Steemit Crypto Academy Contest / S3W4 – Cryptocurrency Trading by @cutlass

Hello everyone my name is Oshoke and in this post, I will be taking you through an article on crypto trading here in Steemit Crypto Academy Season 3 week 4

Discuss in your own words what is cryptocurrency trading. And tell us what type of trader are you or do you see it more effective? Justify your answers.

Conventional trading often involves the exchange of items between the buyer and the seller and cryptocurrency trading is not significantly far off from this definition. Cryptocurrency trading often involves two different parties predicting differently the direction the market will go to this type of crypto trading is called futures and then there is crypto trading which involves buying of crypto at a low price and selling at a higher price this type of trading is often referred to as spot trading

Crypto trading often entails different individuals speculating the different direction the market will move toward in the future, those optimistic about an upward movement open a Long position (Buy position) while those anticipating the market will go down enter a Short (sell) position and whichever it goes in his favor would make a profit this is referred to as futures trading likewise Crypto trading can also be seen when a trader purchases assets at a low price and sell at a higher price for profit this type of trading is called spot trading in the crypto world

We have two categories of traders i.e

• SCALP TRADERS
• INTRA-DAY TRADERS
• RANGE TRADING
• SWING TRADERS

By default, I am a scalp trader cause I aim to take profits over a short duration of trades and over little movements of an asset

Have you tested several time units? What Timeframe and Crypto Asset Pairs Are Best for You? Why?

Yes as a matter of fact I always use multi-time frame analysis to determine my entry and exit positions in every trade I am in.

Multi-time frame analysis simply involves viewing an asset or doing technical analysis on a particular asset or a pair with different time frames which I find very effective. In multi-timeframe analysis, the essence is to get multiple time frames and study the behavior of an asset under different time periods,
the analysis is always advised to be done in time frames wide apart, for instance, using different time frames close to each other like the 3 mins, 5 mins, 5mins, and 45 mins might prove to be counterproductive and might lead to inaccurate entries.

The whole point of different time frame analysis is to confirm a signal gotten from a one-time frame by using a different time frame and this can best be done in time frames apart from each other for instance 15 minutes - 2 hours - 4 hours - 1 day. Different timeframes are suitable for a different patterns of trading
The different frame analysis helps one to get a general notation of the trend of an asset and then move onward towards the lower time frame to perform a more detailed analysis with a general sense of the asset's trend direction and make entries.
When one uses different time frames he has and FOR ME the MOST EFFECTIVE different time frames are 15mins and 2 hours

The combo of different or multiple time frames helps one to have

HIGHER CHANCE OF SUCCESS
THE GENERAL SENSE OF A TREND IS KNOWN
BETTER ENTRIES AND EXITS

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For me the best time frame suited for my trading would be 15-mins to 2 hours and my favorite crypto asset pair is the ETH/USDT pair

When making my entry in this pair I use the 4hours time frame to get a broad view of the market's direction possible trend movement and I move in the smaller time frame and apply my indicators to map out a much more precise entry and exit position

If I use one-time frame let’s say only the 15mins time frame to do my analysis and make entry into the market solely I will be going into the market with micro pieces of information and my analysis might play off wrongly, on a smaller time frame the market might look bullish why on a broader view it might be bearish so this is my sole main reason for carrying out my analysis on a different time frame

To acquire some trading experience, it is important to trade regularly. Have you had regular trading activity over the last few months? Tell us what you learned from this experience.

Yes, I have constantly been trading over the past few months, my older bro got a lot of insights from the Steemit cryptocurrency academy, that was where he learned to trade, and naturally, he taught me what he knew as well which was very sufficient to get me started on my own Cryptocurrency trading journey as well.

The phrase "experience is the best teacher" should be emphasized in my journey, I had to learn some lessons the hard way which was good. I was using the Bollinger Band, RSI, and Williams alligator as my strategy indicators, the beginning was a bit straight I was only entering meager traders to learn how it works with very small leverage of 5x-10x

After trading for a few months and I was confident in my trading skills I began to take larger trades with higher leverage at times even up to 25X, I hardly trade alt coins as I mostly do futures trading and i have been making steady profits on some good days up to 25$ although my target is just 10$ daily, over the long term i have made more profits than losses, each time i make a loss i always find out why and look for ways to avoid it in my next trade as i only trade a limited number of tokens

I have made lots of mistakes over the course of these few months making wrong entries and whatnot but with every mistake comes a lesson I often find out the reason if I incur a loss and look out for how to avoid such mistake in the next trades hence I tend to improve my trading skill over time, so far I have made more profits than losses

The biggest lesson I can confidently say i have learned over the past few months is that the biggest lesson in the trading world can not be learned from anyone its a personal lesson and that is DISCIPLINE, if you ask me I would say discipline is the key to being a successful trader, discipline will help you avert greed discipline would help you stick to your strategy, DISCIPLINE is the KEY if you ask me and its the biggest lesson I have learned over the past few months

Below are some screenshots of my trades

What impact does artificial intelligence have on crypto trading in the short and long term? Have you used it before or want to handle an automatic trading robot? Tell us the causes of your choice.

The Artificial Intellegence will play a huge role in the crypto trading world undoubtedly, with the help and customization of the artificial intelligence one can set conditions for his personal custom AI to make entries and exit when certain conditions are fulfilled and this will enhance the profit most traders will accumulate on a long term

Although I have never personally used the AI to perform any trade or take advantage of its information for my cryptocurrency entires in any ways but we have seen Huge corporations using AI to anlyse huge amounts of data and predict the future price of an asset.

I have chosen to avoid using the Automatic trading robot for a lot of certain reasons, yes they can do incredible things like around the clock trading and stick to the strategy you have programmed them too use but with all this perks comes a lot of flaw for example

• Automatic trading bot are quite expensive to be used and the very efficient ones are only used by large corporations cause they can afford them and maintain them
• Automatic bots will incur losses if they stick strictly on analytical sentiments and strategies, a professional trader will see clear entry signals like a bot but can chose not to take a position cause he has a feeling a trend is coming that might go against his entry or a news about the asset that may affect it just popped up. AI wont know when to stay back it will always enter in as much as the conditions are met
• AI can malfunction and leave a trader vulnerable to the open market and may end up incurring a lot of losses

CONCLUSION
The automated trading bot have a lot of advantages yes but its better to learn how to trade traditionally and make your entry and exits it more safer in my opinion