no such a thing as a perfect trading system nor proof against everything, but also, I closely observe their lifestyles and purchasing power, and I do not notice that they are getting rich, even though they know a lot about trading and investing and despite all the time they had put on this activity.
In addition to what has already been said
Coupled with the fact that trading is already a difficult activity, there is the fact that trading cryptocurrencies is even more difficult, because they are too fluctuating and unpredictable to believe that we can trade them and get rich instantly.
Whoever believes otherwise, I challenge you to look for a cryptocurrency in the market whose price is totally predictable and that never makes any unexpected movement... There simply isn't one.
Bitcoin? No, Ethereum? No, Litecoin? No... No cryptocurrency has a 100% predictable price, what we can find in the market are cryptocurrencies with fairly stable prices, such as the case of Hive, and others. And if we talk about cryptocurrencies that are used to safeguard the value of others cryptos, we would have to talk about stable currencies (Tether, HBD, and USDC, among others), but all of this would be another topic specifically speaking.
There is no magical or perfect trading system
So whoever wants to start trading without loosing money it is choosing the wrong activity for it, because of course it will lose money on it, due no matter what it believe or not, because at first everybody lose money on trading. So the issue is not about not losing money, but about how money is lost, in what proportion, and in what way? So, when we lose money, we need ask to ourselves, whether we learned some useful lesson on it, or not.
Personally, I know that you have to study a lot about chart patterns and know about technical ways to analyze the price of cryptocurrencies, but in terms of fundamental ways to analyze what is happening in the market, the truth is that I don't have the most minimal idea about how such an analysis is performed.
I guess it's something I have to learn before I start trading cryptocurrencies. But what I have to learn more than anything, before launching into the crypto market, is how to develop a strategy that says when I should enter and when I should exit the operations in the market. I also don't know exactly what will be better to trade; that is, outside of Bitcoin, I don't know of any cryptocurrency that inspires me enough confidence to operate it risking my capital.
And I make a caveat here, I would dare to trust Bitcoin because is the mother of all other cryptocurrencies, and still, I would operate it with care; I mean, I would not put in Bitcoin, any money essential for me, because I know that I do not have enough emotional strength to withstand every rise and fall of the price of BTC.
For the same reason, I would not make trading right now, instead, I would make investement. I mean, also, due to my job, I think that I would not dedicate myself to trading as such, but to investing focused on the long term, because due to my profession; I cannot devote enough attention to the crypto market to trade it in short periods. It's a matter of not having the time, nor the nerves of steel, to endure something so hectic.
Call me boring, but I value my money too much to risk it foolishly. Therefore, I think that BTC is a good option to enter this crypto thing, at least for me it is; but I'm not putting my hands in the fire for anyone on this, nor would I advise anyone to do it. It must be taken into account that I can afford to invest in crypto because I have my salary as a doctor and I do not depend on what happens or does not happen with cryptocurrencies, but on the other hand, an unemployed person could not dedicate the little money and time that it have to enter the world of trading and investing in cryptocurrencies; it's simply impossible. If it do, it will surely lose all its money on the way.
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