Over the last few years Bitcoin and other crypto currencies have become more and more popular. The recent rise in crypto prices has attracted the attention of a lot of amateur and seasoned investors. As a trader and investor myself I decided to spend some time to learn about crypto currency trading and investing. My journey will be outlined below…
Update September 18th, 2017
Wow, what a couple of weeks. Bitcoin and Ether (along with a lot of other cryptos) were down big and they’ve started to climb right back. If you read any headlines over the last few weeks you would have thought the end was near for crypto currencies. For those that bought on the dip, congrats. I did manage to buy some Ether at lower levels but certainly not as much as I would have liked. I actually anticipated buying some Bitcoin below $3,000 but it never got that close.
The big question I have currently is whether the major cryptos like Bitcoin and Ethereum will actually break their all time highs. We’re not that far off from those levels and it wouldn’t be surprising to see us make that move.
So, what’s the strategy? Good question…
I feel as though I don’t really want to buy at these levels. I still think there could be some move moves down from here. That being said, if we get close to the highs and start pushing through I’ll be buying the breakout in Bitcoin and Ethereum. I definitely want to respect the trend and momentum of these 2 crypto assets.
Update September 4th, 2017
Woke up this morning to some interesting developments in the ICO space. Chinese regulators have banned companies raising money through ICOs. As a result of this news Bitcoin, ethereum and other crypto currencies have fallen this morning. Most notibly Neo coin has dropped 25% against ether. I definitely had shitty timing for buying the required Neo coin for the Red Pulse ICO, however now I can buy some more at a discount.
A recent post on the Red Pulse Reddit thread outlines Red Pulse’s managements thoughts on the ban. They don’t seem to be too concerned, but time will tell. I’m still planning on trying for the September 10th ICO, however considering the immense demand it may be difficult to get.
On a brighter note at least my bitcoin short is working out nicely. Unfortunately however my position is really small and will not result in any material profit.
Update September 3rd, 2017
Over the last few months I’ve spent some time learning what I can about trading and investing in crypto currencies like Bitcoin, Litecoin and ethereum. Like most new crypto traders I was intrigued once I learned how explosive bitcoin and other related alt coins have become. In mid 2016 I tried to open a Canadian bitcoin exchange account and buy when the price was around $400. I was unsuccessful because I wasn’t able to properly verify my bank account with the exchange (can’t even remember which one it was). I think (i may be wrong) that Coinbase wasn’t taking Canadian clients at that point.
Fast forward a year or so and that would have been a great trade. It’s likely however that I would have only purchased a few bitcoins and I’m not sure I would have been able to hold all the way up to $5,000.
It’s funny how people talk about “I wish I bought bitcoin at $1, I would be rich!”. There are 2 problems with this thesis. First, most people (especially those without lots of excess capital) would not be willing to risk a sizable chunk on a highly risky idea (many have a hard time remembering what the crypto environment was like that far back), second, even if they did manage to buy a sizable amount of Bitcoin at low levels, most people do not have the ability to hold a winner like this over the course of such a run. Most people will likely sell when their $5,000 investment gets to $100,000 or even less. I don’t know many people (unless they forgot they purchased bitcoin in the first place) could hold a trade trough such a run.
After missing my initial entry in 2016 I regained interest in applying some capital to crypto currencies a few months back. I first opened a Coinbase account and purchased some Bitcoin. I was only able to buy $100 a week until my account limit was increased, so over the next few weeks I started to buy more Bitcoin and then moved towards accumulating Ether coin. I was fortunate to hit the recent Ethereum run over the last few months as most of what I invested within Coinbase was in Ether.
More recently I’ve opened a Bitfinex and Bittrex account so I can buy, sell and trade other alt coins. I only opened the Bittrex account so I could invest in the new highly anticipated Red Pulse ICO. In order to invest in the ICO I needed to have Neo Coins available to trade. The only broker I could find that offered Neo coins was Bittrex. So I transferred some Ethereum coins to my new Bittrex account and traded so some Neo coins. I also shorted a small amount of Bitcoin simply to try out the margin functions on Bitfinex. I’ll be watching this closely, but considering it’s a small position, nothing much to worry about.
I’ll be buying some more Neo coins before the Red Pulse ICO on the 10th before I transfer all my new Neo coins to my newly established Neon Wallet.
I also spent the time to sign up for the Red Pulse KYC form on the website to ensure my position for the ICO. Being a Canadian resident is often a hindrance, but in this case it’s definitely a plus. Filled out the form, sent a picture of my drivers license and I was done!
I’ve also been reviewing some of the more popular upcoming ICOs that have yet to be launched. There are certainly some dogs out there, but some do seem interesting. That being said, anything I do buy will likely only be for a short or mid term.
I was also interested by the new Enjin ICO, so I decided to buy a few coins for kicks. We’ll be tracking that one as well in the coming months.