With so many people joining the cryptocurrency world there are more and more reckless traders on the markets than ever before! We all think we are smarter than everyone else. I know I think that way from time to time, but then reality sets in and I have to fight my greed for my own good. If you are new to the cryptocurrency world I would advise you to be careful and don't let yourself get in the mind set that you must get in now and learn the ropes along the way or that you will miss out if you don't act now. That sort of state of mind will lead you to poor decisions and a lot of regret. Take your time.
Consider a few words of advice I was given when I was starting out by an old crypto veteran that has made millions over the years. These words of advice have saved me from making critical mistakes and have allowed me to make money while so many people are loosing thousands in bloody market days.
How did most crypto millionares make their money?
Buying early and holding, not trading. The riches Bitcoin and Ethereum whales are still holding what they bought for pennies on the dollar. And yes there are exceptions, but we call them exceptions for a reason!
Never buy on hype. No matter how many people repeat it.
No matter how much hype you hear about any coin, never buy blindly. Do your homework! Confirm the facts for yourself.
Don't ever trade on emotions!
The first mistake every single trader makes is panic selling when the markets drop. Be patient and you will be rewarded.
Still want to Day Trade? Make a plan!
If you are set on learning how to day trade, make a plan. Start small and set goals for every single buy and sell. Make a back up plan of what happens if the crypto drops instead of rising. Set some stop losses, but be careful how much you risk with them.
Try to learn some technical analysis along the way. If you can't read a graph, should you really be trying to predict what happens next?
And perhaps most important of all, never stay long in a crypto you don't intend to keep!
I am still learning to day trade myself, but I have no intention of becoming a professional day trader. I am here for long term investments, but if I can make a few bucks along the way with some day trades, then that's just bonus money.
About 60% of my portfolio into long term ventures I believe will pay out extremely well like Waves, Steem, and my newly acquired GameCredits. My mid-risk/mid-term investments only take up 25% of my portfolio. These are coins I am holding for just a few months for a good turn around, but have no interest in holding long term. I will talk about some of them in future blog posts. The last 10-15% is my fun money.
My day trading/High Risk section of my portfolio only contains about $800 of my total funds in the market (about $6100). This is my fun money and each time it hits $1000 or more I convert it into more long term holdings of my favorite crypto's and go back down to about $700-$800. So far this has worked well for me, but I my day trading is really part time. A lot of the time that part of my portfolio sits in Bitcoin or Ethereum when I am not actively investing in anything, but I do occasionally step into USDT if the other two are hurting at the same time.
Thanks for reading my blog and I hope this helps you on your journey. If you have some crypto advice of your own you would like to add, please add it below in the comments. I always love to hear back from my readers!
Crypt0.Critic Image: CleverCat
This blog is written for informational and entertainment purposes only. As the author, I can honestly say that I am in no way associated with any blockchain based company. My opinions are my own and are offered freely. My opinions and suggestions and are NOT INVESTMENT ADVICE! Please do your own research before considering any high risk investments.
Nothing is worth more than due diligence.
Thanks for the great article.
Crypto is a test of character as much as it is of knowledge.
Have you tried buying coins that drop 20 or more % in the day and selling them for small profit in shortest time frame possible?
ParkByte and START coin kinda low today
I have a list of trusted coins that I know a lot about and I almost never stray from the list. I am always adding new coins to that list as I research them too.
I do buy coins when I see them drop dramatically, but only if I already know about them and believe they have a good chance at recovery based on current events. This is a gamble no matter what way you look at it because the market is irrational.
Nice post!
Sound advice and a good strategy, lets hope others take notice.
Great advice