Arrention newbies and aspiring coiners!

As we have a extreme amount of newbies that do not know what they actually do, I thought I write something for them. Way too many people lose money because they miss out the basics. Yes, you are in for a huge wall of text. Feel free to ask questions, as long as I am online.

So you are into cryptos. You set up your account on bittrex, bought some BTC on coinbase and you are ready to go, right?

Wrong. Trying to get profits now is just like trying a slot machine with a high chance of winning. And trying to daytrade transfers almost certainly your money in the wallet of someone else.
First you need the basics:
investopedia.com/terms/t/technicalanalysis.asp
investopedia.com/university/technical/

Read it, understand it, try it. This is what will indeed make you money.
I don’t want to overly shill technical analysis, but this helps you to analyze and understand the history of the graph better. They often confirm themselves through their broad usage alone. And it all boils down to probabilities and anticipation - not predicting the future, because this is impossible.
Again: technical analysis is more like a self-fulfilling prophecy because many people use it, it is not a physical law.

Then, you need to consider news & rumors. Buy the rumors, sell the news.
It sounds easy, but sometimes it is a bit harder to distinguish, as many things are bullshit and the devil is in the details. Let’s say a fan of a coin uses the technology of said coin on a counter-strike server, so the players can get coins for every headshot. Someone might overly shill the coin with "CS!!! PARTNERSHIP WITH VALVE!!! PRICE WILL MOON!!!!". This could trigger a newbie to buy at the new all-time high price (believing it rises even higher), which the newbie then has to hold for a long time or sell at a loss.

After that, it is just a matter of practice. It all comes down to probabilities, being able to cut losses, evaluate information and not getting emotional.

PART 1/6

Other urls found in this thread:

reddit.com/user/drewshaver/comments/6dxdh7/review_of_5_cryptocurrency_exchanges_poloniex/
twitter.com/SFWRedditImages

Part 2/6
Then you need a set of rules, e.g.:
- set stop-limits every! fucking! time! you buy into something
- don’t buy at or near a new ATH (rarely goes well)
- always have a valid reason for buying (no, "Veeky Forums said it’s going to moon" is not valid)
- never rely on single platforms alone - reddit, twitter, bitcoin forums, Veeky Forums, blogs, news-sites etc. are very good if used together (stay away from zerohedge tough – tinfoil alert)
- never focus on a single coin alone; diversify in at least 2 time horizons (1-7 days short (ST); 2-4 weeks mid (MT); 1-12 months long term (LT)) & reevaluate them accordingly
- never!!! daytrade with more than 5% of your funds per week/month, if you are not consistently in the greens with these 5%
- if you are in a ugly situation (like having >50% of your stuff being stuck) and NOT in dire need of money: HOLD THE COIN! The market is exploding and the burst of the bubble is months if not years away, you will at least get your money back, if you did not buy useless coins on small platforms

IMPORTANT!
Stop-limit-orders are not a joke, they can literally save your ass! Set one at e.g. 95% of your entrance point/adjusted to the current price, when you are away from the computer or watching a movie etc. Yes, sometimes it is only a short bounce and you lose some money or profit, while the value goes bonkers afterwards - but most the time, it just prevents you from heavy losses or missing opportunities to sell your stuff at a good price, because you were sleeping/shitting/suffocating on a Cheeto while wanking on your possible profits while selling on a ATH.

Part 3/6
Now you could start to trade with e.g. an excel-sheet, where you insert the buy of a coin and a sale when you sold it. This is called "paper trading" and for just getting a feeling for it. Do this for some days, while you are learning the basics of analysis. Then start with small amounts - 10 dollar, maybe 50. If you are comfortable with that, pimp it up with stocking it up with the same amount per week or month. If you lose some, it won’t hurt and if you gain some, it is a sense of achievement.

Keep in mind that there are days where you look at the charts and say "Yay, nothing to do here but to adjust my stop limits", as everything is green and fine. And then there are days, where you see all your stop limit orders triggered, because everything is falling into abysmal depths.
Both days are cool, because the first one nets you profit and the second one cuts short your losses or triggered taking profits to enter again. Because remember: "if there is blood in the streets, it is good to buy". This say was true when Baron Rothschild made a fortune in the 18th century (I am not implying something anti-Semitic here, he indeed said and did this).
Start to think this way and you get a boner when thinking about crashes.

Also, remember that the meme "HODL" or "hold your coin" only applies to people that bought at a low price and are in the green even in the middle of a crash and the ones that bought at a high price and did not place a stop limit order. The first ones know that the price will rise further & holding the coin will enlarge their gains later. The second ones know that the high times will come back and then they can keep their losses small by holding the coin until then. There is little to no reason to see a coin crashing and not cutting your losses/grabbing the profit so far and buying back in, when the foothold is confirmed.

Part 4/6
Let’s get to some general security measures:
On every exchange, take your mobile and enable 2FA (two factor authentification). That way, when you want to withdraw cryptos, you need to enter a code from your mobile which changes every minute. So even if your PC somehow gets compromised, an attacker is not able to steal your money, except when he also steals your mobile. 2FA is the easiest and most efficient way to secure your stuff on an exchange. There is absolutely no reason to go without it and it should be the first thing to do after registering at an exchange.

Also, keep your computer safe. Better not watch that pron from the dubious website on the same computer you do cryptos with. Or at least use a virtual machine for this and be much much safer. It is easier than you might think of. I am a finance guy and even I learned it with some tutorials from YouTube.

If you start to store coins on your own wallet for holding them long term, make sure you have offline backups. And a backup from the backup. Store them in at least 3 different SAVE locations (e.g. one at your parents’ house, one in the cellar behind a brick and one at bank in a locker etc.). Be aware of the dangers of doing this with HDDs, as they less resistant to damage than a stick.

Be paranoid. You are handling money and the number of scammers is huge. You can discuss and talk with other people on the internet like you always do, but never give out personal information (except your wallet address - besides someone sending you coins, nothing can happen). The "send me your coins, I double them"-scam is nothing but bullshit, but people still fall for it more often than you might think. Be aware of these things, even with dealing with people you write often with. Social engineering is an art for itself, which is mastered by many scammers and conman, just to trick you out of your stuff without you realizing it being bad.

Part 5/6
Speaking of crazy things – here are the two most important rules of all:

NEVER EVER trade with money which you cannot afford to lose. 100k of a shitcoin won’t make the landlord happy, even if it might spike up again and get you dem delicious gains, which could lead to homelessness faster than you can imagine. This proves even more relevant when it comes to food - a bag full of coins is not eatable.

NEVER EVER lend money from relatives, friends, colleagues, banks, neighbors or the mafia just for trading cryptos. If you lose money, you not only put them in financial danger but also the (hopefully lovely) relationship between you and them can get strained.
No money on the world is it worth to risk or even strain your relationship to a loved one. Especially when we talk about the mob, you are in for a world of hurts, if you want to tell them that "THE COINS WILL BE WORTH MORE NEXT WEEK, I SWEAR!!!" when they come to collect their money. They are pretty old fashioned, I guess.

And finally: don’t be fooled by thinking you can get rich fast and lay off for the rest of your life. "Lamboland" and "moon" are memes to entertain, they are not an accurate description what happens when you only trade for a week or so. You CAN get lucky and get x20 or x100 your investment in a few days. But you also need to consider, that you can very much lose everything, especially when you are new. That’s why "only trade what you can afford to lose" is such a golden rule. Running for fast pump & dumps will make you the bagholder for organized groups and worthless coins sooner or later. This is a gamble you can win or lose in a couple of hours. Researching and investing is more relaxing and also a secure possibility of multiplying your capital over days, weeks or months, depending on the coin. The number of people getting money by researching the coins however is a multitude higher than the number of people getting rich on p&d-actions.

Part 6/6
Finally let’s give you a practical homework, if you are still interested: try applying the stuff you learned with litecoin.
Check how the upcoming fork of bitcoin might affect the price of litecoin.
How did the prices react to past crashes of bitcoin?
What is the history in the spikes
What major announcements are made that might affect or affected the price?
Check twitter how the general air about litecoin is – calm, heated with discussions or confident?
What do specialized bloggers say about it being under- or overvalued?
Is there something like a trendline?

Draw your own conclusions. Or how it is called: DYOR - do your own research. Now you have the tools to do that. It might be hard, but in the long run it pays out, as there are too many people out there that see cryptos as a slot machine and not as a craftsmanship.

In 2-3 weeks, if you got some gains - maybe drop me a beer in form of Litecoin, if this posts and/or the answers I give you in this thread helped you somehow to get profit out of your investments:
LT6qfsrxPhVxcYPbNgT267W1aVRd6n5AFq

Or even better: treat yourself for a new game on steam.
Or take your dog to a walk in the park and get some icecream.
Or how about going to the cinema for the movie you wanted to see for real, not pirated in bad quality on the internet. Take your friends with your or make some there.
There are many things out there to see and enjoy - dont look at charts all day and dream about "lambos" or "moons". It’s the small cash outs that make it worthwhile to do, if you are not required to life from it.

Disclaimer:
Even if you have read this wall of text carefully and follow the advice of experienced traders, you still can lose money. I am not accountable for any losses you encounter while trading crypto currencies. Trading can lead to addicting gambling behavior, for which you should consult a professional, please – otherwise you might lose everything.

I am here to answer some question over the next couple of hours.

Need to do some household stuff, so dont expect immediate answers.

1st thread (06/15/17)
2nd thread (06/16/17)

will invest 1000$ on LTC just to hold them for 6-12 months.

also, thank you for your effort.

here we go again with mr saint, I'll repeat myself: let the newcoiners die in their own ignorance. trading is a zero sum game. we don't want normgroids to join our army of Veeky Forums shitposters. fuck off OP

I want to figure out the very first step.

Is registering at Coinbase and buying with a credit or debit card the fastest way to get Bitcoins?

What about securing my Bitcoin purchase?What security software do you recommend? Do I need a hardware wallet?

Also, what can I do to maintain anonymity?

What should I do to make sure I don't have problems with the IRS ?

Oi OP. Read your thread last night. Still have it saved. 10/10 thread, still found some things useful. Will probably tip when I hit halfway to lamboland

>thinking reading this will make them gains and make me loses

it helps getting more people motivated to lose money mfw

>Is registering at Coinbase and buying with a credit or debit card the fastest way to get Bitcoins?

The fastest way to acquire bitcoin is also determined by your country of origin. In the most western countries, you can link a credit card to the account and the verification is quite fast. In other countries, the verification process is painfully slow and deposist can take even weeks.

>What about securing my Bitcoin purchase?What security software do you recommend? Do I need a hardware wallet?

I would indeed recommend an offline storage for everything you wont use in the foreseeable future.
As I am also only a private trade, I recommend simply awareness on what you actually do on the PC you are trading on. Meaning no porn, no use of unknown sites, no downloading of things you wont know etc. - for most people his does it, but this is a toppic for itself. I use no specific software to do that.

>Also, what can I do to maintain anonymity?
In which respect? If you want to invest/trade on altcoins, the only people that know your identity are the exchanges. And I personally never used cryptocurrencies as currencies to pay for something.
I would say however that the biggest exchanges can be trusted with your informations, as they are legaly based in the US. I am not american tough.

>What should I do to make sure I don't have problems with the IRS ?
I could only tell you something about it from the german perspective (my wife is a german tax advisor).

I am in the United States

Also I heard that I should use Gemini instead of Coinbase because of high fees and shutdowns during market downturns

Could you explain the important differences between Kraken / Gemini / Coinbase?

>Still have it saved

Happy to know that, hope it will help you to get a share of the profits.

bumping for thought on this

>I could only tell you something about it from the german perspective (my wife is a german tax advisor).

I would be very interested to hear this. My sister lives in Germany.

Litecoin is just a familiar norm it's not special, just use your brain instead of arrogant hording

>I am in the United States
Then coinbase should only be quite fast with a credit card from what I have heard. Do you look for something like a "instant transfer" system?

>Could you explain the important differences between Kraken / Gemini / Coinbase?
I dont use gemini and use coinbase mostly for direct BTC purchases as well as cash outs, so I am not fit to answer this question, I suppose.
There is however a recent comparism between the biggest exchanges on reddit which might answer your questions:
reddit.com/user/drewshaver/comments/6dxdh7/review_of_5_cryptocurrency_exchanges_poloniex/
Coinbase is missing in this list, however as you can only acquire ETH, BTC and LTC with it, it is not viewed as an big exchange for itself in the meaning that you can trade on it, but it is more of a pivot point between coins and fiat.

>arrogant hording
?

I would reevaluate this tought in the next 4 weeks, but for now it seems like a good idea. Solid coin, unvervalued right now. And in the wake of the fork of BTC on the 1st of august, it is one of the major players to put money in, just to make sure to not lose on a possible crash.

Would not expect $100 at the end of the year, tough. Would expect 70-80 at most.

>Would expect 70-80 at most.
That sounds reasonable. Thank you.

>I would be very interested to hear this. My sister lives in Germany.

Basically coins do not count as stocks or investment property in germany, so the general 25% for this stuff is not applied to coins.
So basically, you need to let the money you invested into bitcoin stay there for a year and then you can cash out without paying any taxes. You need to use FiFo for this tough, so if you used LiFo in the past, this might bite you in the ass now.

Addition: the one year hold of the coin is crucial.
Otherwise you can only pay out 601€ without paying taxes. If you pay out more than that, you are obliged to pay imcome tax on the whole amount (even if it is 605€).

Good write up OP, cheers for taking the time.

I've been hoarding Crypto's in wallets for years and have done pretty well over the long term, though only in the last few months in what has been a bit of a boom have only just started really paying proper attention particularly to trading on exchanges (before only hoarding coins that could be mined with hardware).

I'm still trading manually, leaving sell orders at just short of where I think the market is going to peak, and buy orders just up from where it will dip - with a reasonable success rate.

My question and what I think others might benefit from, is more detail on these "stop limits" you refer to. You're referring to the option on Poloniex for example, but this is not possible with Bittrex?

From my understanding (just reading now), you put a price at which your sell or buy order comes into existence, is that correct? Once triggered it is the same as if you were active/watching and manually put that order in - correct? So the benefit of this is so that you can set a sell order to trigger, if it falls below a certain price rather than rises to/above a certain price, is that right?

Thanks

>You're referring to the option on Poloniex for example, but this is not possible with Bittrex?
It is also possible on Bittrex, but it is called different there.
You see the red button called "Limit" below the two blue ones "Max" and "Price" and besides the word "Type" - click on it and then you open the "Buy/Sell when"-option. Then you have the possibility to set a conditional Sell- or Buyorder which work the same way a stop limit order works.

>is that right?
Yes, this is correct.

should I sell high my bitcoins before the fork happens at 1st August? maybe that day I buy back BTC.

I would indeed diversify a bit more into other coins which are more stable or in a long term upward-trend (LTC, ETH, DGB, ECC are all possible options, depending on your risk tendency and budget).

Many big fishes sold out of BTC already months ago, mainly because out of uncertainty of the future. Many of them went into ETH. So I would not advise to go into ETH, if you want to sit tight during the fork - because if the fork goes well, some might turn back around from ETH to BTC which might let ETH take a hit.

From safe to risky:
If you want safety in all situations: Litecoin.
If you look for a predictive growth over a couple of months: DGB (below 1200 it is a safe buy)
If you want to put your bet on a failing BTC: ETH.
If you want a solid coin that will most likely make it to the top 50 this year: ECC.


There are some other options I will not mention because they are indeed a bit more risky, but diversifying away from BTC is something I did and would suggest to everyone else too. Speculation with uncertain events can be rewarding, but it is also very very risky.

thanks for your honest answer.
I do these investments like a part time job and so my readings are limited. For a long time I haven't found a useful thread like yours. cheers user

Follow his advice and look at other sources of information, Veeky Forums has really become increasingly diluted with shit over the last month. I mostly rely on twitter these days

good tweeters? I follow a lot of people who post some meme triangle chart but there's rarely any followup, seems like they just ignore the predictions they made that were bad and then for the small % that were good, they will post a new tweet weeks later like "SEE, TOLD YOU IT WOULD MOON".

bump

I have 2.5 BTC on Coinbase that I bought around $1400 during April. What would you do with it?

>If you want a solid coin that will most likely make it to the top 50 this year: ECC.
Wow. You made this entire thread just to shill this shitcoin. Congrats.

Twitter is hard to explain. Everyone has their own style to get informations out of it. A friend of mine has no followers, never tweets and just looks for good tweets by searching for words. Another one tweets like a 15 year old, has a couple of hundred followers and has a community that he discusses all this stuff on a forum. It is up to you how to use twitter, but I would go more social if I would start now.

There are indeed some good and cool guys like cryptoyoda (very big) or cryptopatterns (a small one), who are pros in their field and whom you can trust in their advice, if they give them out on twitter for free. But the everyday advice from them is given out in closed groups you have to pay for monthly. Cannot say anything about such paid groups, never bought into them.

Usually you have to put up with some strange habits when dealing with all those guys giving out their advice for free. E.g. "WolfOfPoloniex" is ok-ish in his analysis but has a strange attitude some people dont like. Or "VanLakosCrypto" is an okay guy with a good nose, but I dont like him for shilling pnd-coins in the chats I had with him inside.


Just dive into twitter and use the tags from the coins you invested into, then - from time to time - you see some people who are mainly calm and only post when they have something substantial. It takes some days to find them and to grow a fundamental base of people of whose advise you can trust, but it pays itself. Sooner or later you will land in one or another chatgroup anyways.

>Wow. You made this entire thread just to shill this shitcoin. Congrats.
If I would be here to shill, I would have not listed it as the most risky option among the ones I wrote down.

ST:
LTC
UBQ
VERGE after the consolidation

MT:
UFO
ESP
STRAT

LT:
DGB
ECC

Please do your own research about them before spending BTC to buy them. And throw me a beer if I was right about it.

Again, the list is showing the more secure ones above, the less secure ones after.

And a correction:

>MT:
>ESP
>STRAT
>UFO

This is the correct order, UFO is a bit more risky than the other ones.

can I have you as my economic advisor?
but give you no beer, it's unhealthy.

Did you just tell a german that beer is not healthy?

Awesome guide, thanks for the help
One question though: What's a good, reliable source of information for this sort of stuff?
Also, how much technical knowledge is necessary for effective trading?

The most rational, sane, level headed post I've read on Veeky Forums for weeks. Hopefully this is a sign all the newfags are filtering out after having lost their money on idiot pump and dump schemes and crypto will return to a market of strong, steady growth.

>What's a good, reliable source of information for this sort of stuff?
In general or when you see a specific coin that might be interesting?

>Also, how much technical knowledge is necessary for effective trading?
Hard question, this depends on the person, the market and your style of trading.
To survive in a bull market as an simple investor for days/weeks/months, it is in theory enough to know about trendlines, support and resistances as well as considering news.
If you are into swing trading, you can in theory work with as little as the bollinger band and MACD, but I would not recommend this.

The more you can use, the better you can analize the graph, the more you can understand. There is however a subjectove line in visibility alone - if you plaster your graph with 50 indicators, you have many valueable informations, but you cannot see anything anymore.


So you need to see TA like a toolbox. The more you can use, the better you can react. But you only have so many arms and hands, so you also need to know when to use which tool, which is only learned by experience.

>There is however a subjectove line in visibility alone

I ment "objective line where this makes no sense considerung visibility alone". I should reread before posting, I guess.

My question is which coin will go 100x within the next week?

go be a nigger somewhere else

For picking up info on up-and-coming coins as well as the hot coins (BTC, LTC, ETH, etc)
Doesn't have to come from one source.
Also, I understand people will pay a premium for anonymity with BTC in particular. Couldn't you circumvent the risk of speculation through buying on Coinbase and selling on LocalBitcoin or BitQuick?

>My question is which coin will go 100x within the next week?

Triforcecoin.

▲ ▲

>For picking up info on up-and-coming coins as well as the hot coins (BTC, LTC, ETH, etc)
Lesser known coins are harder than the known ones. In finding them as well as making a profit out of them.

The lesser known ones I usually find through the use a mixture from private chats (like I said: sooner or later we all join some of them) and drifting on twitter with occasional klicking on unknown abbreviations of some guys (like $ECC). When someone is asking about "what do you think about that", I start to do some research and look into the coin. Most the time, it is a simple pnd-scheme, which I rarely participate in. This is why research is so important - when the coin is around for a year already, has 100+ sites of discussion on bitcointalk and an active dev, it is an hit for a potential big time investment.

x100 in a week however is very very rare and now I think that even the time of x100 in a month is over.
x10-50 however is still very possible, even with big coins. Considering large cryptotrader are in for DGB hitting 1 dollar in 2018 should tell you something about the potential of the long term perspective of this coin.

The large ones are more of a "consistent screening" than "finding" something. When you know them, you can just routinely check their websites, their facebook, their twitter and then you usually know the most relevant informations already. The rise of Litecoin today was predictable due e.g. to their upcomming listing on bitstamp.

>Also, I understand people will pay a premium for anonymity with BTC in particular. Couldn't you circumvent the risk of speculation through buying on Coinbase and selling on LocalBitcoin or BitQuick?

Tbh I dont realy grasp what you wabt to say with this.

this. FUCK OFF OP

Exactly what I thought lol. It's obviously just another pump and dump coin

I would also add SC in ST, MT and LT.

Obelisk is coming next week. So hopefully we see 1k sats.

Solid coin, yes.
But I dont recommend coins I have not invested in right now. It might change after the weekend, when I grab the ST money from LTC.

So is the whole DGB meme in biz not a lie? I sold them all because it just kept pummeling

>So is the whole DGB meme in biz not a lie? I sold them all because it just kept pummeling

Nope.
DGB is just not the short-lived mooncoin that will reach $1 in just a month. Otherwise DGB is one of the few promissing coins which has been around for years and will be around for years to come and therefore a solid investment, if you ask me.

Question: how much capital do you need to start?

I put about 0.007 BTC on 1Broker and I'm copying a couple of successful traders there. It's up to about 0.010 BTC after 5 days. I doubt that's a typical profit for forex trading and I should probably expect to lose just as much in a bad streak. Will I ever reach the moon like this?