How to invest in the cryptocurrency market in South Korea and what you need to know?

Blockchain consultant Reza Jaferi on how to stop acting at random.
What to do when the cryptocurrency market falls?

Screaming, crying, drinking bitter is understandable. What else?

Up On The Soup Line.
Roll up into the fetal position and shake back and forth.

No, none of this should be done — although I am always for the savings, and also believe that instant noodles with cheese flavor — is one of the most underrated dishes on the planet.

Not nervous
Investing in cryptocurrencies works on the nerves of even experienced traders, but do not give in to emotions. Stick to your strategy, remember why you bought these or other tokens, and do not give in to panic.

What to do when the market starts to fall depends on your specific position.

If you have already invested and see that your position is getting cheaper in front of your eyes, this is one case. Another option when you came out in cash and wait for a good opportunity for investment (try to fall in the market to be in this position).

If you are lucky and fall caught you with cash…

Buy on the lows
Buying on a minimum (low in English-the lowest level) feeds bitcoin investors since 2009. Of course, this concept is not new — there is even such an old quote: "Buy when blood flows on the streets."

Below are a couple of examples from Twitter.

February 24th

Luke Martin
Fractals can help identify similar historical patterns and the KEY support/resistance.

By identifying those key levels you can determine the risk/reward of a position.

BTFD at the same price as the high volume before previous pump, Sell on the moon, Move to mars.

Buy loach for the same price as before the previous take-off, sell on the rise, and kings.
View image on Twitter
View image on Twitter

The Juice PhD
Protip: Light more than one candle so she thinks it's romantic, and you can hide the fact that you btfd instead of paying the power bill.

Pro tip: light some candles, and let her think that you decided to romance, and not bought at least all the money instead of electricity.
The approach to cryptocurrencies should be pragmatic — look for profitable options
When you go to the supermarket for groceries, you know what to buy and imagine how much it should cost, right? And if today bananas are 20% more expensive than usual, this week they can not be bought.

It's the same. If you believe that an asset is valuable and will be even more valuable in the future, buy it. If you think that an asset is already overrated, or if the market simply values it higher than you are willing to spend, refuse the transaction.

Suppose, during an uptrend, the token grows from $5 to $20, and then the market falls and the price drops to $10.

How to understand this discount with $20 or mark-up on $5?

And then, and more. Further, the price can go in any direction, but now $10 is a temporary bottom, because the decline has stopped. I would decide that the price will return to $ 20 and will grow further. In addition, the potential loss is $5 and the potential win is $10.

This is a very simplified example, but understandable. In fact, weighing the risk and possible profit, you need to take into account a lot of other variables.

Morality is simple: the more you see articles with headlines like "Bitcoin end", the more you should buy. Do not pay attention to the news — when the American news channel CNBC last did the story about how to buy Ripple, it was almost the exact moment of the peak, and immediately after the release of the plot in the air Ripple (BITFINEX: USD/XRP) fell almost twice.

How to study?
"Formal education will give you daily bread; self-education will bring you a fortune," Jim Ron.
If you have already invested and now watch them fall in price, learn from your mistakes.

I started to study technical analysis and developed a personal investment strategy when I first saw a drop in the cryptocurrency market.

Unfortunately, then it didn't occur to me to sit around and wait patiently for the downturn to buy — I invested everything I could afford on an uptrend that then almost immediately stopped.

My investment quickly lost half the value — I couldn't open my account on the stock exchange, it immediately drove me into depression. I felt like an idiot.

But I was too stubborn to deal with losses, and I started to learn — to deal with indicators, to study the market and its cyclicality, as well as key players — all this, of course, I should have done before investing money.

Go on and explore the different patterns that can be seen on the charts. Many people consider technical analysis to be a pseudoscience, but in my opinion, it is more applicable in cryptocurrency markets than in traditional stock markets — perhaps because emotions play a big role here.

The stock market is formed by investors and traders with years of experience, and in cryptocurrencies the majority of participants are beginners, who, of course, during periods of volatility tend to act too emotionally.

Technical analysis uses methods of psychology to understanding the opportunities that arise at any point of the chart.

It is important to understand that technical analysis is not a prediction of the future.

It is a matter of considering all possible outcomes so that, when one of them is implemented, it is advantageous to find itself in a advantageous position.

It's all about risk management. For example: do not try to catch the bottom of the downtrend (experienced traders call it "catch the falling knife") to maximize growth potential. Instead, wait for confirmation that the downtrend is complete. Yes, you will miss a small benefit, but significantly reduce the risk.

Before you buy anything, at least a month to study the appropriate schedule. You need to understand the corridors in which the price goes, study the history of the asset and see how it responded to the negative and positive news in the past.

How to evaluate a token
Suppose you find a token that seems like a good candidate for investing. What to do next?

Examine the diagram.
Determine the price at which you would like to enter the position.
Set a limit order to buy at this price.
Don't do anything else.
Oddly enough, the most difficult thing people are given the last step — to adhere once the chosen strategy is very difficult. They waste time, are determined with the entry point, put limit orders — and then sit and wait for them to work.

This is a vicious practice!

Watch TV, take a walk, lie on the couch — do whatever you want, just don't look at the schedule, because sooner or later you won't survive and instead of sticking to a chosen strategy will begin to make emotional decisions.

Finding a good entry point is harder than it seems in this text, and I advise you to find an experienced mentor or take a technical analysis course on Udemy.

As for further education: if you want to read charts and take your own based on them, start with the basics of technical analysis. Candle patterns, support and resistance, and all of the indicators listed on StockCharts.

My personal favorite indicators:

MACD (Convergence / divergence of moving averages)

RSI (relative strength Index)

Stochastic RSI

Bollinger Bands

What to do when you deal with the basics?

Deeply study Fibonacci levels and Elliott wave theory — I prefer these tools to everyone else.
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