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6 Must-Read Tips For Better Bitcoin and Crypto Trading and Investing in 2020

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Trading in financial markets can be a profitable but also dangerous endeavor. It requires knowledge, skills, and experience no matter the market traders are employing.

Of course, gaining experience could be related to actually registering losses but it could also help to learn from traders with a long history in the field. CryptoPotato recently had the chance to interview one such trader – Chris Dunn.

Dunn is among the first YouTubers specialized in the field of Bitcoin and cryptocurrency trading, but he’s also sharing with his over 200,000 subscribers a lot of lessons regarding traditional financial markets. In case you missed the full interview, or you are too lazy, here are the highlights and takeaways:

Diversification Is Key

The topic of diversification, also known as “don’t put all of your eggs in the same basket,” has been overly discussed when it comes down to any sort of investing.

Putting all of your funds into one (or very few) assets might be devastating in case the price takes a serious hit. In an event like this, the entire portfolio will suffer, and many traders won’t be able to recover from such a hit.

Diversification means spreading the risk between numerous assets.

“I think it’s extremely dangerous if you don’t diversify. Even if you believe in Bitcoin and crypto, it’s just very risky to put all of your wealth only in crypto.

I’m a huge proponent of diversifying. I pull hard profits out of the crypto market all the time and invest in gold, invest in real estate, and invest in stocks.” – Dunn concluded.

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Diversification: don’t put all your eggs in one basket

Do Your Own Thorough Research To Find The Next Amazon

The cryptocurrency field is rather young. While the stock market has been existed for over a century, digital assets emerged with Bitcoin’s creation in 2009 and are yet to see mass adoption, despite the 2017 interest boom.

As such, Dunn believes that the field will experience significant growth in the upcoming years and investors should do comprehensive research to find the most profitable projects:

“I think there are projects ran by companies that are going to be like Amazon in 20 years from now (Dunn refers to AMZN stock). I think people have to be more patient and selective and make sure they’re getting in the right projects.”

Which Cryptos Have a Higher Chance To Break ATH?

Arguably the most important period for cryptocurrencies came in late 2017 and early 2018. Market prices began accelerating at a rapid pace and ultimately attracted the attention of retail investors and mass media. It later became known as the 2017 crypto bubble, as prices crumbled down in the following months. Leading altcoins such as Ethereum and Ripple saw massive decreases of over 90% dumps in just one year.

“There’s a significant difference between the projects that experienced this turbulent time and those who didn’t, which could play a role in their future price performance.

I kind of differentiate between coins that went through the 2017 bubble and coins that were born after that (i.e. BNB and Tezos). Such coins like Ethereum and Ripple have a lot of bag holders from people that bought the highs. This creates a lot of selling pressure.”

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Tezos

Buy The Lows (Or Buy When Everyone Is Selling)

There’s a famous saying in the investment field that advises people to “buy low, sell high.” To buy the low means to purchase the asset while the price is depreciating, and not the other way around, which is typically what the majority does.

Yet, it is not as simple to do, as it sounds. Human nature and emotions are susceptible to panic which could urge people to sell assets when prices are plunging and to FOMO (fear of missing out) in when they are skyrocketing. Dunn strongly believes that accumulating BTC or any other asset that the investors believe in while prices are dropping is vital for long-term success:

“After a bubble pops in Bitcoin (i.e. 2014 and 2018) and prices are depressed, I accumulate as many bitcoins as I can for cold storage. I tuck it away, and don’t really think about the rice.”

Dunn also gave a compelling example from the mid-March Black Thursday when most assets plunged hard. Bitcoin lost up to 50% of its value at some point. Yet, Dunn said that he and his team “bought the lows” during that panic drop as well.

Risk Management – Almost No One Gets Rich Quickly

According to Dunn, risk management is “the most important thing. A lot of traders get caught up, and most of them lose money because they do not think about the risk. They just think about how they can get rich quick.”

To accomplish better risk management, investors should also employ a famous narrative – to buy using funds they can afford to lose. Meaning that if the price plunges, it would not disrupt the traders’ plan and rush him to panic sell while registering a massive loss.

Blame Yourself, and Only Yourself

One of the most common mistakes newbies in trading tend to do is relying on other sources and trying to hold someone else accountable for their decisions:

“A lot of newbies come in, and they buy something because they watched a YouTube video or listened to some guy on CNBC, and then they blame other people when they lose money. If you want to be a real investor, you have to take 100% responsibility for all the decisions that you make.”

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Source: https://cryptopotato.com/6-must-read-tips-for-better-bitcoin-and-crypto-trading-and-investing-in-2020/

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Bitcoin Just Marked New 2020 High, But This Indicator Signals Correction Incoming (BTC Price Analysis)

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Starting by looking at the bigger picture, Bitcoin price had made a remarkable run since October began, gaining almost $3000 to its value.

Looking at the following long-term weekly chart, we can see this week’s greenish candle that will be closed later today. From a technical point of view, as long as the candle close price is above the $12,500 area (previous high) – we can safely say that BTC is on a healthy uptrend.

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BTC/USD weekly. Chart by TradingView

The Good and The Bad: New 2020 High but Bearish Divergence

Just a few hours ago, Bitcoin price recorded a new 2020 high close to $13,400 (on Binance Futures); however, the primary cryptocurrency could not hold there, and quickly slumped to $12,700 in a matter of one hour.

Looking at the shorter-term chart, the 4-hour, we can identify a bearish divergence on the RSI. This is a bearish pattern and might indicate that the buying power is fading away.

This happens when the price goes through a higher-high, but the RSI indicator is doing the opposite and going through a lower-high.

Another worrying sign is the trading volume. Since its peak volume on October 20-21, four days ago, the trading volume decreased even though the BTC price had actually gone up.

BTC Support and Resistance Levels To Watch

As mentioned above, if BTC were to correct, then the first major level of support lies at the current levels around $12.9 – $13K. If Bitcoin breaks here, then the first significant level lies at $12,700, followed by the previous 2020 high from August at $12,400 – $12,500.

From the bullish side, if Bitcoin holds the $13,000 – then the first levels of resistance lie at $13,200, followed by today’s high around $13,400. Bitcoin will be looking to break the 2019 high from June – at around $13,880.

Total Market Cap: $400 billion

Bitcoin Market Cap: $240 billion

BTC Dominance Index: 60%

*Data by CoinGecko

BTC/USD BitStamp 4-Hour Chart

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-just-marked-new-2020-high-but-this-indicator-signals-correction-incoming-btc-price-analysis/

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Bitcoin Breaks New 2020 High As Total Market Cap Topped $400 Billion (Market Watch)

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Bitcoin continues with the 2020 records and just a few hours ago marked a fresh high of above $13,350. Most alternative coins followed suit with impressive increases, but the market has calmed since then. The entire cryptocurrency market clocked at above $400 billion.

Bitcoin To Yet Another 2020 High

CryptoPotato reported a few days ago that the primary cryptocurrency exceeded the August 2020 high of about $12,500 and reached $13,200. What followed was a slight retracement to about $13,000 and stagnation yesterday.

Nevertheless, the volatility returned in the past 24 hours, and BTC headed towards new highs. This time, Bitcoin broke above $13,350. In fact, according to data from Bitstamp, BTC’s new 2020 high is at $13,362.

Another sharp rejection followed, and the asset tanked briefly below $13,000. Nevertheless, the bulls have since driven it above the coveted mark, and BTC trades at about $12,940.

A compelling chart recently revealed that Bitcoin is forming an inverse head and shoulders pattern. If it’s to play out, the cryptocurrency could soon skyrocket even further and top its all-time high of $20,000.

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If this scenario is indeed to materialize, Bitcoin would have to break above the resistance lines at $13,420, $13,500, $13,815, and $14,000 before reaching new records.

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BTC/USD. Source: TradingView

Altcoins Follow Up And Calm Down

Most alternative coins experienced similarly increased volatility as Bitcoin. Ethereum surged to a new 7-week high of nearly $420. However, ETH quickly retraced and is now hovering around $409 again.

Ripple’s highest level came at about $0,26, but XRP has since decreased to below $0.253.

Thus, on a 24-hour scale, most larger-cap altcoins have remained essentially at the same positions as yesterday, despite the brief price jumps. Chainlink and Litecoin have registered the most gains of about 3.6%. LINK trades close to $12.35, and LTC is positioned at $56.3.

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Cryptocurrency Market Heatmap. Source: Quantify Crypto

The most impressive gainer since yesterday is Filecoin. After the recent controversy and continuous price slump, FIL has surged by 45% in the past 24 hours.

Ocean Protocol (18%), Quant (17.5%), THETA (10.2%), Reserve Rights (10.2%), and Ampleforth (10%) have also increased by double-digit percentages.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-breaks-new-2020-high-as-total-market-cap-tops-400-billion-market-watch/

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Ripple Board Member Arrested on Cyberstalking Charges

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  • Ripple board member and a close family friend of US President Donald Trump, Ken Kurson, has been arrested following allegations of cyberstalking.
  • According to the New York Times, Kurson has stalked and harassed a total of five victims, including his ex-wife.
  • He was reportedly most vicious against a friend of his ex-wife, whom he blamed for his divorce. He used pseudonyms to contact the hospital she worked and sent fraudulent emails claiming that she had an affair with her boss. Kurson also initiated a flood of negative Yelp reviews, threatening emails, and anonymous calls and messages to other hospital employees. 
  • The woman claimed that Kurson had used the same tactics against another female victim, who was fired from her job. The criminal complaint also asserted that the second victim is Kurson’s ex-wife.
  • The public corruption unit of the United States attorney’s office in Brooklyn is handling the case. A judge released Kurson from custody pending trial. 
  • Kurson is a close friend of Donald Trump’s son-in-law Jared Kushner. Kushner had previously appointed Kurson as the editor in chief when he owned The New York Observer in 2013. 
  • In 2018, the Trump administration offered Kurson a seat on the board of the National Endowment for the Humanities. After a routine background check from the Federal Bureau of Investigation, Kurson withdrew from consideration.
  • Kurson joined the board of directors at Ripple in early 2017. The announcement highlighted that Kurson was one of the first investors in the company. 

Featured Image Courtesy of CNBC

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Source: https://cryptopotato.com/ripple-board-member-arrested-on-cyberstalking-charges/

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