So I’m diving balls deep into trading crypto. One of the first things I’m learning is how to build small accounts.
Account building is the process of trading crypto pairs that are swinging up and down within a consistent price range.
Since I’ve heard there are a ton of account building opportunities out there, I went ahead and joined the Kucoin exchange, attached it to my Coinigy trading platform, and went through four dozen charts.
I found five good ones, picked two to trade, then entered my limit order trades.
My Trading Results
The first trade I panic sold for a -3% loss. This was due to my unfamiliarity with Coinigy suddenly wiping away my open trade history. I saw the prices drop and decided to sell at the next highest point. Little did I know, the coin went up as I was expecting.
The second trade, however, net me 4% profit. Whew! This trade I decided to leave as is. The chart looked too awesome and wavy, so I had some faith in my trading process.
Mind you, it’s still wayyy too early to celebrate. There is a lot more I need to learn as I figure out the pace of trading.
Lessons From Starting My Crypto Journey
These probably make great life lessons, too. Although I’ve only made two trades, I did pick up some very important lessons to keep in mind moving forward:
1. Trust the Process and Wait Patiently
One of the techniques I must use is to layer my buy orders. In the onset of a sudden dip, I can capitalize on the panic sell in order to lower my average price. If I find myself caught in a downward trend, I can always exit closer to breakeven.
I didn’t trust this idea because of Coinigy suddenly glitching, and I panic sold on what I thought was my next best out.
2. Make Use of Alerts
I suck at focusing. Fortunately, Coinigy has a system for setting up notifications for alerting me if there are sudden dips. Instead of tying up my Bitcoins, I can simply set notifications when a coin I’m watching goes into panic mode.
3. Start Small and Start Slow to Feel Things Out
Based on the charts I’ve looked at, I expect my trades to be completed (buy then sold) in 24 to 48 hours. I’m also using small amounts until I ease into this business and get a solid feel for how I should react to trading.
Being now aware of how I feel and behave when I panic sell is important. I’m working with 1h charts, so there is a lot of breathing space available. However, the panic is real and it’s worth making the mistakes early on and with smaller amounts.
At least, when the mistakes are made, we can better live with it.
4. Remain Diligent Regardless
I have experienced two buggy moments with Coinigy. The first was how all my buy limit orders disappeared. I resolved this by cancelling them on the exchange and replacing them through Coinigy. The second is how I would set a buy limit order at 58 satoshi through Coinigy, yet it would register as 57 satoshi instead. The exchange would say 57 satoshi as well. Weird.
When you rely on a third-party platform, there are always inherent risks. In my case, it is trusting that my orders will be placed accordingly.
In the crypto world, once you lose your coins, they’re gone forever. It’s worth understanding what those risks might be, and how you might want to deal with them when the time comes. Beginner traders should be mindful of those risks and think about them ahead of time. This also includes the risk of exchanges getting hacked and losing your coins over there.
5. Enjoy The Trades!
When I was in panic mode to sell, there was a weird moment in time when I kept refreshing the page and kept pondering what I would do. If you follow a process, stick with it, then sit back and relax. If you never dealt with money like this before, then the adrenaline might hit. I’ve lost a lot of money before, but playing with small amounts still rattled me slightly.
Looking back, I would certainly avoid refreshing non-stop. As long as everything is set in place, then it’s simply a waiting game. Do your best not to stress too much when starting out!
As a side note, I know I am bound to make mistakes. I’m only risking money I am willing to lose entirely. You should do the same, and remind yourself exactly what it is: an investment for your learning. Should be cheaper than college!
Final Thoughts – What’s Next
It’s one thing to read about things; it’s another to do it. I’ve had an exciting first experience to share having finally dipped into crypto trading. I was putting this on hold for a week since I decided to look into it. Personally, I’m not a fan of waiting so I’m mildly disappointed. I’m glad to have finally gotten my feet finally wet.
I’m not entirely sure what the next step is. Should I be trading more coins? Increase the amount I use to trade? I know I need more experience. That doesn’t necessarily require more money, but it does require more exposure to the market. Some things I intend to do include:
- Continue my studies on crypto trading
- Analyze more charts
- Consider spreading my bankroll by trading more coins
I have no intention of stopping anytime soon. I only realize now the full potential of the crypto world despite this bear market, so I’m going to do what I can to make the most out of it. Of course, that doesn’t mean I’m giving up my other business anytime soon. I can handle both! I swear!