I mentioned in the December update post that I had spent some time over Christmas reading up on cryptocurrency trading, particularly short term day trading.
The main resources I used were:
I took the plunge last weekend and signed up for a Coinbase account. I only want to get a feel for how everything works this month so I spent a whopping total of £100 buying Ethereum and then then signed up for a GDAX exchange account and transferred the Etheruem into there. After a few days I sold the Ethereum at a higher price and made 11% profit.
My next trade was a day trade yesterday (Ethereum again) but I lost about 3% because I was holding out for a higher profit (I could have sold at 2%) but then the price rebounded and I put a stop limit in at 3% loss. I did another trade the same day on Ethereum and made a 2% profit; I could have made more but the price was fluctuating so I set a stop limit at 2% profit.
Some of you might be thinking why am I only aiming for 2% profit. I’m basically following the strategy from John Omar where he talks about the compound effect of making 1% profit per day on an initial $/£1,00o investment. Looking at it very simplistically, if you started with a £1,000 initial investment and made 2% every day (my goal) o £1000+ trade, after the first month you would have made £794 profit and then by the end of the second month you would have made £1,455 profit that month. It’s a very simplistic way of looking at it and des not include losses, etc. but hopefully you can see how the small gains add up.
My plan for dealing in cryptocurrency is the following:
The aim of this post is not to give any detailed guidance on crypto trading, just some basic details of what I plan to do. As always, please leave any comments or questions below.
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