In theory, trading crypto is among the fastest
ways to make life-changing amounts of money. After all, some crypto traders have turned
hundreds of dollars into millions of dollars in just a few days. In practice, however, most crypto
traders will end up in the red, and some will lose all their money in a matter of minutes. This is
because trading crypto is not like trading other assets. That’s why today we’re going to tell you
everything you need to know about trading crypto starting from square one. By the end of this
video, you’ll have all the knowledge you need to succeed. My name is Guy. Stay tuned. So, the
reason why crypto trading can be so profitable is because of one factor, emotions. The crypto market
is volatile, meaning that it’s normal for prices to go up or down by 10 to 30% in a day. To put
things into perspective, if a stock goes up or down by more than 5% in a day, it’s considered
volatile. In crypto, a 5% move can happen in a matter of minutes, sometimes seconds. This makes
traders feel emotional, especially if they’re using a lot of money. When crypto prices go up,
they feel greed. When crypto prices go down, they feel fear. Now, believe it or not, but this
is the entire basis of trading assets. When people feel greed, they tend to buy, and when they feel
fear, they tend to sell. These emotions follow predictable patterns, and price action follows
suit. The first person to figure this out was in fact a Japanese rice merchant from the 1700s
named Hanma Monahisa. He invented the candlestick charts we use today and was the first to identify
the repetitive patterns in price that are created by fear and greed. These emotional patterns can be
found in every asset class, whether it’s crypto, stocks, or indeed rice. The catch though is what
I mentioned a few moments ago, emotions. People trading rice probably don’t get too emotional,
and most stock trading is done by emotionless algorithms and passive flows. By contrast, the
crypto market mainly consists of a combination of new crypto traders looking to get rich quick and
crypto whales, that is large holders of crypto, who try to manipulate these new traders. This
will change as more institutional investors and algorithms get involved, but for now that’s
pretty much the playing field. Now, the good news is that this playing field results in lots of
emotions, which makes technical analysis much more effective in crypto. The caveat is that the crypto
whales know technical analysis, too, and they will manipulate prices to trick new crypto traders into
buying or selling at the worst possible times. So given this fact, it’s worth remembering this
quote from Richard Woff, a trader from the 1900s who saw how big investors manipulated markets.
Quote, “All the fluctuations in the market and in all the various stocks should be studied as
if they were the result of one man’s operations. Let us call him the composite man who in theory
sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the
game as he plays it and to your great profit if you do understand it. So then folks I ask you are
you ready to play? Are you ready to understand the game? If so then smash that like button to let
us know and subscribe to the channel and ping let’s start with the basics. Before you do
anything, you need to look at the price of BTC, the native cryptocurrency coin of the Bitcoin
blockchain. This is because BTC leads the rest of the crypto market. BTC needs to be rallying or
gradually rising for most other cryptos to rally. If BTC is crashing, it doesn’t matter how bullish
the other cryptos look. Chances are they will fall along with BTC. Now, of course, the best way to
check BTC’s price is to use a crypto exchange. For So once you’ve pulled up the BTC chart on Tubbit,
the first step is to remove all the indicators. You can do this by hovering over these indicators
and clicking X as you can see here. For now, we just want to identify the price trend. Next,
take note of the time frame the chart is set to. This info can be found near the top of the
chart. Set the time frame to daily and zoom out by scrolling down. Now, obviously, each candle
you see on the chart represents a day. Red candle means prices went down that day and green candle
means prices went up that day. With this in mind, it should be super easy to tell if BTC’s price
has been trending higher over the last few days or trending lower over the last few days. As I
noted a few moments ago, BTC needs to be trending higher for other cryptos to rally. If BTC has been
trending lower, chances are other cryptos will be too. However, it’s possible that the trend could
change. This is where the bodies and the wicks come in. The body is the thick part of the candle.
Sometimes it’s small. The wick at the top of the candle shows you the highest price that was hit
that day, and the wick at the bottom shows you the lowest price hit that day. Sometimes the wicks
are barely visible. If most of the recent candles are mostly body and no wick, this tells you the
trend is strong regardless of the direction. If the candle is mostly wick and no body, however,
then this tells you the trend is weak. Now, as a rule of thumb, a large wick on the top of
a candle means lots of people are selling, while a large wick at the bottom of a candle means lots
of people are buying. Logically, long wicks on top suggest that prices could trend lower. Whereas
long wicks on the bottom suggest prices could trend higher. And if the candle is barely visible,
almost no wick and no body, then that suggests the trend is reversing regardless of the direction.
If the candles are green but getting smaller, then that means prices could start falling.
If the candles are red but getting smaller, then that means prices could start rallying.
This is candlestick analysis in a nutshell and we’ll leave a link to the popular candlestick
patterns down below. So once you’ve figured out whether BTC is trending up or down and assessed
whether this trend could reverse or continue, the next step is to figure out how high or low BTC
could go in the short term. You should know that there are many ways to do this and everyone has
their own style. So, be sure to try out all the different ways I’m about to show you to figure
out which method works best for you. Okay. The first way to figure out how high or low BTC
could go in the short term is to look at the levels where prices clustered before. These levels
tend to be around nice round numbers like 91K or 100K or 85K. It should be pretty easy to identify
at least a few of these key levels. Try to focus on the most significant ones. And pro tip, if you
look on the bottom left of the BTC chart on TUBIT, you’ll notice there’s a little tab you can click
that expands a selection of tools you can use to draw. Note that you’ll need to have the trading
view view enabled on the top. Near the top of the toolbar on the left, you’ll notice there’s a
tool with a line called trend line. You can click on it and use it to help you identify key levels.
If the key level is above the current price, then it’s called resistance. And if the key level is
below the current price, then it’s called support. As you learn, you’ll notice that BTC will chop
between these key levels sometimes for prolonged periods. And trading these choppy conditions
can be difficult, and that’s just because the emotions that fuel the big moves are muted. So
technical analysis doesn’t work as well. Another important thing to note is that when BTC breaks
above or below a key level, it’s common for it to retest that level before continuing the trend. For
example, suppose BTC is below a key level of 95K. That means 95K is resistance. If BTC’s price
breaks above this key level, chances are that it will fall back to 95K before rallying higher,
assuming the trend has flipped bullish. According to the candlestick analysis, the same is true if
BTC is falling. Suppose BTC is above a key level of 100K. This means 100K is support. If BTC’s
price breaks below this key level, chances are it will rally back to 100K before falling more,
assuming the trend has flipped bearish, according to the candlestick analysis. In other words,
BTC doesn’t go up only or down only. Every rally is followed by a correction and every crash is
followed by a rally. Now figuring out exactly how high or low BTC could go can be done by looking at
the difference between key levels. For instance, suppose BTC was chopping between 95K and 100K and
has now broken above 100K. All you need to do is take the price difference between these two levels
and add it to the resistance level. That means adding 5K to 100K. That gives us a target of 105K
for BTC. And the same is true if BTC breaks below 95K after chopping between 95 and 100K. The price
difference would still be 5K, but this time we subtract it from the support level. That gives us
a target of 90K for BTC. Just remember that every rally is followed by a correction and every crash
is followed by a rally. This means BTC could fall back to 100K after first breaking above and rally
back up to 95K after first breaking below. If that 100K level holds as a new level of support, then
BTC will likely bounce and hit that 105K target. On the flip side, if that 95K level holds as
a new zone of resistance, then BTC will likely get rejected and fall to that 90K target. This is
something that most crypto traders tend to forget, and it’s why so many lose money. Another thing
that they forget is that crypto whales can see these levels, too. They know that other traders
will be looking at these key levels, particularly new traders. The result is that they will try and
manipulate BTC so that its price rallies higher or falls lower than traders expect. This makes these
traders emotional and tricks them into buying or selling at the wrong time. Remember what Woff
said. Now, another way to figure out whether BTC’s price trend is about to change and how high
or low it could go is to use technical indicators. If used properly, technical indicators can even
give you a sense of exactly when the trend is about to change and exactly when a price target
could be hit. Now, there are literally thousands of different technical analysis indicators out
there. Some are free, others are paid. And in our opinion, the free indicators are sufficient
because every technical analysis indicator is ultimately looking at the same things through
a slightly different lens. I’ll remind you that everyone has their own style. And this is
truest when it comes to which technical analysis indicators they like to use. On Tubbit, you can
find a bunch of free technical analysis indicators up near where you select the time frame. Clicking
on the technical indicator ticker will open up a long list of indicators. Now, we don’t have time
to go through all of these here, but we reckon you don’t need all of them either. The first three
indicators you need to know are volume, the RSI, and the MACD, which you can search for manually.
Now, the volume is super straightforward. It just shows you how much trading volume is inside
the time frame of the candle. In this case, one day. If trading volume is slowly rising, this
means the trend is strengthening regardless of the direction. Don’t worry too much about the color of
the trading volume bars. As for the RSI, it stands for relative strength index, and it’s a super easy
way of figuring out whether a crypto is overbought or oversold. If the RSI is high, then it means
BTC is overbought, and that means it could start crashing soon. On the flip side, if the RSI is
low, then this means BTC is oversold, and that means it could start rallying soon. Most of the
time, the RSI is somewhere in the middle. As for the MACD, it stands for moving average convergence
divergence. It sounds complex, but it’s actually super simple. When the bars are green, the price
trend is positive. When the bars are red, the price trend is negative. When the two lines cross,
that means the price trend is about to change. Simple as. Another two technical indicators you
need to know about are the moving average and the Ballinger bands. As the term suggests, the moving
average tells you the average price of BTC over a given period. Unfortunately, you need to manually
add the moving averages. Thankfully though, this is fairly easy to do. First, search for the moving
average from the indicator selection and select it twice. In the top left, you should see both moving
average indicators appear set to some default time frame like 9. hover over each indicator and
manually select 50 for one moving average and 200 for the other moving average. As you can see here,
now the reason why we’re using the 50 and 200 periods is essentially because these are the most
significant mainly on the daily. The 50-day moving average is a strong zone of resistance when BTC
is below it and it’s a strong zone of support when BTC is above it. Same idea for the 200-day moving
average. In this sense, you can think of the 50-day and 200-day moving averages as being hidden
key levels for BTC. The difference is that these two moving averages also show you BTC’s trend.
When the 50-day moving average crosses the 200-day moving average from below, this is called a golden
cross, and it suggests that BTC is entering a long-term uptrend. When the 50-day moving average
crosses the 200 day moving average from above, this is called a death cross and it suggests BTC
is entering a long-term downtrend. When it comes to shorter term trend changes, this is where the
Ballinger bands come in handy. Now, the middle band is effectively a moving average, just like
the 50-day or the 200 day. The upper band shows you how high BTC could potentially go if it pumps,
whereas the lower band shows you how low BTC could potentially go if it dumps. BTC typically trades
around the Ballinger band moving average. If BTC is above the Ballinger band moving average, then
it’s in a short-term bullish trend, and if it’s below, then it’s in a short-term bearish trend.
If BTC trades in the same range for a long time, the outer bands will come closer to the Ballinger
band moving average, creating a squeeze. And this foreshadows a change in BTC’s trend, be it to the
upside or the downside. Very useful. Now, by this point, you’re probably asking, “But this is just
for BTC. What about all the other cryptos I want to trade?” Well, you’re in luck because everything
I just told you applies to other cryptos, too. It tends to work best on larger altcoins,
but it works on most smaller altcoins, too. The more emotions, the better. The reason
why we focused on BTC is because you must do this analysis on BTC first before you do it for
any other crypto. Once you’ve figured out whether BTC is in a bullish or bearish trend and whether
this trend is likely to continue or change, well, only then can you start looking at trading other
cryptos. There are just two more things to keep in mind, and that’s manipulation and leverage. The
smaller a crypto is, the easier it is for crypto whales to manipulate. This can make it very
hard to trade because there’s a higher chance that the key levels you’ve identified will be
invalidated to try and mess up your strategy. For larger cryptos, the main thing to keep in mind is
leverage. Traders will often use lots of leverage when trading larger altcoins to boost their
returns. This often results in lots of unexpected volatility with prices rallying more than expected
because of a short squeeze and prices crashing more than expected because of long liquidations.
Crypto whales will often try to trigger these to their benefit. That’s why you should consider
avoiding leverage trading until you’ve figured out a crypto trading strategy that works well for you
and have gotten used to the extreme volatility of the crypto market. Better yet, keep track of your
trades on paper instead of using real money. Only once you feel confident that you can consistently
turn a profit. Well, then start using real money, not financial advice. And finally, remember to
be patient. Even though there are traders that have made millions of dollars in a few days, the
fact of the matter is that these kinds of gains take time. That’s because each trade takes
time. If you put on a trade and your target isn’t hit within a few minutes, or a few hours,
be patient. Some trades can take days, weeks, even months to complete. If you’re confident, wait
until your targets are hit. Once you’ve practiced enough patience, you’ll come to find that more
and more of your trades go the way that you want, and eventually you’ll realize that was the
hardest part of all, sticking to your targets until they’re hit. Put differently, the secret
to success isn’t to constantly trade. It’s to wait until the time is right. Take aim, pull the
trigger, and then wait until the target is hit. Quality over quantity, in other words. Okay,
folks. If you made it this far and you want
