Crypto-Trading with Twitter (1)

In these troubled times, a lot of unexperienced wannabe traders and investors will rush in on cryptocurrencies like a sheep in a sea of sharks, seeking help as they don’t know what are the founding principles of cryptos.

And it’s true that social media is actually a great source of info (or at least info transmitter to other sources) and there are many great people willing to help others here but if you wanna succeed with the help of social media, there are a few principles to follow.

I will only give general guidelines and not technical analysis (TA) in this thread. The good news is that there are still a lot of opportunities to come in crypto-trading (and other forms of trading). Actually now is one of the best times for trading as an individual.

The experienced traders know perfectly that a lot of noobs are coming into the market right now. Researches about ‘buy Bitcoin’ have overridden the ones about other kinds of investment. Experienced traders know it perfectly and some will take advantage of you.

Why ? Because it’s the perfect time. Right now, if you are a long-term investor, the strategy is not TO EARN MONEY but NOT TO LOSE ANY. When there are more idiots (meaning unexperienced, no harm intended) like there are in the market rn, it’s time to take their money.

When fear reaches the bottom and the depressed noobs call it quit, it’s time to reinvest the money. So that was the bad news, the good news in crypto is that it is still ok to buy Bitcoin now. If you already own some, congrats.

Otherwise, you should focus on investing your money in it asap and learn trading methods in the meantime. If you hesitate too much, it might be too late.

Don’t get me wrong, I am not saying that for example the price of BTC will go down. I actually believe it will in the short-term and I will get back to it. But here is the first principle that will show you that things are not so easy with cryptos.

1- CRYPTO-TRADING IS NOT STOCKS TRADING. No matter what they say. It may become but right now it’s just NOT. It means you cannot use the same classic tools as you would do in the stock exchange market.

The underlying principles of crypto-trading are different because the wealth distribution is very different, and the volumes are shorter and the market is subject to frequent and short bubbles.

With that, you can unfollow/not follow a hell lot of people here. Follow them just for personal interest if you want but don’t listen to them. On the other hand, you have a lot of gurus with their paid or unpaid groups of bot-disciples or idiots who will share their holy calls.

These guys are very well organised. First, they have several accounts on Twitter and they can use them differently calling one side on one account and one or another and then either delete their tweets either switching or deleting account, especially during important moves like.

The most influential ones won’t even delete their tweets. They have enough ‘followers’ who vouch for them. They just apply the old strategy, still valid today: divert the attention. Or they just count on the blindness of their disciples, who overfit their beliefs.

What's overfitting? If you follow someone with 30k followers, you'll imagine that many people are interested in his calls. You'll check a few retweets where he was right then build a theory that's hard to test, even when there is evidence that the theory should be reconsidered.

That is overfitting. The same principle applies in religion or science. Don’t forget that the market is 90% human psychology and 10% facts. Second, they know exactly when to tweet and when not to and when to call the great short. See the movie for your personal knowledge.

They'll make small calls or give good advice about some other cryptos and you might actually benefit from it on the short term. Then they'll wait for the perfect time to get your BTC and in the meantime they'll make sure that they gather enough followers and maintain confidence.

They criticise other scammers whereas they are just the same but jealous because they have less followers. Btw, that’s obviously not my case, you can check my other account and you can find any info on me with a simple search. What kind of scammer would use his real name anyways?

These scammers use chat groups on Discord/Telegram. Why not Twitter? You can always interfere in a chat room, but you can also comment or answer a tweet. My theory is that they are organised around a Twitter account with a sufficient number of followers and is the group leader.

A small group of people work besides the guru. That way, they have sufficient diversity of opinions to be realistic. 'Members’ can even pretend they've been scammed. The exception that proves the rule. They can pretend they did a free group because there are too many paid groups!

Which is true by the way. In paid groups, people are organised the same. You are invited in the free section where there are people ‘interested’ in the offer and asking for info and saying they will register to that great offer that is so cheap (only 1 BTC for personal advice).

It is also true that you don’t need a group to scam, just a good Twitter account with real followers. Influential twitter users pretend to use the real jargon even though they know nothing about TA. But a lot of these accounts actually don’t scam, they advise erroneously.

They just unwittingly use the tools of TA (remember the 1st principle). This is less being a scammer than just being plain wrong and it might be less dangerous to follow such people.

2- NEVER FOLLOW ANY GROUP, PAID OR UNPAID. If you do, do it for fun, or if you are a budding scammer, you will learn a lot. You will soon end up receiving messages about great investment plan for your 0.1 BTC with 2x ROI potential

Isn’t that great! You only need to send all your savings to their address and never wait for the closures of their groups and accounts once enough people have been scammed. Other ways to find scammers is to look at the followers of Twitter users.

Many good scammers have about 20-30k followers. But if you check who follows them, a lot of their followers have 0 followers. Those are the bots. And most of their followers have recent accounts with less than 20 followers, they are the friends (or bots) followed by…other bots.