Bitcoin & Ethereum Trader: 1

© George M. Protonotarios 2021

Bitcoin & Ethereum Trader -Copyright July 2021

COPYRIGHT INFORMATION

ALL RIGHTS RESERVED.  No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior permission in writing of the publisher, nor be circulated in writing of any publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published without a similar condition including this condition, being imposed on the subsequent purchaser.

DISCLAIMER AND LEGAL NOTICE

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss or risk resulting, directly or indirectly, from the use or application of any of the contents of this book.

The information presented in this book represents the view of the author. Every attempt has been made by the author to verify all information included in this Book, but there is no guarantee about the accuracy and the reliability of any information presented in this book. This book is not intended for use as a source of financial or investment advice.

RISK WARNING

There is considerable exposure to risk when trading Forex, Futures and Options. Trading Forex and other leveraged products involves a significant level of risk and is not suitable for all investors. Before undertaking any such transactions you should ensure that you fully understand the risks involved and seek independent advice if necessary. The possibility always exists that you could sustain a substantial loss. Never trade with funds that you may need in the future. Past performance is not necessarily indicative of future results. Any opinions, suggestions, brokers, systems, services, software, reviews, promotions, bonus, rebates, links and web-sites mentioned on this Book are provided as general market commentary, and do not constitute investment advice in any way.

PREFACE

"Study demand, supply, and volume, manage your risks, and trade contrary to the public sentiment"

Since their inception, cryptocurrencies have pushed the limits of traditional finance by proposing a new monetary ecosystem and creating a brand-new investment asset class. This new asset class is characterized by continuous innovation, unseen price volatility, and a parabolic bull run every four years. Throughout history, technology and innovation created investment opportunities, and the decentralization of the financial industry is the mother of all opportunities. In this context, cryptocurrencies are destined to become a dominant asset class in the future. Nevertheless, we don’t know which protocols will succeed and which will fail. Considering the rate of adoption and the network effect, Bitcoin and Ethereum have by far the best chances of success. That is why this book exclusively focuses on these two protocols. However, no one can predict the future with certainty. If you want to trade successfully, you need to remain open-minded and realistic regarding the future. There is no room for maximalism in the mind of a wise trader.

Successful crypto trading requires realism and risk control

Crypto trading offers everything a trader could dream of, strong macro trends, price volatility, and significant liquidity. However, that does not make it an easy task. On the contrary, crypto trading is an extremely challenging task. If you are caught up on the wrong side at the wrong time, you could lose most of your funds in a matter of days. A 50% drop in a few days has happened before, and it will happen again. That is why crypto traders must always stay realistic and constantly focus on the risk side of their trades. Think and evaluate any trade in terms of risk/reward and always seek confirmation before opening any position. The best way to confirm your decisions is by studying and understanding the three basic market dynamics: demand, supply, and volume.

Avoid trading leverage -It is a liability, not an asset

Trading with leverage is only useful when trading non-volatile markets, such as the Foreign Exchange market. Volatile markets, such as crypto, are not compatible with the use of trading leverage. How can you leverage your trading positions when the price of Bitcoin can lose 15% in a single day? It makes no sense. You can’t possibly manage such extreme risks when trading on margin. Remember, if you lose all your chips, you can't bet anymore. The name of the game is to stay in the game. Trading leverage reduces the probabilities of staying in the game. Thus, avoid all types of leveraged crypto products, at least until you become an expert.

If many are doomed to lose, we must trade contrary to the public sentiment

Today, there are an estimated 10 million traders on the internet, a number that is constantly growing. However, the vast majority of these traders lose money. We do not even need to look at the statistics to confirm this. It is enough to think that trading is a zero-sum game. As a few people are making a lot of money, there should be many others constantly losing.  This is an important clue to always keep in mind. If many are doomed to lose, we must trade contrary to the public sentiment.

In short, study demand, supply, and volume, stay open-minded, manage your risks, and trade contrary to the public sentiment. That is all you need to do to