In Part I of our How to Trade Crypto for Intermediates blog series we reviewed different ways to level up your crypto trading skills. But the more tips the better, so here is Part II of our intermediate guide to trading cryptocurrencies.
Now that you’re familiar with CoinMetro’s Intermediate dashboard features, it’s time to think about your trading plan. An investment strategy helps you define what markets you’ll be working with, map out your trading schedule, establish exit rules, and make better decisions.
Cryptocurrency traders often get caught up in tech analysis and tools, from fancy indicators to Fibonacci trading retracement. What people tend to forget is that the foundations of crypto trading is a clear and focused mindset, and the following guidelines will help you get your act in order better than any algorithm or dashboard.
1. Keep your emotions in check
Easier said than done, we know.
Regardless of how bummed out or hyped up you get after a market swing, it’s wisest to follow the initial plan. Being anxious or ecstatic makes it difficult to think clearly, and often results in risky trades with high stakes that will rarely play out in your favor.
Keep your head straight and analyze the situation before making any decisions. Take a cold shower, have a beer, go for a run; do whatever it takes to get your head back in the game.
2. Forget about FOMO
Experienced crypto traders know that after a spike there will always be a fall. In the volatile realm of crypto trading, it’s important not to make rash decisions just because everyone else is buying or selling.
Most of crypto trading mistakes are done in FOMO-fever, and what you should realize is that there will always be room for missed opportunities. Don’t sulk, get used to it. Losing out on fast cash is a small price to pay for a stable portfolio. Remember the tortoise and the hare; the real wins come from playing slow and steady.
3. Trade with the assets you can afford to lose
If losing your entire portfolio means your life is over, then you shouldn’t be trading.
Trading always come with the risk of losing some or all of what you started with. Going all-in with your savings is an easy way to stress yourself out, and compromise your trading strategy as soon as you see the numbers dip.
Stick to sums that can disappear without devastating your finances. This doesn’t mean that you need to trade cents, just make your budget is secure enough that a big loss won’t send you into a panic-fuelled sell spree.
Got all the trading advice you need? Sign up on CoinMetro and trade the biggest cryptocurrencies on the market in an EU-licensed platform designed to make trading easy. You’ll also get a 20 XCM reward as soon as you complete your KYC. Just do it.
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