To avoid blowing your account in cryptocurrency margin trading, you should become a "courageous coward."

Hello everyone, you timid ones! In cryptocurrency leverage trading, you open positions while being scared@xi10jun1.

Has the extreme drop in cryptocurrencies subsided for the moment? That's good, good.

This week there were some rebound moments, but I'm worried it won't rise in a straight line.

*This column can be read for free up to halfway; it is designed like a collection of conscientious content. Of course, if you read up to the paid portion (updated weekly, 400 yen per month, so about 80–100 yen per column), I would be very encouraged, and I’d be happy if you subscribe as a tip!

This week’s results (February 2, 2018 to February 8, 2018)

First, as always, the results. I’ll present the changes first.

• Last week (up to February 1, 2018) assets: 60,433 yen
• This week (up to February 8, 2018) assets: 62,067 yen
• Change: +1,634 yen

This week I did a few trades and finally recovered to this level!

Because I trade short-term, I only earn a few hundred to several thousand yen per trade, but since I’m a timid person, this suits me well.

So this time I will write about the mindset needed to avoid exiting (getting wiped out) in cryptocurrency leverage trading: “a courageous coward.”

“Courageous coward”?

Do you know the manga Master Keaton? A work by Naoki Urusawa, Hokusei Katsuka, and Naoshi Nagasaki, about a former soldier-turned-insurance investigator (private detective) Keaton who faces various investigative cases with bravery.

In volume 13, chapter 5, there is the phrase “a courageous coward.”

The story goes roughly like this:

1. Keaton arrives on an island and meets a young British soldier and an elderly former mercenary (a superb fighter).
2. Soon after, they’re captured by drug-trafficking mafia and are imprisoned on the island (Keaton is instructed to act separately by the mafia).
3. The young soldier bravely tries to stand up, but the elderly former mercenary says, “I’m cowardly, so I can’t,” and refuses to fight.
4. The young soldier who faced the mafia alone fails and is in danger of losing his life.
5. The elderly former mercenary comes in to help, but nearly fails again and is in a pinch.
6. Immediately after, Keaton, who had been acting separately, returns and ambushes the mafia, who are suppressed.
7. With everyone safe, the young soldier asks, “Could I also become a courageous coward like that person?” and the story ends.

This elderly former mercenary was reading the strength of the enemy—the mafia—and assessing the situation. Keaton did the same. It was only the courageous young soldier who misread the situation.

In cryptocurrency trading, if you overtrust that “it will rise after a drop,” you’ll pay a painful price for a reversal. Indeed, there are casualties.

But if you truly do nothing from fear, you won’t profit. A “courageous coward” is like that.

Free summary: If you want to survive in cryptocurrency leverage trading, become a courageous coward

My kind of short-term trading doesn’t bring huge profits, but on the other hand, it’s less likely to be caught up in sudden crashes or surges.

To engage in high-volatility trades like cryptocurrency leverage trading, you need the ability to assess the situation and calm judgment. More than the bravery to open positions, a cowardly stance of not taking positions except at decisive moments is important.

Most importantly, you must not lose your assets, so become a courageous coward.

So this paid column will discuss future prospects.

Closing Corner 1: Latest information on taxes! Updated February 9, 2018!

The National Tax Agency’s site has updated the latest legal views regarding Bitcoin.

Here it is →No.1524 Taxation relating to profits from using Bitcoin | Income Tax | National Tax Agency

Addendum: December 1, 2017: The National Tax Agency’s site posted a document on how to calculate income.

Here it is →About the calculation methods for income related to virtual currencies (pdf) | National Tax Agency

※Please note that laws and tax interpretations may change, which could alter how you file tax returns. Before filing, be sure to check with your nearest tax office or a tax professional.

Addendum: February 9, 2018: Services that help with calculating cryptocurrency taxes have appeared in various places. BitFlyer released that they use a service called CRYPTACT to calculate profits from trading history.

BitFlyer release here →“Trading Report” renewal and notice about taxes on Bitcoin and other cryptocurrencies (pdf)

CRYPTACT here →https://tax.cryptact.com/

CRYPTACT is free to use and supports 15 exchanges (domestic: bitFlyer, Zaif, bitbank, coincheck, GMO Coin; overseas: binance, bitfinex, bittrex, changelly, CoinExchange, cryptopia, HitBTC, kraken, poloniex, Quoine) and 1,680 types of cryptocurrencies, enabling calculation of cryptocurrency-related income across multiple companies.

However, as noted in BitFlyer’s release, the service’s results do not place any liability on exchange operators, CryptAct, EY Tax Corporation, or myself. Filing taxes remains the user’s responsibility.

Closing Corner 2: In planning

I’m considering writing about new cryptocurrency-related news and information soon, but I haven’t come up with anything yet. I will post here as soon as a plan is decided!

※Free content ends here. From now on, it will be detailed analysis and outlook, so it will be paid. If you want to read more, or even as a tip, please consider subscribing—your support is greatly appreciated! Thank you for your continued support.

Market impressions from February 9, 2018 to February 15, 2018 onwards