Listen up — it’s time to learn all about cryptocurrency…
If you’re new to crypto, all of the technical voodoo can be overwhelming.
Some people get so turned off by the complexity of crypto that they miss out on huge trading opportunities.
Others are worried about negative headlines pulling the rug out from under the market. I think the opposite.
More regulations mean more opportunities for crypto to grow.
(In fact … I’ll be talking about these opportunities in much greater detail during my LIVE Crypto Moon Jumps Webinar on Thursday, November 4th at @ 8 p.m. Eastern –> Click here if you haven’t registered yet!)
I’m here to help you avoid these mistakes — and a serious case of FOMO.
Sure, crypto is complicated. But remember this: at the end of the day, every risk asset is just numbers on a screen. Can you do the work to turn those digits into potential profits?
Here’s an example … Altcoins have been on an insane run lately, so now is the time to learn what’s going on. Your education is everything when it comes to trading — whether that’s penny stocks, altcoins, or anything else.
So get out your notebooks and let’s dive into Crypto 101.
What Is Crypto and Why Is It Surging?
Cryptocurrencies are like digital money. You can use them to buy things, to power applications, and most importantly to people like me, to trade.
But the secret to crypto’s success lies in online ledgers called blockchains. Blockchains use a practice known as cryptography to maximize the security of crypto transactions.
It’s called a blockchain for a reason — it’s literally a chain of blocks. These blocks are made up of different transactions that are assigned a hash.
OK … What’s a hash? That’s a unique, complicated algorithm used to secure the blocks and connect them to each other. The complicated nature of this process is what makes the blockchain so secure. Hacking into a block essentially means solving a series of impossible puzzles.
Just like any fiat currency, traders regularly speculate on the price of digital assets like bitcoin (BTC), ethereum (ETH), and dogecoin (DOGE).
This speculation causes MASSIVE moves in the price of cryptocurrencies. So naturally, I LOVE to trade them.
What Are Altcoins?
If BTC and ETH are the blue-chip stocks of the crypto market, you can think of altcoins as the penny stocks.
Altcoins are smaller, riskier cryptocurrency startups. Just like penny stocks, there are a lot more of them than there are trillion-dollar coins. Another notable similarity: most altcoins FAIL.
But when altcoins explode, the upside is absolutely astronomical. (See, just like penny stocks!)
How about an example? Look no further than this trader — who turned an $8,000 investment into $4.4 billion by buying (and holding) shiba inu (SHIB) tokens last year.
I’m not really into that buy-and-hold kind of thing, but I do like to trade sketchy altcoins when I see the opportunity…
How Can Stock Traders Transition?
Now that crypto is the hottest sector on the planet, a lot of traders are asking me how they can start trading crypto.
In the past, there’s been a huge barrier to entry in crypto. Things like moving funds to crypto exchanges, setting up Chinese brokerage accounts, connecting dongles, buying cold storage, and so on. Yeah, it used to be a LOT.
But as crypto has evolved, it’s become easier to get started in buying and trading it.
Speaking as a stock trader who successfully transitioned into crypto, here are a few words of advice:
- Look for your favorite patterns. To me, crypto charts aren’t all that different from stocks. So you look to apply the stock patterns that work for you to crypto charts.
- Learn about bubble psychology. The same psychology that makes a penny stock run 500% in a day can also make coins run. The pattern is similar to Tim Sykes’ 7-step framework. (As witnessed with the SHIB altcoin spike mentioned above.)
- Don’t overthink it. Some cryptocurrency moves completely defy logic and general valuation metrics. Know that, but don’t let this keep you from trading them.
Why Is Now a Good Time To Get In?
The two largest cryptocurrencies rallied to new all-time highs in mid-October — BTC to $66,017 and ETH to $4,374.
Since then, a healthy consolidation has taken place while crypto bulls attempt to push the momentum higher. This tug of war has led to some INSANE trading opportunities.
As I mentioned earlier, I think any headlines about government regulation would actually be long-term bullish for crypto. A major bill passing Congress could be like a government endorsement of crypto, guaranteeing it’s here to stay.
Everyone wants in on the next SHIB, but few are willing to do the hard work and studying required to find it.
Now is the time to learn, so you’re ready. Remember, the patterns you know and love from penny stock trading play out in crypto…
AND REMEMBER… if you like this article and if you haven’t already… make sure you register for my FREE Crypto Moon Jumps LIVE Training on Thursday, November 4th @ 8 p.m. Eastern.
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Until next time,