Cryptocurrency trading platform and learning for noobs?

[boomy]

I have read a lot of posts here on the forum about cryptocurrency trading, now I would like to know if there is anyone who can help with a very basic knowledge about how to start trading cryptocurrency?


I have also read that it has something to do with gut feeling and that one needs to use a professional trading platform to get started. But how do you find the "right coin" to start with and what platform would you recommend for a beginner you should use so as not to get completely wrong.

So basically, I'm looking for some guides, videos and platform descriptions that could get me started on my big challenge.

I have a presumption that crypto trading is the same as trading stocks you buy when the price is low and sell when it is high ?!

Are there trading robots for crypto trading just like you know them from the stock market or is it 100% manual work?

 

[khinkali]

buy when the price is low and sell when it is high ?!

Yes. That's all you need to do.

You can make money doing market making on spot exchanges (placing buy or sell offers and waiting for someone to take them). You can also make money with cross-exchange arbitrage (some coin is priced a bit cheaper on exchange A). Both of these can be done with fairly simple bots and no voodoo "secret algo for sale for $x/month" nonsense.

There are pump and dump groups, but like other pyramid schemes you tend to lose out unless you're high in the network and get to buy and sell before the mugs who are paying for the signals.

You can make some money staking with automated market makers and also there's some yield from lending on futures exchanges. This might seem boring, but it's easier to get started and perhaps safer.

You asked about finding the right coin so I suspect you're looking to enter and leave positions on some particular currency pair, maybe with leverage? You can use intuition and maybe you'll have some great trades, but you should think about whom you're competing against. There are many bots using various technical indicators but these approaches tend to be saturated, unless you find a new one. It's easy to believe you're onto a winner with a few consecutive trades and then get wiped out by a black swan. This is the Taleb Distribution, AKA 'picking up nickels in front of a steam roller'.

One thing that doesn't tend to get talked about here (but should) is that the price of a Bitcoin (or other coin) can be artificially high for extended periods due to currency controls or other regulatory problems. Some people have made a *lot* of money from that. The hard part is transferring your Korean Won, Argentine Pesos, Iranian Rials, Venezuelan bolívar, etc. back to USD or similar to replace the Bitcoin you've sold.

 

[nomad999]

a few things from my experience with crypto these past years even though I don't day trade.

as a start I would get a few hundreds worth of crypto and go play on Binance and Uniswap asap with no other expectation than losing it all to learn the tools and get familiar with everything including using private wallets. this is the only money worth spending to learn, anything else that is not free is not worth it.

after that follow the news and identify and follow the "good" influencers on social media (most of the time veteran wall street traders or portfolio managers who switched to crypto), it will take several months before you can distinguish the wheat from the chaff.

only after a year or two of actively following all this s**t show will you develop that "gut feeling" you mentioned and which btw requires constant influx of good information to be reliable.
always keep in mind that it's all unregulated markets highly manipulated to trick you into buying and steal your funds in the end, the whale always wins at this game.

don't try to be smart and greedy, embrace the chaos and always be humble and patient.

and forget bots until you know how to trade.

oh and don't do this to get money to pay the bills, not gonna work, your emotions are going to get in the way.

 

[LouisB]

I have read a lot of posts here on the forum about cryptocurrency trading, now I would like to know if there is anyone who can help with a very basic knowledge about how to start trading cryptocurrency?


I have also read that it has something to do with gut feeling and that one needs to use a professional trading platform to get started. But how do you find the "right coin" to start with and what platform would you recommend for a beginner you should use so as not to get completely wrong.

So basically, I'm looking for some guides, videos and platform descriptions that could get me started on my big challenge.

I have a presumption that crypto trading is the same as trading stocks you buy when the price is low and sell when it is high ?!

Are there trading robots for crypto trading just like you know them from the stock market or is it 100% manual work?

I would stay away from those classical crypto exchanges that are filled wash trading bots, If KYC is not a trouble for you. Bitstamp, Coinbase, Kraken are probably the most trustworthy crypto exchanges. Out there are platforms like Quantfury that allow you to trade crypto as well as stocks and commodities without fees similar to Rodinhood. The best coin to trade is definitely BTC thanks to multiple times higher liquidity than altcoins. No robots will make you money, making money through trading is a long term learning process and understanding the particular market

 

[khinkali]

No robots will make you money

Most robots won't make you money. When you build a good one, it can be a good ride.

 

[boomy]

Most robots won't make you money. When you build a good one, it can be a good ride.

may be true, none the less the entire stock market is ruled by robots

 

[khinkali]

@boomy absolutely. A small number of bots make a lot of money. A large number of bots don't.

 

[lavel]

@boomy absolutely. A small number of bots make a lot of money. A large number of bots don't.

Is there any learning guide, some USEFUL video to look into or something that could explain how to get into trading cryptos without to make lots of stupid mistakes?

 

[khinkali]

@lavel it really depends on what kind of trading you want to do. There's a big difference between gambling on USD-BTC with massive leverage vs fully hedged arbitrage.

If you really like to gamble and you think you can beat the market then it's worth understanding the terminology in the BitMEX resource pages. People lose money at first because they don't understand fair price marking, auto-deleveraging, settlement rules, funding fees, dynamic risk limits etc. Once they get past that, people lose money because they have a winning streak, think they're invincible and gamble away their pot like drunk gamblers in a casino.

If you want to work the market in a boring, systematic and modestly profitable manner then you're looking at something like cross exchange or triangular arbitrage. My whole approach is building bot and ML algo software from the ground up so I don't trade with other bots, but there are open source options like CCXT and Hummingbot. Hummingbot has good learning resources and introductory Youtube videos. If I were not building my own platform I'd probably be using Hummingbot's cross exchange feature and maybe try their liquidity pools.