Introduction to Cryptocurrency trading

Introduction to Altcoin
Trading
Gathered by: Amir Rafati
PacktPub - Cryptocurrency Investing How To Find Undervalued Altcoins
Udemy - Bitcoin Trading Strategy
Udemy - The Ultimate Cryptocurrency Investment Course 2019 Approved

Cryptocurrency Investing How To
Find Undervalued Altcoins
PacktPub

How Choose Altcoins
• Study Communities
• Study Whitepapers
• Website of altcoins
• Experts Recommendations
• Researches
• Chart Analysis

How To Find Undervalued Altcoins
1. Introduction to Cryptocurrency Investing - How to Find
Undervalued Altcoins
2. Starting Your Cryptocurrency Research

Introduction to Cryptocurrency
1. Rules to Know:
• Never use all of your investments in Cryptocurrency because you may loose it.
• The Cryptocurrency Trading is so volatile especially in very low positions.
2. Make a Spreadsheet:
• To tracking Coins on excel or google spreadsheet name it Crypto under valued

What Makes a Coin Undervalued
• A coins value depends on perspective
• It’s possible that a coin can be considered undervalued by one person and
overvalued by another.
• A coin can be undervalued for Several Reasons:
• A coin Recently had a big sell off and people are now focusing on a new coin.
• A coin isn’t available on the big exchanges.
• You’ve discovered new information that others haven’t heard yet, such as
news at an event or live stream.
• First Movers Advantage:
• A marketing term that essentials means the benefits received when taking
action before others.

Do You Believe In the Cryptocurrency
• Cryptocurrency investing principles are:
• I only invest in a coin if I believe in the idea and project.
• I must understand the coin, its use case, and it can’t be hyped up coin that
has been pumped.
• Questions I ask myself when investing:
• Do you believe in the idea and project?
• Is the idea realistic during the term you’re investing?
• Would you feel proud talking about this investment?

Potential of Cryptocurrency Gains
• Doubling price causes Doubling Market cap form 154 to 300 million
dollars, so it is not easy to happened in Bitcoin, so it means that
Bitcoin is not undervalued. Less Risk, Less Benefit.
• Doubling price causes Doubling Market cap form 10 to 20 million
dollars, so “Terino” is 15 times easier to be happened rather than
Bitcoin, so it means that “Terino” can be undervalued. More Risk,
More Benefit.

Potential of Cryptocurrency Gains
• Smaller Market caps have more risk of losing money because it is
more volatile most of them are so. As can be seen their market caps
are below 10 Million dollars and 60% of money can be vanished just
in a week:

Starting Your Cryptocurrency Research
• One of the best item is Volume(24hrs) and comparing it with Market cap.
• When some coins or token ranks in Vol.24 are better than their Market
cap means that their tends will be upward and they have potential
increasing price.

• Buyer must be cautious of Pumping investors to gain investments of
others it means that Vol.24 must be checked in period of time to reduce
risk of pumping.

• With checking Vol.24 in period of time to reduce risk of pumping and
comparing rank of Vol.24 with market cap 2 coin are selected to be
watched in our excel form. (TrueChain and Metaverse ETP)

TrueChain
Website Whitepaper and Roadmap

TrueChain
Partner and Investors Exchanges and Team

Metaverse ETP
Website Whitepaper and Roadmap

Metaverse ETP
Partner and Investors Exchanges and Team

Finding Undervalued Altcoins Websites:
• https://coinmarketcap.com
• https://www.reddit.com/r/CryptoCurrency/new
• https://www.reddit.com/r/CryptoMarkets/new
• https://www.reddit.com/r/CryptoCurrencies/new
• https://www.reddit.com/r/altcoin/new
• https://bitcointalk.org/index.php?board=67.0
• https://bitcointalk.org/index.php?board=159.0
• https://www.quora.com/topic/Cryptocurrencies
• https://www.quora.com/search?q=altcoin&topic=Altcoins

Finding Undervalued Altcoins Websites:
• https://steemit.com/created/cryptocurrency
• https://steemit.com/created/crypto
• https://steemit.com/created/altcoin
• https://ccowl.com
• https://www.twitch.tv/(Then search for Cryptocurrency, or Altcoin)
• https://icodrops.com (For discovering ICOs)
• https://coinloop.io
• https://www.livecoinwatch.com

Researching Coin Websites (Based on 100+)
• With checking Vol.24 in period of time (rank of 100 to 200th) to
reduce risk of pumping and comparing rank of Vol.24 with market cap
2 coin are selected to be watched in our excel form. (Cosmo Coin and
Gifto) and after analyzing them we can score them in our excel form

Coin Name Description
Current Market Cap
(How Popular is it)
Million Dollars
Price (USD) Exchanges Value Score
Bitcoin Digital Currency, Store of Value 154000 8700 Binance.com, Bittrex.com 1
TrueChain
is committed to be the next generation of blockchain
infrastructure.
91 1.15 OKEx , BW.com 3
Metaverse ETP
is a blockchain project that provides a foundational
infrastructure for social and enterprise needs.
90 1.26 RightBTC, Coinsuper 4
LOOM
Loom Network’s DPoS sidechains allow for truly scalable
blockchain games and DApps with the security of
Ethereum mainnet.
63 0.08 Binance, Latoken 7
Cosmo Coin
Connecting customers and companies through a mutually
beneficial beauty ecosystem
31 0.03 upbit, kucoin 4
Gifto (GTO) REWARD ORIGINALITY WITH GIFTO 23 0.03 okex, binance 5

Buy the rumor, sell the News:
• When you’re hearing rumors about possible investment, it is worth
looking into more and possibly investing in.
• However, when everyone is talking about investment and that’s all
you seem to hear, it is time to consider selling.

Cryptocurrency Announcements
Check Announcement Icon in
Coinmarketcap:
https://bitcointalk.org/index.php?topi
c=2115503.0

Spotting Bad Investments
• Lending Platform
• Ponzi scheme
• Stay away even 1% a day
benefits
• They don’t have website
or qualified one
• Market is only one
website
• No social discussion
• No SSL website (HTTP://)

Spotting Bad Investments
• An Investment might be bad if you notice the website isn’t
professional or modern.
• It has spelling mistakes, no team, lacking information, no road map,
no whitepaper, etc.
• Note: above parameter Alert us Danger zone is here but have all
above does not guaranteed the website is trustable!!!
• ICO’s are very extremely high risk for long term investments.

Investing To Win (Don’t invest emotionally)
• Don’t invest emotionally.
• Research the website, dev team, Road map, etc.
• Read the whitepaper and look for errors.
• Consider everything and make a logical decision.
• There is no secret formula.
• Spend time researching because most people won’t.
• Diversify your portfolio. Don’t go all in on one coin.
• Be responsible. Don’t invest more than you’re willing to lose.

Bitcoin Trading Strategy
Udemy
WWW.BESTONLINEBITCOINBROKERS.COM

Introduction
• Defining A Strategy:
1. Timeframe Confluence:
• Analysis starts from the Daily and narrows down to the 4 & sometimes 1 Hr.
(the Weekly and Monthly charts for the general direction of the market)
2. Avoid Day Trading:
• Human nature is eagerness to “quick buck” so Impatience results money loss.
• Analyzing forming of trends, trend corrections, highs and lows takes time.
3. Using Higher Timeframes:
• Using Weekly & Monthly charts are less noisy for the general direction.
• References to people can be made through articles, interviews & debates.

The Basics: Support
• Support is the level at which
demand is strong enough so
price does not go lower.
• The logic behind that is that
as the price goes lower, it
becomes cheaper and more
alluring for market
participants to buy.
• By the time that price is at
the support, supply will
overcome demand and the
price will bounce up and go
higher.

The Basics: Support
• Support will at times not
hold the price and fail. At
these moments, the
previous levels are not
strong enough to prevent
the price from falling.
• At these moments, the
willingness to buy is lower
and more sellers emerge
to drive price lower.

The Basics: Resistance
• Resistance is the level at
which sellers are hesitant
to continue buying,
because it is too
expensive already.
• The logic says that as
buyers become more
hesitant to buy, sellers
come into play and push
the price lower.

The Basics: Resistance
• Resistance does not always
hold, though.
• At such moments, market
participants are willing to
pay even more and are
pushing price higher until a
new equilibrium is found.
• Once the resistance is
broken, another resistance
level is formed at which new
sellers are established.

Support and resistance breakouts illustration
• Let’s imagine that price
moves inside boxes, where
support and resistance are
the horizontal lines.
• a break above resistance
shows the unwillingness of
sellers to continue selling.
• At this moment new
buyers emerge and take
the price to a new
equilibrium level or new
resistance level.

Support and resistance breakouts illustration
• At this stage the process is
repeated and so on and so
forth.
• basically, you can imagine
price moving in a series of
boxes where each ceiling is
the “resistance” and each
bottom of the box its
“support”.

Support and resistance zones
• Support and Resistance zones
are a magnet for buyers and
sellers. This is an area of active
exchange of contracts and an
area full of stop and limit
orders.
• This is also an area full of
standing orders. Active traders
as well as passive traders are
looking at this area with an
increased interest.
• This is a place where demand
meets supply and price is in an
equilibrium state.

Support into resistance
• Another very prominent
feature of support and
resistance is that support
can turn into resistance
and the other way around.
• Resistance is already a
place where a lot of sellers
are concentrated.
• Once it is broken, it has
the feature to turn into
support.

Support into resistance
• The rule says that once a
resistance area has been
broken, it turns into a
support level.
• As you can see from the
chart below, that is what
happened we had a
resistance breakout and then
a re-test.
• That is where the new
equilibrium was set and
where a change of supply
and demand takes place.

Trading range
• A Trading range is the place
where price navigates between
support and resistance.
• These are places of relatively
low volatility and places where
price is waiting for a
fundamental reason to make a
new high/low.
• When the price is locked in a
trading range, traders can take
advantage of the predictability
of price’s movement.
• A break above is a victory for
the bulls and a break below-
for the bears.

Diagonal trading channels
• Another support /
resistance strategy that is
used by a lot of traders is
the diagonal trading
channels.
• The way it works is the
same as the trading range
with the only difference
being the slope of the
range.

Support & Resistance with Lower Timeframes
• Looking to utilize a few
different timeframes in
daily support and
resistance analysis.
• Start with applying the
rules on a Daily timeframe
first & looking for the best
place to enter in a trade
from a Daily perspective.
• Once a good level spotted
go to a lower timeframe.

• The third timeframe
checking for a confirmation
is the 5 minute chart ONLY IF
the price is coming close to a
major support or resistance
level on the DAILY
timeframe.
• It is a low/high level followed
by a new low/high. most of
the times it looks like a small
double bottom/double top
pattern on the chart.

• It will show as a bearish/
bullish rejection on the
longer-term timeframes.
• That is where the most
orders will be located and
that is where should looking
to enter into a low-risk
trade.
• We are not living in a perfect
world, but confirming with
the lower timeframes is a
very precise method to get
into a trade.

• Some of the weak points of
support / resistance are that
from time to time (around 10-
15% of the time) you do have a
breakout.
• The support and resistance
levels do not hold and
invalidate the level. At other
times, price just stops a little bit
before support /resistance and
changes direction without
touching the level.

Moving Average
1. Simple moving average
2. Cumulative moving average
3. Weighted moving average
4. Exponential moving average
1. Approximating the EMA with a limited number of terms
2. Relationship between SMA and EMA
3. Exponentially weighted moving variance and standard deviation
4. Modified moving average
5. Application to measuring computer performance
5. Other weightings
6. Moving median
7. Moving average regression model

Simple moving average
• A simple moving average is formed by computing the average price of a
security over a specific number of periods.
• Daily Closing Prices: 11,12,13,14,15,16,17
• S1 = Sum(11,12,13,14,15) = 65
• S2 = Sum(12,13,14,15,16) = 70
• S3 = Sum(13,14,15,16,17) = 75
• 1st day SMA(5): (S1) / 5 = 13
• 2nd day SMA(5): (S2) / 5 = 14
• 3th day SMA(5): (S3) / 5 = 15

Cumulative moving average
• In a cumulative moving average, the data arrive in an ordered datum
stream, and the user would like to get the average of all of the data
up until the current datum point.

Weighted moving average
• A weighted average is an average that has multiplying factors to give
different weights to data at different positions in the sample window.
Mathematically, the moving average is the convolution of the datum
points with a fixed weighting function.
(90.90×5/15) + (90.36×4/15) + (90.28×3/15)
+ (90.83×2/15) + (90.91×1/15)=$90.62
Date Closing Price of AAPL Weighting
1 $90.90 5/15
2 $90.36 4/15
3 $90.28 3/15
4 $90.83 2/15
5 $90.91 1/15

Exponential Moving Average Calculation
• EMAs reduce the lag by applying more weight to recent prices. The
weighting applied to the most recent price depends on the number of
periods in the moving average.
• 14 + 13 + 14 + 12 + 13 = 66; SMA = 66 ÷ 5 = 13.2
• smoothing constant = 2 ÷ (number of time periods + 1) = 0.33
• EMA(12) = (12 - 13.2) × 0.3333 + 13.2 = 12.8
• EMA(11) = (11 - 12.8) × 0.3333 + 12.8 = 12.2

Exponential Moving Average Calculation
Date Close EMA SMA
1 22.81 22.81
2 23.09 22.87
3 22.91 22.87
4 23.23 22.95
5 22.83 22.92
6 23.05 22.95
7 23.02 22.96
8 23.29 23.03
9 23.41 23.1 23.07
10 23.49 23.18 23.15
11 24.6 23.47 23.31
12 24.63 23.7 23.51
13 24.51 23.86 23.65
14 23.73 23.83 23.75
15 23.31 23.73 23.78
16 23.53 23.69 23.83
17 23.06 23.56 23.81
18 23.25 23.5 23.79
19 23.12 23.42 23.75
20 22.8 23.3 23.55
21 22.84 23.21 23.35

Moving median
• From a statistical point of view, the moving average, when used to
estimate the underlying trend in a time series, is susceptible to rare
events such as rapid shocks or other anomalies.
• A = [4 8 6 -1 -2 -3 -1 3 4 5];
• M = Moving median(A,3)
• 6.0000 6.0000 6.0000 -1.0000 -2.0000 -2.0000 -1.0000
3.0000 4.0000 4.5000

Triple Exponential Moving Average (TEMA)
• The triple exponential moving average (TEMA) is important for
traders and analysts because it is useful as a trend indicator. It
reduces the effects of minor price fluctuations and helps to filter out
volatility.
• (TEMA)=(3∗EMA1)−(3∗EMA2)+EMA3
• where:EMA1=Exponential Moving Average (EMA)
• EMA2=EMAofEMA1
• EMA3=EMAofEMA2

Triple Exponential Moving Average (TEMA)
• While the TEMA reduces lag, it still inherits some of the traditional
problems of other moving averages. Mainly, MAs are primarily useful
in trending markets, when the price is making sustained moves in one
direction or the other. During choppy times, when the price is
seesawing back and forth, the MA or TEMA may provide little insight
and will generate false signals since crossovers may not result in a
sustained move as long as the price stays rangebound.

The Best Moving Average Is….
• difference is more noticeable when using 100 or 200-period moving
averages.
• SMA is the least useful because it is simply too slow to reflect price
changes and trend reversals.
• The TEMA is the best one to use because it is the quickest to reflect
price changes.
• The best is moving average to use is the exponential moving average
because always the crossovers are found to be very profitable
because the EMAs will often act as key levels of support and
resistance, and can be used to set your price targets and stop losses.

Characteristics of Trending Markets

Support and Resistance (Major Levels)

Support and Resistance (Breakout & Re-test)

Minor Resistance, Second High (Ready to sell)

Example of Placing a Trade
(Litecoin Major Leveling and Breakouts)

(Litecoin Major Leveling 1D and Breakouts)

Minor Leveling 4h (Breakout and Retest Point)

Minor Leveling 4hrs (Lows and Highs)

(Bitcoin Major Leveling 1D and Breakouts)

The Ultimate Cryptocurrency
Investment Course
Udemy

The Ultimate Cryptocurrency Investment
Course
1. Introduction
2. Important Things to Consider
3. Trading Operations
4. Storage
5. Technical Analysis
6. Tracking Results

Introduction
1. Introduction
2. Why Cryptocurrencies
3. What are Cryptocurrencies
4. Exciting Times

This section is talk about:
• Breaking into the cryptocurrency market (Getting Started).
• Obstacles that new investors typically face
• Platforms recommended for success
• Spotting coins that are likely going to be the biggest winners.
• How to perform research to spot winning coins
• The different types of investment strategies
• How to store your coins properly
• Cashing out.

Why Cryptocurrencies
• Disrupter is an innovation that creates a new and value network that
eventually disrupts the existing market and value network.
• you need to realize that the way we pay for things in this world is at
the beginning stages of being disrupted.

Why Cryptocurrencies
• the way every single person in the pays for things is a far larger
innovation than shopping online or how we watch TV at home.

What are Cryptocurrencies
• Gold & Silver
• Gold has extreme density.
• It doesn't corrode.
• It won't crumble.
• It's basically indestructible.
• very attractive metal.
• industrial advantages.
• Paper Bills
• Backed by Gold & Silver
• Nixon Administration decided
that money would no longer
backed by gold & silver (1971)
• Paper Money only had value
because we all agreed it had
value

• credit cards debit cards gift
cards and coupons.
• These types of money do hold a
physical form but the value that
they represent is stored
somewhere else.
• We all agree that these other
nonphysical forms of money
have value because they
represent real and cents
• but technically they're not
backed by anything that
represents any value anymore.
• people who are scared to buy into
crypto currency because there
really is no value other than the
fact that people choose to give
them value.
• If people decided to stop valuing
crypto currencies anyone who had
them would be left with nothing.

But it is also true for all money

• digital currency that is derived from an encryption technique that has
a set of hashes on them:

• Cryptocurrency:
• Not Controlled by any one
centralized system
• Have a finite amount of coins
• Kept on a program called wallet
• Paper Money:
• Controlled and regulated by
government
• Government can simply print
money on demand, dropping its
buying power
• Stored in a bank or under a
mattress

Exciting Times
• Out of all the possible alternative coins available some are going to be
huge in 10 years while the majority of them will likely crash and burn
with time.

Exciting Times
• a few small investments divided among many high potential crypto
projects is a very smart investment strategy at this point in time.

what I plan to do is perform
• is perform the research.
• Attack these assets like I would with any other business
• find the coins that have the most potential.
• Create a portfolio of quality picks.
• Once the coin starts to achieve its goal the value will suddenly spike.

Important Things to Consider
1. Dangers
2. Account Setup
3. Bitcoin vs. Altcoins
4. Price Changes
5. Long Term vs. Short Term
6. Investing
7. When to Sell
8. What to Look Out For
9. Tracking Trends

Dangers
• Volatility Works for us
• Volatility Works Against us.
• This is a highly speculative form
of investing with plenty of risks

Diversified Portfolio
• Oftentimes one group of coins
are up and another group down
which leads to a nice balance.
• This allows us to keep our
money Relatively Stable in a
volatile Space

Security
• It would be devastating if we actually hit a massive winner with one
of our crypto currencies and found out that our coins were stolen or
we somehow lost them.
• There are several different options to storing coins.
• Web-Based Wallets
• Digital Device Wallets
• Paper wallets

Online Brokers
• Allow you to exchange your
normal currency to
cryptocurrency.
• Preforms the function of holding
your coins
• Highly secure to reduce the like
hood of anyone stealing your
coins

Broker vs Exchanger
• Broker: the place where we can
convert normal currency to
Bitcoins
• Exchange: a place where we can
give one thing and receive
another

Online Brokers
• If there is some type of hack or
breach with the online storage,
there’s insurance to pay for
customer losses.

Using Online Broker Process
1. Sign up to an online broker
2. Transfer in your currency and
convert it into Bitcoin
3. Figure out what altcoins you’re
interested in purchasing
4. Sign up to an exchange that trades
that altcoin
5. Transfer your Bitcoin to exchange
6. Purchase altcoin

Bitcoin vs Altcoin
• Bitcoin is largest cryptocurrency
in terms of market cap
• Back bone for several other
coins and by major companies
like Microsoft
• Bitcoin market is like apple
• Many of the altcoins are trading
at substantially smaller mark-cap

Altcoin Selection
• You have make sure to do your
homework and select the coins
that have the best chance to win

Price Changes
• When any coin starts out, it will
most likely come to market
accompanied by an inactive period.
Bitcoin = 5 years inactive
Ethereum = 2 years inactive
Ripple = 4 years inactive
• Buying the right coin just before a
spike will have a massive benefit to
anyone’s wealth.
• The Price soars to new Highs due to
the lack of sell price of new coins
You will need to
10% of your
capital inside
new coins

What causes people to start selling a coin?
• People will come out to sell. No
one really knows where the top
is and fall back about 60 percent
from its peak.
• there's no harm selling a chunk
off when the coin spikes up.
• Bad news can affect a coin
negatively.

Long term vs Short term
• Sell some and take profits
• Buy it in cheaper and sell it again
• Keep making gain is only thing
must be cared about.
• This course is mainly directed at a
long-term investment strategy.
• The goal is introducing indicators
that signal when to purchase a coin
and keeping away from coins that
are essentially long term losers.

How do you choose the right crypto investment
• Don’t Listen to people who rely on Hype.
• They give No Solid Input on why the coin
is going to be a success, either from
financial perspective or a technical
perspective.

• These sites make it easy to view:
1. Market cap
2. Liquidity
3. Trading Volume
4. Public Interest
5. Developer Activity
6. Exchanges

• Liquidity: is the volume coin actually trades.
• Wash trading is a form of market manipulation in which someone
with a large position simultaneously buys and sells the coin to create
misleading liquidity statistics.
• the best indicator is when you see volume of a coin increase without
much movement in the price.

Wash trading
• If the coin is dual listed as in listed on more than one exchange you
can also check the other exchanges to see if their volume has
increased by the same percentage.
• If you see Wash trading taking place it's best not to trade that coin on
that exchange. It is better to stay away from any coin going through a
wash phase altogether.

Sheep
• Less experienced traders will react and buying and They just follow the heard.
• The coin will then increase in value and whoever is responsible for the price
pump will later come in to sell driving the price back down.
• It is best not to be a sheep, but instead be patient and watch the total market
capitalization of the coin.

Wash trading
• we will check back in next week if the volume backed to normal and
the Wash trading cycle will have ended.

Developer’s Activity
• The coin needs to be continually
developed in order to grow and
achieve its goals.
• The more active and skilled the
development team is the better for
the coin improvements and
innovations add value.
• The repositories tab within GitHub
shows the improvements and
innovations that have been added
to the code by the development.

Developer’s Activity
• Comments might range from a
few hours to a couple of weeks.
• The large coins often will have
regular update in 3 months.
• the updates should add some
kind of innovation to the coin.
• If the comments are just quick
little bits of nonsense then it's
time to think about another
option.

BitcoinTalk.org
• coin announcements are made
with continual discussions of coins.
• White paper: gives information or
a proposal that helps reader find
out what the coin is about and
what problems it intends to solve.
• also about the developer including
his or her real life identity. The
number of coins and any mining
algorithm.

Developer’s Activity (Identity)
• It's important to get the real
identity of the development
team.
• For those who are releasing a
coin and not giving their real
identity most likely they have
something to hide.
• If their identity is known. Unless
they want to be known as a
scumbag thrown in jail.

Cryptocurrency team
• If one of main team member
was working in different industry
may not a good coin to latch
onto.
• If something is negative
/positive, better make sure to
evaluate the feedback fairly and
accurately.
• one or two negatives especially
old ones is no reason to jump
ship.

When it’s best to invest a coin
• Winner Coin
• Best time to invest:
• Initial coin offering
• Right after launch
• Listing on Exchanges
• Loser Coin
• Best time to invest:
• Never Invest!!!
• announcement of the coin
• BitcoinTalk.org
• ICO dates & make it easy to spot
• ICOCountDown.com
• CoinSchedule.com
• SmithandCrown.com/ICOs

New Coin Offering Threads
• should have lots of posts from the team especially for the first weeks.
• Even if the coin has a good mission if they do not know how to move
forward from a business perspective they will likely not succeed.
• Give it at least 24 hours if we hear back even sooner is Great
• Anything longer than 48 Hours = its time to search for a new coin.

Launch
• If you’re in the ICO and the coin
passes all the ICO tests, there
still a chance that the coin will
not live up expectation.
• After 3 to 6 months we can
invest another 25%
• if volume spiking up more
people are looking at the coin

Launch
• The more Discussion The Better
• At this point there should be
hundreds of pages of discussion
which shows how active the
development team is and how
active the community is in
learning all they can about the
coin.

6 months – Updates and milestones reached
• Positive
announcement =
• coin will start to
trade up so
immediately go
make an investment
into the coin.

Sheep
• There will be a lot of people who are late to the party that will
bid the coin up it's best not to in this group.
• These are made up of people who don't follow coins specifically
but instead just by when they see other people buying.
• These are the sheep following the herd. It's best to pay attention
& be one of the early movers and not one of the sheep.

SOMETHING IS WRONG
• If the coin is falling behind and not making their milestones
SOMETHING IS WRONG This is a judgment call but it might be time to
dig deeper.
• Ask questions to the development team on the forums and make
sure they answer quickly and to your satisfaction.
• If not it might be time to abort Selling off any initial investment
• If the coin has made it this far now it's time to just watch the coin
and see if it can grow.

New Coin characteristics
• This is a good sign that people
are loosing interest
• This is a sign for wash Trading
and happens for short cycles

Ethereum Example
• Ethereum Developers were running it like a well-oiled machine
• Many other coin use the Ethereum network for their own coin
• Many online wallets added as a means to exchange standard currency

Selling
• If the coins starting to be mismanaged or signs of disorganization it's a
good indication that it might be time to sell.
• However what about if everything is going great and we continue to
make money on our purchased coin:
• if the coin reaches a point where you are
happy sell half of my holdings.
• if the coin goes down I'm pleased that I
made the sale.
• If it goes up I'm pleased I still have half
of my investment.

Always Fails
• The Goal is to make money
• The goal of an investor:
• is not to make the most profit on
every trade but to consistently
make profits that add up to big
returns over time.
• When the market is up and
everything feels good:
• its time to be ready to sell

What to look out for
• These are people who make a living by trying to
manipulate the public to believe something that's
just not true.
• These people are paid by the number of posts they
make and are found on the most popular forums
such as BitcoinTalk.org.

Trolls mostly be looking to
• Discredit other coins and make readers uncertain about their investment.
• Just like a normal job they tend to always post at the same times.
• They only post on certain days (Their work days).
• They try to put together logical responses but it is filled a lot of negative
hype and not a lot of facts.
• They usually have low post counts because people catch on to them quickly.

Scams
• If something is too good to be true, probably is.
• It has been proven that pricing floors do not work when the coin hit the market.
• It was trading below $10 and never even reached the $20 mark.
• The developers never bought their coin back for the guaranteed price.

Investors must:
• Investors need to be smart and think logically about what you are going to
be investing in:
• Investors must have:
• Hard work
• Smart decision
• innovation

Solid Roadmap
• Make sure the coin you invest in has a solid roadmap that's
periodically updated.
• A good roadmap should include:
• Details about what the coin is doing currently
• What it plans to do in the future
• How it ties back into the original goals.
GOOD BAD
Add a new messaging systems and fine
communication between miners and hubs
Add a commercial version of our
platform next year

Roadmap
• Make public for all to see
• Many disorganized Cryptos make the
excuse that they fear that someone is
going to copy them if they post their
roadmap. This is nonsense.
• Roadmaps are only an outline of what
the future holds. It's not code or
anything proprietary.
• They don't have the dates on any
future release. This shows a total lack
of project management is taking place.

Main Website
• Main Website must have:
• Main Propose of the Coin
• What stands for
• What it plans to do
• Should look like a Quality Site
• A Good web site does not mean success for a coin.
• A Bad web site sure indicates the likely failure of a coin.
• Note: bad or no Web site at all I just eliminate this coin.

Website Rank
• Alexa.com/siteinfo (Doing monthly Log on investing coin Rank)
• WEBRANK SEO Toolbar plugin for Firefox

Alexa Rank
• For example if I pull up the Web site of LiteCoin I get a global rank stat
and a U.S. rank stat. The site with the most traffic will be ranked
number one.

Tracking Trends
• Sites like Google Trends allow us
to see if a coin is trending and if
interest is starting to pick up.
• research tool just to see what
people are searching for.
• The more searches a coin has
the higher the interest.

Bing.com/toolbox/
• Another site is the Bing key word
research tool located at
Bing.com/toolbox/keywords
• it's free
• it allows to change the date to any
range prefer to search for results over
the previous month.
• just copy the names of all the coins
want to track
• a trend line that can look at to see
how the trends are moving along.

Bing.com/toolbox/
• If interest is increasing or
decreasing then export this list
of coins and save it to computer
• week later come back and do
the same search again can
identify which coins are
increasing in search volume and
starting to pick up an interest
• and which ones are decreasing
in search volume and starting to
cool off.

Google Trends
• Select one of interests and
search it in google trends
• people who own this coin back
in July made a lot of money in
over the last couple of months
• if we would have been able to
spot this uptrend at about here.
• research to low market cap
coin's will often result in finding
that diamond in the rough.

Search volume
• Do additional Research
• It’s important to investigate
further to see why volume has
spiked.
• It's not rocket science but
anything we can do to make sure
we're on top of things and can
spot changes in demand is a step
in the right direction.

Trading Operations
1. Exchanging USD To BTC
2. Doing the Research
3. Dealing with Volatility

Exchanging USD To BTC
• The broker:
• holds our crypto currencies and allows to convert money into
Altcoins.
• Restrict Buying limits for no reason
• Customer Service is unhelpful.
• Canceling customers transactions
• You cant make deposit without
buying a coin

Secure Privacy Enabled Browser

Doing the Research
• Don’t just look at the chart and
conclude!
• find something that's relatable But it
may a completely irrelevant factor in
investment.

Doing the Research
• Never making an investment decision
based on personal emotions.
• Being a disciplined investor does take
some willpower.
• it just because you like circus's it
doesn't mean you should go out and
buy circus coin.
• It's critical to find coins that are going
to have mass appeal as this will drive
demand and push the Price of the
coin higher.

Doing the Research
• It does not slow down as more
people get on the network
• It has ZERO transaction fees
• It’s quantum computing proof.
• Iota will still hold the mother
coin status for the tangle and
always maintaining value.

Doing the Research
https://www.coingecko.com/en

IOTA Research
• Coin Website
• It's a nice display
• has details about their product why it's relevant and the technology behind it.
• see their white paper listed for those who are so inclined to read. keeping the public up
to date on what they're doing & Check coin activity on GitHub and BitcoinTalk.org
• Check Recent Conversations and Activities in social Media

IOTA Research
• Coin Website
• Any Real Coin Has a Roadmap
• They must have a date on their activity
• Look at website traffic with Alexa.com
• They must have nothing to Hide !!!!
• IOTA Crypto Founder Developer Team in LinkedIn or Facebook
• Must be in a popular Exchangers.

Dealing with Volatility
• What to do when the whole market begins to crash?
• It pays to keep cool and Not to Panic.
• Doing the opposite of what seems natural is almost always the right Decision
• Smart investors wait for people to panic sell.
• Then they swoop in with a timely purchase and buy wall assets are
momentarily undervalued.

Benefits of Lower Prices
• Come in and Buy a coin at a lower value.
• Once able to navigate way through a
tough time correctly you'll confidence
experience & grow as an investor.
• we are who we choose to be. There are
those who choose to be smart investors
• then there are those who prefer to punt
at the first sign of danger like scared
little rabbits.

Securing Your Coins
• the cryptocurrency coins we own are held in something
called a wallet.
• Wallet Allows to send & receive payments though a
Public and Private Key.
• If the private key is lost then all the money associated
with that private key is also lost.
• two separate storage methods just in case one fails:
• Hot Storage.
• Cold Storage.

Hot Storage
• Hot Cloud Wallet
• Very easy to use
• Access is given from any device
• Private key is stored on another server
• Famous brokers today have insurance against theft
• Desktop/ Mobile Wallets
• A bit more secure than online wallets
• Funds are only accessible form that device
• if device lost or damaged and did not have a
backup then money can be gone.

Multi Signature Wallet
• Help keep money secure in the event of
accident or human error.
• One is held by bit go.
• Another is held by the user
• The third is a backup that the user can give
to a trusted third party.
• The user will need two of the three keys.
• It's a lot slower to get anything done.

Cold Storage
• Hardware Wallets (USB Stick)
• These devices can still be lost stolen or damaged.
• it's very important to keep them in a safe and secure
place.
• they can be backed up or possibly restored in case of
a disaster.
• Paper wallet
• which is an off line storage method of simply
printing out your public and private keys on a piece
of paper that is then stored in a secure place.
• Risk: theft, Damage, Human Error
• Some Paper Wallet Websites are:
• MyEtherWallet.com
• BitAddress.org

Hot Storage vs. Cold Storage.
• Hot Storage
• Device that is connected to internet
• Give us easy access to our cash.
• User friendly interface.
• Hot Wallet issues include:
• Leaving funds exposed to hackers
• Damaging the device they are stored
on
• Someone stealing the device
• Losing the device.
• Cold Storage
• If you want to insure your coins are not
stolen by hackers.
• A wallet that is kept completely offline
• Most secure means to store coins
• Risks:
• Susceptible to damage
• Loss
• Theft

Tether
• Tether units is backed by a U.S. dollar
held in reserve
• Tether can then be redeemed for a real
dollar on the Tether platform
• For every USDT being held by Someone,
there is US Dollar in the Bank

Technical Analysis with Coinigy
• Coinigy is financial tools to determine
well-thought out entry & exit points.
• Bollinger bands:
• a center line & two outside lines above and
below it the center line represents the SMA
over the time period.
• Unbalance Volume:
• If the day ends and the price is higher today
than yesterday then we add the days
volume to the previous.
• If the day ends and the price is lower than
yesterday then we subtract the days
volume from the previous.

• Looking the on balance
volume we see a very clear
trend when the on balance
volume goes up so does the
price.
• if we look closely in certain
spots we can see the on
balance volume started to go
up first which would have
been a good indication that it
was time to buy.

• Just recently if I pull your
attention to this spot we can
see the on balance volume
pick up and then the coin
pops right after that.
• relative strength index (RSI):
• This is a momentum indicator
that compares the magnitude
of recent gains and losses over
a period of time.
• This tool is primarily used to
see if something is overbought
or oversold.

relative strength index (RSI):
• RSI has a value range of zero to 100
hundred and a default period of 14
days.
• RSI value over 70 is considered to be
overbought which means it's also
overvalued.
• RSI value under-30 is considered to
be oversold representing the coin
being undervalued.

Fibonacci retracement:
• Find a good entry point for a coin that has just blasted off to a new high
and then pulled back in when a coin starts rallying on momentum it will
continue to push up to new highs.
• In most cases with a quality coin it will eventually make its way back up
and surpass the previous high.

Fibonacci retracement:
• In some cases it may not quite reach this
Mark & in other cases it can go down a bit
further.
• Usually what we find is that it will be
somewhere between the points above line
and the point below Line.
• More waiting to reach below line more risk to
have a profit.
• It's especially good for figuring out where to
jump in and where to make that initial buy
order.

Tracking Results with Excel Spreadsheet

Tracking Results with Excel Spreadsheet
• first and most important steps is to consider how we want to track
our returns?
• Do we want to track returns in terms of dollars
• Do we want to track in terms of Bitcoin.
• What colors show in Excel Spreadsheet?
• the light blue shaded area reverences the coin and the shares own
• the light green shaded area represents returns in dollars
• the light orange shaded area represents returns in Bitcoin

how to set up Excel sheet based on coins
1. First copy the API https://api.Coinmarketcap.com/v1/ticker/
2. Click the data tab at the top of Excel and then select new query from
other sources then from web.
3. Now we just paste in the URL we copied and click ok.
4. Rename the query to anything you want for coin market cap.
5. click on the list and convert it into a table.
6. the pop up box comes up just click OK now
7. click the two little arrows here and then click OK.
8. Just click close and load and the new sheet will be created here.

how to set up Excel sheet based on coins

add a new coin to the list
• For this example how about we import NEO.
• start a new query just like before from a web page.
• https://api.Coinmarketcap.com/v1/ticker/NEO
• Once inside this query area just click on record then come up to the
top area and select the into table button and then close and load and
a new page will be created dedicated to Neo.
• Excel sheet Data can be updated when someone open the file.

Introduction to Cryptocurrency trading

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Introduction to Cryptocurrency trading

Similar a Introduction to Cryptocurrency trading (20)

Más de Amir Rafati

Más de Amir Rafati (8)

Último

Último (20)

Introduction to Cryptocurrency trading