Crypto - Networks - People and stuff.
A fiat tale.
Spent a while thinking about what I should talk about today, and after some time listening to the waves rippling from last nights interesting airing on trading and my experiences during the day today I came to the conclusion I would just rattle out whatever came to mind.
I find it highly amusing when people compare the value of a coin yesterday to today, this is so shortsighted it's not funny. Even better is when they seek to compare fiat value to Crypto.
They are two completely different systems, so different it's like comparing a diamond to some dust. One is infinitely inflatable, and the other is capped at a certain amount of coins in circulation (in most cases).
Making money?
One of the things I found fun was when the discussions turned to 'how to make money trading'.
This is perhaps one of the simplest things I will share today. If you want to know how to make coin trading just never close an open trade at a loss.
Another more complicated way to add value to your trades is through cost averaging. Never enter a single position with your entire stake, you should always trickle your buys in on the way down, and reverse this when things recover as you take your profits.
On the bounce.
A great way to generate 'free coins' is to buy in with a specific amount of bitcoin or any other base pair (Eth or ltc) etc, and when you sell back out higher (Often minutes later), you only ever sell back enough to recoup your initial investment amount, this will leave any additional value resting in that particular currency or token and allow you to now continue to trade it with zero emotional attachment, as it is only risking 'profit' and not risking your initial investment. This allows for you to be more relaxed and use your brain when trading instead of reacting by the gut and allows you to open many positions in coins of your choosing as long as you are quick on the trigger and don't get too greedy.
DYOR DYOR DYOR!!
This is also important... DYOR - Do your own research. If some guy is jumping up and down infront of you telling you this coin is the next big thing. I implore you to take his or her information and crosscheck it with as many reputable sources you can. This is the hard part and where most get lost as there are a plethora of coins out there to inspect for usefulness.
Real world use case.
Perhaps the most important is to determine if the currency or token actually serves a purpose, is there a need in the digital landscape for it. I have seen so many clones of clones of clones rise and fall in my time within the Cryptosphere that it's almost to the point of if a coin has not been around for at least 12 months I ignore it until it proves its worth. This might result in lose opportunities but I just don't have time to keep playing catch up with the 10-20 coins released every month.
It's about more than $$$
The real value of Crypto is in the network, if you look for a coin that seeks to incentivize the network itself either through providing a service such as a robust censorship-free blog/content hosting platform, leasing storage capacity or distributed super-computing, (looking at you GNT/SC/BTS/STEEM). Or giving a more elegant solution to an existing problem. (The centralized nature of Facebook, Banks, Exchanges and so on). Then those are the Cryptos that will fly high and strong. Take away that single point of failure in peoples lives and give them a better more robust solution. Please.
Network effects.
Make the network more robust if you believe in its viability. There are more ways to do this than just running a node for your favorite coin. Throw in some time, do some Dev work, write a blog on other platforms, get outside, talk to real people about this amazing new system of value store and value transference or blogging platform or whatever the hell it is! Get in amongst it and get that network effect happening. Build up the network and the people within it, educate, uplift, empower!
Speaking of people.
I just wanted to take a minute to thank each and everyone of you that take the time to listen to this nodes simple bits and bytes today. You come by often unlooked for and drop the most amazing words on me. Thanks to each and everyone of you for taking the time to read through this and I hope you are having a wonderful day.
Much respect and love to you all.
All SP from this post will be used to support @minnowsupport and its surrounding services. So please goat/boat/vote generously.
In the long term, real world use cases and network effects will be the most important thing. There are so many cryptocurrencies today that are only used for trading.
But if you actually look at the list, BTC and ETH, the top 2 coins, have tons of real world use, which is why they are valued so highly. Ethereum was built from the ground up to have real world applications, which is why, inspite of being a relatively new coin, it has rocketed to the top of the list. In that sense, I think Steem is in a good position, because it also has a real world application.
Thanks for this post, DYOR is the best advice!! It's amazing how many people don't, it makes me wonder how they muddle on through life just taking other peoples word for it.
Quite informative. Have always used Fiat to see the value of any crypto. This is where I fail since I never do a background check on the crypto itself. Thanks for opening my eyes.
I think it's pretty tough to know what's a valued resource and what's not, since everything is going to be tinted based on the "author's" view.
I've just joined Steem yesterday and am trying to figure out how this all works. I'm a video content creator who does horror story narrations on YouTube. Unfortunately, YT has decided the horror genre is advertiser unfriendly and are doing their best to demonitize their content. With over 30,000 subscribers, my monthly income will drop to nothing, despite 350 video narrations on the channel. Steem looks like a way to recoup that. If I can figure out how exactly to promote my content.
Hey, nice points @sammosk ... trading is actually a mental game more than anything else. And it needs a lot more psychological training then people think :-)
I trade on fractal geometry of charts and publish it everyday (all levels), I am hoping that people find this helpful to learn for developing their trading style. You can check it at:
https://steemit.com/trading/@aarcee/bitcoin-btc-usd-trade-profit-booked-today-22-aug-2017
Thanks for all this info @sammosk! It's perfect timing for me as I entered the world of crypto trading only yesterday! :) Do check out my blog when you have the time and you'll know what my experience was. :D
So I totally get buying on the drop and selling on the upswing to make a profit; and I completely understand find the Crypto that provides value. These are actually tried-and-true ways, if you ask me, to value any Stock or Precious Metal on the market.
The one thing that I'll take away immediately, however, is the suggestion to sell just enough to cover the buy cost... that's not something I had really thought about. Providing that zero-out would really make it pretty close to a win-win option, because even if you sell the remainder at a loss, it's still a positive b/c you've already covered the cost of the initial buy
It's like buying Bacon for $2.30 for 5 Lbs. then finding someone willing to pay $2.30 for 3 Lbs. That leaves 2 Lbs. of Bacon that, even if it spoiled (I know, it would never happen in my house) it would not mean anything financially (not directly at least) since it would have been pure profit if you sold to anyone at all. It truly becomes no-risk at that moment.
The big question I have is where to go to get unbiased (or at least only slightly-biased) information regarding Crypto Currency and the need they fill. There's a ton of information (misinformation more often-than-not) out there and it's hard to know what's good if you're still new to it, which I am.
I'm, of course, only speaking theoretically on all of this since I have yet to even make my first trade with actual money (fiat or not).
Thanks @sammosk, very nice description and insight.
You are right about the 'the network effect'. Upvoted.
Really good advice for newbies and experienced crypto enthusiasts alike. I do trade a bit myself, but the real world use cases is key for mine. So many scam coins, hype coins, pump and dumps...it is easy to get let astray and lose your cash in this space!
Well detailled, thank you
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