The 10 commandments to follow to become a profitable crypto trader!
Now that you know the right tools and know the right information sites To become a successful crypto trader, that's enough, right? No ! It's not enough. It's a good start to have the right tools and information, of course, but it's not enough.
The mind and certain of your behaviors will be decisive if you decide to trade cryptocurrencies.
Here are 10 commandments to rigorously adopt to succeed in beginner crypto trading. It is also a reminder for experienced traders. These 10 commandments, if you apply them, will make you a wise investor and you will certainly achieve your earnings goals. That’s all we wish you!
Also, before you start, remember to choose a good exchange platform like Binance or better yet of the best crypto trading bots!
1/ You will only invest amounts that you can lose
You should always avoid investing large amounts from your portfolio. 5 to 10% are ideal and wise percentages to avoid harsh shocks that could disgust crypto. Frankly, it happens to a lot more people than we think. Only invest a small percentage of the amount you planned to invest. In case you should lose everything, you will simply have gained experience, that's all. A crashing market (a correction) can be a boon for you if you have the necessary knowledge. Remember, I told you that cryptocurrency, despite what many people say, is predictable. As soon as you double your investment, withdraw the initial contribution and trade with your profits. Trading solely on profits is the key to success for many traders, know this.
This is truly the first rule to becoming a winning crypto trader!
2 / You will never invest in sudden movements
Never succumb to Pump and Dump. Never invest in a Bulmarket (a meteoric rise in the token) unless you understand the meaning and why of this meteoric rise. Doing Pump and Dump consists of investing when there is an upswing and selling your position immediately. With this practice, you risk missing out on extraordinary earning opportunities. This is also very common with uninitiated or novice traders. In the world of crypto, there are deliberate things that happen that, if you are not initiated or trained, cause you to miss out on the jackpot. Financial whales commonly called “whales” often organize market collapses to control and take advantage of them to play against neophytes by making extraordinary gains on their backs. It's illegal you're going to tell me but the world of crypto is not regulated and is not very healthy, as you already know? Avoid the Pump and Dump strategy which is bad for the market overall. Whales are hyper-organized groups who know the tricks and manipulate the market to play against the inexperienced. The search for easy and quick gain is a mirage in the cryptocurrency world.
3 / You will do hodling as much as daytrading
Holder is more profitable than Day trading. In the crypto world, that’s how it is. As simple as that. At least, until now. Let me explain: investing in the long term will certainly earn you more within a year than a day-to-day investment (Day trading). Note that those who make six figures are people who are holders, that is to say, who take a position in the term. I'm not saying that day trading won't make you rich, but few people make a fortune with it unless they're lucky, those who have the baraka. Or those, who are very good and experienced traders. You need to train yourself before practicing day trading. You need to know the indicators to detect a good entry point, know how to analyze charts (candles), corrections, increases, etc. This is necessary to surf in this universe. Even though cryptocurrency is very volatile but it is predictable if you know how it happens. So if you're not very seasoned at the moment, do as much hodling as you need to.
4 / You will always inform yourself before you start
Get informed, get informed, always find out about a token before investing in it is the key word. Because you worked hard to earn your money, so think before you invest and I emphasize this a lot. Always consult the official website of the token and read the white paper there first.
5 / You will ask yourself the right questions
Be insightful by asking and answering a number of questions such as: why does this token exist? Is he developing a project to allow applying only a block of unnecessary, inefficient chains that owners can resolve themselves? What transactional insufficiency does this crypto want to solve? What is the legitimacy of the development team? Their background? Their financing and their mode of organization? Who are their targeted competitors and market size? What is their Road Map? What is their marketing and prospecting strategy? How will this crypto attract value? Do they have a dividend structure, a profit sharing plan? In short, become the Sherlock Holmes of crypto, it won't make you rich, but it won't ruin you.
6 / You will master your fears and your instincts
Learn to recognize FOMO (For of missing out) which is the fear of missing an opportunity to make an immediate gain. I'm telling you this but I've noticed that I'm often a victim of Fomo. And often, it was a disaster for me. Controlling your emotions is the best defense against these fears in crypto trading. I once heard from a top crypto trader in Dubai that for him, a great trader was simply someone who knew how to control their emotions. He told me that the rest is technique within everyone's reach. The fear of “missing out” can define FOMO and is what is driving the market right now. This can lead to bad decisions. These are things that happen to a lot of people and can lead to emotional investments, rash buying/selling, and therefore losses. Become a yoga master before you start.
7 / Loss, you will accept like a wise man
Accepting and being aware that many people lose their money is an essential step to becoming a crypto trader or a traditional trader. You have to be willing to lose a little to be able to gain a lot. You have Stop Losses which are very useful for controlling your losses. Use them wisely. Besides, don't put them too short, because sometimes, it can go up very quickly and your stop loss does not go far enough. Also, be aware that losing is just a stage and a learning process. Yes, crypto trading is not always green (!). This will be a good opportunity to learn from your mistakes and not repeat them. Finally, since you followed the first rule, you lost an amount that is not going to ruin you, right?
8 / You will do in-depth research
Understand Cryptocurrency Distribution: Take a look at the token distribution, ownership as well as the volume of cryptos they have put into circulation in the market. In this way, you will certainly protect yourself from hackers by simply considering the number of existing coins, the owners and the distribution assigned by the owners. You know that many cryptos only have the main goal of giving a substantial share to the owner who promotes it on social media and then finally sells it for real money. Yes, there are a lot of scams; It’s not me who’s going to teach you that 😉
9 / You will diversify your portfolio
Diversify yes, that’s clear. Don't put your eggs in one basket, yes. Diversify but not too much: I admit that it is good to diversify but too much diversification is not good because you will disperse yourself by not being focused on the essentials. In addition, this will give you too little money in your wallet. It is also by diversifying too much that you will definitely miss huge opportunities in solid cryptos. Take 5 to 6 positions maximum and give it your all. This gives you the advantage of being able to track your chips well.
10 / Beware of scams
Be able to quickly recognize scams. After a while, you will recognize a scam from 1000 km away, believe me. You know, 90% of crypto tokens in circulation have zero value. Shitcoins are numerous and they have the appearance of real, very solid crypto. To do this, be moderately skeptical about each token you see. Because the crypto world is riddled with fake devotees and scrupulous little assholes. Flee the token that promises crazy winnings. Crypto trading does not take care of scams. When you are a beginner, you are quickly fooled by these gains, afterwards, you bite your fingers.
Conclusion: Follow the 10 rules for crypto trading
Yes, here I have given you the general guidelines for getting started in crypto trading. Maybe there are others but these are the basics. Moreover, they also apply to classic trading.
Use certain tools to trade crypto successfully. Don't forget to refer to essential sites in crypto trading like CoinmarketCap, CoinmarketCal etc... On the other hand, some sites like Delta, Cryptopanic and Blockfolio are good to go there but don't waste too much time on them. The most important thing is to act as you know.
Whether you use the crypto trading robots or do it manually, get notified every time.
Last thing: crypto trading is booming and we see many people who have been informed of a parabolic rise of a token rushing to invest en masse in the naive hope of being one of the lucky winners. After a bad investment or lousy trading, they say it's not for them. There are others who will take a very low position and wait for a meteoric rise to take advantage. Don’t fall into these traps, take the time to consider your decisions and always keep yourself informed. Focus on fundamentals rather than short-term trends. Think broadly.
That's all I wanted to tell you about becoming a successful crypto trader. Please let me know what you think in the comments below.
