Crypto Trading Guide: Step-by-Step For Complete Beginners — Transcript

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1. 0:00In theory, trading crypto is among the fastest  ways to make life-changing amounts of money.
2. 0:05After all, some crypto traders have turned  hundreds of dollars into millions of dollars in
3. 0:11just a few days. In practice, however, most crypto  traders will end up in the red, and some will lose
4. 0:18all their money in a matter of minutes. This is  because trading crypto is not like trading other
5. 0:25assets. That's why today we're going to tell you  everything you need to know about trading crypto
6. 0:30starting from square one. By the end of this  video, you'll have all the knowledge you need
7. 0:37to succeed. My name is Guy. Stay tuned. So, the  reason why crypto trading can be so profitable is
8. 0:45because of one factor, emotions. The crypto market  is volatile, meaning that it's normal for prices
9. 0:53to go up or down by 10 to 30% in a day. To put  things into perspective, if a stock goes up or
10. 1:00down by more than 5% in a day, it's considered  volatile. In crypto, a 5% move can happen in a
11. 1:07matter of minutes, sometimes seconds. This makes  traders feel emotional, especially if they're
12. 1:15using a lot of money. When crypto prices go up,  they feel greed. When crypto prices go down,
13. 1:21they feel fear. Now, believe it or not, but this  is the entire basis of trading assets. When people
14. 1:30feel greed, they tend to buy, and when they feel  fear, they tend to sell. These emotions follow
15. 1:36predictable patterns, and price action follows  suit. The first person to figure this out was
16. 1:42in fact a Japanese rice merchant from the 1700s  named Hanma Monahisa. He invented the candlestick
17. 1:49charts we use today and was the first to identify  the repetitive patterns in price that are created
18. 1:56by fear and greed. These emotional patterns can be  found in every asset class, whether it's crypto,
19. 2:03stocks, or indeed rice. The catch though is what  I mentioned a few moments ago, emotions. People
20. 2:11trading rice probably don't get too emotional,  and most stock trading is done by emotionless
21. 2:17algorithms and passive flows. By contrast, the  crypto market mainly consists of a combination of
22. 2:24new crypto traders looking to get rich quick and  crypto whales, that is large holders of crypto,
23. 2:30who try to manipulate these new traders. This  will change as more institutional investors and
24. 2:37algorithms get involved, but for now that's  pretty much the playing field. Now, the good
25. 2:42news is that this playing field results in lots of  emotions, which makes technical analysis much more
26. 2:48effective in crypto. The caveat is that the crypto  whales know technical analysis, too, and they will
27. 2:55manipulate prices to trick new crypto traders into  buying or selling at the worst possible times.
28. 3:02So given this fact, it's worth remembering this  quote from Richard Woff, a trader from the 1900s
29. 3:09who saw how big investors manipulated markets.  Quote, "All the fluctuations in the market and
30. 3:16in all the various stocks should be studied as  if they were the result of one man's operations.
31. 3:23Let us call him the composite man who in theory  sits behind the scenes and manipulates the stocks
32. 3:30to your disadvantage if you do not understand the  game as he plays it and to your great profit if
33. 3:36you do understand it. So then folks I ask you are  you ready to play? Are you ready to understand the
34. 3:43game? If so then smash that like button to let  us know and subscribe to the channel and ping
35. 3:48that notification bell so you don't miss the  next video. Okay, so with all of that in mind,
36. 3:54let's start with the basics. Before you do  anything, you need to look at the price of BTC,
37. 4:00the native cryptocurrency coin of the Bitcoin  blockchain. This is because BTC leads the rest
38. 4:07of the crypto market. BTC needs to be rallying or  gradually rising for most other cryptos to rally.
39. 4:14If BTC is crashing, it doesn't matter how bullish  the other cryptos look. Chances are they will fall
40. 4:21along with BTC. Now, of course, the best way to  check BTC's price is to use a crypto exchange. For
41. 4:28the purposes of this video, we'll be using Tubbit,  and that's because we have a crazy trading fee
42. 4:33discount of up to 50% and up to $100,000 in signup  bonuses on offer there. This deal is completely
43. 4:40free, by the way, but it probably won't be around  for long. So, all you need to do to claim it is
44. 4:46to click the two-bit link in the description or  scan this QR code here. It'll take you to a page
45. 4:52that looks like this. All you need there is your  email to sign up. No additional info required. It
46. 4:59literally takes 15 seconds. So, do check it out.  Don't worry, I'll be waiting for you here. [Music]
47. 5:12So once you've pulled up the BTC chart on Tubbit,  the first step is to remove all the indicators.
48. 5:18You can do this by hovering over these indicators  and clicking X as you can see here. For now,
49. 5:24we just want to identify the price trend. Next,  take note of the time frame the chart is set to.
50. 5:31This info can be found near the top of the  chart. Set the time frame to daily and zoom
51. 5:36out by scrolling down. Now, obviously, each candle  you see on the chart represents a day. Red candle
52. 5:44means prices went down that day and green candle  means prices went up that day. With this in mind,
53. 5:49it should be super easy to tell if BTC's price  has been trending higher over the last few days
54. 5:54or trending lower over the last few days. As I  noted a few moments ago, BTC needs to be trending
55. 6:01higher for other cryptos to rally. If BTC has been  trending lower, chances are other cryptos will be
56. 6:07too. However, it's possible that the trend could  change. This is where the bodies and the wicks
57. 6:14come in. The body is the thick part of the candle.  Sometimes it's small. The wick at the top of the
58. 6:21candle shows you the highest price that was hit  that day, and the wick at the bottom shows you
59. 6:26the lowest price hit that day. Sometimes the wicks  are barely visible. If most of the recent candles
60. 6:33are mostly body and no wick, this tells you the  trend is strong regardless of the direction. If
61. 6:41the candle is mostly wick and no body, however,  then this tells you the trend is weak. Now,
62. 6:46as a rule of thumb, a large wick on the top of  a candle means lots of people are selling, while
63. 6:52a large wick at the bottom of a candle means lots  of people are buying. Logically, long wicks on top
64. 6:58suggest that prices could trend lower. Whereas  long wicks on the bottom suggest prices could
65. 7:03trend higher. And if the candle is barely visible,  almost no wick and no body, then that suggests the
66. 7:10trend is reversing regardless of the direction.  If the candles are green but getting smaller,
67. 7:16then that means prices could start falling.  If the candles are red but getting smaller,
68. 7:21then that means prices could start rallying.  This is candlestick analysis in a nutshell and
69. 7:26we'll leave a link to the popular candlestick  patterns down below. So once you've figured out
70. 7:32whether BTC is trending up or down and assessed  whether this trend could reverse or continue,
71. 7:38the next step is to figure out how high or low BTC  could go in the short term. You should know that
72. 7:44there are many ways to do this and everyone has  their own style. So, be sure to try out all the
73. 7:49different ways I'm about to show you to figure  out which method works best for you. Okay. The
74. 7:55first way to figure out how high or low BTC  could go in the short term is to look at the
75. 8:00levels where prices clustered before. These levels  tend to be around nice round numbers like 91K or
76. 8:07100K or 85K. It should be pretty easy to identify  at least a few of these key levels. Try to focus
77. 8:16on the most significant ones. And pro tip, if you  look on the bottom left of the BTC chart on TUBIT,
78. 8:22you'll notice there's a little tab you can click  that expands a selection of tools you can use to
79. 8:27draw. Note that you'll need to have the trading  view view enabled on the top. Near the top of
80. 8:33the toolbar on the left, you'll notice there's a  tool with a line called trend line. You can click
81. 8:38on it and use it to help you identify key levels.  If the key level is above the current price, then
82. 8:44it's called resistance. And if the key level is  below the current price, then it's called support.
83. 8:50As you learn, you'll notice that BTC will chop  between these key levels sometimes for prolonged
84. 8:56periods. And trading these choppy conditions  can be difficult, and that's just because the
85. 9:01emotions that fuel the big moves are muted. So  technical analysis doesn't work as well. Another
86. 9:08important thing to note is that when BTC breaks  above or below a key level, it's common for it to
87. 9:14retest that level before continuing the trend. For  example, suppose BTC is below a key level of 95K.
88. 9:21That means 95K is resistance. If BTC's price  breaks above this key level, chances are that
89. 9:28it will fall back to 95K before rallying higher,  assuming the trend has flipped bullish. According
90. 9:35to the candlestick analysis, the same is true if  BTC is falling. Suppose BTC is above a key level
91. 9:42of 100K. This means 100K is support. If BTC's  price breaks below this key level, chances are
92. 9:49it will rally back to 100K before falling more,  assuming the trend has flipped bearish, according
93. 9:55to the candlestick analysis. In other words,  BTC doesn't go up only or down only. Every rally
94. 10:02is followed by a correction and every crash is  followed by a rally. Now figuring out exactly how
95. 10:08high or low BTC could go can be done by looking at  the difference between key levels. For instance,
96. 10:15suppose BTC was chopping between 95K and 100K and  has now broken above 100K. All you need to do is
97. 10:23take the price difference between these two levels  and add it to the resistance level. That means
98. 10:30adding 5K to 100K. That gives us a target of 105K  for BTC. And the same is true if BTC breaks below
99. 10:4095K after chopping between 95 and 100K. The price  difference would still be 5K, but this time we
100. 10:47subtract it from the support level. That gives us  a target of 90K for BTC. Just remember that every
101. 10:54rally is followed by a correction and every crash  is followed by a rally. This means BTC could fall
102. 11:01back to 100K after first breaking above and rally  back up to 95K after first breaking below. If that
103. 11:08100K level holds as a new level of support, then  BTC will likely bounce and hit that 105K target.
104. 11:17On the flip side, if that 95K level holds as  a new zone of resistance, then BTC will likely
105. 11:22get rejected and fall to that 90K target. This is  something that most crypto traders tend to forget,
106. 11:29and it's why so many lose money. Another thing  that they forget is that crypto whales can see
107. 11:36these levels, too. They know that other traders  will be looking at these key levels, particularly
108. 11:42new traders. The result is that they will try and  manipulate BTC so that its price rallies higher or
109. 11:49falls lower than traders expect. This makes these  traders emotional and tricks them into buying or
110. 11:55selling at the wrong time. Remember what Woff  said. Now, another way to figure out whether
111. 12:01BTC's price trend is about to change and how high  or low it could go is to use technical indicators.
112. 12:08If used properly, technical indicators can even  give you a sense of exactly when the trend is
113. 12:14about to change and exactly when a price target  could be hit. Now, there are literally thousands
114. 12:19of different technical analysis indicators out  there. Some are free, others are paid. And in
115. 12:25our opinion, the free indicators are sufficient  because every technical analysis indicator is
116. 12:31ultimately looking at the same things through  a slightly different lens. I'll remind you
117. 12:36that everyone has their own style. And this is  truest when it comes to which technical analysis
118. 12:41indicators they like to use. On Tubbit, you can  find a bunch of free technical analysis indicators
119. 12:47up near where you select the time frame. Clicking  on the technical indicator ticker will open up a
120. 12:53long list of indicators. Now, we don't have time  to go through all of these here, but we reckon
121. 12:58you don't need all of them either. The first three  indicators you need to know are volume, the RSI,
122. 13:05and the MACD, which you can search for manually.  Now, the volume is super straightforward. It just
123. 13:10shows you how much trading volume is inside  the time frame of the candle. In this case,
124. 13:15one day. If trading volume is slowly rising, this  means the trend is strengthening regardless of the
125. 13:21direction. Don't worry too much about the color of  the trading volume bars. As for the RSI, it stands
126. 13:28for relative strength index, and it's a super easy  way of figuring out whether a crypto is overbought
127. 13:34or oversold. If the RSI is high, then it means  BTC is overbought, and that means it could start
128. 13:41crashing soon. On the flip side, if the RSI is  low, then this means BTC is oversold, and that
129. 13:48means it could start rallying soon. Most of the  time, the RSI is somewhere in the middle. As for
130. 13:53the MACD, it stands for moving average convergence  divergence. It sounds complex, but it's actually
131. 14:00super simple. When the bars are green, the price  trend is positive. When the bars are red, the
132. 14:05price trend is negative. When the two lines cross,  that means the price trend is about to change.
133. 14:12Simple as. Another two technical indicators you  need to know about are the moving average and the
134. 14:18Ballinger bands. As the term suggests, the moving  average tells you the average price of BTC over a
135. 14:24given period. Unfortunately, you need to manually  add the moving averages. Thankfully though, this
136. 14:30is fairly easy to do. First, search for the moving  average from the indicator selection and select it
137. 14:36twice. In the top left, you should see both moving  average indicators appear set to some default
138. 14:43time frame like 9. hover over each indicator and  manually select 50 for one moving average and 200
139. 14:50for the other moving average. As you can see here,  now the reason why we're using the 50 and 200
140. 14:56periods is essentially because these are the most  significant mainly on the daily. The 50-day moving
141. 15:02average is a strong zone of resistance when BTC  is below it and it's a strong zone of support when
142. 15:07BTC is above it. Same idea for the 200-day moving  average. In this sense, you can think of the
143. 15:1450-day and 200-day moving averages as being hidden  key levels for BTC. The difference is that these
144. 15:20two moving averages also show you BTC's trend.  When the 50-day moving average crosses the 200-day
145. 15:27moving average from below, this is called a golden  cross, and it suggests that BTC is entering a
146. 15:34long-term uptrend. When the 50-day moving average  crosses the 200 day moving average from above,
147. 15:40this is called a death cross and it suggests BTC  is entering a long-term downtrend. When it comes
148. 15:46to shorter term trend changes, this is where the  Ballinger bands come in handy. Now, the middle
149. 15:52band is effectively a moving average, just like  the 50-day or the 200 day. The upper band shows
150. 15:58you how high BTC could potentially go if it pumps,  whereas the lower band shows you how low BTC could
151. 16:05potentially go if it dumps. BTC typically trades  around the Ballinger band moving average. If BTC
152. 16:12is above the Ballinger band moving average, then  it's in a short-term bullish trend, and if it's
153. 16:16below, then it's in a short-term bearish trend.  If BTC trades in the same range for a long time,
154. 16:24the outer bands will come closer to the Ballinger  band moving average, creating a squeeze. And this
155. 16:30foreshadows a change in BTC's trend, be it to the  upside or the downside. Very useful. Now, by this
156. 16:38point, you're probably asking, "But this is just  for BTC. What about all the other cryptos I want
157. 16:42to trade?" Well, you're in luck because everything  I just told you applies to other cryptos, too.
158. 16:48It tends to work best on larger altcoins,  but it works on most smaller altcoins,
159. 16:53too. The more emotions, the better. The reason  why we focused on BTC is because you must do
160. 17:00this analysis on BTC first before you do it for  any other crypto. Once you've figured out whether
161. 17:06BTC is in a bullish or bearish trend and whether  this trend is likely to continue or change, well,
162. 17:12only then can you start looking at trading other  cryptos. There are just two more things to keep
163. 17:18in mind, and that's manipulation and leverage. The  smaller a crypto is, the easier it is for crypto
164. 17:25whales to manipulate. This can make it very  hard to trade because there's a higher chance
165. 17:30that the key levels you've identified will be  invalidated to try and mess up your strategy. For
166. 17:36larger cryptos, the main thing to keep in mind is  leverage. Traders will often use lots of leverage
167. 17:42when trading larger altcoins to boost their  returns. This often results in lots of unexpected
168. 17:48volatility with prices rallying more than expected  because of a short squeeze and prices crashing
169. 17:53more than expected because of long liquidations.  Crypto whales will often try to trigger these
170. 17:59to their benefit. That's why you should consider  avoiding leverage trading until you've figured out
171. 18:04a crypto trading strategy that works well for you  and have gotten used to the extreme volatility of
172. 18:11the crypto market. Better yet, keep track of your  trades on paper instead of using real money. Only
173. 18:17once you feel confident that you can consistently  turn a profit. Well, then start using real money,
174. 18:24not financial advice. And finally, remember to  be patient. Even though there are traders that
175. 18:30have made millions of dollars in a few days, the  fact of the matter is that these kinds of gains
176. 18:34take time. That's because each trade takes  time. If you put on a trade and your target
177. 18:40isn't hit within a few minutes, or a few hours,  be patient. Some trades can take days, weeks,
178. 18:47even months to complete. If you're confident, wait  until your targets are hit. Once you've practiced
179. 18:53enough patience, you'll come to find that more  and more of your trades go the way that you want,
180. 18:59and eventually you'll realize that was the  hardest part of all, sticking to your targets
181. 19:05until they're hit. Put differently, the secret  to success isn't to constantly trade. It's to
182. 19:11wait until the time is right. Take aim, pull the  trigger, and then wait until the target is hit.
183. 19:18Quality over quantity, in other words. Okay,  folks. If you made it this far and you want
184. 19:23to keep learning about crypto trading or want  more realtime analysis of crypto prices, then
185. 19:28be sure to check out our trading channel, Coinbau  Trading. The link will be down in the description.
186. 19:34As always, thank you all for watching and I'll  see you in the next one. This is Guy signing off.