In this edition of The Trader’s Perspective we interviewed Don Crypto Draper. He’s a crypto trader and investor since early 2017 who shared with us some challenges and lessons in cryptocurrency trading.
Could you please introduce yourself and your background in trading?
Hi, I’m Don, I’m in my 40s and in a few words, this is my history: I studied computer science, programmed for about 15 years then spent many years in ad tech companies, climbing the corporate ladder. About 5 years ago I realized many things at once about life in general so I started to change my goals and life philosophy, focusing on becoming financially independent among other things. I started investing in real estate, stock market and at the beginning of 2017, discovered Ethereum and the crypto space.
When and why did you start trading crypto?
Since April 2017 I started with crypto, first investing in Ethereum and NEO then slowly going more and more into Technical Analysis, trading tools and studying trading strategies. I had a very strong conviction when I first bought Ethereum at 70 dollars back then, that Crypto is going to change the face of the earth and definitely change my financial situation for the better.
Largest challenges when becoming a trader in a new space?
A traders biggest enemy is themselves and their emotions. Theory is different from practice and when you hit the buy button suddenly hundreds of thoughts of emotions go through your mind. If the trade goes against you, you panic. If you see the profits are going through the roof, greed is taking over.
Another big challenge is to always try to predict the market using multiple indicators and then blame the market when it doesn’t go your way. Lately I stopped using indicators almost completely.
Which cryptocurrency exchanges do you use and why?
Binance and Kraken are the main ones. Kraken is a good fiat gateway, a good way to get new money on the market, Binance is by far the most advanced and safe platform available. That’s not to say that it’s 100% safe, always keep the majority of your funds on hardware wallets, not on exchanges.
Have you had the chance to try BBOD?
Yes I did and tested BBOD thouroghly before starting to trade alts (mostly short) on it. I was sceptical at first, but now I’m convinced BBOD should be part of any trader’s arsenal.
What was the biggest lesson you learned in trading?
There are many ways to trade, and any good trader develops their own style. Getting rid of emotions is the biggest challenge, stick to your strategy at all times, even if you lose. Losses are normal and part of the game.
How do you deal with a big loss?
I was liquidated on BitMex twice so far, sizable amounts. The first time was the hardest, I just couldn’t believe my eyes. It took a while to realise that my life continues the same way it did before, and the loss is just in my head. Money is just numbers.
Greed or having a big ego – how important are these things when trading?
Very important. Greedy people with a big ego usually lose constantly, and lose big time. If you sell after 5% profit and the price goes higher, the best thing to do is to let it go and move on to the next trade. Not many are able to do that, the usual response is to FOMO back and buy higher which increases the risk enormously, especially in Crypto.
What sort of trading rules would you recommend our readers to follow?
See above, learn about TA, and try to define for yourself the kind of setups that you are willing to risk your money on.
What qualities make a cryptocurrency trader successful?
Cold headed, calm, confident, disciplined and an analytical mind.
Thanks for your time! It was a pleasure to have you here.
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BBOD : 🌏One World, One Exchange 📊
BBOD is a cryptocurrency derivatives trading platform for retail and institutional clients. It offers a secure and transparent custody system and marketplace to trade Bitcoin and Altcoins futures contracts with a stablecoin collateral. The “transparent custody” feature means that BBOD does not hold either the clients’ digital assets or their private keys. Instead, a client has their own contract account on the Ethereum blockchain.