Introduction
Welcome to part to of learning about crypto.
In the part one, I drew inspiration from bitcoin as I locked in a position and while writing the post; tried to get my focus straight on what I aim to accomplish.
In this part I am going to look at the Ethereum.
For the record: It’s currently 5:33 AM and my trade order was confirmed at 3:07. I just watched as my ROI fluctuated from around 4.69% to 2.38% back now to 3.00% and so on it goes.
The question here is: What TP/ROI% is worthwhile for my trading frequency and what trading frequency is the most logical/sensible.
Since I witnessed my ROI jump to 4.69% then it is was possible for bitcoin to reach it once.
I really don’t want to start taking screenshots and analyzing graphs but right now The Value of Bitcoin is 77,513.30 as of writing this sentence and the highest visible peak at a zoomed in 1D graph is 79,490.0
I would like to move away from bitcoin for now.
This posts is supposed to be about Ethereum but I am rambling on about the fluctuation of my open bitcoin position.
But it is relevant, because my portfolio is 1/5 bitcoin, I have 4/5 left but I also need to eat food.
On the contrary, I was supposed to lock in my positions as soon as I deposited the money on to my Binance account. Therefore all money deposited is money I am ready to risk for potential profit.
The question which gets brought up again is how much profit do I aim go gain?
My Bitcoin ROI is down -5.47% at 05:50 AM and It makes me re-consider whether I should risk opening a position for Ethereum.
If 10% annual ROI is considered exceptionally high by google and the bitcoin ROI is fluctuating between -6.00% to -4.69% it will most likely jump to 5.00% ROI at 100x leverage with 1/5 of my total portfolio value.
The rest is currently BNFCR (Binance futures credits) which are used for buying future coin holdings and the reason I like it is because it makes the ROI more volatile and for anyone with working class income the opportunity to practice gaining skills and experience trading cryptocurrencies and make multiplied amounts of profit as well as losses.
Where there is a will, there is a way.
For me, I believe that this quote means that if you truly desire to accomplish something and are destined for it you will achieve it and get there.
Bitcoin ROI has dipped to 7.48% and It’s time to leave the tab and get to talking about Ethereum
On to Ethereum
Let’s look at the graph, the highest recent peak was 2,319.59 and It’s currently at 2,313.58.
When I was ignorant on much thought it actually takes and just blindly locked in trades based on intuition I would be on Binance very frequently just locking one trade in after another.
I don’t think overanalyzing the market is good either. I’d imagine that a mix of a reasonable amount of market analysis and intuition from experience is necessary for closing profitable trades.
As I’m scrolling down the page the bitcoin position appears again and it’s -0.48%, it literally just fell to -3.4% which shows how quickly the ROI can change.
I’m very cautious about how I approach my next trade because I’ve lost large amounts very quickly before.
Currently the probability of liquidation is low because I have 1/5 of my portfolio with my bitcoin position meaning that instead of going -100% ROI before Liquidation, based on assumptions from past experience, I can hold my position open until it reaches -500% ROI as long as I have 4/5 in BNFCR.
If I open another trade with 1/5 of my portfolio then I have 2/5 in cryptocurrencies meaning that instead of -500% ROI until Liquidation, the volatility trench.
As I’m writing this post and making music playlists the ROI dropped to 18.45%, with 100x leverage that is 0.18% dip in the market. Now it’s at 14.96%. In the beginning of this post collection it was moving from +4% to -6% so a dip close to -20% might seem alarming but since we have only 1/5 of our portfolio in the market that leaves the other 4/5 for collateral damage of -500% ROI.
Reducing my collateral ROI from -500% to even -400% seems like a huge sacrifice.
Now that It’s at -28% It get’s me excited because It can just as easily bounce back to +28%
In summary
If bitcoin drops by 5% my portfolio gets liquidated. Bitcoin is a fairly solid holding coin with very mild movements compared to other coins. It is the most expensive coin available on the market and if you do not have enough to buy a single bitcoin which currently is valued at 77,340USDT which is equivalent to 77,340 USD based on a 1:1 peg. You can always buy fractions which is exactly what one would do if they weren’t interested in buying one.
Before I leave
I am going to set my TP (Take Profit) to 20% as I believe that by the next time I check Binance there is a possibility for it to reach that number as it’s been -28% therefore based on my logic 20% seems reasonable to me.
ZutisBljeg 