The world of trading, although profitable, is very complicated. 90% of the people that trade cryptocurrencies lose their money, as luck is not a reliable factor to count on. Traders need to follow multiple rules to protect their money and stick to smart investments. This article will introduce you to 10 rules of crypto that will help you stay on the 10%.
10 rules of Crypto Trading
- Create a risk/reward management and stick to your trading plan.
- Do not invest all your capital at once.
- Choose Bitcoin, Ethereum and projects with a large market cap. This will protect you against volatility.
- Do not abuse leverage, as it is responsible for the biggest losses in the market.
- Do not copy other people’s trading. Create a strategy and figure out how to use it in the market.
- Never trade without a stop loss. Avoid getting your account burned on a single trade.
- Technical analysis is important but controlling your emotions will be the decisive factor.
- Do not spend all day trading. Choose a high-volume time zone and place your orders at convenient prices.
- Never think that bad cannot go to worse. The crypto market can go sideways quickly and traders need to be prepared to exit their positions.
- Stay away from suspicious sites and only use recognized crypto exchange platforms.
How to manage a crypto portfolio?
There are some factors you need to consider when managing a crypto portfolio. Ignoring these can put your money in risky situations.
- For long-term investments, hardware wallets are the best place to hold them. This will reduce your chances of getting hacked by a lot.
- Diversify your portfolio. Explore passive income and staking alternatives.
- Wait for bear markets and “DIPS” to buy.
Having a crypto portfolio can also be highly profitable if you manage to invest at the right moment. As many cryptocurrency projects are gaining popularity, being early can be very useful in the future.
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