Crypto tips

Tips for Cryptocurrency Trading Tip 1. Whether your purpose is to day trade or to scalp, you need to have a purpose for starting to trade cryptos. Trading digital currencies is a zero-sum game; you need to realize that for every win, there is a corresponding loss:. Someone wins; someone else loses. And can you guess what these whales do best? They have patience; they wait for innocent traders like you and me to make a single mistake that lands our money to their hands due to avoidable mistakes.

From our years of market analysis, we can comfortably tell you that on certain day or periods, you can only stay profitable by keeping off some trades. Tip 2. This will ensure that if the worst comes to pass, you can walk away with what you invested in the first place.

The same applies to profit levels if you target to get out of the market after hitting a certain minimum profit; stick to that. Tip 3. Welcome to FOMO! FOMO is an abbreviation for the fear of missing out. This is one of the most notorious reasons as to why many traders fail in the art. From an outside point of view, it is never a good scene seeing people make massive profits within minutes from pumped-up coins. Honestly, I never like such situations any more than you do.

It is at this point that the whales I mentioned earlier will be smiling and watching you buy the coins they bought earlier at very low prices. Guess what normally follows? These coins usually end up in the hands of small traders and the next thing that happens is for the red candles to start popping up due to an oversupply and, voila, losses start trickling in.

Tip 4. Manage Your Risks Little pigs eat a lot, but big ones get eaten. This is especially true of market profits when trading cryptocurrencies. They would rather stay put and gather small but sure profits from regular trades on the bitcoin up official app. Consider investing less of your portfolio in a market that is less liquid.

Such high trades require more tolerance, while the stop loss and profit target points will be allocated further from the buying level. Tip 5. It is vital to understand that Bitcoin is relative to fiat currencies and is quite volatile. The simpler version of this is that when the value of Bitcoin goes up, the value of altcoins goes down and vice versa.

The market is normally foggy when the Bitcoin price is volatile and, as you would imagine, this prevents most traders from gaining a clear understanding of what goes on in the market. At this point, it is advisable to either have close targets for our trades or simply not trade at all. Tip 6. Take, for example, someone who goes for Ripple instead of Ethereum simply because the latter is much cheaper.

The decision to invest in a coin should have very little to do with its affordability but a lot to do with its market cap. Just like the conventional stocks are gauged by their market caps, which is evaluated using the formula Current Market Price X Total Number of Outstanding Shares, the same applies to cryptocurrencies. Tip 7. In return, these investors are allocated tokens at a lower price with a promise to sell them at a much higher price when listed on an exchange.

Time has proven that ICOs can quite successful with records showing that some tokens ended up more than ten times the value of the projected returns. People have lost millions worth of investments. Conduct a background check on the team behind the project and analyze their ability to deliver on their promise.

Tip 8. A Quick One for Altcoin Investors A lot of Altcoins end up losing value over a certain period of time, sometimes in an unusually short period of time. Secure and confidential dealings — Any transaction done with cryptocurrency is encrypted, safe, and basically anonymous. No one can get the chance to spy on your financial activity or get your details from your account history, such as banks would. Only you have the power to view your recent transactions.

Financial freedom for the unbanked — Globally, there are around 7 billion unbanked adults. This means they have no account with any financial institution or mobile money provider. This could be because of the strict application process and requirements financial institutions require from their depositors, which can be a great hindrance to many.

Since that does not exist with cryptocurrency, a person can easily make an account right away. Quick international trade — What used to take days or weeks on end can be transferred in a matter of seconds with crypto. Since these are online transactions that do not need to be passed on from one bank to another, the waiting time for money transfers is reduced, no matter where you are in the world. A growing investment opportunity — It has been a while since Bitcoin arrived, and now there are around 5, different altcoins in circulation today, serving over 20, markets.

This sector will only grow in the future as the world adapts and takes on the needs of the post-modern population. A number of these coins are already in use and circulation today, and it will be a great investment opportunity for those who want to participate in trading them.

Below are some of the things you should keep in mind to help you navigate the field better. Find reputable news sources There will always be lots of opposing opinions about cryptocurrencies, as well as the people who own them. Many think that crypto is just a fad, and those who engage in them will only be disappointed.

If you are already convinced that this can benefit you, then stick to sources you can trust and avoid the noise of the non-believers. If you want to be a successful investor or altcoin owner, stick with the facts. You have to be agile with your decisions and think about what will be best for the current amount of assets that you have. Even experienced crypto traders and owners still have no luck mastering the trends of these virtual coins, so do not be shocked if you find yourself in the same boat.

Venture into other altcoins Bitcoins are only one part of the story when it comes to cryptocurrency.

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Figure out if you want to go for long-term trades or short-term trades. Are you going for short term trades with every penny you have to invest, or are you going to go for the long term with some and trading short term with some? If you are going to aim to be in crypto for the long term, consider building an average position for example via dollar cost averaging or value averaging.

Taking too big of a position at once can be emotionally difficult to deal with and can thus lead to bad decision making given the historic volatility of the cryptocurrency market. Consider laddering your buys and sells.

In other words, instead of buying or selling everything in one chunk, set incremental buy and sell orders to buy when the price goes down and sell when the price goes up. Laddering and averaging will help you to avoid mistiming the complex and volatile cryptocurrency market. Learn about dollar cost averaging and laddering. Learn about position sizing and risk management. To the above point, one generally takes a much larger risk with bigger bets. Learn how to make the right size buys and sells to avoid losing too much on a bad play.

In other words, the market never sleeps. Dad advice: Aim to buy low, sell high; try not to buy high, sell low. Look at the price trend, if we are at the highest point it has been in the past 24 hours days, weeks, etc , that is inherently riskier than buying at a short term low. Buying the dips and holding can be dangerous in a bear market, and it can put pressure on you to sell low if you overextend, but it is still often better than FOMO buying the top.

Sometimes it can be wise to sell for a loss or to buy when the price is at a local high, but knowing when this is the case requires a rather high skill level. Thus, although rules sometimes are best broken, start by aiming to buy low and sell high. Two last points A. Knowing when to take a loss is hard, buying the dips and holding is easy. The point should be obvious, but it bears repeating over and over. It is tempting to go all-in, but that limits your options.

Consider always having some funds to the side to buy an unforeseen downturn. If you are all-in and the price takes a hard downturn, it takes lots of options off the table. From — , during a long bull run, you could essentially buy every Bitcoin dip and come out ahead.

In and buying dips was mostly rewarded with heavy losses. In and , two bearish years, shorts could short every resistance and profit. In — , it was rarely safe to short Bitcoin. Knowing the difference between a bull and a bear can be a big deal in any asset, but with the brutal market cycles of crypto, it is especially important to learn the difference.

This advice applies somewhat to Ethereum as well, but first and foremost BTC is the center of the crypto economy. Learn to value coins in BTC. Ether aside, Bitcoin is the current primary currency of the crypto economy i. Those new to crypto tend to value things in dollars.

Meanwhile, even seasoned cash traders value coins in dollars. However, enough crypto traders will value coins in BTC for it to matter. There are times when all coins move up, but altcoins steadily lose value against Bitcoin. Those who know will be the first to dump altcoins for Bitcoin; this will set off a vicious cycle that can result in the stagnation of altcoin prices. Altcoins and Bitcoins tend to react to each other. Sometimes they do the opposite of each other and sometimes they do exactly the same thing.

It is not rare to see Bitcoin go down while alts go up and vice versa. This is because almost everyone who has alts has Bitcoin, so they tend to move out of Bitcoin when it goes down and move into alts and vice versa. This dance often results in Bitcoin outperforming altcoins, however every x months we will see an alt boom where alts outpace Bitcoin quickly. If you can time that, great. Try to spot it coming and there is big money to be made.

Learn more about the relationship between Bitcoin and Alts. In a word, alts are generally more volatile than Bitcoin. Speaking of the last few points, realize that crypto tends to be pattern based and tends to go in cycles. You want to be in a coin before it starts its rotation, and then laddering out as its rotation ends. Likewise, in a perfect world, you want to be in for the bull part of a market cycle, and out for the bear part. Near impossible to spot these trends in advance, but with experience, you should be able to spot them as they occur and manage your positions accordingly.

Consider Diversifying. Learn Technical Analysis. Technical Analysis TA is the analysis of price and volume data and trying to predict future trends based on that. Crypto defies logic all the time, but basic indicators are still helpful to understand.

Fibonacci support and resistance levels, moving averages try 12, 26, 9 MACD on 4hr candles , RSI, and a few other popular indicators are vital to wrap your head around. All the pros use these, and all the big players have bots who run strategies based on these complex versions of these at least. I suggest you get familiar with tradingview.

See a basic TA strategy. Many analysts thrive only in bear markets, or only in bull markets, or only on a certain style of trading. Only you know what is right for you! Watch the Order Book. If you see a lot of sell orders at a certain price and want to sell, you may aim to sell under that price. Hold some coins, range trade some coins, keep money on hand for a dip, and set some high-ball and low-ball orders.

If you want to ensure you are happy no matter which direction the winds blow, then be set-up to benefit from whatever comes next. If you have some coins you hold, some coins you trade daily or weekly, some money set aside for a dip, and some high-ball and low-ball orders set, then you stand to benefit regardless of what happens. It can be tempting to cash out of crypto or go all in, but both of those can be disappointing if the market goes in the opposite direction you were hoping for.

TIP: Note that diversifying your strategy and holdings eats into profits, but offers flexibility. It is a trade-off. The smaller your bet is compared to your total investable funds, the less risk you are taking on every bet one of many insanely important things we are covering here. Putting it all on black is tempting, but then if it comes up red, you have nothing left to invest. Live to fight another day by learning to manage your buy-in size.

Small bids offer the same bet, but with way less risk. See Kelly criterion. However, these little movements only matter if you are day trading large amounts of coin relative to your total investable funds. Zoom out a bit and look at trends over larger periods of time. I will rarely make trades on timeframes shorter than 2hr candles, and I generally am looking at 6 hr and daily candles, because I value my sanity and am focused on the long term trajectory of crypto.

That only changes in very specific instances and with purpose. If you zoom in too much, you lose sight of overarching trends many of which are actually stronger indicators of what is actually happening. In stock trading, if a company is not doing well, it can be smarter to sell their stock and buy a stock that is doing well. In crypto, big changes can happen quickly.

The only exception to this rule is this, if you understand TA, it is generally wise to ladder out when all the short-term averages have fully crossed under the long term and in when they have crossed over. Your goal is still the same, to build a position low and hold until highs, you are just practicing some risk management in between.

This added measure helps protect you from long bear markets. In other words, only sell losers if you have a logical reason and trust yourself to buy back in. If not, focus on building average positions but plan for the worst before it gets better. Bottomline on this: Stocks move much slower than cryptos. So a loser sold now and shifted to a winner can mean months upon months of rewards.

Cryptos tend to move fast and go into bear and bull mode in groups and go on runs at the blink of an eye. Sell a loser today and shift it to a winner, and trends could be changing by the time you wake up. You should prepare for this mentally and have a strategy that factors this in. If you buy the dip in ETH from. The market changes moods, and some strategies are better than others in a given market. A long investor who starts going short will start realizing capital gains and will risk being in fiat if and when there is a recovery recoveries, like corrections, can come on very quickly and without warning.

If you do switch from long to short, make a commitment to yourself to buy back in upon a certain event occurring like the 5 day EMA crossing the 50 day on 6 hr candles; something like that. To stress some points made above, realize that a diverse portfolio and investment strategy will eat into gains as often as it staves off losses.

The only way to make big profits most of the time is to make risky moves. If you go all in on a single coin at a given price and it goes up, that is a payday. If it goes down, your investable funds are locked into that crypto unless you want to sell at a loss. Diverse strategies protect against this, but they will also eat into your potential gains as it is rare for everything to go up or down at once. Know what you are looking for and know how to weight your portfolio to reflect that.

As noted above, if you have a strategy, stick with it. Other times the market will dump hard and that could open you up to the pressure to sell in a panic. Those emotional times is often when bad moves are made. If you are going to buy heavily or sell heavily on a whim, consider taking a step back first.

Watch out for scams. There are a few different scams in the crypto world. Learn more about scams. In short, be super careful about anything that promises free coins, sick returns, or wants you to lend your coins. Buy the top coins using a careful strategy and ignore all the sites promising you they can outperform the market if only you give them X, Y, and Z. There is some malware out there, and you need to do research and be careful. The trick is to learn only one at the same time.

If you try to implement them all in one go, you will most likely explode with frustration because it takes time. It takes time to build a solid mental framework for crypto. You should not expect yourself to learn these tips in an instant.

But if you are committed to learning them, it will make all the difference for you. The trick to trading cryptocurrencies profitably is to use your strengths as a trader and try to avoid your weak sides. This is where we put rules into practice. Rules come from tips that you hear from a friend or read online. The trick is to realize what you are doing wrong and stop yourself from doing that again. Most people are not comfortable with criticizing themselves.

This is where you need to be different. You need to be able to objectively look at the day or the week and see what went wrong. The trick is to realize we made a mistake, write down what happened, and also why it happened. This will become the start of your new development as a trade. Once you get used to looking at your own mistakes and take responsibility for your actions, the rest gets a lot easier.

Top 15 Crypto trading tips that work 1. Only trade your own setups You have probably heard this one before, but what does it mean? This behavior will create a pattern every day and every week. The more you study your coin, the more patterns you will find that repeats over and over again. With good practice, you will learn what behavior and what setups are your favorite setups.

These are the setups that will be profitable most of the time or at least make you money. This will take some time to develop for every trader, so be patient. When you study your cryptocurrencies and there are no patterns to trade, it will get boring. Days will pass without any good setups lining up and you start to get frustrated because you want to make money. While doing nothing feels like you are not trying to make money. This will make you even more frustrated and you might end up entering the market without the signal of your own setups.

When this happens, you will most likely end up in a bitter stop loss while throwing your capital in the arms of the broker. So, when you are scouting for the next good trade. Give the market time, good trades always come around.

Only trade your own setups. Great traders never have to look for good trades, if you have to look for a trade, there probably is no trade. Use the correct stop loss This crypto tip is also a common one but many traders struggle to use the correct stop loss.

Before entering your stop loss you need to know two things: How much money can I risk on any one trade? This is how much you should risk per trade to stay safe. You can also divide your current capital by 10 and then divide this result vid 10 again. The second thing you need to know is the average movement, range, or volatility of the cryptocurrency you are currently trading.

But why is this so important? Regular up and down movements occur every day. To avoid this you need to zoom out a little bit and take a look at what the average movement of the market is. This tool will help you analyze the average range of the market. What you do next is to put your stop loss at a safe distance outside of the standard rotations. Just enough to not get caught by the market.

The more you practice the better your stop losses will be. Also, many traders are saying that if they put the stop loss at this distance, their position size will be very small. In the beginning, as a trader, your capital and position sizes will be small. So, use this tip every time before you enter the market. It will save you money and frustration. Trade what you see This tip goes hand in hand with how to read crypto charts.

Before you can start making money with cryptocurrency, you need to be able to read crypto charts very well. The difference between trading what you see and what you believe or what you heard from a friend is very small. When you are looking at the cryptocurrency you are trading, you will start to learn how it trades.

With time you will start to learn the story behind the price patterns, but this is more advanced. Many traders do not listen to the price charts very well. If they did, they would do much better. What I mean when I say listen to the charts I refer to this. If there is negativity or positivity in the market. And also how positive or how negative the market is. It takes many years to get to this level, but if you practice a lot, you will get there Sometimes when there are very few opportunities in the crypto market, traders get frustrated and sometimes very sloppy with their decisions.

This is when traders start to look for other signs of entry into the market. Even if the market is telling the trader that there is no trade today, or this week, the trader has the urge to enter the market. So, when you are analyzing your charts and your cryptocurrencies, you need to trade what you see, not what you want to see.

If there is no trade today, wait a little. Be patient and trade only what you see. I was reading a news source online about how the crypto market was about to explode. This was of course signed by some analyst. This was so interesting to read and it really felt like the argument for the market to explode was spot on. I could not believe for a second that the market would do anything else than explode.

First I want to tell you how hard it is to predict the market correctly. This means that every second trade they expect to lose. Back to the news story. The people working for newspapers or online news sources have one job and one job only. To create very readable content. Absolutely no one on a news magazine has enough of a trading background to accurately predict any market. No less the cryptocurrency market.

It will give you no value at all. The only thing it will do is create an illusion that there is knowledge behind the writing. So, if you want to make money trading cryptocurrencies, never read the news. If you are serious about becoming a crypto day trader or swing trader you need to be able to listen to your own judgment and follow your own guts.

But you have no idea how to use this information. The same goes for ideas that come from other traders. As you progress in your trading development you will start to open your eyes and understand why only your own ideas will work for you. So, the next time you hear some advice from another trader, realize how many years it took him to learn the skills to come up with that idea. Then see how impossible it would be for you to adopt the idea and make every right move in the market.

Only follow your own ideas. Are you looking to become a skilled crypto trader? Check out our detailed crypto trading guides in our educational center. You will learn new strategies and how to read charts in real-time. The hurdle of human emotions. When you start your trading journey you have no idea what to expect, and most new traders do not know why it is so difficult.

The biggest obstacle to pass before you can become a profitable crypto trader is to understand and control your human impulses. Nothing about trading is normal, think about this. This risk combined with the uncertainty of the market makes it a very unsafe professional practice. Sometimes not even every week. The market might be in a very low volatile period and there is nothing to trade, at all.

This is when most traders feel like they are making something wrong by only sitting on their hands for 5 days. In fact, traders will get very frustrated and trade based on these emotions. They simply have to trade to tell themselves that they are doing something.

This is when it becomes very risky when you start trading only to silence the impulses that arise from doing nothing. There is no analysis of these trades and they are forced onto the market with imaginary setups based on subjective thoughts about the market. The trick is to not listen to anything else than the market.

If there is nothing to trade, there is nothing to trade. You are better off reading a book about cryptocurrencies. Learn to control your human emotions and impulses. Write down your trading setups You will not understand why this is one of the best crypto trading tips until you try it.

The only way to understand is to do it. Write down what has to happen in the market, what kind of behavior you need to see and which price patterns need to occur for your setups. When you write it down in a document you cement the idea behind the setup. You will start to see the setup much more clear in the market and you will also start to see when there are no setups as well. Your setups will become more second nature to you and you will recognize the setups much faster and earlier.

Another thing that will happen is that you will start to form new setups because you become so good at describing your current setups. But of course, you will not understand this until you start to actually write down your own setups in detail, as good as you can.

If you want to take one step closer to making money with cryptocurrency, start writing down your setups. Analyze your trading mistakes How many mistakes have you made this trading week? Mistakes come in many different shapes. You can trade too big You can trade too often Not trade at all Listen to a friends advice Read the news Trade because you want to make money Trade then you are tired Take a wild chance in the market Trade with hope The list goes on and on.

The trick is to recognize that you made a mistake and accept it.