By Where can I learn how to trade crypto?
This question seems to be asked a lot in the current environment and I have been asked it personally by a plethora of people. Let me start by stating that trading in any market, regardless if it is Bitcoin, Forex or Equities, is a profession and requires an education, training, and experience like any other profession. A common misconception is that Bitcoin trading is somehow different than other markets in the financial sector and that somehow it is easier or requires less commitment to learn. That being said, it is possible to learn to trade if you have the time, drive and prerequisites to learn. Here is what it takes to become a trader and what you will need to do in order to become a trader in the sector.
Understand the Nature of the Business and What is Required
To start with, the average trader is part mathematician, part psychologist, and part economist. They also have to understand how a financial market works and what metrics to use in their specific market. Professional traders usually go to university and study business, economics, accounting, and market theory. They then must pass examinations to become a broker or trader.
After completing those examinations, they then go through a training period of 2 to 4 years in a brokerage where they learn the ins and outs of the financial world. At that point, the ones who show a knack for understanding these markets are hired as Junior level brokers and given a desk where they make small trades under the supervision of senior brokers. Generally speaking, less than 2% of the people who commence this journey ever make a trade as a broker or trader. Additionally, of that 2%, less than 1 in 20 last a year in the field. Trading is a high impact, high reward job that is by no means easy. There is a reason why traders make just as much as doctors or lawyers, if not more. The average trader burns out in less than 2 years and only 1 in 1000 ever make it to being a senior broker. That senior broker is responsible for millions, if not billions, of dollars of peoples’ savings, and if he fails, those people are left desolate. Just like if a surgeon fails, the person dies, if a trader fails, someone’s financial life may be over. That’s a lot of pressure and traders are forced to spend every waking hour working on their craft and perfecting their strategies.
The Main Difference Between Bitcoin Traders and Conventional Traders
Bitcoin traders are only different due to the fact that they do not have to pass examinations and operate in a grey zone of an unregulated market. The reason most people assume that they can trade professionally with little background knowledge or education in Bitcoin or cryptocurrency markets is likely due to the common misconception that cryptocurrency is somehow a guaranteed profitable marketplace. This is not the case, and as the markets have turned southward, many so-called Bitcoin traders are now losing.
When a market goes through the type of bull trend the cryptocurrency market did in 2017, it is relatively easy for anyone to make money. During the bull market of internet dotcom startups during the 1990’s, the market grew to nearly $10 trillion and day traders touted their amazing returns. When a market is no longer so bullish, however, the story changes. The average investor does not know how to react to a falling market and protect positions and hedge portfolios to minimize risks. Additionally, in a bull market, you can almost close your eyes and pick a winner. That is because everything is a winner. In a bear market, that is not the case and fundamentals and technical analyses become the only way to evaluate and properly invest in a position. This bull market in 2017 has created a plethora of so-called pundits in a sector that anyone could have made money in.
The Lack of Professional Services and Expertise
The main issue in the cryptocurrency sector is that professional-level services, advice or information is few and far between. This has left investors, like the majority of CoinBeat’s readers, highly under-serviced and unable to access the markets safely and responsibly. Investors are forced to either invest in the market based on Youtube tutorials or on technical analyses that does not suit the sector or asset classes that the sector is made up of. CoinBeat is a publication that is looking to fill that need and provide those services and support to our readers.
The sector is very young and will develop to have these types of services become more commonly used as the next few years and months bring enough mass adoption and money to the sector to require the need of professional traders in it. Until then, like all markets, information is key and CoinBeat prides itself on only hiring and using the top cryptocurrency professionals in the sector.
Getting back to the question, if you truly want to learn to trade Bitcoin, my suggestion is to enroll in university programs that will give you a basis on how markets work and study the cryptocurrency markets to become proficient in market theory and being able to identify the best metrics to use when choosing trades.
For example, metrics like volume, market capitalization, circulating and total coin supply, as well as the psychological and news related impact that adverse and non-adverse announcements have on the markets. Though it is difficult and will involve a very high learning curve, it is possible to learn and eventually prosper as a trader. That being said, it will require vast amounts of dedication, education and experience. Not to mention staying up to date and getting some valuable insight from places like CoinBeat.
If you are not able to dedicate that kind of time or resources to become a trader, another option that may work better for you, and people in similar circumstances, is to subscribe to CoinBeat and check out our daily, weekly and market analysis which information that is directly from pro traders and analysts.
CoinBeat connects cryptocurrency investors and readers, with cryptocurrency pro traders. Using CoinBeat as your primary informational source, investors can copy or mimic the positions, trades and portfolio diversifications of professional cryptocurrency traders. Make sure you subscribe to CoinBeat to receive such updates.
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