Trading Currency: Steem, Bitcoin and Forex
When I joined Steemit, I owned silver as my only liquid investment and hedge against inflation in the US dollar. Steemit has changed my strategy entirely. I no longer own any silver. I have parlayed my small amount of silver holdings into cryptocurrency.
Steemit and Poloniex: Using Steem and Bitcoin
The first crypto I earned or held and even used was Steem. Since then, I have transferred some Steem to Bitcoin to speculate on other cryptocurrencies. To date, the only crypto I have actually used for more than speculation is Steem. Besides holding Steem as Steem Power to improve curation rewards, I paid for a SteemFest ticket with Steem Dollars and I paid for an article to be translated with Steem as well.
Steem is my biggest investment on Poloniex so far as well. I bought Steem a few times at it's lowest points in the last two months, so I have been happy to see the recent bounce. I am now going to be transferring my Steem from Poloniex to my Steemit wallet and powering it up. Now I am focusing on earning Steem and learning more about trading currencies.
Trading on Poloniex has been a learning experience in many ways. It was my introduction not only into trading cryptos but also into margin trading. Margin trading has more risk and reward potential and that's exactly why I am interested in it.
Forex Trading using Bitcoin
After trying my hand at trading cryptocurrency on Poloniex, I took the next step in becoming a professional currency trader, when I took the advice of @fyrstikken and a few other cool Steemians I've been chatting with on steemspeak.com and opened an account at 1broker.com.
What I like about 1broker is that all my holdings stay in bitcoin when I am not currently in a trade. For me, this is a huge plus as I am generally fearful of the markets right now because of the artificially inflated US economy. When I am not forex trading during the week, I can trade Bitcoin against the US dollar or trade other cryptos on Poloniex anytime.
Now, that I have observed the sheer volume and volatility that exists in forex markets and the fact that I can be leveraged 200x on some currency trading pairs, I have decided to try my hand at day trading as a forex trader.
Rules for Forex Trading
Rules and strategies that I have learned initially trading stocks and more recently trading cryptocurrencies are now helping me to develop my forex trading strategy. I recently listened to quite a few talks from successful forex traders and realized that I already have a good strategy and enough chart reading and pattern recognition skills that I am ready to up my investment and really give it a try. Here are my 3 main rules:
Always have a stop loss in place and be willing to accept when I was wrong and get out of a trade.
Trade right after the price has turned: buy on lines of support or upward breakouts through resistance lines and sell on lines of resistance or on downward breakouts through lines of support.
Only make trades that I love.
That last rule comes from a chat with Joel Kruger from chat with traders on youtube.
I highly recommend listening to it. There are many more talks on the channel but this is the one I have found the most valuable so far out of all that I've heard.
I am not giving any advice here, just sharing my experience and what I have learned and found value in so far. I plan to continue to update you on my successes and failures as I begin this new adventure. Thanks for reading!
image sources: coin telegraph and pixabay
Thank you, @richardcrill, firstly, good to see someone who, I assume, uses their name! Pseudonyms are untrustworthy by their essence. I enjoy reading about investment strategies. Leverage is an interesting one. "I can be leveraged 200x on some currency trading pairs" - wow! I hope it is a small bet at the outset because a margin call can ruin a good strategy! 30x is bank limits and even lower in Australian Banks and some Building Socs over portfolios so I assume you are talking the trade rather than the book.
Thanks @ebryans, Very True! I have learned about this the hard way. Leaving a trade going on 200x leverage and getting margin called can be devastating!
On 1broker you can trade a few pairs at 200x including USD/CAD, USD/JPY, EUR/JPY, EUR/USD. Most others are quite a bit less. The only crypto trading on there - BTC/USD maxes out at 5x for instance
Cool, thanks for that. Are you close to gold at all? The US $ is so strong and has much built in from Trump promises. Gold has got to have more up than downside! Given production costs if nothing else!
I agree, I thought precious metals looked good when I was buying a few months ago, but honestly I haven't paid too much attention accept to see that silver has gone down. If I wasn't investing everything in crypto and forex trading, I would probably be interested.
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Very interesting post. I use poloniex bittrex and crytopia for exchanging coins. Keep up the posts