It is easy to say that people have the cryptocurrency market figured out. It is easier for them to give out advice and recommend certain trades and sales. But the truth of matter is Cryotocurrency investing & trading is not as easy as we think. 

Your guess is as good as the next one’s and everyone is just trying to make the best decision based of whatever little they know. But when somebody has spent a lot of time in the cryptocurrency market and has made a lot of successful trades, you tend to pick up on patterns and be able to recognise an upward and downward trend. Here are 20 tips and pointers to make your way in the cryptocurrency market.

Top 20 Cryptocurrency Investing & Trading Tips

• All Markets Are Cyclic: Ups and downs are natural. Don’t be disheartened by downtrends, because they will go back up.
• Understand the Difference Between Trades and Investments: Trades are short-term buys and sales while investments are a long-term wealth building exercise.

• Have an Investment and Trading Plan: Before you enter the market, make sure that you have a plan for your trades and sales. So that you know where you’re headed with your trades and investment.

• No Free Breakfasts: Beware of all get-rich-quick and make-money-over-night schemes. They are all Ponzi schemes and there is a big chance of you losing all your money.     

• Understand the Difference Between The Crypto Market and the Stock Market: Do not assume just because you are good at making money in the cryptocurrency market that you will fare well in the stock market as well. They are two different markets, with different dynamics.

• HODL As Much As You Can: Do not sell at highs and buy at lows. This does not work in the cryptocurrency market. You are better off HODLing your assets.

• You Cannot Control the Market: The sooner you understand this the more at peace you will be as you make trades and investments in the cryptocurrency market. The market is too big and has too many people and factors in it to be controlled by anyone.

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• Trust No-one: It is a common practice in the cryptocurrency market to follow the status-quo and make trades on the basis of other people’s advice. This is not advisable, as everyone has a vested interest and nobody, other than you, has your best interests at heart. Come up with your own strategies and implement them.

• Ignore The News: The cryptocurrency market is always flooded with conflicting news. Do not make big trades in the face of news because it is impossible to predict how a market will react to a particular event.

• Learn Risk Management: In the cryptocurrency market, you can lose more than 50% of your investment and still make a profit if you know how to effectively manage your risk.

• Use Price Action and Volume As Indicators: In the cryptocurrency market, you can use a lot of indicators to figure out which way the trend is headed. The most important and indicative market tells are the price action (the trend) and the volume.

• Move Your Coins From Exchanges: Do not use your cryptocurrency exchange like a bank. You do not own your coins until you own the private keys that control them and on an exchange, you don’t.

• Know When to Stay Away: There are cryptocurrencies that you should stay away from. A coin with low trade volume and low market capitalisation, you are better staying away from. Because these are coins that could possibly get stuck in sticky trade positions.

• Stick to The Top 10: While it is advisable to diversify your portfolio and invest in coins that are lesser known, 90% of cryptocurrencies will eventually come down to zero. So if you are looking at a long-term investment, make sure that you stick to the top 10 coins in the market.

• Mistakes Happen: When you are trading the market, you will make every mistake you possibly can. Don’t let that discourage you. Mistakes happen, money is lost.

• Choose Investments Over Trades: In the cryptocurrency market, it is a better financial decision to make investments over trades. Because you are likely to lose more money in daily trading than in long-term investment.

• The Market is Irrational: The first rule of the cryptocurrency market is that the market is irrational. You cannot predict which way the cryptocurrency trend will go. And sometimes it exceeds all exceptions and goes on an upward trend that could not be predicted.

• Believe in The Project: Before investing in a cryptocurrency or a token make sure that you know the project inside out, you actually believe in the project and its growth.

• Satisfy Your Trading Needs: When you are trading in the cryptocurrency market, make sure that you are satisfied with all of your trading needs. And have reached the full capacity based on your investment.
• It Is Okay to Miss Out Trades: The cryptocurrency market is a twenty-four-hour commitment. And it is not possible for you to make every trade in the market. So don’t beat yourself up over missing trades, just catch the next one.

Happy Trading!  

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Hitesh Malviya

Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.