2018 has been quite a volatile year for cryptocurrency markets. So far, there have been one major flash crash and several bear markets. Despite this, several traders are still in the green year to date. Here are a few tips I have learnt from trading so far.

Go big

One of the biggest mistakes I have made while trading cryptocurrencies is not going big. If you are sure about how much a coin should be worth, then bet big on it. “Big” varies according to one’s budget. For me, a big position would be holding 10,000 to 1 million coins. If you cannot afford that, then the minimum one should hold in a trading position should be 1000 coins.

Cut your losses quickly

There is absolutely no need for holding on to a loss making position. If a coin has not performed to your expectation, then sell down. Do not develop emotional attachments to any coin. You will make losses in trading. It’s like falling off a bicycle, or the car veering off when learning how to drive. Take your loss and move on.

The most important thing is to know why you were wrong, and learn from it. Did you buy a coin at an all-time high or low? Did you buy a coin with absolutely no fundamentals?

Do not be greedy with gains

While 100% is child’s play in the world of cryptocurrencies, you do not have to ride a coin all the way. A 30 or 40% profit could turn to a negative position in a matter of seconds. That loss position could last for a few minutes or 3 months.

The number one objective in trading is to make a significant return on your initial capital.

Stick to what works for you

Some traders play over 20 coins in a day. Others stick to 3 or 4. Some traders wait for a 30% or 40% profit before exiting a position. Others are content with just 5%, then shutting down for the day.

Stick to what works for you. They all add up. 5% profit every day gives 150% return in a month. 30% profit 5 times in a month gives the same profit margin.


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