The Homework Task Steemit Crypto Academy Week 12 - Homework Post for @fendit

Well, as we all know, Bitcoin is a cryptocurrency that uses a decentralized ledger and all cryptocurrencies are volatile; though bitcoin is relatively less volatile , and due to it's volatility it will fall and rise at any given point in time.

WHAT WOULD I DO IF I EXPERIENCE THE SITUATION IN THE CHART BELLOW?

(Photo from Lecture note)

@fendit

The best thing I would have done before reading this lecture guide would be to sell my coins(bitcoin) to someone who wants to buy them because of the fear of loosing more or all of my coins or, better still, I will quickly search for a nearby Bitcoin supported teller machine (yes, they actually exist) and withdraw every single dime from my wallet.Also, I might exchange my Bitcoin for other altcoins, like Ethereum, Litecoin, Binance, Stellar, XRP and so on.

WHAT WOULD I DO NOW?

From what I had learnt from it, I think it would be preferable to watch how the market will move in the subsequent days or weeks before making a move on what to do next.

Remember, the crypto market is not managed by anyone not even the government, but it's values are based on the network of the demand and supply of each of the crypto currencies, So taking an immediate action with respect to this fall in value might be a regrettable decision. Besides, as a good trader , you shouldn't let you emotion take control over your trading. Cryptocurrency trading involves a lot of practice, evaluating the numbers cautiously, having a lot of patience and understanding the paradigms of the market in order to be able to predict how the asset is going to end up .

MY CRYPTOCURRENCY TRADING MISTAKES

I have a lot of experience concerning trading. The first trading platform I ventured into was actually Expert Options. It's actually a very good trading platform that offers different variables of financial assets like stocks, crypto currencies, commodities and even currencies.

I signed up and was given a demo account to help understand better how the market system works and when it's the right time to sell or buy an asset. After few days of playing around with the demo account, I thought I would do better on a real account.

So I deposit $10 USD, (which was the minimum deposit) and started right away to selling and buying assets. Before I knew what was happening I lost all my assets; then I knew it took more than just having the money to invest in but also knowing when and understanding fully well about the market volatility. Then I realized that I also wasn't emotionally stable for such trading, so I stopped.

MY MISTAKES

I never had fully understanding of how the market system is, I only assumed that I did, which was totally wrong.

Obviously I didn't understand the system, so there will be no way I was going to tell the right time to buy or sell an asset, which clearly led to my loss.

I didn't trade with the mindset of a valid entrepreneur, knowing that every entrepreneur is a risk taker, either in profit or loss.

LESSONS LEARNT

It's quite obvious that I have learnt alot starting from have a solid knowledge of whatever platform you might want to venture into. Let's not be so gullible with their ads because it is never a one way game of making profits only.

Timing is a very important factor to consider in whatever type of trading platform there is. Knowing the right time to invest, sell and buy will do you more good than you know.

As a trader, "Fear" shouldn't be your watch word. As a good trader or marketer you should be ready at all time to make profits and also loss, nonetheless your profits should always be much more than your lost.

Well, I believe the best and the most useful strategy is Getting to know yourself. This is no doubt the most useful strategy. Besides, how could one venture into a marketing platform without an aim, worst still, no confident in himself; he's obviously not going to make a lot of profits.

We all need to know the kind of persons we are ,ask your innermost self some vital questions like, do I do or take actions without forethoughts? Am a good risk taker? Am I easily gullible? Do I find it hard in making the right decisions under pressure? Ask yourself a lot of this kind of questions, try to be true to yourself by answering them sincerely.

The moment you admit your flaws, also try tackling them to improve your trading skills.

Its just as simple as knowing your personality, and your risk repugnance and when you have discovered that you will obviously have a good trading psychology.

( Photo from lecture note)

Since Bitcoin can be used to buy a Tesla, it also means that there will be a consequent increase in demand for bitcoin and price spike since the supply does not change.

WHAT I WILL DO

With Bitcoin having such value, people are likely to buy more bitcoin as it's value increases, because they believe that it will keep on rising continuously.

The best step I will take after seeing such a tweet is to also buy more bitcoin, not just because it can be used to buy a Tesla but also because it seems to have a very good future value not just only in the cryptocurrency market but in the general world at large.

WHAT I WOULD DO NOW

The fear of missing out is going to be great on me at the moment, but I will try to be patient and calm as ever to find the right time to buy the cryptocurrency when the value or price has depreciated a bit so as to avoid purchasing it at an expensive rate and being faced with a bearish trend and thereby avoiding loosing money.