Understanding Cryptocurrencies | Bitcoin, Ethereum, and Beyond

Real drivers and realistic setups

Example

A beginner investor might start by researching the basics of Bitcoin. They would then decide whether they want to focus on long-term growth or short-term trading. After choosing an exchange with good reputation and user interface, they would create a secure wallet. To avoid common pitfalls, they would regularly monitor their investments and stay informed about any changes in regulations or technology that could impact their holdings.

Question

What are some key factors to consider when choosing a cryptocurrency?

Consider factors like network size, developer activity, use cases, scalability solutions, community support, and regulatory stance. These elements can significantly influence the future prospects of a cryptocurrency.

Risk management you can actually use

• Risk per trade = account equity × risk% (e.g., 1%).
• Position size = risk per trade ÷ (entry − stop).
• Expectancy (E) = win_rate × avg_win − (1−win_rate) × avg_loss.
• Cap total portfolio risk; journal every trade.

A quick example

Account $10,000, risk 1% → $100 risk per trade. Entry $50, stop $48 → $2 risk/share → 50 shares. Target $54 (2R). If stopped, −$100; if target hits, +$200 (before costs).

How much capital do I need to start?

Use an amount you can afford to lose while learning a repeatable process.

How do I size positions?

Decide a fixed risk % per trade, then divide by the price distance to your stop.

How often should I review?

Match your timeframe: DAIly/weekly for swing; weekly/monthly for long-term.

What goes into my journal?

Thesis, entry/exit, risk (R), emotions, result, next improvement.

Sources & Signals (add before publish)

• Earnings or guidance: …
• MaCRO data or policy: …
• Sector flows: …
• Unusual volume/price action: …