I’ve been wanting to experiment with crypto assets lately. So here’s a quick chronology of where I started and where I ended up.
- Opened account with Coinbase and funded my accounts with a credit card. It’s easy to do and actually kind of fun.
- I became uncomfortable with the price action on both Bitcoin (BTC) and Ethereum (ETH). Also, Coinbase is not a trading platform. They have a 5% fee every time I make a change to my portfolio. Clearly that wasn’t going to work.
- I heard about Coinigy’s charts, which I love, so I started there.Here’s an example of a chart I made using Coinigy: https://www.coinigy.com/s/i/59f4fc9b9ed32/
- Coinigy is connected to what seems like all the exchanges, which meant researching exchanges. As a trader, liquidity and access to markets are important as well as security. While GDAX interested me because of the investors and FDIC-insured accounts, I settled on Bitfinex for the moment. They’re UK-based, don’t allow for much leverage to Americans, but they seem like they really have their act together.
- After seeing the charts on BTC and ETH, I realized that I wanted out. I did some reading on Bitcoin Cash (Bcash or BCH), looked at the chart and set a buy stop above resistance.
In crypto, there are two types of assets that matter and knowing which is which is important. The first is a speculative coin and the second is a coin with utility. The latter is what was expected originally of Bitcoin. Some transaction limitations have opened the door for other currencies. In parts of the world where Bitcoin adoption is gaining steam, processing time matters and that’s where Bitcoin falls short.
Bitcoin Cash, on the other hand, boasts a faster processing time and still includes the same supply limitations as Bitcoin (classic), meaning as more users come online, the price will increase in value.
Ultimately, as this technology matures, there will be a number of forks and opportunities for change and volatility. And that’s good if you’re a trader like me.