Becoming A Deadly Trader
Your new career awaits you
Chapter 1
Disclaimer
Any advice or information in this guide is general advice only—It does not take into account your personal circumstances. By viewing any material or using the information within this guide you understand that this is general education material and you can not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. Trading crypto has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Only trade with funds you can afford to lose. This guide is neither a solicitation nor an offer to buy/sell crypto or other financial assets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Introduction to Cryptocurrency
This is a free guide intended for those who want to pursue a career in day trading but cannot afford an education or are too scared to make the initial investment in themselves. We believe the content offered here for free is more than enough to equip the average person for success in trading. We do offer consultations and mentorships if you would like a more in-depth learning experience after you digest this material. If you are already here, just keep reading and you will learn more than enough to become financially free through cryptocurrency.
If you commit to learning everything I’ll be covering in this guide and apply everything you’re learning, you will be able to start trading like a professional in a very short amount of time. This will allow you to gain a recession-proof source of income that can eventually grow to a point that you will never have to work for someone else again.
There are numerous reasons why crypto trading can make you more money than stock trading or forex trading. By trading crypto, you take control of your money by accessing a market that is decentralized from governments and is also open 24/7. Being open 24 hours a day allows you to trade alongside other responsibilities you may have. The crypto market also offers traders greater flexibility than the forex market or the stock market by putting no restrictions as to how many trades you can make in a day or even a week—meaning you can buy and sell as many times as you want in a day. This makes the crypto market much more volatile—which means that you can see much greater percentage movements compared to the stock or forex markets. In addition, the crypto market also offers greater leverage than either the stock market or forex market. This factor can potentially amplify gains if used properly.
If you are a complete beginner, don’t worry. Just start reading the guide from the beginning and by the end of it, you’ll know more about crypto trading than most people that claim they’re experienced. If this guide leaves you hungry for more, you can book a consultation or join our mentorship program to further your understanding of cryptocurrency.
Please don’t hesitate to contact us if you have any questions throughout your learning process. We are here to provide as much value as we possibly can to ensure that one day you become a full-time trader just like us.
What is Cryptocurrency?
“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology – a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.” – Source
In other words, a cryptocurrency is a way of storing value. There are many different cryptocurrencies that exist just as there are many types of fiat currencies, and they can be exchanged against each other for higher or lower values. This is known as “trading,” and can be done on what is called an exchange.
You should always research a crypto coin before trying to trade it. Each cryptocurrency should have what is called a “whitepage” and will tell you all about the specifics of the coin. Unfortunately, many cryptocurrencies appear each day and disappear the next in what is known as an “exit scam.” Never invest in a coin you haven’t researched to protect yourself against scammers.
Cryptocurrencies are usually held in what is called a “wallet” and can be transferred to another wallet. The transferring of funds from wallet to wallet could be considered a transaction. Each crypto coin has its own wallet and a specific combination of letters and numbers assigned to it known as a wallet address. Sending the wrong coins to the wrong wallet address can result in total loss of funds. Be sure to check the wallet address for errors if you are sending or receiving digital currencies.
The number one cryptocurrency at the time I write this is Bitcoin. Bitcoin is the original cryptocurrency founded by Satoshi Nakamoto—an alias for an unknown person or persons. Bitcoin was originally designed to solve some of the issues presented to us today by fiat. It makes use of blockchain technology to operate honestly on a public ledger that confirms transactions and prevents double spending. It is a digital currency that can transfer value over space and time efficiently and effectively. Bitcoin can be broken down into smaller segments known as “satoshi.” You can trade Bitcoin against almost every other digital currency on the market. Bitcoin is not just a good asset to trade but also a good asset to hold. In the long term, the value of Bitcoin could surpass a value of $1,000,000 USD per Bitcoin.
Trading is a business
If you want to be a successful cryptocurrency trader, you must treat crypto like any other business. In any business how do you make money? You make money by buying something and selling it at a higher price. For example, if you own a restaurant then you’re buying ingredients and people’s time to cook the meals. Then, you sell these meals at a higher price on the menu. You keep the difference as profit. That’s how you make money in the restaurant business. It’s no different in a crypto trading business. The only difference is you’re not buying and selling physical products, instead, you’re buying and selling currencies. It’s one of the best businesses you can get into for a few reasons.
First, it requires a minimal investment. If you wanted to open a restaurant or a store it would take you tens, if not hundreds of thousands of dollars. You can start trading crypto with as little as a $50 account. Most people start with $1,000 or $2,000 because the returns for each trade are higher. If you don’t have that money however, you can start with $500, or even as little as $50. The minimum balance to make a trade is $10 on many exchanges.
Second, as a crypto trader you are your own boss. This means you don’t have to work 8-12 hour shifts. Even as a beginner you don’t need more than 3 to 6 hours a day to become a successful full-time trader. If you aren’t trading full-time, then 2 hours a day is more than enough to generate a decent income once you have the skills required.
Third, there are no other costs to your business: no employees, no rental, no inventory; so you don’t have to pay any upkeep to sustain and maintain a crew or a product.
Fourth, trading is a recession-proof job. Unlike other businesses where recessions can be the end of your business, in crypto trading you can make money regardless of whether a cryptocurrency pair is rising or falling in price. If a currency pair is going up then we go “long” on it, and if a currency pair is going down then we “short” it. Therefore, as crypto traders, we make money regardless of whether the market is going up or down.
Being successful in cryptocurrency trading is very much like being successful in business. You need to work hard and master the skills required. I have people ask me all the time if trading cryptocurrency is easy, and the answer is, “No, it’s not.” That’s like asking if business is easy or if maintaining good health is easy. No, of course it’s not easy because if it was then everyone would be a multi-millionaire, and everyone would be fit and healthy. If it was easy then everyone would just stay at home, press a button to make trades, and reap the easy profits. This is a business, not an easy way out like so many people think it is when they show up to the market.
To become successful at crypto trading, you must master the skills and learn the required knowledge. Anyone can start trading crypto with no knowledge and make a 50% return on their first trade, but that is just luck. For every trader that does this, there is another trader that lost 50% of their investment on their first trade instead. Trading like that is nothing but gambling. Trading isn’t just about making money, it’s about how to make money consistently—and making sure you don’t lose this money.
The good news is that learning a skill like crypto trading is infinitely faster and easier than learning how to grow your own business or getting a degree and then finding a good job that you’re qualified for.
Understanding How Crypto Trading Works
It is not impossible to make 100% returns trading cryptocurrencies. There are people out there who in a month make a 100% return on investments trading cryptocurrency; but these people are all taking very high risks. The thing is, these people don’t tell you that they could have lost all their money because they didn’t have a sustainable system. Some of them are truly pros and have perfected their strategies. Most traders, however, are typically trading without technical analysis and essentially taking a 50/50 shot.
Making money in the financial markets is actually not hard at all, it’s very easy. It’s really just luck. The markets can either go up or go down. You essentially have a 50/50 chance of being right or wrong. In the same way that it’s not hard to earn crazy profits trading blindly, it also isn’t hard at all to make crazy losses using that same method at another time. The challenging part is making money consistently, so that you can create an income out of this instead of gambling.
Many folks get into trading with this crazy idea that they are going to be millionaires overnight, and these are the same types of people that will fail and walk away. Now don’t get me wrong, it’s absolutely possible to become a millionaire trading cryptocurrency. However, if you are expecting to get those results in the short term rather than the long term, then I guarantee you will not end up becoming a millionaire trading cryptocurrency. You will more than likely risk too much money hoping for quick gains, just to be met with quick losses instead.
Most people that don’t get a proper education will blow up more than one trading account before they understand the realities of the crypto market. The reason I am telling you all of this is so that you don’t formulate unrealistic ideas. I would also hate for you to experience a liquidation. I’ve had that happen to me before and I can tell you that when you see the hard-earned money you invested go down to almost nothing, it’s a horrible feeling. Know that you can prevent all of this from happening to you if you pay attention, remain focused, and take trading seriously.
In the market, there are two ways to make money. First, you can buy low and sell high. Second, you can sell high and re-buy low. If you are buying low and selling high, you identified an asset that you believe will go up in value. If you are selling high and re-buying low, you are holding onto an asset that is going down in value and you want to sell it and wait for it to fall to a lower value so you can rebuy it and pocket the difference. We will cover both in greater detail shortly.
Opening Market Times
Remember that the cryptocurrency market is open 24 hours a day, 7 days a week. You can trade any pair at any time. Note that there are times when trading is more active such as “big bank” market open and market close times. This is when you are bound to find more volatile moves for you to profit from—during the active hours closer to market opening and closing times.
The opening and closing times of the different big banks around the world have some influence over the crypto market despite crypto being accessible 24/7. You can find different pumps in volume at different times of the day based on these open and close times. The times provided are based on the New York time zone (EST), so make sure you convert the times to your own time zone.
At 5PM EST the Australians start trading, and they trade until 2AM EST, which is when the Australian Dollar starts getting active because that’s when the Australians are trading. At 8PM EST the Tokyo market opens, and the banks start trading all the way to 5AM EST, so that’s when the Japanese Yen starts to get active. Then, at 3AM EST the London market opens, which means that the Euro and GBP starts getting a lot more active until it closes at 11AM. Here is a reference to help you visualize when the markets open.
|
Market |
Opening Time |
Closing Time |
|
Sydney |
5 PM |
2 AM |
|
Tokyo |
8 PM |
5 AM |
|
London |
3 AM |
11 AM |
|
New York |
8 AM |
5 PM |
Types of Crypto Traders
One concept that you must understand is that there are many different ways and styles of trading, and each person has their own style of trading. Most traders, however, can be divided into 4 categories: scalpers, day traders, swing traders, and position traders. The main differences between these traders are the size of the percentage they are targeting to gain in their positions, the duration of their trades, and the timeframes they use to analyze chart data.
|
Trading Style/Type |
Target % Gains |
Trade Duration |
Timeframes Viewed |
|
Scalp Traders |
.05 – .25 |
Seconds – Minutes |
1M & 5M |
|
Day Traders |
1 – 4 |
Within A Day |
15M, 1H, 4H |
|
Swing Traders |
5 – 10 |
Days – Weeks |
1H, 4H, 1D |
|
Position Traders |
10 – 20 |
Weeks – Months |
1D, 1W, 1M |
If you’re an experienced trader, thank you for taking the time to read this. As a novice trader, it is important you understand how world market open and close times can affect your trading strategies. You cannot use the same strategy all day every day. It is also important to know how the types of traders can play against your strategies. Sometimes you will see a profitable swing trade against a scalp wall, and once that wall is shattered it can get crazy. That might not make sense right now—that’s okay. Just keep this information in mind when you are finding your rhythm in this industry.
Currency Pairs
If you know nothing about crypto, you need to understand that currency pairs behave differently from stocks or other financial assets. Whereas you would say that the price of Tesla is $420 per share, you cannot simply ask for the price of Bitcoin. You have to ask for the price of Bitcoin against another currency. In crypto trading, currencies are always exchanged for one another. There is a Bitcoin market, where everything is measured by change in Satoshi. There are other markets, like USDT and Ethereum, and within those markets there are a wide selection of currency pairs to choose from.
The most successful traders tend to only trade a handful of pairs, which are the most actively traded pairs. These pairs tend to have higher volumes, so they come with minimal volatility and the tightest spreads (compared to other altcoins), which are both great conditions for your trading.
Just like these successful traders, you should stick to only a few pairs as well as a beginner. Once you become more confident in your trading ability, you can begin to make trades in other pairs. It’s not bad to trade multiple pairs—but to trade a pair means you must know it well. Do not make trades on pairs that are falling in price hoping to catch the rebounds if the evidence does not support the theory, nor if you do not know the currency pair well enough.
The market already presents so many variables. By reducing the number of pairs you trade, you remove variables from the market and give yourself just that much more of a statistical edge.
Here are my favorite pairs to trade:
- BTC/USDT
- LTC/USDT
- ETH/USDT
- LINK/USDT
- THETA/USDT
I have found certain patterns within these pairs that are repeatable and therefore easy to predict and make profits more consistently. I also believe in these cryptocurrency projects for the long term, and try to increase my overall holdings in each of these crypto coins on a regular basis.
Currency Exchange Rates
When trading a pair such as BTC/USDT, the first currency listed (Bitcoin in this case) is known as the base currency, and the second currency listed (USDT in this case) is known as the quote currency. The base currency always has a value of 1, and the quote currency shows how much 1 of the base currency is worth in the quote currency. So, if BTC/USDT is worth $9,432.36, then that means the value of 1 Bitcoin is 9,432.36 US Dollars, and you must pay $9,432.36 to buy 1 Bitcoin. In the USDT market, the values of different coins are relative to the USDT and changes in price are measured in two decimal places. This just means that we are measuring cents. Below I am going to display the same information I just talked about in a different format, to make things easier for you to understand.
Currencies are quoted in pairs and depending upon what market you are trading the fractions of coin measurement will differ. In the Bitcoin market, when all other pairs are compared to Bitcoin, the changes in price will be measured in Satoshi. If you were trading the Ethereum market, all other coins would be compared to Ethereum and changes in price are measured in Ether.
Currency Pair Examples
BTC/USDT = $9,432.36
— BTC is the base currency. This is what you will be exchanging your USDT for (buying) when looking to start a trade.
— USDT is the quote currency. This is what you are holding when you are looking to start a trade. This is what you are looking to receive profits in.
— If you want to buy 1 Bitcoin, you would have to pay $9,432.36 US Dollars. If you want to sell 1 Bitcoin, you would receive $9,432.36 US Dollars.
Profit by Going Long
Going long on BTC/USDT:
— When we are taking a long position on BTC/USD, we believe BTC is going up and the US Dollar is going down. We are bullish on Bitcoin and bearish on the US Dollar. Consider the following example.
- We purchase 1 Bitcoin at $10,000 expecting the price will go up.
- We were right, and we sold 1 bitcoin for $10,100 later that day.
- Profit = $100 = 1% change in price from buy price or “entry” to sell price or “exit.”
Profit by Going Short
Going short BTC/USD:
— When we are taking a short position on BTC/USD, we believe Bitcoin is going down and the US Dollar is going up. We are bearish on Bitcoin and bullish on the US Dollar. Consider the following example.
- We sell 1 Bitcoin at $10,000.
- We are right, and we then buy the Bitcoin back at $9,900.
- Profit = $100 = 1% change in sell price or “exit” and buy price or “re-entry”.
Leverage
Now let’s talk about one of the most important concepts in crypto trading: leverage. Most crypto exchanges allow traders to leverage 1:100 times. This means that if you have $1,000 in your account, you can actually trade as if you have $100,000 even though you don’t actually own that much money. However, in most situations you shouldn’t go above a leverage of 1:30.
If you noticed earlier when I did the math on the “going long” example, buying one whole Bitcoin at $10,000 gave us a return of only $100, which was only 1% of our initial investment. That isn’t enough for us to earn a lot of money without having a lot of capital; if you had a $1,000 account that means you would only earn $10 per trade, which is definitely something, but not enough for you to live on. This is where leverage comes in.
Because movements in crypto are so volatile, you could very well make a killing without leverage. However, you can very easily advance your earnings by using leverage successfully. Putting $1,000 to only make a measly $10 may not seem like it is worth your time, but it is the percentage gains you must focus on. Once you are consistently making +1% on each trade, if you employ leverage, you could be making +10% per trade or more.
Sometimes a crypto currency pair will move +15% in a day and you can make amazing profits without leverage. In the example provided earlier, without leverage, you would have to invest USDT $1,000 to earn USDT $10 (1% return). That is a minimal return for such an investment, which is why some crypto traders use leverage. Leverage allows you to make more money while putting down less money.
I rarely use more than 1:20 leverage. This means that if I put $10,000 into my account, I can trade with up to $200,000. That said, you should only use 10-15x leverage. This means that for every $10,000 you put in, you could trade with anywhere from $100,000- $150,000 worth of currency.
If we employ leverage of x20 on the “going long” example provided earlier, we just need to invest a margin of USDT $500 to trade as if we had $10,000. Our return of $100 from our investment of $500 is now equal to 20% instead of the 1%.
Or, using the same example as a reference, if we had still invested $10,000 into our entry, with the same x20 leverage, we could trade as if we had $200,000, and making 1% on that means we would have made a return of $2000 instead of $100.
Now remember, don’t get greedy with your leverage. A 1:20 leverage is plenty and using too much leverage can cause you to blow your account if you aren’t very experienced yet.