9 Rules to Follow For Successful Crypto Trading

Amy Mathews  |

Traders are now delving into crypto trading as it is the next evolving segment for currencies and digital financial assets. I as a trader are still refining my tactics and trying out different strategies as I trade daily to grow by portfolio.

Pure Investments is a group that I have joined recently which is a discord channel where people chat about IC market trends, crypto currency and the latest news. I have been part of the community since 2017 and learnt much from analysts as well as discussions shared in the community.

Pure Investments or any other group that I participate in are not groups that you pump and dump; they are communities of enthusiasts and traders that are legitimate, which is why I recommend this and others that one can know from by messaging me on Twitter.

Good Habits to Harvest From

Miles, who is co founder of this platform, Pure Investments, started off to trade with $1000 and has been able to grow his portfolio 46 x to $46000,. He started the venture in September 2017 and many of his community members, such as one who goes by SP, have been able to benefit from his advice and made about a million since $40,000 by January 2018.

Markets of crypto currencies are volatile to a great extent and investors will experience price fluctuation that includes SP, myself, Miles and others. But good habits will help to maximize profits and mitigate the losses.

Nine Rules to Follow in Crypto Trading

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  1. Invest what you can afford to lose. There are several reports that are published about hobby investors getting burnt. Many have faced losses and frustration, but the important thing to remember is that you need to rule the rules. When money gets converted to crypto currencies, consider it gone as the guarantee of getting it back is not there. With the market evolving and several risk factors at stake, it is something that you need to be prepared for.
  2. Pay attention to Bitcoin. This is the main crypto currency that remains pegged closer to USD and if the price pumps up for this, prices of other altcoins go down and vice versa.
  3. Do not put your eggs all in one basket. It is important to diversify in this market. As this market is evolving, the market cap of the different crypto currencies is likely to increase.
  4. Do not be greedy. You will not lose money when you take it out during a profit. It is best to draw out money when you make some profit, even if it is halfway up your set target.
  5. Do not make blind investments. Many people often wish to ride the wave as new opportunities arise without doing much research or relying upon any random investor’s advice. It is necessary to research and strategies on your investment move, taking responsibility for the investment outcome.
  6. Do not FOMO. This is a common place where people often lose money. A handful of FOMO cases drove the price of Bitcoin up which is usually the case when large contributors take purchases sky high. However, such pumps are always followed by dips.
  7. Categorize the investments you make. It is necessary to look at the big picture and look long term. When you realize that certain coins are backed by sound platforms and professional working teams, these tend to be a better investment for medium or long term.
  8. Learn from mistakes. Whenever you face losses, it is necessary to evaluate and understand why it took place. In the first month that Miles traded he went down to $300 from $1000.
  9. Stop losses in active trading. When you indulge in daily trades you need to set benchmarks when losses reach a limit. You need to decide on a certain loss that is acceptable and set this as a reference point for your future trades.

It is necessary to know that communities of crypto currency investors with similar attitude can help you out and provide you advice and support that you need.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

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