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How to be a good Crypto Trader? Here's What You Need to Know.

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 So, You Want to Be a Crypto Trader? Here's What You Need to Know.

If you’re interested in investing in the crypto market, you’ve probably seen more than your fair share of headlines promising overnight millionaires and Lambos as far as the eye can see, but also warning about massive losses and market crashes. While it’s true that anybody who invests in crypto will experience both exhilarating highs and devastating lows, by knowing what you’re getting into before you start trading, you can significantly improve your chances of success. Here are the key things to know before you begin trading cryptocurrency like a pro!


If you’re interested in investing in the crypto market, you’ve probably seen more than your fair share of headlines promising overnight millionaires and Lambos as far as the eye can see, but also warning about massive losses and market crashes. While it’s true that anybody who invests in crypto will experience both exhilarating highs and devastating lows, by knowing what you’re getting into before you start trading, you can significantly improve your chances of success. Here are the key things to know before you begin trading cryptocurrency like a pro!


Trading Platform

  • The very first thing you'll need is access to a trading platform; there are many different options available and choosing one depends on your particular circumstances and level of experience with trading. 
  • Some platforms provide general market information while others will include real-time data streams on specific currencies such as bitcoin and ether. 
  • Before deciding on which platform you want to use, make sure you're comfortable with its features so that you can efficiently monitor prices as they fluctuate throughout each day.


Research Tools

There are all kinds of tools out there that can help with your cryptocurrency trading, such as Coinbase and Cryptowatch. Coinbase is great for buying and selling digital currency, but it’s also very valuable for tracking market trends in digital currencies – their official site even keeps track of prices on major digital currency exchanges around the world! Cryptowatch is helpful for those who don’t have much experience with cryptocurrency markets or want another perspective on them. Whatever you do though, never invest more than you can afford to lose! The crypto market is volatile and can change quickly!


Technical Analysis Basics

Technical analysis is different from fundamental analysis in that it focuses on trends rather than price, and your trades are based more on patterns of buying and selling than intrinsic value. Successful technical traders focus on market structure, chart patterns, and statistical signals -- all of which can help you identify when markets are most susceptible to making big price swings (aka catching massive gains). A few good resources for becoming familiar with these concepts include Investopedia Investing for Dummies, Technical Analysis by Robert Edwards and Gary Smith, or The Little Book of Market Myths by James B. Stewart. Being able to read charts is also essential -- in fact, many cryptocurrency exchanges require users to be able to get close enough to technical analysis so they can use TA in their trading strategies.


Perform Technical Analysis on the Coin

There are tons of great tools out there that you can use to learn about any coin. It is hard for new traders to wade through all of them and figure out which ones are most valuable for their needs; so we did some research and put together a list of our top three: 

CoinGecko, Blockfolio, and Cointracking (it’s free). These tools will help you keep track of what coins are performing well so that you can jump on opportunities quickly when they arise! We suggest sticking with these three tools until you get more comfortable with technical analysis and with tracking your own data across several exchanges. Stay alert and watch those TA lines!


Place Your Buy Orders at the Correct Price Points

  • There are lots of different techniques and indicators you can use to determine where and when to buy your digital assets. But if you master just one—price action analysis—you’ll vastly improve your chances of making money on any type of crypto trade. In fact, every single altcoin out there (except maybe Bitcoin) will benefit from price action analysis because it is a universal tool that no matter what coin or asset class you are trading. 
  • The best news is that once you learn how to trade using price action analysis (or even before), you’ll have an easy time applying it across all other forms of technical analysis in your trading repertoire.
  • Always Take Profit after Reaching Target Prices (or Ride the Wave)


When you hit your target price and it’s time to take profit, look at what your stop-loss is. At a minimum we recommend taking profit over (1/3) of your position size as trailing stops are just that; they trail behind. If you have 50% exposure in BTC in an uptrend but wanted to exit 1/3 of that position once it reached its target value then 25% (1/3 * 50%) would be your trailing stop loss point.

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