My nephew is trying to get my sister into crypto. I'm of one mind but would love to hear feedback. Bad idea? Good idea?

@Jezibaba As a long time Forex and crypto trader and the author of a crypto trading bot I have a couple pieces of advice:

1. Never trade money you can’t afford to lose.
2. Avoid NFTs. They’re all scams.
3. You can make money trading crypto but it’s gambling. Crypto isn’t money (yet).

@ScionAltera so 1 maks sense. 2 I agree with. 3. She would not likely be trading it at all. So let's say as an investment??

@Jezibaba Historically “HODL” has been a really good strategy and it may continue to be. But if the bottom falls out it will be very fast. So use a platform where you can set a “stop loss” order and sell automatically if it drops too far. You don’t want to be the one holding the bag after everyone else bails out.

@ScionAltera Since I know very little about it, does it trade like stocks?

@Jezibaba Yeah, it’s similar to stocks especially in the USA because brokers don’t allow margin trading anymore (so you can’t short). The difference is stocks have a lot more fundamental information about the companies. Forex and crypto are driven heavily by the news. The order types are the same as you’d get with stocks or forex.

@ScionAltera perfect. Thank you. That I can handle when talking to her. I appreciate the help.

@Jezibaba Any time! Glad I could help!

@ScionAltera I have a question about bots. Got a sec?

@Jezibaba Sure! What's up?

@ScionAltera can you program them only for hypotheticals for tracking while learning and how would I be able to compile the data?

@Jezibaba I think you're talking about paper trading? Where you analyze the data and pretend to trade but never submit a real order? Almost every bot I've seen has a mode like that so you can test your theory and see what your results would be like, including the one I wrote.