Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Limiting losses

Martingale is a gambling system in which the stakes are doubled after each loss.

Figure 6.1 – Playing roulette

Figure 6.1 – Playing roulette

If you play roulette, bet $10 on red, and you get red, congrats, you’ve won $10. If you get black, you lose the initial $10, then you double down, betting $20 on red. Black is the outcome again; you lose $20, and you bet $40 on red. Red comes and you’ve won $40 minus the row of losses totaling $30, so you’ve actually won $10.

This might seem a smart system until you calculate the budget you need in order to win the $10 that you’ve bet on red after getting black 10 consecutive times. That’s $20+$40+$80+$160+$320+$640+$1,280+$2,560+$5,120+$10,240 = $20,460.

So, would you risk $20,460 to win $10?

What if there are 11 consecutive blacks?

You do the math.

Even though most traders started trading to gain profits, one of the most important aspects of trading and investing is how...