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Are you ready for Crypto Trading?

  Crypto literacy is at its peak. Every day, new entrants want to enter the market and make money. While joining the crypto trading club is very easy , it's multiple times difficult to survive in this ruthless market. This blog aims to provide a real “check” for the readiness of all new entrants at the start of their crypto trading journey or those who plan to join crypto trading soon . Self-Profiling Before you jump into the market for “making money”, it is essential to know a few fundamental yet most important things about yourself (i.e., profile yourself). Self-profiling includes asking and answering some fundamental questions. For example: Why are you in trading? What is your portfolio size? How long can you keep your capital in the market? What is the source of your capital? What is your appetite size? How much loss can you bear in case you fail? Answering these few fundamental questions would not only define what you will be doing but will also keep you away from many losse...
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Traders Four Most Common “Sins”

  Traders Four Most Common "Sins" This blog is on the most common mistakes (I would call them sins) that new traders make during their entry into crypto trading. There could be dozens of other related mistakes also. However, I would prefer to restrict myself to the Four most common sins that new traders may commit due to their lack of knowledge about the cryptocurrency market dynamics. The below discussion is based on these four most common yet most important mistakes that new traders should avoid. 1.    No distinction between Investing and Trading Let’s make a distinction between these two common terms first because the majority of new entrants in crypto trading, do not know the difference nor do they know why they are entering this market(i.e., do they want to invest or trade). Their initial ignorance leads to wrong expectations, psychopathic behaviour, ultimately unbearable losses and exit from the crypto trading/investment market.   Figure 1: Photo by...

Risk Management and Power of 1% Rule

Risk Management and Power of 1% Rule Risk management has the same relation with trading as the spinal cord has with the human body. Like a human cannot survive without a spinal cord, a trader cannot survive without mastering the art of risk management. Despite the importance of risk management, about 99 % of traders ignore risk management during trading. According to a survey, risk management and trade psychology contribute to 95% of the success in trade and the remaining 5% comes from technical analysis. This implies that traders (especially new traders) should spend most of their time mastering the art of risk management instead of focusing on fancy chart-making only. This write-up aims to highlight the importance of risk management in trading/crypto-currency trading using some simple examples and using two hypothetical characters Mr. Raju (a new trader) and Mr. Babu (an experienced trader). Risk Management and New Trader (Mr Raju) Raju is a new trader. He has a 3000 USD portfoli...

What type of trader are you?

  It is essential to know about yourself before diving into crypto trading. An important question to ask is that what type of trader you are? Because as it seems, making money in cryptocurrency may be an easy job at times. But to make your crypto earnings sustainable and be a successful trader, it is crucial to explore your potential and act as per your type of personality. This blog is about the kinds of traders and the way they make trades. Image by  Gerd Altmann   from  Pixabay In general, we can categorize cryptocurrency traders into the following four types of traders. Every kind of trader needs its skillset and approach for being successful. Long-term traders   These traders aim to invest in those projects/currencies that are newly launched or about to lunch. The aim is to put money into such projects and hold it for a more extended period. These traders make money because all currencies at the beginning have the lowest prices. However, if the pr...

Is Bitcoin Halal?

  Muslims have several questions these days about Bitcoins. These include: Is Bitcoin halal? Is crypto trading halal? Is it acceptable for Muslims to trade in cryptocurrencies? What do the religious scholars state about it?   This write-up aims to discuss this issue in detail.    Image credit Pixabay     Before discussing the subject topic, I strongly recommend having a quick go of my earlier write-ups to have a good understanding of cryptocurrencies, bitcoins and the related terminologies . Islamic Scholar opinions about Bitcoin Below are screenshots of four fatwas about Bitcoin from four different sources. These include fatwas from "Grand Mufti of Egypt", Turkish Government, "Center of Palestine" and from "Shaykh Haitam from the UK" respectively.   According to these all sources, Bitcoin is Haram . In simple words, as per these sources, Muslims should not deal with Bitcoin.      Summary of Religion scholar's arguments against B...