Crypto trading will take you to unprecedented heights to the sun itself and beyond or sink you to the bottom deeper and deeper as you watch your wounded fighter — your crypto portfolio — bleed to death.
A lot of people fantasize about day traders from the New York Stock Exchange and the huge sums they make in an hour. But day trading is extremely stressful, and you can quickly lose your money if you don’t have time to constantly (24 hours a day, 7 days a week) monitor the market, especially if you don’t know how and what to do.
There are three different types of traders:
- Day traders (you trade during the day, or maybe even at night, generally 24/7 all the time).
- Swing traders (you trade every 2-7 days, sometimes this period can be longer, if the trend requires it).
- Investor (you buy on a decline and hold for the long term).
All three types are valid ways to make money, but require different strategies. You may also be a mixed type of trader.
It is fine if you are not trading daily. Sometimes the best trading strategy is the one you don’t use. Over-trading is one of the most common mistakes made by novice traders. Let the trading find you and this will allow you to decide what kind of trading is ideal for you. Some traders are not interested in daily trading and prefer automated platforms such as https://stoic.ai/ . It makes trading easy and successful.
What to consider while trading
This knowledge will probably shed some light on the world of cryptocurrency trading, or maybe it will just save you from making the same mistakes as others:
- The psychology of the market. Technical analysis (TA) is a very powerful tool that can help you make informed decisions and know for sure that your decisions are not a product of guesswork. It is worth noting that fear, uncertainty, doubt, and the lost profits syndrome are extremely important. Always practice your risk management and place stop losses.
- Always follow Twitter, it’s your best friend and your worst enemy at the same time. Twitter can be a great source of information, as well as a terrible one. Keep in mind that 99.9% of the people who post charts on Twitter have long since placed their buy and sell orders, have long since bought in, and are now trying to influence the market and steer it in the direction they want. That guy urging you to buy a certain coin, is he honest? Of course, not. He has long ago purchased everything and is now just trying to rip off his own money, and if he has supporters, he has already informed them long ago, and he is just trying to trick you.
- Calm down. Anything that falls today is bound to rise tomorrow. If you suddenly miss out on a particular upswing, there will be a next one. Exhale. Constant pumps will make you nervous and maybe deplete your portfolio. If you have a good positioning and good coins in your portfolio, you will worry a lot less.
- Owning altcoins is not the same as owning BTC. What is your goal to get more BTC or invest in a certain coin? Always keep this in mind, especially when building your portfolio. If your goal is to get more BTC, be careful not to become too loyal to certain coins.
Patience plays a key role in cryptocurrency trading. Don’t be afraid to miss out on any trade, as this environment is so rich in opportunities to make money that there is always bound to be the next one. Keep in mind that it is very easy to make money in this market, but much harder to keep your earnings.