Crypto Trading Tips For Beginners 🤑 Important Lessons I've Learned
I've been trading crypto for a year and I'm by no means an authority on the subject, but I've learned a lot of lessons along the way, some the easy way, some the hard way. As the explosion of interest in Bitcoin continues, I'd like to pass these ideas on to anyone getting started in this minefield called crypto trading...
Buy low, sell high. And boost your chances with knowledge.
It's a very simple principle, but it works, and you should never forget that profit is your goal. It doesn't matter whether you make that profit with an initial investment of $100 or $10000.. It doesn't matter if you do it with Bitcoin or a shitcoin. If you're buying low and selling high, you're doing it right.
Think of the crypto markets like a fruit market. Some days bananas are really cheap. Some days you can sell them for huge profits. If you educate yourself on the coins you're trading, you can tell the difference between bananas, apples, and shitty diseased potatoes. This will help you be more efficient, and avoid buying crappy coins, even when they seem cheap.
It's not over 'till it's over.
Dramatic comebacks aren't that unusual in crypto. Bitcoin did it. YOYOW did it. STEEM did it. A friend of mine bought a load of STEEM, this time last year, when it was 15 cent. Seems obvious now doesn't it? But back then, very few people believed it had potential to bounce back so dramatically. I wish I had have done the same. Lots of coins die off into obscurity, but if you can spot a good coin that's simply having a bad patch, it might be worth picking up a bit.
HODL
Hindsight is rampant in the crypto world, but the most common regret must be trading crypto for fiat. I sold Bitcoin a couple of years ago to buy about 1000 euro worth of camera equipment that I didn't even need. That Bitcoin would have been worth about $30K. Yep, I learned the hard way. Crypto isn't mainstream yet. HODL!
No FOMO
FOMO = "Fear Of Missing Out". Essentially it means buying a coin at an all time high price, because you irrationally fear missing out on the opportunity. This approach will lose you a lot of money very fast. There are new opportunities in crypto every day. Chill.
Be clinical. Not romantic.
Steemit user @mughat is a tower of intellect and rationality. He thought me to separate emotions from trading decisions and this approach has proven valuable. Don't get emotionally attached to any coin. Don't be too proud to sell at a loss if the prognosis is bad. Don't feel guilty for making a profit. Don't hate yourself if you make a mistake. Learn from mistakes, dust yourself off, and come back wiser, better, calmer, more objective.
Crypto usually moves fast, but not too fast for a quick Google search.
Not everyone is checking their portfolio every hour. Crypto prices react fast to news, but the whole "movement" may take a few days. Before selling that coin that has jumped 20%, (or buying that coin that's down 20%) take some time to do some research. You might be best to hang on longer, or pass completely. Recent price action on IOTA is a good example of this. Some bad news came in and the price immediately dropped, but it continued to drop steadily for days.
Diversify
Holding a number of coins reduces your risk, while not ruling out huge rewards. Don't put all your eggs in one basket.
Create a news stream.
Twitter, Steemit, Investfeed, Facebook, Youtube. These places are all great sources of information. You can subscribe to feeds and news reports that will keep you informed and ahead of the crowd.
I hope you found some of these useful. If you have anything to refute or contribute, please comment below.
DISCLAIMER: This article is opinion, and doesn't constitute financial advice.
Just look how much FOMO went wrong with IOTA the other day. You always have to pick an entry and exit point, so not as if you could not have been wrong selling at $5 and $10 would be the real top; but like $5 retraced to under $3, $10 would have retraced to $6-7 and given you another entry.
Not always as easy as with IOTA, but boy was it easy with IOTA.
Yes. It seems like the best traders are super clinical about that kind of stuff. They will get in and out based on predetermined points. I would like to be more like that but there are some coins that I'm a bit more long on.
I am overdiversified and constantly feel like if I just had a big btc stack and was swinging in and out of trades..things would probably go a lot better, but who knows for sure
(like for instance yesterday with play money basically, I swung in and out of raiden 19K to 22K for 11 raiden of profit; but then, maybe because I am an unfocused idiot, am keeping those profits in the form of 11 raiden lol)
I prefer to buy and hold any investment so it's important for me to believe the company or project will be even more valuable in 5-10 years. That helps avoid the panic if it hits a rough patch. Hardest thing for me is understanding when to sell.
Definitely, some people take the much more long term approach. It's certainly less work.
Excellent post, @condra. This is the kind of experience great posts are made of. Thanks for sharing. I don't trade at all, but I'm interested. Having your advice to take with me forward will be valuable if and when I decide to build my crypto portfolio.
Hey! Thanks for commenting. I'd definitely recommend giving it a go, even with a small amount, just for fun. If you lose 200 dollars in the course of a year, hey, you had a cool hobby. If you make a profit, you made money doing something fun and interesting.
This post is extremely helpful to anyone starting out learning and trading in cryptocurrencies. I understand how it feels to regret not buying into a coin when it is at its lowest and watching everyone that buy reap the benefits years later. I enjoy seeing these people happy and successful also, so by no means am I jealous of them but would love to be able to have the financial means to buy more and invest. Luckily, you don't have to buy an entire bitcoin, but you can buy a fraction and still HODL with hopes of increased return.
Thank you for giving a nice post. You've got a lot of important things from this post, which will help me to take my next steps
crypto i trust HODL is a must ;)
wow great,interesting post, I really like