Everyone has an opinion on cryptocurrency investing. There are some people who see it as a promising new frontier. Others are quick to dismiss the market as a trend or trailing fad. Here’s the truth: crypto is here to stay and traders stand to make a ton of money. 

When it comes to cryptocurrency trading, there are a number of ways to approach this market with success in mind. A great way to look at crypto is sort of like entering battle. Because of the unpredictability of the market, a lot of people enter this investment with no strategy to exit. At the very least, you should be prepared for a hands-on trading approach that requires your attentiveness and focus. 

While all of this is great to talk about in the abstract, real tips for succeeding at cryptocurrency trading matter more than any speculative talk about what the market might or might not be. You came to the right place; let’s go over 7 tips to live and die by in the growing world of cryptocurrency investing. 

7 tips for cryptocurrency trading success

  1. #1 Know your stop losses and profit points

One of the most well-known things about cryptocurrency is that it’s still highly unpredictable in terms of what we can confidently predict might happen. With that in mind, it’s crucial to have a profit point at which you’re ready to sell and a stop loss for when things go south. 

Every trade should start with you knowing where you want to make your profit and where you are prepared to cut your losses. It’s not a skill everyone has and it gets a lot of traders in trouble. Particularly with the nature of what cryptocurrencies are, this market requires traders built to last for the long haul to know their limits at the top and bottom.

  1. #2 Keep motivation for every crypto trade you make

It sounds funny to talk about crypto trade motivation. We’re going to guess that your main goal is to make money; that’s an easy answer. What about the purpose of the trade in terms of the length of position or where you plan to take these wins next. 

Crypto is all about the large traders who move digital coins at will and often. This means you’re likely going to win or lose based on the big trades happening. That should be in the back of your mind as you enter an investment in crypto and dictate your motivation for when it’s time to sell. 

  1. #3 Hopping on a bandwagon? Bail on it now

A lot of cryptocurrency trading is bandwagon-centric. For example, the GameStop stock trade frenzy of 2020 made a lot of savvy investors some money. It also cost a lot of amateur investors money when they hopped on the bandwagon without doing their due diligence.

Don’t catch FOMO (fear of missing out) and invest out of a desire to be a part of a big push. If you find that a coin is worth your while, then go for it. That said, you’ll usually find that bailing on a bandwagon trade saves you money.

  1. #4 Keep an eye on Bitcoin, even if you’re not invested

The price of Bitcoin seems to dictate a ton of altcoins in the cryptocurrency market. It’s important to catch these sorts of trends because crypto is heavily reliant on what’s happening to the big, household names.

When the market starts to look a little questionable, Bitcoin will likely get more volatile and cause a ripple effect. Without knowing that this is connected to other coins you might hold, you can be caught with a sudden loss you weren’t expecting because your crypto investments looked sound. Always keep your eyes on Bitcoin and other big coins. You can even use an ultra fast trading app to keep track of things.

  1. #5 Don’t buy low just because

When a cryptocurrency hits a low point in its pattern of fluctuation, don’t just buy low because you think it’ll go back up. Simplifying the trends of cryptocurrency prices to “what goes down must come back up” is a beginner’s mistake. Many make it, and they end up paying the price in losses. 

When a stock goes low, check its history. Look at what happens over time to the coin when dips occur. Don’t just think that the iron is hot because you read a tweet saying it’s bound for a big bounce-back. Stay smart and invest wisely, which means not getting tricked by low prices.

  1. #6 Altcoin absolutes: be ready to a pattern

It’s a lot of fun to find an altcoin you think will make a good run. Here’s the thing: most altcoins follow a specific pattern. They’ll end up making a good, steady run up and then lose value quickly. When you hold these altcoins, don’t keep them for too long.

Daily trading volumes for your personal approach to crypto should involve using altcoins that have a small standing to make quick moves. Others, like Ethereum, should be your more long-term coins because they’ve proven to last among their counterparts. 

  1. #7 Avoid group think online

Between Reddit threads and Twitter conversations, cryptocurrency has a fervent following online. Beware the mindset that people who talk a lot about cryptocurrency online know what they’re doing. They might be reading the same “tips” articles as you and just making the rest up as they go.

Doing your research is the most steady way to make money with cryptocurrency. Keep all of these tips in mind and don’t forget to always have a purpose to your crypto trades. These tenants of cryptocurrency trading will serve you well if you stick to them!