Welcome to our Cryptocurrency trading guide 2021. Do you want to learn how to trade Bitcoin? Although it may seem that Bitcoin is not going through its best moments (if we compare the current price of BTC with that of a few months ago), it is always possible to make money buying and selling cryptocurrencies. Taking advantage of the excellent trader y youtuber cryptocurrency and technical analysis Sami Loyal has just launched the Spanish version of his channel of trading from YouTube, forflies, we are going to teach you how to make money with Bitcoin in no time.
Who is Sami Loyal and what is Forflies?
The Forflies team is committed to a cold and objective analysis of the price action of Bitcoin. At Café con Leche y Criptos we really like the Forflies channel for its rigorous level of technical analysis and its lack of bullshit when it comes to fundamental analysis: Sami Loyal is one of the very few y that has been going against the moonboys convinced that the $ 100.000 Bitcoin is imminent. If the chart says that BTC is in a downtrend, Bitcoin is in a downtrend. And period.
What we propose below is a free course to earn money investing in cryptocurrencies. This will be the first in a series of articles in which, based on the strategy and philosophy of Sami Loyal, we will learn the fundamentals of investing in crypto.
Cryptocurrency Trading Guide 2021: free course to make money with trading of cryptocurrencies
It doesn't take much to learn how to invest in cryptocurrencies. The theory can be learned in a matter of a few hours. Another story is learning and knowing how to apply trading effective. We need to find a system that allows us to make money with Bitcoin safely and constantly.
What do we mean when we talk about making money with cryptocurrencies? In essence, when we talk about learning to invest in Bitcoin and other cryptos we are talking about buying an asset at a low price and then selling it at a high or higher price. This is going to be the only objective of a trader cryptocurrency: buying a cheap crypto and then selling it at a more expensive price. Simple as that.
Differences between fundamental analysis and technical analysis of cryptocurrencies
We will base our Cryptocurrency Trading Guide 2021 on the simplicity of data-driven analysis. There are only two ways to study a market. These two forms are applicable both to the world of the stock market and in that of the exchange of currencies (Forex) and cryptocurrencies: fundamental analysis and technical analysis.
Bitcoin fundamental analysis
Fundamental analysis consists of studying all the factors external to the price action that could end up influencing the price. The fundamental analysis looks, for example, in the health status of a company's accounts, in the confidence that its CEO transmits, in any news that positively or negatively affects the cryptocurrency, etc. In Bitcoin, for example, the fact that it is a deflationary cryptocurrency, or the repeated support it has received from investors such as Michael Saylor and Cathie Wood.
The legal mess with the SEC in which he is currently involved Ripple XRP is an example of fundamental analysis: if the regulator (the US Securities and Exchange Commission wins the lawsuit (the SEC accuses Ripple of having traded XRP as if it were a security, and not a cryptocurrency), this will very negatively affect the price cryptocurrency, even putting its survival in jeopardy.
Bitcoin technical analysis
The study, analysis and application of technical analysis of cryptocurrencies is one of the most effective ways to gain an advantage in order to anticipate the future of cryptocurrencies. By studying the price action of the past, it is possible to make projections (never infallible predictions) of what the price of a given cryptocurrency will do in the future. Technical analysis is constantly changing, and we have to be able to make profits quickly and consistently.
Less than a year ago, a Bitcoin was worth $ 10.000. If the estimates that indicate that Bitcoin will be worth $ 100.000 are met, we are talking about an increase of 1000%. Not bad, right?
Well, everything is relative.
As Sami Loyal points out in the video of the Cryptocurrency Trading Guide 2021, “If you have invested a hundred euros, you will end up with a thousand; if you have invested ten euros, you will get one hundred ". This is where we get to the crux of the matter: what if we told you that there is a way to increase your cryptocurrency profits much faster and with an investment equal to or less than the ones we just mentioned?
As Sami Loyal sums it up:
"Buying and holding Bitcoin until you get a x10 is not going to make you a millionaire."
If you bought Bitcoin in 2008, without a doubt, holde It has been synonymous with becoming a millionaire. But, in the year 2021? Nah. That train passed. At least for the small and medium investor. Luckily, with the strategy of trading proposed by Sami Loyal (based on the study of support and resistance), we can make money with cryptocurrencies every day.
The key to the Cryptocurrency Trading Guide 2021: understanding how supports and resistances work
Price action never moves in a linear fashion, but rather in a zigzag fashion. After the price reaches a level that it cannot overcome, we say that a resistance zone has been established. In such a resistance zone, the price bounces down. Now, here comes the important thing: if we ever return to that level that previously we could not overcome and overcome it, the resistance line becomes a support or support line. In other words, when the price drops and it returns to that zone, chances are high that it won't drop any further.
To better understand this example, let's take a look at what Bitcoin did between June and September 2017. This is explained by Forflies:
As you can imagine, If you know in advance where the price is likely to meet a support or resistance level, it may not be a bad idea to invest money at that point, with the belief that the price will bounce and take the opposite direction after encountering the barrier or support.
It is with this kind of information based on technical analysis and on the study of the price graph of Bitcoin and other cryptocurrencies with which the traders they enter positions with which they achieve significant benefits.
Cryptocurrency trading leverage: how to become a millionaire with crypto and 'leverage'
Applying leverage, according to Forflies, is "turning a boring price movement into something much more exciting." In essence, leverage consists of multiplying our risk, as well as our potential returns. An investment of a thousand dollars with a leverage of x5 means that we will be trading with 5.000 dollars. If the price goes up 5%, it will actually have risen 25%.
There can never be a scenario that we owe money to the exchange, as If our losses exceed the total amount of money we have in our account, we will be liquidated and our position will be closed.
Watch the following video to better understand how people become millionaires thanks to cryptocurrencies:
Risk Management: risk management when investing and trade with crypto
Investing in cryptocurrencies is not a game. It is a practice that can lead anyone to ruin. Whether you earn millions because you entered early, or if you lose tens of thousands because you entered late, your brain can play tricks on you and distort the reality of things. Once you are overexposed, you are subject to extreme emotion and therefore risk making all kinds of mistakes, from freezing when you should act to selling low in panic or buying on credit. Simply chaining a few losing positions with leverage to liquidate an account.
Professionals know when to take losses, how to manage risk, and generally aim to trade more good than bad. (or, make more good investments than bad). As we have said, there is no use learning the trading without earnings, and earnings are useless without constancy.
How to be a professional in the purchase and sale of crypto: system of trading successful cryptocurrency and constant
We need to develop a system of trading that allows us to be constant. Professionals don't change their strategy based on emotions, they only respond to market conditions, price action, and fundamentals (so if they're going to come in stronger, it's for a reason).
Hobbyists may have luck throwing cash into one or several cryptocurrencies like ADA, BNB or XRP at the right time, But luck can and does run out (and often at the worst times, like the all-time highs or lows).
No one is magically going to be a pro from the start, but if you do yourself a favor and manage risk like a pro from the start (sticking with it even when the FOMO or fear shows up), you will avoid all the crazy thrills of cryptocurrencies and their related mistakes like a pro (allowing you to maintain your strategy), and therefore you will give yourself the margin of maneuver to be able to invest in cryptocurrencies before suffering a REKT (liquidation).
"I like to teach you how to do things easily first before moving on to more complicated levels and giving you the tools that could lead to disaster."
Crypto trading tutorial: buying Bitcoin live with it exchange Phemex: video example
In the following video we show you a tutorial with Sami Loyal's analysis process to decide when to buy Bitcoin based on the study of the price evolution graph and taking into account support and resistance. Also, we include a practical example of how to buy Bitcoin with leverage in Phemex, we teach you how to place limit orders, and we explain what the sections of open positions, closed positions, active orders, conditional orders, fills and order history mean.
Trend changes: trading strategy based on the identification of pattern breaks
Loss of strength and collapse. Sami Loyal equates it with the boxer metaphor: Imagine a boxer who has been training for half an hour hitting a bag. By force, his blows are going to get weaker and weaker. There will come a point where the boxer will have to put it down and rest. Or it will collapse. Something similar happens with the price action of cryptocurrencies. The key is in the identification of supports and resistances. Take a look in the following image at the number of patterns that we can identify and, therefore, take advantage of their breaks, either above or below:
If we are able to identify a price action where, for example, the lows are getting lower, and the highs are getting lower and lower, it is possible that we are facing a downtrend that, sooner or later, will lead to a break when it meets a support level and it is not respected. Sami Loyal explains it like this in the following video:
Again, if we are able to detect when a trend is changing, we will be facing a very powerful tool. It is not just a mathematical study based on indicators. It's an art.
Sami Loyal: Success Story of a youtuber of cryptocurrencies
At the end of 2020, Sami Loyal, acquired some public relevance after becoming a millionaire thanks to trading cryptocurrency exchange and his education and learning company. The young Briton starred in several articles in specialized economic media after getting his first million pounds at the age of 19.
Sami, an enthusiast youtuber Since his early teens, he says that school was "boring" and that he always had the ambition to be a millionaire. In October 2020, West London's Sami reached the milestone of amassing his first £ XNUMX million Through a mix of trading commodities, cryptocurrencies and indices and his online brand Forflies, where he shares his skills with subscribers of his videos, analysis and insights.
"I felt that what I learned in school was not relevant to the skills I needed to be an entrepreneur," Sami told media such as Yahoo Finance or PRNewswire. Inspired by what he saw on the Internet, at age 14 Sami created a YouTube channel in which he analyzes the latest technological devices, such as new mobile phones.
"When I was 15 I saw the movie 'The Wolf of Wall Street' and decided I wanted to live that lifestyle, so I set out to become an online marketer." With an initial investment of just £ 28, Sami started a talent agency that sponsored more than 80 YouTubers, allowing him to raise around £ 1.200 a month.
“So I read three books, one recommended by Bill Gates on the principles of success and then two on how to operate: Technical analysis of the markets, by John Murphy, and Trading in the area, from Mark Douglas:
In addition to spending his money on trips and cars, like a Porsche, an Audi convertible and a Tesla, Sami has bought his mother the car of his dreams, an Audi Q5, and pays the rent and bills for the house he shares. with her. The young man tries to keep his feet on the ground: “Even now I always make sure that I will have enough money to put food on the table and a place to live for at least a year if things suddenly change for me.
As we have mentioned, now Sami is consolidating the expansion of the YouTube channel where he teaches technical analysis of cryptocurrencies: Since July 2021, his channel to learn technical analysis of Bitcoin is now available in Spanish and Hindi.
Forflies official website: http://forfliescrypto.com
