#Omni Trading Academy

Office Address

  • #OmniTradingAcademy
  • oscar@futuresanalysts.com
  • +1 702-629-4755

Social List

Crypto Currency


To start trading cryptocurrency you will need to choose a cryptocurrency wallet and an exchange to trade on. In other words, if you want to trade cryptocurrency you need:

  • A cryptocurrency wallet (or two).
  • A cryptocurrency exchange (or two) to trade on.

TIP: A cryptocurrency wallet is a place where you store encrypted passwords that represent coins (the equivalent to storing money in a bank account). A cryptocurrency exchange is like a stock exchange or like a currency exchange in a foreign airport (a place people can trade cryptocurrency for other cryptocurrencies and fiat currencies like the US dollar). Just like if you want to trade stocks you need a bank account and access to the stock exchange, it is the same deal with cryptocurrency.

NOTE: A beginner should start by choosing a company with a good reputation that offers an exchange and wallet (to help keep the process simple).

  • A beginner should also start by trading prominent coins. Currently, in 2018, we are referring to coins like Bitcoin (BTC) and Ethereum (ETH). In the future, this could change.
  • Since the above is the case, a good start for any American wishing to trade cryptocurrency is starting with Coinbase.com which in my opinion is the most popular cryptocurrency website in America, which offers a single platform for a Bitcoin wallet, Ethereum wallet, Litecoin wallet, Bitcoin Cash wallet, and a currency exchange.

More on how to invest in cryptocurrency

If you want to invest in cryptocurrency, and not just buy/sell/trade, then you have a few options. New investors can choose between:

  • The GBTC trust as sold on the stock market.
  • A cryptocurrency IRA (we don’t want to recommend one until we have reviewed them).
  • An exchange to buy coins on and a wallet to store the coins in.
  • An exchange-broker-wallet hybrid like Coinbase/GDAX (which allows customers to buy/sell/store cryptocurrency).

Each option has its pros and cons, but notably, only an exchange-broker-wallet hybrid like Coinbase/GDAX allows one to trade and invest directly using a single platform. This page will focus on that option due to its ease of use for beginners.

What you should know before you start trading cryptocurrency

There are only a few things to know about trading cryptocurrency beyond what was noted above. Below are a few of the most important things to know before getting started:

  • A cryptocurrency exchange is not part of the regular stock exchange. Below we will suggest using an exchange/broker Coinbase, but you can also use the related GDAX (the pro version of Coinbase with lower fees). Neither of these is the same as Wall Street and its exchanges (same general mechanics, different specifics, and different entities).
  • A beginner might prefer to trade cryptocurrency stocks on the stock market (GBTC is a trust that owns Bitcoin and sells shares of it; trading this avoids you having to trade cryptocurrency directly). The main Bitcoin stock here in 2018 is GBTC. Be aware that GBTC trades at a premium (meaning bitcoins are cheaper than buying shares of the GBTC trust), which isn’t ideal. Also, cryptocurrency trading is a 24-hour market, where the traditional stock market is not. Be sure to hits the books and learn more about the GBTC Bitcoin Trust and the related pros and cons before you invest.
  • Once again I think the simplest place to buy, sell, and store coins is Coinbase, but you can only buy, sell, and store Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on Coinbase. If you are serious about trading cryptocurrency, you’ll need another exchange like Coinbase’s GDAX, Bittrex, Binance, or Kraken (and you’ll likely want to find a wallet to store your coins in). The cryptocurrency market is insanely volatile. You can make a fortune in a moment and lose it in the next whether you trade Bitcoin, another coin, or the GBTC Bitcoin trust. Consider mitigating risks, hedging, and not “going long” with all your investable funds.
  • TIP: If you trade only the top coins by market cap (that is coins like Bitcoin Ethereum), or GBTC, then the chances of losing everything overnight are slim (not impossible, but slimmer). Other cryptocurrencies are riskier (but can offer quick gains on a good day).

TIP: There are a few sides to cryptocurrency. 1. you can trade and invest in it, 2. you can use it for transactions (anywhere a coin type is accepted), 3. you can break out a graphics processing unit and some software and mine coins. Those are all valid and interesting ideas, but with that in mind, this page is focused on “trading” cryptocurrency (and therefore also investing in it).

10 Simple tips that will help you trade bitcoin and other cryptocurrencies

There are only a few things to know about trading cryptocurrency beyond what was noted above. Below are a few of the most important things to know before getting started:

  • Use an exchange, not a broker. You’ll save money on fees. For example, buy and sell with GDAX and not Coinbase.
  • When you buy/sell via an exchange, try to use limit orders (try not to use market orders). On some exchanges, like GDAX, limit orders have lower fees than market orders. On GDAX, limit orders are free as long as they don’t fill immediately. Meanwhile, market orders result in a .3% fee, which is better than the 1.4% that Coinbase charges but not as good as 0%, especially if you are day trading. If your exchange rewards you for using certain order types, aim to use them.
  • Figure out if you want to go long or short. Are you going short with every penny you have to invest, or are you going to go long with some and add more later? Like trading any other financial instrument, one must have a valid trading plan devised BEFORE the trade is entered into. Learn how to plan that trade at the next Online OMNI Trading Academy’s OMNI Camp seminar in Las Vegas https://www.livewithoscar.com/OmniCamp.aspx
  • If you are going long, consider building a position over time. There is no easier way to make a poorly timed trade into a cryptocurrency than jumping right in head first. This game is not for widows or orphans . If building a long term position consider buying incrementally instead of all at once thereby buying an asset at its “average value” price over time. If you don’t have a really solid grasp of technical indicators and the way the volatile crypto markets work, consider slowly exiting out of positions as well. Remember this is a mentally stressful game. Taking too big of a position at once can be emotionally difficult to deal with (and can thus lead to bad decision making) especially when considering the historic volatility of the cryptocurrency market.
  • Remember Cryptocurrency is a 24/7 Global Market. In other words, the market never sleeps. Since you do, consider the amount of time necessary to monitor your crypto account before taking on a position or trade. It requires long hours nurturing and monitoring your cryptocurrency positions.
  • Aim to buy low, sell high; try not to buy high, sell low. Look at the price trends and strictly follow your Technical Analysis trading plan. If you need assistance with a trading plan please join me in my live trading room at the Online OMNI Trading Academy.
  • Knowing when to take a loss is hard, buying the dips and holding is easy. The dips WILL happen! You must be patient and ward off your emotions. You cannot “buy the dips” if you have all of your money already invested. LET ME STRESS THIS POINT! The point should be obvious, but it bears repeating over and over. It is tempting to go all-in to a cryptocurrency position, but that limits your options. Consider always having some funds to the side to buy an unforeseen downturn. Even if you want to “go all-in” on crypto… leave yourself at least a little money to the side just in case. If you are all-in and the price takes a hard downturn, it takes lots of options off the table. It is hard not to go all-in when a coin goes down 60% – 80% over the course of weeks or months, but sometimes they go down even more than that as is the case in 2018 It is wise to always prepare for the worst case scenario to occur.
  • Bitcoin (BTC) is the current reigning King & Queen; Don’t Get Overly Optimistic About Altcoins. Those who invest in BTC tend to get itchy fingers when BTC stagnates and alternate cryptocurrencies go up. Sure, going into IOTA or Ripple can be a brilliant move at times… at other times you’ll be holding the bag while everyone moves back into BTC. Stick with coins you know and like, but consider always being partial to Bitcoin This advice applies somewhat to Ethereum as well, but first and foremost BTC is the center of the crypto economy.
  • Always use your technically driven trading plan when gauging cryptocurrency movement. Know that cryptocurrencies can be outlawed by any government at any time. The cryptocurrency is extremely volatile.
  • Never trade cryptocurrencies with money you have earmarked for other purposes like your MONTHLY EXPENSES. I know this first hand. I personally have lost thousands of dollars in Cryptocurrency fluctuations. I am still in however as of this writing. I have a long term (4 year) trade horizon on my Bitcoin purchases.