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When I’m about to get started in Crypto trading, what currency should I put my deposited money into so that it’s okay that I don’t lose money while I’m getting started?

You need to think about the currency risk of trading crypto. If you deposit money into your Binance account and put it all in BTC, the price of Bitcoin usually fluctuates. If Bitcoin is trending up, you’ll be happy you did that, but if Bitcoin is trending down, you won’t be glad you did that. But the point is, if you just put it in there, you’re hoping it’ll go up if you put it in Bitcoin.

You don’t have a system or rules around that position because putting money from your currency into Binance in Bitcoin will fluctuate, it’s either helping or hurting you. Because it’s a trade, you will have all of those emotional impacts if you don’t have a system around it. You’re going to ask questions to yourself like “what should I do?” “Should I sell it?” “Should I hold it?” “Is this okay?” “Is the train going to turn around?” “Is the train going to keep going?,” and all of the uncertainty.

The preferred approach is to put the money in the account in a stable currency, like USDT or straight U.S. dollars. Just leave it there and trade out of that when your system tells you to take a trade. That way, when you are not in a trade when your plan says you are in cash, you’re actually in cash. In cash is not in Bitcoin. In cash is in cash.

So when our system is out, we have no risk. But if our system is out and we’ve got all our money in Bitcoin, we’ve got a lot of risks and that could sometimes help or hurt. Unmanaged risk in crypto trading is going to be a problem.

In my account, it all comes back to USDT or US Dollar Tether, unless I have a trade on. If I need to buy Bitcoin to buy another coin, sometimes we trade ETH versus USDT or ETH versus Bitcoin. To trade ETH versus USDT, you need Tether in your account. If Tether is where you store your money, you can buy it straight away. But if we’re trying to trade ETH against Bitcoin, you first need Bitcoin; then you use the Bitcoin to buy the ETH.

If you’re sitting in Tether, you’ve got no Bitcoin, but you need to buy Eth against Bitcoin. So you need first to buy Bitcoin, then buy ETH. I shift a little bit of money to Bitcoin to place my Bitcoin trades, but then if it’s not needed, I shift it back. That way, I minimize the risk of having assets unmanaged in a currency that fluctuates in crypto trading.

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