Anticipating another Bitcoin price spike, the crypto network continues to expand exponentially. After the brief downturn caused by the Iranian crackdown on crypto exchanges, Bitcoin quickly regained its position and now trades at a value slightly lower than its all-time high of $61,000. There’s no doubt that the market has grown exponentially since last year—in March 2020, the asset was trading at just $5k, A fact that seems unbelievable now considering its current price tag of $58,000. Even though the asset will perhaps never go back to the point from where it all began, every top-notch trader is more eager than ever to put their hard-earned money into Bitcoin with the hope that their returns will similarly skyrocket.
There indeed are a couple of reasons to be optimistic about Bitcoin and cryptocurrency trading. The digital payment giant, Visa, has made it clear that the USD Coin can now be used within its payment scope. This increases the odds that Bitcoin will be used as a means of payment at some point in the future. Many celebrities see the potential of Bitcoin—Elon Musk, 50 Cent, Snoop Dogg, and Gwyneth Paltrow are only some of the people who have enthusiastically joined this growing global investment movement. And even though cryptocurrency is still a highly volatile asset, it provides unparalleled arbitrage opportunities due to the absence of a centralized regulatory authority setting definitive price points.
Especially during the COVID-19 pandemic, the demand for cryptocurrency-fuelled products has increased to a degree never seen before. With travel time to and from the office having become a thing of the past, on-screen time has faced unparalleled growth. This is one reason why Decoin decided to create an innovative social trading platform that allows traders to openly interact and cultivate their best strategic approach within their community of like-minded individuals. Using its novel feature of performance-based evaluation, participants are able to easily identify the most successful traders and decide whose footsteps it makes sense to follow.
I recently spoke to Crypto Bull, one of Decoin’s top traders, and took advantage of the opportunity to ask him for his insights on the functionality of the platform and suggestions on the optimal trading strategy that would benefit anyone starting their cryptocurrency journey.
Hi, thanks for joining me for a talk. Let us begin by discussing the state of crypto-trading at the present moment. As a top trader, how would you evaluate the pace of the industry’s development, and what can we anticipate from the year 2021?
I am very satisfied with the growth of the industry. The cryptocurrency market cap just reached 2 trillion dollars, which is huge. The predictions anticipate that the market will reach 4 trillion dollars by the end of this year!
Is there anything we can add specifically about Bitcoin? Which factor plays the most significant part in the institutional adoption of this digital asset, and how far do you think its price rally will hold up?
I think that the new trend of using alternative energy to mine Bitcoin will help institutional adoption. The fact that financial institutions are joining the crypto revolution will possibly make the price skyrocket even more. I truly believe that big gains are awaiting the holders.
When thinking about cryptocurrency trading, what are the techniques that first come to your mind? As an experienced trader, which strategy do you see as a more secure bet—short-term trading or long-term holding?
The number one rule that guides my trading is ‘never go against the trend’.
Short-term trading is a better approach for uncertain periods, and holding works better during bearish times.
As a professional trader, which traits do you consider essential for excelling in this field? How do you manage to stay agile and flexible in the current market environment and not give up in case of a misfortune?
Never stay in the same spot. Always stay up to date on recent trends and hypes. I take part in active Telegram/Discord groups such as the Decoin channel to keep a finger on the pulse of the market.
Loss is part of the game. The most important thing is knowing you made the right decision.
What has been the biggest success story in your career to date? Could you share the secret of the most successful trades you have made?
I spotted the DeFi trend very early and made some very successful trades within a short period of time. I made the biggest profit when buying Uniswap and AAVE.
On the flip side, we are also interested in hearing about your “rainy days”. What was your biggest fiasco, and what lessons has it taught you? What helps you stay on the path of constant self-improvement?
At the beginning of 2019, I sold most of my Etherum at around $120. I didn’t sell it at the stop price that I had decided when I bought it, that was about $300.
It taught me to be always disciplined and stick to the original plan, even when there are big losses. This discipline will ensure that you make the biggest gains in the future.
What are the strategies one can implement when one is new to the cryptocurrency market? What are the risks associated with this activity, especially for freshers, and what’s the best way to avoid them?
My advice is to learn from those who have had the most proven profitable results throughout the years.
In Decoin, freshers can watch recorded sessions of traders and copy these top traders’ actions. I think this combination can be beneficial to new traders till they gain confidence.
Some cryptocurrency-backed assets are getting spots on the largest stock exchanges worldwide. Talking generally, where would you recommend people invest—on the stock market or a cryptocurrency exchange?
Revolutions are always the best choice, in my opinion. The whole cryptocurrency market is relatively new compared to the traditional market, and the potential is huge. I would pick the cryptocurrency market, so this is my advice to those asking for it.