LiteBit

10 months ago

Time for yourself: How Corona enabled us to learn trading

Corona has three faces. The virus restricts the lives of people all over the world. Be it because they can no longer celebrate in public places, are prevented from grieving for their lost love ones or are directly affected by the virus. Besides the personal dimension and the health threat, the whole crisis has massive economic effects.

Hotels stand empty, people lose their jobs, have to find a new profession or are dependent on the state to pay out aid. Most readers will be able to identify with these cases, either because they are affected themselves or because someone in their family or one of their friends has to go through this. But there is a third aspect and this is a door that Corona opens for each one of us, because for the first-time many people in the industrialised world have one thing in abundance: time.

How has Corona changed behaviour and knowledge in terms of trading? And if I want to use my own time during the lockdown to learn trading, what should I pay attention to?

Quarantine makes people inventive

As all shops and events remained closed for a long time, people simply had to be able to entertain themselves. And that in the isolation of their home. Many people did sports, and freelethics took up very little space. Others practiced cooking and baking, because restaurants and bakeries could not receive guests.

Sure, if you have an office job, you fill your time with home office anyway. But when the company's target is met, there is again a need for some kind of distraction. In this context, the crypto community stood out again, because many things that relate to cryptocurrencies need specific knowledge.

And so various speakers and communities held online meetings and workshops, so that hardly any topic remained untouched. There was one thing in particular that made it all worthwhile, as it not only gave those interested the opportunity to expand their intellectual horizons, but also to find a way out of the economic imbalance.

Trading during the crisis

Crypto are too complicated for many beginners. Studies show that many people are still put off by the technical aspects. But in a time, where one may not go outside and has to occupy oneself anyway, there was now no reason not to get involved.

The new generation of traders also hit the stock market. Although the stock market and the crypto market experienced a crash at the same time in March, suddenly more and more people jumped on the bandwagon and so both assets quickly experienced a rebound, which continues to this day.

In this way, many households were able to make up for their losses from the crisis and in a few cases even generate additional profit.

DogeCoin conquers Social Media

The culmination of the "Corona market" was formed by the DogeCoin Rallye. Doge is one of the oldest crypto on the market. Originally founded to spread fun and the meme of the Shiba Inu, Doge was able to hold its own relatively bravely.

But the real highlight is that Doge is not a deflationary crypto. Therefore, the total supply of Doge continues to grow without limit. This is the exact opposite of what Bitcoin is trying to achieve. Admittedly with a wink, because Doge was intended as a pure gag.

But in the summer of 2020, a predominantly young generation of new traders set out to help DogeCoin reach new heights by promoting it on TikTok, Reddit and Twitter. A short spectacle that lasted only a few days.

Sentiment, Fundamentals and Technical Analysis

While Doge's recent bull run is proof that market sentiment does play an important and influential role, other aspects should not be neglected. Knowledge of token economics and reading the fundamentals of a blockchain is one of the most important lessons that prospective traders can learn.

After all, anyone who is not able to understand the fundamentals of a crypto or token cannot ultimately invest responsibly and always approaches his investments blindly. The situation is quite similar with technical analysis.

How do you read a chart? What is a candle chart even in the first place? If you can't find the answers to these relatively easy questions, you'd be well advised to follow in the footsteps of thousands of traders who have been able to use their Corona timeout for trading lessons.

Strategy is everything

If you are familiar with the basics, you should perhaps focus more on strategies, different market cycles and economic news. Especially at this time were Corona is slowly destroying the world economy, this information is crucial for every trader.

The crash in mid-March showed that even crypto are not invulnerable. Every trader would do well to take an interest in the overall economic context and develop strategies for himself to react accordingly when the markets change direction.

You don't have to reinvent the wheel at all, but can rely in many respects on already proven trading and investment strategies. Lifelong learning is therefore the credo that accompanies every successful trader. In this sense, Corona has given us the time to approach things that can be solved with knowledge and critical thinking. Trading absolutely falls into these two categories.

We wish you, your family and friends to stay healthy and cheerful during the crisis.

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