For those who want to understand what is it at first place - https://anders.com/blockchain/
See the videos.
Now, Like our stocks like Reliance or Justdial.
There are assets like Bitcoin or OMG.
Let’s first see how to trade them.
What you trade in Reliance is actually Reliance/INR. You are trading Reliance against INR correct?
Q1. Suppose you buy 1 share of Reliance. What is your worth? What is the price of that share?
Q2. Suppose you buy a flat in Mumbai at 1cr. Does it mean it is worth 1cr? Your worth is 1cr?
Reliance = Dematerizised asset. You own the asset in the paper.
Flat = Materialized asset. It is 3 dimensional, visible stuff.
So answer me, How your worth is decided?
How much INR you will write for a share of Reliance you own?
How you calculate your home’s value?
When you take loan against property how your property value is calculated?
Bank sends an evaluator who checks as per municipality rate.
Your property valuation and Your property’s selling rate can be way way way different!
Valuation is what govt will give you when they undertake
Book value = the value of a security or asset as entered in a firm’s books.
Book value + premium = cmp
for stocks
valuation + market demand = cmp
Some stocks trade below than book value.
Some stocks trade way above than book value
A company which is worth 100 inr and has 200 inr debt. It means, on liquidation, the debt will be cleared first, you will get coconuts.
Still people buy them.
A company makes consistently loss like Amazon, Paytm. Till their shares are trading
Amazon makes consistently loss.
They put all their profits on aggressive expansion.
Uber also makes loss.
Now the most important question is - How the valuation of Gold is decided ?
Its just a stupid rock.
Whats the book value in that sense here
Oil is commodity.
You know why a normal stone is not commodity? A commodity is a raw product.
It means it is priced based on consumption.
Like lets say coffee.
The demand is always same or similar.
But if supply shrinks
price rises.
Gold is consumed by women :rolling_on_the_floor_laughing:
You know there was a time when plaster of paris was more expensive than gold
Explore history ; see the stories.
Potato came from portugal in India. Before that it was a shit hifi stuff.
Coming to the fact, if one day people decided gold is a stone which like they once decided suddenly for all Relcap companies. Imbalance will be created and gold value will decrease.
Same goes with Bitcoin and crypto asset.
You can google or see the site I refered to know what is it at the first place
What we should focus is how we can trade this
How you trade Reliance?
You open broker account which connect seller and buyer.
You put INR.
You trade INR with that share.
How you trade Gold?
MCX is an exchange which has made contracts on Gold that is obligated to pay you the amount of Gold you purchase at the end of the contract.
So the contract trades in sync with Gold’s price.
You open broker account which connect seller and buyer.
You put INR.
You trade INR with that gold contract…
Also, some people literally buys gold and store it and sell it.
That has cost associated with it too.
Dukandar is the broker here.
He charges some shit in between.
So we need to find a broker!
Now the part You put INR rings a bell.
So I run a crypto advisory too. So I use maximum 50K in Indian one because I think they can run away anytime. There is no rule in India. You can not do anything.
I will suggest you all to start with 20K (at maximum). You can start with 2K ; Do not go above 20K at all.
Unlike stock market people lose and make like hell in crypto.
Please respect what I say. Understand the risk.
The volatility is extreme.
Just test the waters.
If you’re signing up with my link, I will share my trades too.
I get brokerage share from them Straight forward.
Now the main question
Crypto is fucking ban in India.
How we are supposed to add money.
Also crypto assets are highly unstable. Some day they go up 30% up ; Some day they are 30% down.
Like in our brokers, we keep the money in INR which is stable
In US brokers, we use USD
Now comes the part of USDT.
USDT - USDT is a cryptocurrency asset issued on the Bitcoin blockchain. Each USDT unit is backed by a U.S Dollar held in the reserves of the Tether Limited and can be redeemed through the Tether Platform
USD + Some slight premium = USDT
slight premium because if you convert your USDT back to INR from the company; they charge a small amount which is fixed. Google yourself.
Now listen carefully,
In zerodha you have x inr in account.
You can buy sell reliance shares seeing the price.
Here it is same thing.
You can buy sell BTC ETH against USD
Also Tradingview gives live data
Type ETHUSDT in tview.
If the low of this candle is break, put a sell limit !
Its called Inside bar.
There is no STT. Nothing.
Now see you can not sell ETH against USDT.
Like shares you need to only look for buy setups.
There are also derivatives in crypto market. For your own safety, I won’t tell a shit about that.
Because if you lose money you will leave my forum :rolling_on_the_floor_laughing: which I will try to avoid.
Suppose you have 1000 USDT.
You bought 6 ETH @ 150
It means in your account, it will be 100 USDT + 6ETH now.
Now as you have ETH and USDT both you can trade something spectacular.
In Zerodha you can have only one currency - INR.
Here each crypto is a currency.
You can trade ETHBTC or BTCETH pair.
Warmonger crypto haters don’t like to buy crypto.
They say BTC and ETH both are shit currency.
But we can bet on which one is shittier here If ETH goes up against USDT and BTC goes less up than ETH against USDTIt means ETHBTC will go up.
Understand this statement
So if ETH is better currency, it will rock
