8 Tips every successful crypto trader needs in their toolkit

Advantages to enjoy in bitcoin trading

Cryptocurrency trading is one of the hottest occupations right now, and those who have been in it long enough are racking up massive amounts of profit. The crypto markets keep on giving as we are raging into a new bull market, fueled by institutions who choose to buy bitcoin with their cash reserves.

That said, the markets are still in their infancy and thus very volatile. This leads to many new traders losing money on near-certain trades, due to mistakes that others have made before them. This is exactly why we wrote this article. Over the next few chapters, we analyze a list of tips that every new trader should learn by heart in order to maximize profit potential. Therefore, if you’re currently looking for some trading education, make sure you keep the following in mind.

1.   Adopt a long-term preference

Focusing on the long-term potential of cryptocurrencies can sound counterintuitive to day traders. However, sentiment traders and long-term “hodlers” have seen much success this way, as most coins tend to grow in value during bull markets. This is especially true for Bitcoin, which may not seem as exciting as other options in terms of price action, but really performs very well when zooming out.

2.   Look at the big picture

If you are investing in cryptocurrencies with strong fundamentals, selling your coins in hopes of increasing your position by 5-10% may be a risky move to undertake, and one that will not pay as much as you are hoping it will. When looking at the price of Bitcoin over time, we get an average of 200% growth each year, for all of its years in existence. Do you know any other asset class that has such returns over longer time periods? In other words, don’t sweat the small stuff and learn to be patient when it comes to rewards.

3.   Develop your emotional intelligence

Emotional intelligence is the most important trait of successful investors. The term entails that you make decisions based on logic and personal research, instead of merely reacting to situations that affect your emotions. The terms FOMO or FUD also come in play here, as people who use these as buy/sell indicators are usually affected majorly by the so-called “hard mentality” and prefer to trade based on the change of public opinion. Ideally, you’d want to explore the markets for a long time and build up your experience in order to better understand whether a temporary feeling is worth an impulsive reaction or not.

4.   Do your own research

We can’t stress this enough. There is tons of free information on the web when it comes to trading and all you need to do is learn which sources to trust. Start by reading whitepapers (or litepapers) of the projects that interest you and doing a background check on the team behind it. Then, check for the potential real-world applications of these projects and determine whether you want to invest. Try to avoid Youtube and other platforms that are saturated with influencers that are influenced by referral/affiliate rewards and clickbait content.

5.   Get educated before investing

Theoretical knowledge is very underrated in the crypto markets. However, those who are willing to go the extra mile will manage to make many more successful trades. Binance Academy has a whole knowledge base full of free information regarding everything a trader should know. Therefore, make sure you use the website as a starting point for your research and take it from there.

6.   Observe the markets

Before you choose to invest your own money, it might be a good idea to invest time looking at charts and learning about market dynamics. The direction of a coin’s price is affected by multiple variables, many of which you will only understand after spending some time in the markets. Hence it might be best to start your trading journey with demo accounts instead of your own money.

7.   Listen to podcasts

Podcasts are a form of compact education that every investor should use to improve their trading journey. From our journey, the ones we have found to stand out are Market Meditations and UpOnly. That said, there are many podcasts available and you will most likely be able to discover other interesting options as well.

8.   Network and join subgroups

If you want to get insider information for new trades it is important to grow your network by seeking out the right Telegram groups. While most people tend to bash such “paid groups”, many of them can offer important information before it becomes public, a trick which results in your investment foreshadowing that of the herd. As such, your profits increase, and so does your circle of influence.

And that’s it. Take the following tips into consideration when starting out your investment journey and you are near-guaranteed to find success in your future endeavors.

Written by Frederick Jace

A passionate Blogger and a Full time Tech writer. SEO and Content Writer Expert since 2015.

Leave a Reply

Your email address will not be published. Required fields are marked *

4 Effective and Easy Ways to Start Earning Money Online as a Student

4 Effective and Easy Ways to Start Earning Money Online as a Student

How to Find the Right Business For Sale Online

How to Find the Right Business For Sale Online