CRYPTO ACADEMY SEASON 2 WEEK 4 ASSIGMENT POST FOR @fendit by @jimah1k

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Greetings fellow steemians

I’m very happy to be part of this week’s crypto lesson which was wonderfully delivered by our professor @fendit actually this week’s lecture has helped broaden my knowledge in trading I want to congratulate our professor for a wonderful job done. After going through the lecture notes and doing enough research I want to present my homework post for this week’s lecture.

A) Place yourself in the following situation:
You bought BTC a couple of days ago at a price of USDT 62K. Suddenly, you see that this situation is going on:

What will you have done before reading this post?

Actually I used to invest in BTC mainly to make profit so if I had invested 62k in BTC and it began to fall I wouldn’t hastily sell it because I wouldn’t be making profits and looking at the amount I used to invest its huge so I would have given it time to see if there will be a rise again. I believe that in trading you need to be able to take risks so I would held on to the coins hoping for it to spike up again.

What will you do now after reading this post?

Reading this post has helped me gain vast knowledge in the world of crypto and I have the professor to thank for that. After reading this post the best possible thing to do is to set up a stop loss. Stop loss is when let’s say an investor is placing an order in BTC and says when it reaches a particular price it should sell BTC as we all know isn’t stable and we can’t be monitoring it 24/7 you might go to have a bath and come back and the price will change so I would set up a stop loss at let’s say 60k.

Mistakes I have done in trading

Three years ago, we had vacated from school and my dad gave me GHS1,000 to pay my school fees for next semester we still had about 2 week till school resumes so I decided to invest the money in BTC because all my friends always talked about how they made money in buying BTC so I decided to give it a try, this was actually the first time I was investing, I created my paxful account and then bought GHS1,000 worth BTC. The following day BTC increased and I had profit of 5% of my money I was so happy, later that day it began to drop rapidly from my GHS1000 worth BTC I now had GHS905 worth BTC I was worried I called a friend and advised me not to sell. Because I was new to investing in BTC I didn’t understand, later in the morning it dropped again to GHS800 worth BTC making it a 20% loss I panicked and sold it because I couldn’t afford further loss. The next day my friend called my and told me that BTC has started to rise again within 48hrs BTC had reached its peak if I had left my BTC I would have gained 45% profit I wasn’t happy at all.

What I have learnt from this mistake

What I have learnt from the above mistake is that you shouldn’t invest the money you cannot afford to lose that means that when you are investing in any cryptocurrencies you shouldn’t put all your life savings in it as I have done and also I have also learnt that in trading we have to patient because if I was just a little patient I would have made a lot of profit but I wasn’t. Last but not least when you go into trading for the first time you have to know the trend of the coin you are investing in, if I had knew the trend of BTC at that time I wouldn’t have panicked.

Strategies I find useful in trading

Never invest the money you are not willing to loose after the mistake I made by investing all my fees and the outcome I strongly advise that investors should not bet or invest all their money in trade because in event of an ugly outcome it can lead depression sometimes people commit suicide because they borrowed from a bank to trade and can’t be to payback so now anytime I invest I make sure that the capital I invest when everything is lost I won’t go financially bankrupt.

C) Place yourself in the following situation:
You're browsing Twitter and you see this:

What would I do in this situation before reading the post

I would definitely rush to my paxful account and purchase some bitcoin because just that post can spike the level of BTC because one factor that increases BTC level is social media with that post a lot of people especially football players who love and adore Tesla would have been transacting in BTC therefore increasing the level of BTC so I would have invested hugely in BTC.

What would I do now?

After this class I wouldn’t just jump into buying without considering the money I have and also I would have to look at the trends of the BTC I wouldn’t just buy because everyone will be buying. Knowing that there might be a possible spike I wouldn’t hugely invest like I would have done I would just invest the money I can afford to lose.

CONCLUSION

I really enjoyed this week’s lecture because I now fully understand what to do when trading and not making silly mistakes like I did. Thank you once again for this wonderful lecture.
Thanks for reading.