5 CRYPTOCURRENCY TRADING RULES YOU MUST OBEY

 Experience they say is the best teacher but believe me it is far more profitable and less destructible to learn from other people’s mistake. Who gives a damn about experience after losing 4BTC? Hell NO!!!

Crypto profits have aroused the interest of a whole new segment of investors which has seen the market grow to over 500 billion dollars this year .The crypto world holds lots of promises and good fortunes for those who play by the rules and I repeat – THOSE WHO PLAY BY THE RULES. It might be tempting to say there are no rules in this game due to the unstable nature and high volatility of the market but those who have been successful so far adhered to some rules.  

It is important to note that crypto trading may not be for everyone as it requires attention and commitment. Some traders have this as their main source of income, so this tells you that trading crypto is a job on its own. 

  1. INVEST WHAT YOU CAN AFFORD TO LOSE:    

I always like to remind myself of something; cryptocurrency is not a “get rich quick” scheme. Start by experimenting, the market is highly unpredictable and volatile, you shouldn’t be thinking of suicide when everything’s going red.   

 2. HAVE AN EXIT PLAN (TAKE YOUR PROFIT AND LEAVE) 

A good security tip I know of – “When you enter a crowded place, always look for exit routes”. The essence of trading crypto is making profits and accumulating it. Before going into a trade, you must set a defined and calculated target level for taking your profit. No need to be greedy when it goes all high above your target. Take your profit and leave the market. 

A dump (decreasing price or value of a coin) happens twice as fast as a pump (increasing price or value of a coin).   

Image source: coinexchange.io 

You don’t want to have your money in there while you watch those red candlesticks go down line after line.     

3. ALWAYS BUY LOW AND SELL HIGH 

If it is high, don’t go in. You don’t want to be a victim of a pump caused by whales waiting for small buyers on the way up to sell them the coin they bought at a lower price.  

 

A good source for checking when coins are low is coinmarketcap. 

 Image source: https://coinmarketcap.com/gainers-losers/

Image source: https://coinmarketcap.com/gainers-losers/   

You could also make use of trading tools provided by your trading platform to determine when to sell or buy. For example; bittrex provides a tool that helps you set conditions for trading. You can set to buy when coin is less than or equal to a certain price.

Image source: bittrex.com 

And sell when coin is greater than or equal to your target price for profit.

Image source: bittrex.com  

 4. HAVE SOME OIL AVAILABLE FOR THE COMING OF THE DIP 

It is clear that you must buy at the dip (when price is low) but what happens to the man who fails to plan for the coming of the dip just as the virgins failed to plan for the coming of the master? No matter what you invest, always have funds set aside to buy an unpredicted downturn. When the market goes bloody and all pastures are red instead of green, cast your set aside fund on the bloody market for when the pasture becomes green, your reward is immensely …………………   

5. THE NEWS IS YOUR FRIEND 

A good trader always follows the crypto news and is alert to happenings in the crypto world. You should follows blogs, YouTube channels, and twitter handles of reliable sources that brings the crypto happenings to the light.  Coindesk is a well-known and reliable source, you can check it out.