In the last few years crypto trading has been gaining a tremendous amount of attention even from those who have been long time investors in traditional stocks.
One of the reasons many people are jumping into the crypto game is the lure of making million of dollars seemingly overnight, while we have all heard about the guy who invested a couple hundred dollars in some micro cap coin making 5 or even six figures the reality is that there are a lot more losers in crypto than winners.
In this article, I’m going to share with you my best crypto trading tips to help you increases the chances of success in the words most volatile market.
1. Diversify (but not too much)
You may heard the term “don’t marry your bags” this simply means don’t get attached to a single crypto asset or even a handful, this is about making money, so you want to be able to sell without getting emotional or feel like you are “letting the team down” there will be other investments as good if not better than the ones you love so much.
If you have under $10,000 to invest make sure you invest in multiple projects I’d say no more than 10 otherwise you start spreading yourself too thin.
2. Using tradingview email to SMS alerts
Crypto moves incredibly fast and you can easily miss a great entry or worse a late exit. Tradingview has a great feature that allows you to set up email to SMS alerts which means you will be notified via SMS whenever a specific price level has been met.
The problem is that Tradingview doesn’t have an SMS system in place which means you need to find an SMS provider who actually has this feature.
160.com.au as put together a simple guide that shows you how to set up Tradingview email to SMS alerts on top of that their platform actually integrates into Tradingview directly.
3. Don’t “ape” in
Aping in simply means if you have $1000 to invest make sure that you do not invest all $1000 in one shot – this is “aping in”.
Instead you want to DCA (dollar cost average) into your positions.
A smart DCA plan would have you investing $100 each time you see a decent red candle on Tradingview if we are using the $1000 dollar example.
The reason why you do this is because price is always moving in waves, I cannot tell you how many times I’ve seen a crypto go up and up and up and up, only to see if crash back down to sometimes lower than when it started.
By DCA’ing allows you to get your average buying price low leaving money in your back pocket just in case there is a major correction you can take advantage of.
4. Invest in the blue chips
Crypto is risky, and although the big money is made in the low and micro cap cryptos they are also highly risky – if you have a long-term view of your investment take your time and invest in some of the top 20 which would make up 80-90% of your portfolio while having 20-10% invested in moonshot cryptos.
5. Price moves in waves (don’t get emotional)
When we are investing our money, it is incredibly tough to not get emotional when the price goes up or down.
If you missed an good entry just know that it will likely come back down to a similar position (or even lower) just be patient.
Alternatively, if you got in at the top just DCA your way back down to average out and bring down your position.
6. Bitcoin runs the market
If bitcoin goes down then the gravity will pull all other alt coins down with it, even if a crypto appears to be defying bitcoins gravity it will come down eventually, the same is true if bitcoin goes back up again, it will bring the rest of the market with it too.
By keeping an eye on bitcoin you can use that as an indicator of when to get in and out of trades.
7. All markets are related
While bitcoin heavily influences the alt coins, the traditional markets heavily influence bitcoin, one of the best things you can do is watch the greater market to get a feel for how bitcoin will react.
For example, some say that the DXY has an inverse relationship with bitcoin, when the DXY does well bitcoin’s price drops and when it does well bitcoin goes up.
8. Understand what you are investing in
“DYOR” is an acronym splashed around the crypto and trading space and it stands for ‘do your own research’.
One of the first things you should do is download and read their whitepaper, this will give you all of the important information you need to know, for example the team and their backgrounds, the tokenomics, what problem they are aiming to solve, etc.
Crypto has a steep learning curve for those who are not tech savvy which makes doing your research that much harder.
My advice is to join that crypto project’s social media channels (discord, twitter, telegram, etc.) and ask questions about the whitepaper, this is essential not just to learn about the product you could be investing in but it helps you understand other projects a lot faster, and will make deciding on which projects to jump into (and especially avoid) a lot easier.
9. Invest in real teams
In crypto it’s advised to invest in visible teams where you can see their faces, they have an established linked profile, proven track record, etc. Since crypto is in a weird space in terms of regulations as a lot of teams will be anonymous this is done to protect themselves from investors threatening them but also from their government as laws can change and the team can be in for heft penalty but it’s also a place for scammers to hide their identity so beware of hidden teams.