Editor’s note: The Crypto Trader is Glen Goodman’s first book. He has been a financial trader and investor for more than 20 years, who made a name for himself short-selling assets during the 2008 financial crash and publicly calling the top of the market before the crypto crash in December 2017.
The book is a practical guide to understanding how to trade cryptocurrencies, from the practical such as choosing a target to the more technical such as deciding on a strategy and short-selling.
“The main reason I wanted to write the book was because I got heavily into cryptocurrencies and I felt I had mastered how to trade them, not just when to buy and when to sell, but more which platforms to use because obviously it’s the wild west still and you can’t trade most cryptocurrencies on standard, regulated platforms,” Goodman tells Opto.
“The main reason I wanted to write the book was because I got heavily into cryptocurrencies and I felt I had mastered how to trade them, not just when to buy and when to sell, but more which platforms to use because obviously it’s the wild west still and you can’t trade most cryptocurrencies on standard, regulated platforms”
“Those are the main reasons I wrote the book to try and teach people how not to lose all their money on cryptocurrencies, how to trade it properly and sensibly.”
The following is an excerpt from The Crypto Trader: how anyone can make money trading Bitcoin & other cryptocurrencies by Glen Goodman, published with permission.
Grab a copy by clicking here and using the code ‘OPTO 25’ for a discount of 25% off any order placed on Harriman House website.
Introduction: Crypto riches
The rise of the cryptos is one of the most extreme market events in all of human history. Yes, it’s a very big deal. A multi-billion-dollar market has arisen from nothing in less than a decade.
Huge fortunes have been made. Some, of course, have been made and then lost almost as quickly – as with any new market, there are dramatic ups and downs – but many more will be made in the future.
It’s also remarkable because it’s a people’s revolution in the financial world. Nearly every other market innovation in history was pioneered by the big banks who scooped up the early profits and left only the scraps for the retail traders, the individual investors like you and me.
“The rise of the cryptos is one of the most extreme market events in all of human history. Yes, it’s a very big deal. A multi-billion-dollar market has arisen from nothing in less than a decade”
This time, people like us are able to make big money while the banks sit around on the sidelines, frustrated and frightened by events they can’t quite get their heads around.
Frankly, I’ve been having a wonderful time and now I’m inviting you to join me. My experience has taught me how to navigate speculative manias, weather the storms and come out on top.
I’ll pass all that knowledge on to you. Here’s a tip to kick off with. Joseph Kennedy – father of John F. – famously said he knew the 1929 stock market crash was about to begin when he started getting stock tips from a shoe-shine boy.
My own ‘shoe-shine moment’ came in December 2017 when my mother-in-law asked me how she could buy Bitcoin. This stately lady had never so much as used a computer or logged on to the Internet in her life, but even she was now keen to hop on board the Bitcoin gravy train.
Now you could argue it didn’t take a genius to work out that Bitcoin was overegged in late 2017. After all, TV news channels were wheeling out every pinstriped city figure they could find to solemnly proclaim that Bitcoin was a mere fanciful bubble waiting to burst, no different from the great ‘tulipomania’ of the 17th century.
But it’s one thing to smugly predict a crash, quite another to get the timing right and make a lot of money. (Note: they did the former, I did the latter.)
I recount the wild story of cryptomania in chapter 1 and discuss how I successfully rode the ups and downs of the market. It’s crucial to understand the stages of a speculative mania if you want to get rich from the next one.
Because there most certainly will be a next one. And a next one and a next one and a next one. There always is.
In chapter 2, we go back to basics and find out what makes the cryptoverse tick. As I’ve already mentioned, this isn’t a book about technology, but this chapter will provide you with the understanding you need in order to recognise any tasty-looking crypto opportunity that comes your way.
My own trading experience goes way way back to before the invention of Bitcoin (or the wheel), and in chapter 3 I recount some of the triumphs and tragedies – mostly tragedies – I went through while learning to trade.
As you’ll discover, through those big self-inflicted screw-ups I learned some of the greatest lessons a trader can learn, lessons I will pass on without you having to go through the same pain… which hardly seems fair, now that I think about it.
Part 2 of this book is called ‘Let’s Make Money’. Woohoo. I’ll show you the tools and tricks you’ll need to become a successful crypto trader. We’ll walk through the steps involved in opening accounts and executing trades, using price charts and researching cryptocurrencies.
“TI’ll show you the tools and tricks you’ll need to become a successful crypto trader. We&rsquo ll walk through the steps involved in opening accounts and executing trades, using price charts and researching cryptocurrencies”
I’ll reveal the crypto sites and apps I use to give me an edge over other traders. And all of that’s just chapter 4. Chapters 5–12 are a deep dive into my trading techniques, how I decide what to buy, when to buy and when to sell, technical and fundamental analysis, going long versus going short, the essential skill of managing your risk level, and a fun chapter on my best buys.
In part 3, we’ll put it all together into a cohesive trading plan. We’ll also look at the common psychological pitfalls that trip up most traders and how you can learn to avoid them.
Once you’ve read all of that, I defy you not to become rich. Go on, try it if you dare, I bet you can’t not become rich.
By Glen Goodman, an independent trader and writer based in the UK, who was a former business correspondent for BBC and ITV News.