9 Crypto Trading Rules That Took One Trader from $1K to $46K in Less Than a Year

in review •  4 years ago  (edited)

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No, I am not a great trader. While some of my results can be attributed to chance, the majority of them are focusing on fundamentals, good habits, and experience. On the other hand, I'm a member of groups of people who trade on a regular basis to expand their investments, and while some of their results can be attributed to luck, the majority of them are based on fundamentals, good habits, and experience.

The Outcome of Good Habits

Miles is the co-founder of Pure Investments. In May 2017, he started off by playing with $1,000, which he accumulated through saving 10% of his paychecks for a while. Today, he is at $46,000; i.e., he grew his portfolio by 46x in less than a year.

Although markets like cryptocurrencies are highly unpredictable, and all buyers, including Miles, myself, and you, are subject to price fluctuations, good habits will help minimize risks and optimize income.

9 Rules of Crypto Trading

1# Invest just what you can afford to lose.
If you're going to spend the funds you can't afford to lose, take a step back and re-evaluate your present financial position, because what you're about to do is desperate.

2# Keep an eye on Bitcoin.
If Bitcoin prices rise dramatically, altcoin prices can fall as people seek to leave altcoins in order to benefit from BTC gains; conversely, if Bitcoin prices fall dramatically, altcoin prices can fall as people seek to exit altcoins in order to convert back into fiat.

3# Never put all your eggs in one basket.
Although investing more money in a coin increases your chances of earning more, it also increases your chances of losing more.

4# Don’t be greedy
Taking a benefit has never resulted in a loss. The greed inside us rises in lockstep with the growth of a coin. Why not take a profit if the value of a coin rises by 30%? And if the targets are set at 40% or 50%, you can take a portion of the benefit on the way up in case a coin doesn't hit the target.

5# Don’t invest blindly
Due to the extremely speculative aspect of today's cryptocurrency markets, a successful investor would still do their own investigation to ensure that they are fully responsible for any possible investment result.

6# Don’t FOMO
Although jumping into a train at full speed sounds like something out of a James Bond thriller, I'm sure most of us would agree that waiting for it at the next stop will probably save some limbs.

7# Sort your investments into categories and see the big picture.
You'll notice that you're running across a few different types of coins as you go through your study. You think they have strong teams, fantastic vision, incredible exposure, and a track record of strong execution for some of them.

8# Always learn from your mistakes
No one is flawless, and no one succeeds in any exchange. Don't let your setbacks deter you; if you want to benefit from them, they will help you become a stronger dealer.

9# Always set stop losses
Altcoins will also plunge during a market downturn, and stop losses can help you benefit by immediately selling for fiat, which you can then use to re-enter at lower prices.

Conclusion
Furthermore, in comparison to other economies, the blockchain industry moves at breakneck pace. Every day, new coins enter the market, and each one has its own set of news. I have no doubts about your abilities to absorb and interpret news, but the amount of information overload is often better absorbed in a social environment.

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However, crypto asset investing, trading, staking can be considered a high-risk activity. Please use your extreme judgement when making the decision to invest in, sell, or to stake Crypto Assets.

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