Beginner trader: super basic beginner questions?

[clover12]

I am thinking of trying a little day trading of crypto currency but want to be business-like and keep all my financials all separate from my personal checking account (of fiat money).  When I say little, I will start with a couple hundred dollars.

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

Do you register a LLC or something before you start trading?

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

I was thinking of working my regular job 3 days per week, and then do 3 days per week for learning trading 8 hours per day. With my personal money, I am very meticulous and I keep track of basically every penny spent and earned, so I want to do the same if I start trading for the first time...

More questions later....

[masterzino]

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

Yes, I do, because I love to have strict trading roll management.

Do you register a LLC or something before you start trading?

Depends on where you are. Check it with your local tax adviser.
In almost all European country it's not necessary because trading income are taxes as capital gains (10-30%).

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

Yes, I do. Most people use software, some use pen and paper. It's matter of choice.


Good luck.

[clover12]

How do you prepare for a day of trading?
 
Do you have a office reserved for just trading?
 
How do you not get distracted with these forums and everything else?

[dothebeats]

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

I don't have a separate bank account for trading, but I do have multiple bank accounts and I try to keep one bank account strictly for investments and other financial stuff.

Do you register a LLC or something before you start trading?

From where I'm at right now (Philippines), there aren't any strict regulations/rule that require a crypto-trader to register a LLC or a corporation or whatever as long as you duly comply with all the necessary documents regarding your ventures. In this case, it will fall under capital gains as the gov't will consider your trading ventures as something similar to stocks (at least that's what I've been accustomed to, or not enough legal framework has been set yet.)

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

Be systematic and organized. I use Excel and the good 'ol pen and paper to keep track of what I gained and lost on a session of trading.

How do you prepare for a day of trading?

Usually by checking some articles and volumes on some exchanges. If the volumes seem to be not that high, or somewhat sloppy compared to the regular volumes on exchanges, I try to wait for a few hours before I start trading.

Do you have a office reserved for just trading?

If you can consider a bedroom an office space, then yes, I have mine.

How do you not get distracted with these forums and everything else?

Simple, I don't visit any sites completely unrelated to my current trading session or add noise to my collected signals by visiting other trading-related sites. What information I have, I use them and stick to them.

[harizen]

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

Not necessary. No need.

Just fill your trading account then proceed.

Do you register a LLC or something before you start trading?

None. Crypto trading is not the usual stock market trading.

Choose a crypto trading platform (a reputable one to minimize the risks), register (see supported countries) , deposit and start doing trades.

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

Honestly it's up to you how you want to keep track of it. I believed you can think some by yourself.

I was thinking of working my regular job 3 days per week, and then do 3 days per week for learning trading 8 hours per day. With my personal money, I am very meticulous and I keep track of basically every penny spent and earned, so I want to do the same if I start trading for the first time...

As long as you know what you are doing then it's fine. I don't see any wrong doing that honestly. You are the only one who can tell if your plan will be worth it in the long run. So yes, you need to do that plan on actual and see if it will be an effective strategy.

How do you prepare for a day of trading?

What you must focus here is to study the behaviour of your chosen coins to be traded. Doing day trades can lead to a quick loss so don't just engaged here without proper knowledge about "volume". Since you will put time on learning trading stuffs, you will encountered how to deal on that on your way.

Do you have a office reserved for just trading?

Not necessary. But of course it's a good to work on an area where you are comfortable.

How do you not get distracted with these forums and everything else?

Focus. Speculations always there and community always making a hype.

You can listened to them as reference but of course you should know how to sort the useful to those sh*t ones.


P.S

Make sure you will read all responses here.

[HODL2090]

You would not need a separate account. Draw up a sheet or ledger and designate funds to your specific desires and act accordingly. You set aside funds dor cryptocurrency trading and only invest that. You would need to adhere strictly to your plan and be in control of your emotions.

[exstasie]

I am thinking of trying a little day trading of crypto currency but want to be business-like and keep all my financials all separate from my personal checking account (of fiat money).  When I say little, I will start with a couple hundred dollars.

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

Do you register a LLC or something before you start trading?

I keep everything taxed as an individual. I'm a swing trader and scalper, not a long term position trader, so I've never had major capital losses to worry about deducting. That's the biggest reason to incorporate. Trading as an individual, I avoid filing Schedule C or paying FICA (15% extra) taxes.

If you're just playing with a couple hundred dollars to start, I wouldn't bother incorporating.

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

I try to keep as much bitcoin as possible held in specific lots in cold storage. That makes taxes really easy when I go to sell.

I primarily use one fiat exchange and one altcoin exchange to keep things simple. With both, I export trade history regularly. Tracking fiat spot trades is simple because it's just like trading stocks. With altcoin trading, there's an extra step involved where you need to calculate the USD basis of each position so you can produce the USD gain when you sell.

[danherbias07]

I am thinking of trying a little day trading of crypto currency but want to be business-like and keep all my financials all separate from my personal checking account (of fiat money).  When I say little, I will start with a couple hundred dollars.

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

I do think it will depend on the country you are in.
Just like dothebeats said, here in Philippines in aint that strict yet. We can pay up at 7/11 convenience store to buy bitcoin and it will go directly to one exchange which is Coins.ph. I do believe they are already accessible in Asia. If I am not mistaken.

Do you register a LLC or something before you start trading?

I think it wont be a necessity.

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

I am just using a spreadsheet for this kind and just using my smartphone for monitoring. Somehow you will learn that.

I was thinking of working my regular job 3 days per week, and then do 3 days per week for learning trading 8 hours per day. With my personal money, I am very meticulous and I keep track of basically every penny spent and earned, so I want to do the same if I start trading for the first time...

More questions later....

Think twice about this 8 hours of trading. I dont think it is a wise decision. Once you are settled, it will be a boring 8 hours. Keeping track of all the trades will be faster from there on.
If I were you I would just savor the moments. Do not stress it much for starters. Enjoy it.

How do you prepare for a day of trading?
 
Do you have a office reserved for just trading?
 
How do you not get distracted with these forums and everything else?

My home is my office. Clear your thoughts before doing a trade. It will be better while the kids are sleeping. This forums is helpful but not all of it. Choose the users that you will follow which are really wise. Do not be taken by the hype.

[wuvdoll]

 For something as small as couple hundred dollars you will not get too much action on the big coins. You will probably get some of the top coins and just watch your portfolio move couple bucks everyday which is really not fun and you will move onto something bigger. Let me talk about that part of the journey, for someone who has small amount and want big action there are really just two options, one is the bitmex margin trading and the other is the small altcoins.

If you go with bitmex you will need to start a demo account first and test yourself there, it would be wiser and you will learn some and than move into real thing and that will be really hectic, maybe you will make thousands maybe you will lose it all in 10 minutes. The small altcoins are the ones with little price but high volume, they usually give a lot of action as well.

[carlfebz2]

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

No, you can directly store up your crypto earnings on your crypto wallet. Later on, you decide if you would encash or exchange those coins to fiat by using up some exchangers.

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

There are softwares and for exchangers there are histories and you can write it up on a piece of paper.

~snip~

Seeking for action does require time,effort and experience. Those are good advises about bitmex and small value altcoins but the risk cant really be easily taken once you have been sweep out by loss.

[playboy654]

For something as small as couple hundred dollars you will not get too much action on the big coins. You will probably get some of the top coins and just watch your portfolio move couple bucks everyday which is really not fun and you will move onto something bigger. Let me talk about that part of the journey, for someone who has small amount and want big action there are really just two options, one is the bitmex margin trading and the other is the small altcoins.

If you go with bitmex you will need to start a demo account first and test yourself there, it would be wiser and you will learn some and than move into real thing and that will be really hectic, maybe you will make thousands maybe you will lose it all in 10 minutes. The small altcoins are the ones with little price but high volume, they usually give a lot of action as well.

To maintain the all track records that we are using in the training field it been a long process and you need to spend long time to trade as a professional if you do some other job and make trading as your side business will not be workable for gaining profit from that so the first step is to make separate time and work for trading will be the right way to start up.

[clover12]

I am going to enter and close my first trade today at Binance.  My goal is to just exit at a profit no matter how small it is.  I will update here.

[clover12]

I have loaded my Binance account with some ZRP and some BTC.

I still need time to navigate Binance exchange charts, it is confusing but getting better for me.

I want to place a trade!!!

More questions:

What banks are most crypto friendly for storing your fiat money from crypto investments in there?  I am in the USA.

If trading at Binance, doesn’t the site store all the transactions in a big list?  Is that good enough to use as a ledger/record?

What is a “scalper”?

[clover12]

What is a better (inexpensive) computer set up for trading and being safe?

What laptop is better for security and crypto/trading?? Apple or Microsoft Dell??

What is BNB?? For my trading at Binance should I buy some of that using bitcoin?  

[clover12]

I must not be ready to trade yet.  My bitcoin is still pending to get into my Binance, and I am confused how to do anything with ZRP (0x).
 
I ordered a paper book for learning technical analysis.
 
More questions

How do you learn about buy and sell walls?

How do you monitor market depth?

[clover12]

I placed these 4 stop-limit orders at Binance:

Pair: ZRX/BTC
Entry: 0.00007238
Stop: 0.000076
Limit: 0.0000765
Amount: 90

Pair: ZRX/BTC
Entry: 0.00007230
Stop: 0.000087
Limit: 0.000088
Amount: 102

Pair: ZRX/ETH
Entry: 0.0023363
Stop: 0.002684
Limit: 0.00269
Amount: 67

Pair: ZRX/ETH
Entry: 0.00233638
Stop: 0.00281
Limit: 0.00282
Amount: 102

I have a lot of questions now.

[nydiacaskey01]

Do you have a separate bank account (or a Business account) for your crypto trading,, that is separate from your personal checking account?

Its not a bad idea to create a separate bank account only for your trading funds, that way you can easily monitor the progress of your trades, if your money is growing or not.

Do you register a LLC or something before you start trading?

You don't need it, just register and have your funds ready and you are good to go. There are exchange sites that requires KYC, so prepare some identification when you register to those kind of sites.

How do you keep track of all the financials with your trading activity? (seems easy to get sloppy with keeping exact records)

At first I don't keep a record of my earnings, but lately I am using a record book to log my profits, regardless if its big or small. I don't only log profits, I also log how much losses I made and how much capital I am using.