Home Page

Revain

August 24, 2018

5.0

Trading at Bitstamp: Advanced

We’re back with a new chapter in the book of conquering exchanges. If you’re new, and you are keen on becoming a part of the wild and wonderful world of cryptocurrency trading, we have everything you need in one place here at Revain. If we don’t have what you need, we will certainly point you in the right direction.

Take a look at your chosen exchange’s page on our site, check out all the data we gathered and scrupulously inspected, and certainly read the first article in the series that deals with the very basic issues of making Bitstamp yours - like registering and buying and selling.

Let us remind you once again - and we know you’re sick of this if you’re a constant reader, but nevertheless - about the importance of backing up your data and using security measures in order to keep your data safe.

Bitstamp offers a very thorough security check on the way in, which will severely limit your options if you don’t provide enough data. That sucks if you’re into cloak-and-dagger anonymous trading, but it does keep you secure. Is there a point in using a centralized exchange and a network whose sole purpose was to decentralize everything? You decide. Check out our article on decentralized мы centralized exchanges, too.

According to Bloomberg, crypto criminals are ahead of other types of criminals, and their attacks cost victims millions. You certainly wouldn't’ want to get caught up in that. Chainanalysis’ John Levin says crypto crime generates “a huge amount of money to generate in such a short period of time...The cryptocurrency phishers are doing pretty good against all the other types of criminals that are out there.” According to a report from one of the most reputable agencies out there, only Ethereum companies have lost over $224 000 000 this year alone due to cybercrime:

“The common cyber crimes on Ethereum can be categorized into four categories: exploits, hacks, phishing and Ponzi schemes. The highest grossing exploit was the DAO, but another $30 million was stolen from the Parity wallet in June 2017. While some cybercriminals have opted for high profile hacks and exploits, phishing is actually driving the most revenue today. It now makes up more than 50% of all cybercrime revenue generated this year ahead of exploits which sometimes get the most coverage in the press due to their nature.”

Make sure you’re as secure as possible (advanced security measures are a part of advanced trading, and you will find references and fuller descriptions of procedures in our Advanced articles in the section).

In brief, we insist you always use 2FA and some other form of protection like a paper wallet - and strongly recommend using our service to cross-reference an exchange reviews before doing business with it.

Additional security measures can include anything from hard wallets and deep cold storage to hiring bodyguards. Basically, with large volumes of crypto, the sky is the limit if we’re talking security. Bookmark the exchanges you work with to avoid redirect scams and do consult an analyst before you start working with a foreign concept for the first time.

Research

Bitstamp has been around since 2001, which good. A long time in the running is always an advantage, and Bitstamp far outperforms some of its competition if we’re looking at uptime in the business. Doing background research is also substantially easier because there is a lot of information on the Web.

Before you begin, make sure you take a look at the reviews. Bitstamp has offices in London and New York as well as Luxembourg, so have a go in a few languages. Google Translate sucks at telling a good story, but you will be able to get the gist of what is said in a foreign language. You will probably not need this, however, because Reuters and Forbes already did a pretty good job of describing Bitstamp already. Definitely a big thumbs-up:

Due diligence checks on coins

So, let’s take a look at some of the strategies while we’re talking safety. These will be provided in more detail in the Pro chapter of this article, but for now we will give you an indication of what to look for.

If you’re going to start trading crypto, you will obviously want to make money on coins. Now that the interface doesn’t scare you and you’re able to buy and sell, more or less, you’re asking yourself how you can make quicker on the course of the cryptocurrency. However! The “learn before you earn” principle always applies, otherwise, you’ll be basically playing binary options, which will cost you great deals of money.

One of the first principles to consider when you’re trading crypto is doing due diligence checks on coins. You will highly likely want to go to CoinmarketCap to research the exchange, and you would be right to hit the same spot if you’re after crypto.

The reason we’re so into Kucoin, coincidentally, is because a lot of new coins turn up there that haven’t been released to the major exchanges yet and that cost next to nothing but have a colossal potential. Kucoin is a great resource for attempting what we are about to describe.

If you monitor cryptocurrency resources listings like CoinmarketCap closely enough, by scrolling down you will be able to see which ones are doing well - and which ones aren’t (thanks to the helpful graphs).

Take a look at the coins you think are doing well. Some of them may have been on the market for some time and haven’t made a lot of progress overall - or have entered a long-term period of instability and decline. Others will showcase a short time in the running but price increases.

Look for hopeful currencies the same you would look for an intelligent kid in the class if you’re a teacher trying to explain Shakespeare to a class full of rugby players. A dead silence. You can hear crickets, as they say. You’re desperately looking for someone who understands what you’re talking about. And then, out of nowhere, someone throws you a great idea. Cryptocurrencies are just like that. While the market is going back and forth and up and down, individual coins will shoot for the sky quicker than you can say “Neo”. Your job is to find a coin that shows signs of being that effulgent high-flyer.

When you have found a crypto that has been in the business for a short time but seems to have grown a lot, take a look at its reviews. Now, you’re not legally obliged to use Google, but it certainly helps. You can go for anything like DuckDuckGo if it suits your needs - what really matters is that you can cross-reference the reviews.

Take a look at the news about the coins you found. Do you see anything you like? See if the overall news about this particular coin is encouraging, but, more importantly, take a look at the more relevant results and study them closely. How much did the ICO raise?

  1. Has there been enough media attention?
  2. What is the concept behind the coin?
  3. And what is the actual process?
  4. Does it sound convincing to you?
  5. Who is the team behind the coin?
  6. And does the team raise questions with you?

These are all the questions to ask yourself before you start thinking about investing in a coin. Also, consider these:

  1. What benefits does the coin offer?
  2. Is the coin necessary? Will the world need it? In other words, what is the demand for this coin?
  3. Did the coin’s creator create anything worthwhile? Take a look at their other products.
  4. Does the coin have a website? Is it well-made?
  5. Are there more advantages than disadvantages behind this coin?

Research is everything when it comes to crypto. Remember the article we released about taxation influencing crypto prices? Well, knowing how trends in the world of crypto are created is one of the skills necessary for technical analysis, which is how you make tons of money. If technical analysis sounds scary (which it is), don’t worry, we will guide you through the process gently.

When you have looked at new and promising projects at Kucoin and monitored CoinmarketCap for coins that seem to have a grand future (and you know this because you’ve done your analytics, in a way), you know you have reason to believe the coin’s price will go up in time. Just make sure to look at as many cases and arguments as possible.

Now that you know there is a future for this coin, you can enter the long-term phase in which you HODl (HODL!) and wait. With time, the coin will turn up in the news more (if it has a good team, etc.), which means its value will go up in price and you’ll be making good money. This is more advanced trading few people actually think of, but the time spent looking for data pays off in the long run thousand-fold, which is why our staff spends so much time researching and doing the hard and boring work - so you don’t have to.

Finally

Foundations are everything. Bitstamp has a lot to offer in terms of security, asking for a lot of documentation on entry and boasting a license (the Bitstamp team was the first to have received a license). You can be safe here, which is one of the most important aspects of trading.

Use the right resources, like other exchanges, to catch the drift and the strategies we have advised. Keep an eye out for more articles on Advanced Trading, in which we will be revealing more finer points of trading. Have a great day!

Rate this article:

Please, sign in to perform this action