When it comes down to trading crypto, there’s no ‘secret sauce’.
It’s all about your experience, your mindset and your discipline…
However, there’s a few ways to accelerate your learning – which is why I’m sharing my best cryptocurrency trading tips with you today. By the way, if you haven’t already, check out my ultimate guide to cryptocurrency trading here.
So in this guide, I’m going to cover 50 of my best cryptocurrency trading tips – perfect if you’re looking to improve your results in crypto…
50+ Best Cryptocurrency Trading Tips.
1. Never Make Emotional Trades.
When it comes to down to financial decisions, you can’t afford to let your emotions get in the way – you should be rational, logical and objective. it’s easy to get caught up in your emotions, but that will cost you in the end.
2. Don’t Succumb To FOMO.
FOMO stands for the ‘fear of missing out’ and it’s pretty common in the crypto world! Don’t run around after cryptocurrencies that have already peaked – because they can easily dip as much as they’ve increased.
3. Only Invest In Cryptocurrencies You Believe In.
Before you start trading an altcoin, make sure you truly think this cryptocurrency is a valuable prospect. Otherwise you’re investing your money into a crypto that could easily disappear overnight.
4. Don’t Invest More Than You Can Afford To Lose.
This isn’t just one of my best cryptocurrency trading tips – it also applies to stocks, shares, Forex and anything else investment related! With ridiculous returns, like Cardano hitting 200% profits in 7 days, it’s tempting to over invest.
5. Expect The Market To Dip.
With big growth comes big drops. Market corrections are very common in cryptocurrency – recently they’ve happened pretty much every week.
6. If You Feel Anxious When The Market Dips, You’re Doing It Wrong.
If you feel a little nauseous watching your portfolio drop 30% overnight, take it as a sign that you’re either over invested or trading cryptocurrency just isn’t for you. If this sounds familiar, I recommend changing your investment strategy.
7. Understand The Risks.
Sure, trading cryptocurrency feels fun when you’re winning. But it’s still a highly risky investment that can easily backfire.
8. Look For Credible Sources Of News.
With all the hype of cryptocurrency, there’s a lot of fake news too. For example, look at the recent fake news about South Korea banning cryptocurrency – which turned out to merely be South Korea regulating the crypto industry. That’s a pretty big difference! Check your news sources for reliability and don’t believe everything you read on the internet.
9. Do Your Own Research (DYOR).
If you see someone recommending a cryptocurrency, don’t just throw all your money into it! Do your own research first – and look at the cryptocurrency’s marketing team, website, developers, white paper, company mission etc.
10. Don’t Get Greedy.
Whilst it’s tempting to keep your money in, you should capture your gains early even if that means missing out a potential extra 10% profit. I know it’s hard, but you have to stay disciplined!
11. Decide On An Investment Strategy.
Are you going to trade cryptocurrency on a day to day basis? Or are you planning to invest long term? Whatever investment strategy you decide, make a plan and stick to it.
12. Set Profit/Loss Limits.
13. Don’t Panic Sell!
When there’s a lot of uncertainty in the market, it’s tempting to sell out. Don’t let the fear get to you – you’ll regret it later!
14. Hold On For Dear Life! (HODL)
Holding long-term is a proven cryptocurrency investment strategy and it’s pretty low maintenance too. Just buy, hold and wait for the profits to roll in.
Use your network to accelerate your learning. Sharing cryptocurrency trading tips, ideas and techniques with friends is a great way to do this.
16. Find Some Reliable Sources Of Trading Information.
Some news sources are more reliable than others! I’ve recommended my list of the best cryptocurrency books here that you might want to check out.
17. Understand That No-One Really Knows What’s Going To Happen Next.
It doesn’t matter how confident someone sounds, no-one really knows what’s going to happen next in crypto. This is a completely new technology – it’s impossible to predict perfectly.
18. Learn Technical Analysis.
Learning how to analyse stocks and charts is incredibly useful – not just for cryptocurrency but also for stocks, forex and other investments too.
19. Think Long-Term.
Don’t worry about what’s going to happen in the next 24 hours…think about the next 3-5 years! Blockchain technology isn’t going anywhere – it’s a long-term investment.
20. Be Patient.
Not seen the profits you wanted yet? Hold and be patient. Cryptocurrency trading is so volatile that everything can change within a matter of hours.
21. Don’t Invest In Anything You Wouldn’t Be Prepared To Hold For 1 Year.
This ensure you’re only investing in high quality cryptocurrencies.
22. Watch For Pump And Dump Schemes!
There’s a lot of schemes where groups of investors will artificially inflate the price of a cryptocurrency, take their profits and then let it drop on the cheap. Don’t be fooled!
23. Pick A Reliable Cryptocurrency Exchange.
Some cryptocurrency exchanges are more far reliable, trustworth and legit than others. Personally, I’d recommend Coinbase and Binance.
24. If You’re Serious About Cryptocurrency, Use Cold Storage.
Whilst crypto exchanges are great short-term, they’re risky long term because they’re unregulated and plenty have been hacked in the past – see Mt Gox. So if you’re investing for 3 months or more, check out hardware wallets. I’ve written a guide to hardware wallets and cold storage here.
25. If You’re Just Starting Out, Test The Water First.
This is one the best cryptocurrency trading tips for beginners – because I know it’s so tempting to go ‘all-in’. From buying in on the wrong price to falling for a pump and dump, it’s deceptively easy to make mistakes. So just invest a little at first, until you get used to it.
26. Read Up.
Knowledge is power! Check out my list of the top cryptocurrency books here if you need a starting point.
27. Buy On The Dips.
Market dips are like the Christmas sales! A market correction is also an opportunity to grab a bargain.
28. Stop Chasing Trades.
If you’re chasing a coin, you’re already too late. Be patient and let the trades come to you.
29. Don’t Buy In On An All-Time High.
I’ll give you an example:
Recently, Ripple nearly hit $4 – and now it’s deflated to a mere $1.10! What comes up must come down just as quickly, so check the historic prices first before you make a trade.
30. Enjoy The Ride.
Even if you don’t make money at first, you can still learn a hell of a lot of useful information. So enjoy the ride because the ups and downs of crypto are a lot of fun!
31. Diversify Your Cryptocurrency Portfolio.
Don’t put all your money into one trade! Because if that trade drops, you’re going to lose your cashflow whilst you wait for it to pick up again. Instead, spread your cryptocurrency across different types of altcoins to spread the risk.
32. Don’t Go OCD About The Prices.
I know, I know – it is extremely addictive watching the fluctuations of cryptocurrency. But it’s also going to take over your life! Unless your day trading, just set it and forget it.
33. Don’t Take Facebook Groups Too Seriously.
Remember, anyone can post on a Facebook Group, and a lot of these people are newbies to the game. Don’t get sucked into them!
34. Most People Won’t Tell You About Their Losses.
Just like gambling, you’ll only ever hear someone boasting about the profits they’ve made. But don’t be fooled because every cryptocurrency trader has suffered a few losses too.
35. Realise Crypto Profits Aren’t Normal!
If you’re trading stocks, a 15-20% return per year is really good!
Now compare that to crypto where daily 30% swings are the norm and you’ll realise that cryptocurrency is a pretty crazy market right now. So whilst blockchain technology is going to be incredibly valuable, there’s a lot of dumb money in the market & the bubble could pop at any point.
36. Consider Cost Dollar Averaging.
This is just a fancy name for investing in the same cryptocurrency at different price points – so that you can average out the price and avoid sharp dips.
37. Stay Updated.
The crypto market moves fast. Make sure you stay up to date with the latest news, ICOs and technology updates. YouTube and Twitter are great starting points.
38. Its All About Your Mindset.
A lot of my best cryptocurrency trading tips are all about your mindset. That’s because you control your decisions, and so your success comes down to your mindset and how you think.
39. You Can’t Go Broke Cashing In Gains.
If you’re worried about cashing in profits early, don’t. You can’t go broke taking profits, so take your gains before your altcoin dips again.
40. Analyse Your Mistakes.
We all mess up from time to time, but it’s whether you learn from it that counts. Look back at your trading mistakes and see where you went wrong/what you can do to stop it happening again.
41. Take Action.
A lot of people have a tendency to procrastinate…but you cryptocurrency trading moves so quickly, you can’t afford to wait around.
42. It’s Never Too Late.
When Bitcoin hit $1,000, everyone thought it was too late…The same goes for when it hit $10,000 and $15,000. But the truth is, you haven’t missed the boat!
Look at Apple and Amazon today, they’re still great investment opportunities even though they’ve been around for yonks.
43. Step Away From The Laptop (Occasionally!).
Cryptocurrency has a tendency to take over our lives!
Don’t let that happen to you. Take a break, spend some time with your family and understand that there’s more to life crypto (really!).
44. Cryptocurrency Isn’t A Fad.
Bitcoin has been declared dead over 230 times – you can see it’s obituary here. The truth is that cryptocurrency will be an incredibly important technology in the future – and it’s not going to disappear anytime soon.
45. …However, The Market Will Change.
Whilst it’s been easy to make money trading cryptocurrency recently, it won’t always be like that. Right now, the market is bullish but that won’t always be the case.
46. Check Your Exchange Address Very Carefully.
If you’re transferring cryptocurrency to an exchange, double check your wallet address! If you transfer to the wrong coin wallet or to the wrong address, there’s a risk that you could lose your money. If you’re using Binance’s exchange, I’ve written this step by step guide to help you.
47. Be A Realist.
Compromise between optimism and pessimism – because there’s a middle ground here. You have to be able to see the potential of a coin, without getting carried away.
48. The Key Is In The Timing.
Make sure you combine my picks for the best cryptocurrency trading tips with timing. Because if you invest too soon, you’ll be stuck waiting around. Invest too late and there’s a chance your coin will dump.
Your skills at timing the market will come with experience.
49. Watch Out For The Whales.
95% of Bitcoin is owned by just 4% of the market. That means there’s potential for market manipulation – where the big players (or so called ‘whales’) can pump and dump a coin to their advantage.
50. Be Careful With Signal Services.
I’ve noticed a meteoric rise in cryptocurrency trading signal services – where people tell you what to buy and sell.
Whilst it’s a nice ‘easy money’ concept, it’s still a big risk. Can you really trust a random person off the internet with your money?
51. Keep It Simple.
If you’re new to the game, don’t waste your whole life reading up on Fibonnaci lines, support levels etc. Keep your investment decisions simple – because until you feel like an expert, you can’t really trade like an expert.
What Are Your Best Cryptocurrency Trading Tips?
Think I’ve missed something?
I’ve kept this list trimmed to 50 crypto investment strategies, but there’s so much more to it!
So if you want to share you best cryptocurrency trading tips, drop a comment below.
Also, I’m written this blog to help you, so if you want some advice, shoot me a message via [email protected] and I promise to reply asap.