(This is a guest post by A.M. - a cryptocurrency enthusiast from The Netherlands currently living in Barcelona.)
My son, a millenial, was the first to point out to me that perhaps you need to be of another, younger, generation to get into crypto-trading.
And as a matter of fact the events in The Land of Bit over the last few days have been enough to throw anybody into a dizzy state of paralysis, let alone a relative beginner at the end of his first career and taking his first steps in this new virtual financial reality.
Hard forks, soft forks, antminers, it sounds like something out of the latest Sci-Fi boxoffice giga-hit.
In the old days "hash-rate" was the price of a gram of a certain relaxing substance one could purchase in an Amsterdam coffee-shop. Now apparently it defines the "power" that a certain machine, or group of machines (robots?), has to create money out of thin air by solving big complicated puzzles.
And it does not end here! There are bad guys in this unfolding drama that can hijack those machines to make them spit out a different type of coin , and when they have obtained a lot of those they will rule the crypto-universe. That has to be a scenario straight out of Star Wars.
On top of that the plot is peppered with the distribution of massive doses of fake news, a strategy that had already been proven effective to swing the recent US elections. Now the enigmatic Doctor Cash , the Dart Vader of cryptotrading and evil power behind this civil cyberwar, has made his move and the wait is for the Bitcoin-Jedi to come and save the day.
All in all this is not for the faint of heart, or for those with "weak hands", another wonderfully colourful expression coined by traders long time ago.
So..........why do it like it all so much? Why not take the dog for long walks, go and bask in the afternoon sun on the beach the city i live in is blessed with, or play tennis in the morning, and then again in the evening?
Answer: because crypto-trading is exciting and i am having a blast with it! The intrigue in House of Cards of Game of Thrones is nothing compared to what goes on here. It has not been called the Wild West of trading for nothing.
And there are probably few things that create such an adrenaline rush as putting your crypto-coins on the line, on the one hand in fear that financial doom and social condemnation could await you if you make a big mistake of judgement, or that you could be rewarded with a rest-of-your-life-style with more freedom than you ever could have imagined. Free-fall skydiving probably comes close, but since i am afraid of heights i never tried.
Admittedly and importantly the exact same thing could be said about taking your money to the casino and putting it all on black or red. But although the thrill may perhaps be the same, there are important tecniques for investing in general, and especially in cryptocurrencies, that allow you to always limit your losses and play it safe.
For one make sure to keep in mind that no profit is guaranteed, that it is statisticly MUCH more likely to loose then to win, and most and foremost that you should only ever invest in small amounts, and only as much as you can afford to loose!
So be careful, be cautious and happy trading! May the Force be with us!