Trading Cryptocurrency for Beginners (Full Guide - Part 1) — Transcript

Full transcript

1. 0:01[Music]
2. 0:10so you want to learn how to trade
3. 0:12cryptocurrency have an easy life and
4. 0:14make fast money well there's no denying
5. 0:18that some people in the world are doing
6. 0:20that
7. 0:21but it's important to understand that
8. 0:23that is a bad mindset to approach
9. 0:27learning crypto trading greed combined
10. 0:29by far too ambitious goals is a big part
11. 0:32to why many rookie traders end up
12. 0:35failing if you take one thing from this
13. 0:37video you need to remember that trading
14. 0:40carries a lot of risk if you want to
15. 0:42trade crypto it's essential to have a
16. 0:44general understanding of trading so that
17. 0:47you don't end up making impulsive
18. 0:48decisions and trade based on emotions
19. 0:51understanding trading will also help you
20. 0:53quantify the risks and give you a better
21. 0:56idea of when to make a trade by
22. 0:58continually monitoring and optimizing
23. 1:00your crypto trading strategy stick
24. 1:03around to the end of this video and find
25. 1:05out how one viewer can stand a chance to
26. 1:07win 100 busd before you start your
27. 1:10crypto trading journey it's essential to
28. 1:12have an understanding of two main
29. 1:14methods that can be used when building a
30. 1:17trading strategy in this video we'll be
31. 1:19looking at two main concepts technical
32. 1:22analysis and fundamental analysis
33. 1:25technical analysis is referred to as
34. 1:27charting this type of analysis aims to
35. 1:29predict future market behavior based on
36. 1:32previous price actions and volume data
37. 1:35technical analysis is strictly focused
38. 1:37on historical price action it's used to
39. 1:40examine asset price fluctuations and
40. 1:43volume data traders use technical
41. 1:45analysis in an attempt to identify
42. 1:47trends and favorable trading
43. 1:49opportunities it's like pattern
44. 1:52recognition the base technical analysts
45. 1:54have seen countless scenarios play out
46. 1:57multiple times so when a familiar
47. 1:59situation starts appearing on a chart
48. 2:02analysts feel confident that they know
49. 2:04what's going to happen next technical
50. 2:06analysis is basically the study of an
51. 2:08assets current and previous price the
52. 2:10main thought behind technical analysis
53. 2:12is the fluctuations in the price are not
54. 2:14random and that they evolve into trends
55. 2:18over time at the core technical analysis
56. 2:20is the analysis of supply and demand
57. 2:23which are represented by the overall
58. 2:25market sentiment in other words the
59. 2:28price of an asset is a reflection of the
60. 2:30opposing selling and buying forces these
61. 2:33forces are closely related to the
62. 2:35emotions of traders like traders who
63. 2:37sell due to fear or buy in the hope of
64. 2:40gaining more technical analysis is quite
65. 2:43polarizing some people swear by it and
66. 2:46others think it's complete nonsense one
67. 2:48way you can think about it is in terms
68. 2:50of psychology basically in technical
69. 2:52analysis traders will sometimes have a
70. 2:54high confidence in the upcoming market
71. 2:57moves due to patterns in the current
72. 2:59data these traders are not trying to
73. 3:02predict the future they're predicting
74. 3:03what's going to happen in the market by
75. 3:05taking a look at the data in front of
76. 3:07them for example traders might know when
77. 3:10a chart looks a certain way that the
78. 3:12majority of the market will feel fear
79. 3:15and start selling so that they can
80. 3:17deduce from that how they should trade
81. 3:20it's not about using magic to predict
82. 3:22the future it's about understanding
83. 3:24market psychology and what the average
84. 3:26person is going to think based on the
85. 3:29market conditions and then positioning
86. 3:31accordingly to spot favorable
87. 3:33opportunities traders often use
88. 3:36indicators technical analysis indicators
89. 3:38help traders identify existing trends
90. 3:41and provide insightful information into
91. 3:44trends that may emerge the first
92. 3:46indicator that we'll be looking at is
93. 3:47moving averages moving averages is one
94. 3:49of the most commonly used tools to
95. 3:51indicate overall trend direction to
96. 3:54determine support and resistance levels
97. 3:56moving averages is calculated based on
98. 3:59the closing price of an asset within a
99. 4:01specific time period for example the
100. 4:03closing price of btc yesterday 20 ma one
101. 4:07would look over a 20 day period where
102. 4:10200 ma one would look over a 200 200-day
103. 4:13period by calculating ma the impacts of
104. 4:16random short-term fluctuations on the
105. 4:18price over a specific time period is
106. 4:21reduced we will look at what ma looks
107. 4:23like on a chart later in this video next
108. 4:26up rsi relative strength index rsi
109. 4:30measures the extent of recent price
110. 4:33changes to evaluate overbought and
111. 4:36oversold conditions it's used to study
112. 4:38the perceived strength of the market if
113. 4:41you want to learn how rsr is calculated
114. 4:43there'll be a link in the description
115. 4:45where you can take a look but for now
116. 4:47all you need to know is how and why
117. 4:49traders use this indicator the great
118. 4:51thing is you don't need to learn the
119. 4:52formula to calculating rsi because
120. 4:55that's already built into the binance
121. 4:57chart for you if you want to explore rsi
122. 5:00more in depth follow these steps go to
123. 5:02your chosen binance chart in this case
124. 5:04we are looking at the btc busd trading
125. 5:07chart go to trading view indicators rsi
126. 5:11click on relative strength index now you
127. 5:14can see what it looks like on the chart
128. 5:16the next indicator we'll be talking
129. 5:17about is bollinger bands it's called
130. 5:19bollinger bands because john bollinger
131. 5:22created it bollinger bands indicate
132. 5:24whether the market has high or low
133. 5:25volatility as well as overbought and
134. 5:28oversold conditions simply put it breaks
135. 5:31down to a moving average which we've
136. 5:33spoken about before in this video and
137. 5:36volatility bans when traders add this
138. 5:38indicator to a chart they'll have the
139. 5:40moving average in the middle and a
140. 5:42bollinger band at the top and the bottom
141. 5:45this indicator is designed to ensure
142. 5:47that 95
143. 5:48of the price data will fall between
144. 5:51these two trading bans bollinger bands
145. 5:53are based on price volatility so they
146. 5:55won't stay the same distance from the
147. 5:57moving average if volatility drops
148. 6:00they'll get closer to the moving average
149. 6:02if volatility gets bigger they'll widen
150. 6:05let's take a look at the binance chart
151. 6:07right now all we can see on the chart
152. 6:10are trading candles by clicking on
153. 6:12indicators and then selecting moving
154. 6:14average you can see there is an extra
155. 6:17line in the chart that wasn't there
156. 6:19before this line is the moving average
157. 6:21when we go back to the indicators we
158. 6:23click on bollinger bands we see that the
159. 6:26chart now has two extra lines at the top
160. 6:29and the bottom of the moving average
161. 6:31some traders believe that when the
162. 6:33bollinger bands are far apart the
163. 6:35current trend might be ending and when
164. 6:37the bands are narrow the market
165. 6:39volatility is low now that we have taken
166. 6:41a look at technical indicators we're
167. 6:44going to take a look at the next popular
168. 6:46concept that traders like to use to
169. 6:48build a trading strategy the goal of
170. 6:50fundamental analysis is to determine if
171. 6:53the price of an asset is overvalued or
172. 6:56undervalued fundamental analysis is also
173. 6:59known as fa fa assesses an assets value
174. 7:02by examining as many qualitative and
175. 7:04quantitative factors as possible such as
176. 7:07market gap and other economic factors fa
177. 7:10works on the understanding that the
178. 7:12potential of an asset should be based on
179. 7:15more than just previous performance in
180. 7:17traditional stock in the finance world
181. 7:19traders use fa to find projects that
182. 7:22they believe will have high potential by
183. 7:25looking at balance sheets results the
184. 7:27product and everything that is connected
185. 7:30to that project in crypto a dfi project
186. 7:33could be generating a lot of revenue and
187. 7:36benefits for holders but not many people
188. 7:38know about it yet traders would use fa
189. 7:41to seek out these kind of projects you
190. 7:43could say that fa looks to determine how
191. 7:46external factors can affect the
192. 7:49performance of an asset fa considers
193. 7:51more qualitative data than quantitative
194. 7:54data an example of this would be looking
195. 7:56at ethereum through fa investors would
196. 7:59look at everything connected to ethereum
197. 8:01rather than just how the asset itself
198. 8:04has been performing in the past what are
199. 8:06the basic differences between ta and fa
200. 8:09ifa looks at the largest picture of an
201. 8:11asset considering as many influencing
202. 8:13factors as possible ta is strictly
203. 8:16focused on historical market data and
204. 8:19market charts if a seeks to determine
205. 8:21the actual value of a trading asset ta
206. 8:24is used as a tool to predict the price
207. 8:26action based on trading volume and past
208. 8:29trends fa and ta are both very valuable
209. 8:33in their own way but the most reasonable
210. 8:35course of action would be a balanced use
211. 8:37of both in the next video we'll be
212. 8:39covering trading strategies now that you
213. 8:41have a basic understanding of the two
214. 8:43main concepts of crypto trading you are
215. 8:46ready to learn about trading strategies
216. 8:48as promised at the start of this video
217. 8:50one viewer will stand a chance to win
218. 8:52100 busd to enter the giveaway subscribe
219. 8:56to the channel and leave a suggestion in
220. 8:58the comments on what video you would
221. 9:00like to see on the binance youtube
222. 9:02channel our team will choose the best
223. 9:05suggestion and that user will win 100
224. 9:08pusd the winner will be notified by
225. 9:10reply to their comments and you can see
226. 9:12all the details of the giveaway in the
227. 9:14pinned comments under this video the
228. 9:16giveaway will run for two weeks from
229. 9:18this video's post date we are looking
230. 9:20forward to hearing your suggestions and
231. 9:22seeing you in the next video