HOW TO BE A SUCCESSFUL CRYPTOCURRENCY INVESTOR/TRADER IN 35 STEPS From 7 Popular Crypto Experts/Writers [Case Study]
What do they (experts) know that you don’t? Probably a thousand answers…
Like putting 99% energy to write for a non-engaging audience or with no readers, you can be bored overnight. Same with crypto trading/investment.
Do you think that crypto success and failure follows the same path, the same pattern, that is, a matter of habits that determine whether you fail or you succeed? Can we align that to cryptocurrency trading/investment?
Well, in this researched article, you’re about to learn the top 35 secrets of 7 best crypto traders and writers so you too can become a successful crypto trader and investor.
But before that, know that I did this because I don’t want you to lose money in this current Bearish crypto market till September 2018 – SEC…
What Makes Them Top Crypto Traders And Writers?
This is not an official list where it can be stated that yeah, this is the number one crypto trader or writer, no.
The evaluation here is based on the engagements and the success of these “being a successful crypto trader” lessons and the reputations of the writers in the cryptocurrency industry.
Again, the analytics here was founded on accurate research.
To round it up, at the end of this case study, you will be able to see the true nature of investing or going for cryptocurrency trading in just matter of days.
So, without further ado, let’s see the best options you will ever need to be a good Bitcoin/Altcoin investor and trader.
Quick Crypto Trading Insights:
“Cryptocurrency trading can be incredibly lucrative if you are well equipped to take advantage of the volatility that currently exists within the market” – Bisola Asolo.
“No one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing” – Suji.Velu.
Before you push the buy button – any coin, you want to use the buy low, sell high” principle – TradingStrategyGuides.
“The money you put in crypto should be money that you are fine with losing” – Suji.Velu
Pre-things you need to know…
- 1 HOW TO BE A SUCCESSFUL CRYPTOCURRENCY TRADER/INVESTOR IN 35 STEPS FROM 7 POPULAR CRYPTO EXPERTS/WRITERS
HOW TO BE A SUCCESSFUL CRYPTOCURRENCY TRADER/INVESTOR IN 35 STEPS FROM 7 POPULAR CRYPTO EXPERTS/WRITERS
Step #1. Open an Account with a Cryptocurrency Exchange
TradingStrategyguides believes that before you move an inch into cryptocurrency trading, you have to choose the best marketplace which will suit your demand as an altcoin trader.
And one of his recommendations is looking at a crypto trading marketplace that will accept fiat deposit so you can buy Bitcoin directly with your fiat money (US Dollar, Euros etc.).
There is no doubt about that because a lot of crypto beginners have made the mistake of using vague crypto exchanges, only to be consumed as I was scammed my last bitcoin on a cryptocurrency exchange.
Before you have the knack for crypto trading, choose a reputable crypto exchange website that has a fiat-to-crypto exchange for easy transactions.
Two of the reputable and respected Crypto Exchanges that offer these features are these Binance and Coinbase.
Quick Takeaway: Sign Up on Coinbase and receive free $10.
If you do it now, this is what you will likely tell me;
“I signed up for Coinbase using your referral $10 Link and just got the $10 after making my deposits >$100, so thank you for that too!
Step #2. Select Your Coins You Want To Invest For the Long-Term
TradingStrategyguides believes that before you choose a particular cryptocurrency, you want to go for one cryptocurrency at a time.
Also, he recommends that it is not wise to go for an altcoin simply because it is cheap. No. this is what he had to say further about it.
We can say there are three main valuation types that define cryptocurrencies:
1. Large cap (top 5 coins)
2. Mid cap – anything bigger than $200M
3. Small cap anything smaller than $200M
Don’t make the mistake and buy cryptocurrencies just because they are cheap and trading at 1 cent.
It’s highly unlikely that a 1 cent coin will go up to $200 because the actual dollar value per coin doesn’t matter in the grand scheme. It’s the market valuation that counts.
The market valuation is calculated by the number of coins or tokens multiplied by its current price.
Recommending Reading: The Top 30 Best Crypto/Blockchain Projects to Buy Based On August 2018 Analysis.
Step #3. What Price Is Your Preferred Cryptocurrency Trading At? Check through Multiple Cryptocurrency Exchange
Another trading option TradingStrategyguides recommends is that before you push the buy button – any coin, you want to use the buy low, sell high” principle. Else, you might lose out.
In his words, he admitted that this is the basis of a successful cryptocurrency trading strategy. You need a guide to cryptocurrency investing that can teach you how to trade bitcoins to make money.
Step #4. Why Are You Optimistic About Your Cryptocurrency Choice?
Another concept TradingStrategyguides thinks is important is to question your reason for a choice of a particular coin.
And believe me, this is absolutely true. If you don’t know which coin to go for, hang on and execute DYOR. If not?
One day or after 4 months later, you might open your crypto wallet and take a 60 degrees deep breath or make a big SIGH.
The coin you bought at $5 just four months ago might be worth $0.5. It is the fact.
The Way Out?
According to him, below are the four major categories that you should keep an eye when trading cryptocurrencies:
1. What market or industry is the coin disrupting (virtual payments, cloud storage, finance etc.)?
2. What is the technology behind the coin?
Make sure it’s easy to use, accessible and the fact that the blockchain technology is actually addressing an issue.
3. Solid team.
Do your research and make sure the team behind your favorite cryptocurrency has experience is big enough and has the necessary skills to implement the claims these coins are stating they are going to make.
This is probably the most extreme and important factor because this will increase the demand for the cryptocurrency and it means people are using the blockchain technology.
4. Avoid being caught up in the fear of missing out the next big opportunity in the crypto space.
In the crypto community and cryptocurrency lingo, this has been coined as the FOMO trade.
• Don’t do the FOMO trade.
• Do your research and only invest in the best cryptocurrencies.
Starting out in the cryptocurrency is hard. Why? You will get busted by Hard Crypto. So, see over 300 Cryptocurrency Layman Words/Terms In 2018.
Step #5. Store Your Bitcoin And Altcoins Using A Cryptocurrency Wallet
While we all know that cryptocurrency wallet is like your bank account for your crypto coins. TradingStrategyGuides has affirmed that you need a good crypto trading wallet if you want true success.
Based on his expertise, he thinks that the best alternative to safely store your cryptocurrencies is to use a hardware wallet or a paper wallet.
At this point, there is no doubt that the best multipurpose hardware wallets are Trezor T and Pizza Ledger S. And if not multipurpose, it is definitely Digital Bitbox.
Another is paper wallet; that is if you will be able to use it successfully.
RECOMMENDING READS: #1 & #2
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2. HUGH KIMURA
Hugh Kimura of Tradingheroes.com
Hugh Kimura is a highly respected crypto trading guilder.
His baseline mission is to help you harness your unique strengths to become the best trader and investor you can be.
He believes that over 90% of traders fail because they are trading on a strategy that is built for someone else.
With that established, the following are what Hugh Kimura thinks you should know if you want cryptocurrency trading success; that is if you really want it.
1. The Characteristics of a Currency to be Aware of
2. How do You Buy Cryptocurrencies?
3. How to Buy Altcoins
4. Cryptocurrency Tracking Apps
5. What Can Affect the Price of a Cryptocurrency?
#1. THE CHARACTERISTICS OF A CURRENCY TO BE AWARE OF.
Like TradingStrategyguides, Hugh Kimura believes that all cryptocurrencies have their own strides – pop-ups and pop-downs even though there are all founded on the blockchain technology.
He thinks that a cryptocurrency beginner trader should be able to make certain decisions as follows:
• Transaction processing speed,
• Total supply currently available,
• Will there ultimately be a limit on the total number of currency available?
• Will there be an unlimited supply of currency?
• Is there a real-world need for this software/currency?
• Real world adoption of the technology
• Any big investors in the project?
• Does the use of the software make sense?
• Do the founders have a reputable background?
Recommended Reading: Blockchain Technology/
After 400 days of struggling to understand what Blockchain Technology was? This is the breakthrough I FINALLY had with it.
The full insight of Blockchain Technology And The Sectors Transformed Already?
#2. HOW DO YOU BUY CRYPTOCURRENCIES?
The concept of buying cryptocurrency can be daunting or messy as it was for me.
I know some might doubt it but the fear of losing out is what bothers a lot of beginners which is important you take the time to see how to use easily going and advanced crypto exchange websites.
But one thing you need here is how to overcome fear and buy cryptocurrencies on your own from anywhere you are.
Recommended Reading: How To Overcome Fear And Buy Cryptocurrencies On Your Own From Anywhere You.
#3. HOW TO BUY ALTCOINS
The concept here is finding out the coin you want to buy and actually buying it.
For an example, if you wanted to buy the top 5 coins on the CMC list; Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic, you can go over to Coinbase and buy them with complete steps.
But if it were other altcoins that you might not find on Coinbase, a good place to go is Changelly.com.
#4. CRYPTOCURRENCY TRACKING APPS
Another tool Hugh Kimura thinks you should use while crypto trading is Cryptocurrency and Portfolio Tracking Apps.
Some of the apps he thinks are great to start with are Blockfolio and CoinCap. But don’t worry, let me take over from where he has stopped.
#5. WHAT CAN AFFECT THE PRICE OF A CRYPTOCURRENCY?
Hugh Kimura understands that a lot of cryptocurrency trading beginners might not know what determines or say affect the crypto prices, so, he outlined the basics you have to look out for.
Some of them are:
• Exchange Listings
We all saw what happened when Coinbase said they will list Ethereum Classic to the Crypto Exchange website.
The coin surged from a low state to a high state. And unsurprisingly, it was a leading coin to buy as was analyzed by other reputable crypto websites.
Where to Buy Ethereum Classic Easily? – Buy here in one click.
Other factors he considered were;
• Software Upgrades
• Public Hype; this can be enhanced by FUDSters.
• Wallet Improvements.
• Platform Application
• Government Regulation: We saw this with SEC and ETF.
Suji.Velu of Blockgeeks.com
In his Absolute Beginner’s Guide to Cryptocurrency Investing, Suji.Velu comes to terms by his own experiences to cryptocurrency trading.
So, let’s take a look at what he believes about crypto trading.
Suji Velu kick-started by considering the basic pointers such as Cryptocurrency, Stocks, and Fiat, Cryptocurrency Exchanges, Cryptocurrency Wallets, Cryptocurrency as a Percentage of Your Investment Portfolio, Cryptocurrency Investing.
• Cryptocurrency, Stocks, and Fiat
In his concept of explaining these three pies, he believes that the currencies we know are referred to as ‘fiat’ by the cryptocurrency community.
Going further, he said although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies.
When you purchase some cryptocurrencies, you are in fact buying some tech stock, a part of the blockchain and a piece of the network.
• Cryptocurrency Exchanges
While there are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness.
Out of all these, Suji finds Coinbase.com as the best exchange hands down.
Adding to the great options of Coinbase, he thinks that Coinbase has a beginner-friendly user interface, and an unbeatable 100% crypto insurance.
• Cryptocurrency Wallets
Considering altcoin wallets, Suji thinks that for your cryptocurrency assets to be safe, you want to use a paper wallet or a crypto hardware wallet.
And if the latter, it means spending like $80 to get one that is viable and active.
• Cryptocurrency as a Percentage of Your Investment Portfolio
Here, Suji believes that the money you put in crypto should be money that you are fine with losing.
With that established, he went ahead to put out a conservative portfolio as follows:
< 30 years old (max) 30% Crypto, 50% Traditional Investments.
30 – 40 years old (max) 20% Crypto, 60% Traditional Investments.
> 40 years old (max) 10% Crypto, 70% Traditional Investments.
Note: This is not meant to be age discrimination, but considers the fact that one takes up more financial responsibilities (mortgage, family) as he grows older.
Why the Segmentation?
Suji believes that within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.
Why the Segmentation Seem Amazing?
Recently, a grandma of a crypto enthusiast sent him a message that his funny money has gone up. 😈
Taking from the third segment;
> 40 years old (max) 10% Crypto, 70% Traditional Investments. This shows that those above 60 might likely not invest in cryptos – which is of course, a good thing to avoid Heart Attack or High Blood Pressure.
• Cryptocurrency Investing
In here, what you will have to decide boils down to the questions: How do we pick the winner? How do we avoid picking the loser?
Having gained the above concepts, the following questions are what Suji thinks you should ask yourself before investing in cryptocurrency trading.
#1. ARE MY INVESTMENTS SAFE WITH THE DEV TEAM?
The first rule of investing should always be the preservation of capital.
Can you trust the dev team with your money? Are you about to leave your money with founders who have been involved in previous scams?
Dev team: Developer team.
#2. DOES MY COIN OF INTEREST HAVE A LONG-TERM PLAN?
As funny as it might sound, Suji recommends that you should try your best and at least to read their white paper.
What are the team trying to achieve? Do they have the means, or have they already worked towards their goals?
#3. HOW LONG SHOULD I STAY IN THIS? DO I HAVE AN EXIT PLAN?
There will be coins where you do not want to hold forever, but wish to flip for some short-term gains.
In this case, be sure to set a timeframe, or an exit price, to reduce the effect of emotions on your trades.
#4. DOES IT HAVE A REAL-WORLD USE CASE?
Some coins seem to keep increasing in value simply due to supply-demand factors.
This trend might not be sustainable. For a coin to have long-term supported value, it must have a real-world use case eventually.
Look out for coins that look too much like a get-rich-quick scheme.
4. BISOLA ASOLO
Bisola Asolo of MyCryptoPedia.com
Bisola Asolo is one of the great crypto trading experts/writers that knows what it means to trade altcoins.
His aim is to guide a mere beginner with the basics but advanced tools necessary in order to get started in the journey of cryptocurrency trading.
So, follow me as we see his views on the best practices when it comes to cryptocurrency trading and investments.
He says that you must first focus, but understand the following:
#1. THE ECONOMICS OF CRYPTOCURRENCIES
Bisola Asolo believes that for a beginner to do well in crypto trading, he/she must know the basic Economics of Cryptocurrencies.
And talking about the Economics, it conforms to options such as knowing the market supply and demand, Utility, Market sentiment and Mining Difficulty.
• Supply and Demand: a factor that certainly affects the price of a cryptocurrency.
• Utility: this has to do with the usefulness of a cryptocurrency.
The more useful a cryptocurrency is, the more likely it is to be perceived as valuable, and therefore, the more likely it is to be bought.
• Market Sentiments: in his words, he believes that as a cryptocurrency trader, it is likely that you will switch between multiple positions at a high frequency. And so?
Getting a clear view on the sentiment surrounding a cryptocurrency allows you to screen the useless cryptocurrencies that are unlikely to experience any movement in price.
• Mining Difficulty: this explains a measure of how hard it is to be the next person that gets to add a block to the blockchain, and receive the reward for doing so.
More to it, he believes that conversely, a higher mining difficulty suggests that a cryptocurrency is harder to mine; this results in supply growing at a slower rate, therefore resulting in upward pressure on the price.
Recommend Reading: the Genesis of Bitcoin Before Nakamoto and the Mining Difficulty Evaluation
#2. ORDER BOOK & STOP LOSSES
Another crypto trading concept Bisola Asolo thinks is important is knowing the Order Book & Stop Losses margins.
• Order Book: this explains the number of buy and sell orders that have been placed at a particular price for a cryptocurrency.
The order book here is updated in real time and so can be a very useful tool in gauging the sentiment around a cryptocurrency.
Going on, he explains that the order book is also known as the market depth, and can be used to provide an indication of the liquidity of a cryptocurrency.
• Liquidity: this explains the ability of a cryptocurrency to bought and sold quickly without affecting the price. More on that here.
In conclusion, he recommends that if you are ever worried about the liquidity of a cryptocurrency, make sure to look at the order book to get a sense of the market depth.
• Stop Loss: he says that a sell stop loss is placed on top of a cryptocurrency trade that executes a sell order when the cryptocurrency reaches a certain price.
In a volatile market like cryptocurrencies, a sell stop loss is key because it is designed to limit your potential loss on an investment price.
Another crypto trader concept Bisolar thinks is crucial is knowing the Technicals involved in this area of making money.
And by Technicals, he means grabbing the idea of graphs and lines, otherwise known as technical analysis (TA).
More of the Technicals talks about are:
• Relative Strength Index (RSI): RSI measures the strength and speed of a market’s price movement by comparing the current price of a cryptocurrency to its past performance.
RSI compares the magnitude of recent gains to recent losses in an attempt to discern if a particular cryptocurrency is overbought or oversold.
• The Moving Average Convergence/Divergence (MACD) Indicator: The MACD indicator is made up of two exponential moving averages that help measure momentum in a cryptocurrency by using the difference between short-term and long-term price trends to help predict future trends.
Convergence simply means that the two averages are moving closer to each other, and divergence that they are moving further away from each other.
• Bollinger Bands: A Bollinger band is simply a moving average with two standard deviations plotted from it on either side.
Standard deviation is simply a measure of market volatility and so Bollinger bands help account for volatility in a cryptocurrency.
When the cryptocurrency is a more volatile, the Bollinger bands widen, and move further away from the average.
During periods of reduced volatility, the bands contract and move closer to the average. Thinner bands indicate that the market may soon experience large amounts of volatility.
#4. PRACTICAL ADVICE
Bisola aims to get you involved with the cryptocurrency exchanges to use, the best way of keeping your cryptocurrency safe, and social media.
• Exchanges: He recommends using a cryptocurrency exchange that allows you to deposit and withdraw fiat straight from your bank account is known as a fiat gateway. Why?
Fiat gateways are important because they provide the means for you to actually get your money to a point that enables you to buy and sell cryptocurrencies.
• Keeping Your Cryptocurrency Safe: This is so important that he thinks once an investor has successfully begun cryptocurrency trading, it is not unusual for them to simply leave the cryptocurrency on an exchange in hopes that their investment will turn a profit.
In conclusion to staying on top of your game, he recommends going for a secure method that you can use in order to keep your cryptocurrency safe.
And one of the most effective ways of securing your cryptocurrency as he said is the use of a minimalist hardware wallet.
• Social Media: here he believes that social media is an incredibly powerful tool for staying up-to-date with your investments, as well as for finding new ones.
So, the three key social media places he recommends are:
Michael of TradingBeasts.com
In his Cryptocurrency Trading for Beginners – Everything you need to know, Michael did justice to the best routes you want to take as far as cryptocurrency trading is concerned.
And if you haven’t seen the post, you can see it live as I dissect here.
The first disclaimer of Michael is letting you know that cryptocurrency market is not just volatile but Very Volatile.
His key steps to taking up altcoin trading are as follows:
• Find a broker where you can trade cryptocurrencies.
• Select your cryptocurrency
• Determine where the price is. Is it low or high?
• The best way to approach crypto trades not only as a beginner
• Determine your target sell price
• What affects the price of cryptocurrencies
#1. FIND A BROKER WHERE YOU CAN TRADE CRYPTOCURRENCIES
Michael thinks that for you to kick-start crypto trading, you have to select the best brokers which have reputable options.
And such options include Trust and Regulations, Fees, Cryptocurrencies you want to trade, and Leveraging.
The above is absolutely true. And thus, it all boils down to selecting the best marginal crypto trading exchange websites.
#2. SELECT YOUR CRYPTOCURRENCY
Selecting your Cryptocurrency conforms to Selecting a digital coin with the highest potential is a very important step.
Michael thinks that there are 4 great determinants you have to consider before you chose your crypto coins.
Those four options are:
• Infrastructure (App development, Cloud storage, Virtual Private Networks, funding, etc.)
• Technology (Quick transaction process, firm and easy to use UI that is easy to adopt, etc.)
• Development team (Skilled and experienced, solid amount of developers, etc.)
• Growing popularity (Rising demand for the cryptocurrency, more people using it, media coverage, etc.)
While you might not believe it but Michael thinks that the cryptocurrency you select should meet at least 3 of these criteria.
#3. DETERMINE WHERE THE PRICE IS. IS IT LOW OR HIGH?
One of the things Michael thinks you should look out for is considering if the price now at its 45-week low? Or is it at its maximum? You probably know the saying “buy low, sell high”.
#4. THE BEST WAY TO APPROACH CRYPTO TRADES NOT ONLY AS A BEGINNER
Taking the insight from Warren Buffet, Michael thinks that a great way to approach the cryptocurrency market is being Fearful When Others Are Greedy and Greedy When Others Are Fearful.
The big question here should be, are others dumping coins for a relatively low price? If yes, then, Great!
It might be a good time to buy them.
#5. DETERMINE YOUR TARGET SELL PRICE
In here, the best price as recommended by Michael is buying cryptocurrencies when you consider its price to below.
Again, the best time for leaving is when the prices are going too high and the investors are getting carried away.
That is the time to leave it up in order not to be tempted than never.
Now, this above is absolutely true. If you haven’t been caught by it, I made that mistake to buy when the price was too high – it happens when excitement comes calling. 😯
#6. WHAT AFFECTS THE PRICE OF CRYPTOCURRENCIES?
While the following are not direct consequences of crypto trading, yet, they have a voice to affecting your purchase options.
For an example, buying a coin for $10 x 500 only to be affected by the following factors might make or break your profits.
Some of the factors Michael thinks determine the prices of Cryptocurrencies are as follows:
• Government Regulations
This takes effect when any government makes a public statement about the regulation of a cryptocurrency.
The result will be in the rewinding of the market trends. An example is the options of the SEC and the Bitcoin ETF, China and ICOs.
• Media Exposure and Other Influencers
This has to do with individuals who can influence the price of cryptocurrencies.
Most of the times, these men are crypto Billionaires you might even want to be like.
• Wider Mainstream Acceptance, New Firms Backing Up the Project
This defines a coin appreciation as soon as a reputable startup starts accepting it.
An example can be traced to IBM integration/agreement to work with Stellar coin. That alone was enough to make the digital asset go up in value.
• Technological Changes and Innovation
In the words of Michael, with every new technological change, there is a high chance that it might significantly affect the price of a cryptocurrency.
For an example, if a new security protocol that will make the cryptocurrency even more reliable, secure and scalable is scheduled to be released, it might induce a positive response of the market.
• State Of Other Market
The prices of cryptocurrencies can deeply be affected based on the state of other markets.
That is to say, if there are crashes of other markets like the Gold, some digital assets might react with a positive uptrend of the market.
6. KENNY MULI
Kenny Muli in his 9 Rules of Crypto Trading That Helped One Trader Go from $1k to $46k in Less Than a Year.
Here, Kenny Muli will tell you the naked steps and best investment steps you want to look out for, else, just forget about crypto trading.
All right, let’s see his best options.
Step #1. ALWAYS PAY ATTENTION TO BITCOIN.
One of those sweet spots Muli thinks is important is always paying attention to bitcoin. Let’s see how he puts them.
Most altcoins (every cryptocurrency except Bitcoin) are pegged more closely to Bitcoin than Asian currencies were to the USD during the Asian Financial Crisis.
If Bitcoin price pump drastically, altcoins price can go down as people try to exit altcoins to ride the BTC profits; inversely, if Bitcoin prices dump drastically, altcoin prices can go down, too, as people exit altcoins to exchange back into fiat.
The best times for altcoin growth appear when Bitcoin shows organic growth or decline or remains stagnant in price.
Step #2. NEVER PUT ALL YOUR EGGS IN ONE BASKET. DIVERSIFY!
While the potential to earn more is increased with the amount of money you invest into a coin, the potential to lose more is also magnified.
Another way to think about it is to look at the cryptocurrency market as a whole; if you believe that this is just the beginning, then more than likely the entire market cap of cryptocurrencies will increase.
What are the chances that this market cap increase will be entirely driven by one coin vs. being driven by many coins?
The best way to safely capture the overall growth of cryptocurrency is to diversify and reap the benefits of growth from multiple coins.
Also, fun fact — Between January 2016 and January 2018, Corgicoin has increased by 60,000x, and Verge has increased by 13,000x.
During the same period, Bitcoin has increased by 34x. While you would have gotten impressive gains from Bitcoin, expanding into other coins could have landed you potentially larger ones.
Step #3. DON’T BE GREEDY
I tell you, this happens almost always. To avoid it, the two partners you want to avoid are Crypto Excitement and Greed – they can easily lead you astray. 🙄
From Muli now,
No one ever lost money taking a profit. As a coin begins to grow, the greed inside us grows along with it.
If a coin increases by 30%, why not consider taking profit?
Even if goals are set to 40% or 50%, you should at least pull out some of the profit on the way up in case a coin doesn’t reach the goal.
If you wait too long or try to get out at a higher point, you risk losing profit you already earned or even turning that profit into a loss.
Get into the habit of taking profits and scouting for re-entry if you want to continue reaping potential profits.
I want to be frank with you…
The third recommendation is not easy; in fact, it is much easier said than done. Now, imagine this.
You have heard that a crypto you invested at $0.3 will be $40 in 50 days. But after like 100 days it is still lingering at $10, and finally, it made a breakthrough to about $30.
Tell me, would you take out the added % profit or you will wait for the 100?
→ Probably – 50%
→ I guess – 70%
→ I wouldn’t – 90%
Which are you in the above?
Please. let’s twit this …thanks…Would you take out an added 20% profit on your investment after 200 days of waiting for 80-100%? Probably - 50% I guess – 70% I wouldn’t - 90% Which are you in the above? Click To Tweet
Step #4. DON’T INVEST BLINDLY
There are people in this world who would sell a blind person a pair of glasses if they could make money.
Those same people play in the cryptocurrency markets and use every opportunity to exploit less-informed investors.
They’ll tell you what to buy or claim certain coins will moon, just to increase the prices so they can exit.
Due to the highly speculative nature of the cryptocurrency markets today, a good investor will always do his or her own research in order to take full responsibility for the potential investment outcome.
Information coming from even the best investor is, at best, great information, but never a promise, so you can still get burned.
Yet again, this all boils down to the crypto though leaders you follow on Social media…The way out?
Sign up below and get the Listed Cryptocurrency Thought Leaders you should follow – not just the FUDsters…
Step #5. DON’T FOMO
In Muli view, he thinks that this is a spot that people most frequently lose money on.
Wait a second, what is the meaning of not FOMOing? You can find it here in perspective.
A dash of manipulation, two tablespoons of media hype, a cup of CME and CBOE announcements, and a generous handful of FOMO drove Bitcoin prices from $10,000 to $20,000 in December.
Since that time, Bitcoin fell to a low of $9,000 and is currently sitting at around $11,000. [Based on the time of writing – currently at $6,000+]
It’s easy to look back and say, “if only I waited one month, then I could’ve bought at $9,000 instead of waiting for Bitcoin to hit $20,000 again for me to break even.”
But the reality is, the combinations of:
1) Being greedy,
2) Investing blindly, and
3) FOMO were likely large contributors to the purchase at an all-time high.
Even in the crazy world of cryptocurrency, if a coin pumps that quickly, it will correct — it’s a matter of time.
Speculative pumps are almost always followed by dips.
While trying to jump onto a train going full speed sounds like something straight out of a James Bond movie, I’m sure most of us can agree we would probably save some limbs if we just waited for it at the next stop.
Step #6.CATEGORIZE YOUR INVESTMENTS AND LOOK AT THE LONG PICTURE.
One of those things beginners and crypto investors tend to overlook is failing to categorize their investment and look at the big picture of where their reaction of investing came from.
Muli says that in the process of your research, you’ll eventually realize you’re coming across a few different categories of coins.
For some of them, you believe they have good teams, great vision, amazing publicity and a track record for successful execution.
Put these into medium or long-term holds and let them marinate into a delicious tenderloin.
When the price dips, don’t even consider panic selling because anything in your medium or long-term portfolio should remain untouched for a set amount of time.
BNB is a good example of a coin Miles considers a long hold. Recently, it dipped 20% for a while, and within our community, we witnessed some sell-offs to preserve investments. A week later, it jumped up almost 3x for a period of time.
Step #7. ALWAYS LEARN FROM YOUR MISTAKES.
At times, it is not easy for us to learn fast until we are vulnerable.
An example is being scammed my last bitcoin. After that event, no one need to tell me that two-factor authentication is a must on ALL my online accounts.
Without further asking me, I can tell you what to do when wanting to invest because I have seen a coin of $3 go down to $0.3 in a wallet – and it was bought from excitement.
So, it is always easier to learn from mistakes already done – if you want to.
Let’s hear out Muli.
Never accept a total loss!!!
Always evaluate the situation and try to figure out why it happened.
Take that experience as an asset for your next move, which will be better because you know more now than you knew before.
We all start off as amateurs, and we have all lost money throughout out trading experience.
In his first month of trading, Miles went from $1,000 to $300. I’ve lost a lot by selling at losses inspired by fear.
No one is perfect, no one wins every single trade. Don’t let the losses discourage you, because the reality is they’re making you better trader if you choose to learn from them. √
Step #8. IF YOU ARE DOING ANY ACTIVE TRADING, SET STOP LOSSES.
Setting stop loss is so important because it tells you to snap back when a loss is around the corner.
In his words, he said, for any coin not in your medium or long-term holds, always set stop losses.
This is important for several reasons — the most obvious is mitigating your losses.
But more importantly, you force yourself to decide on a point of acceptable loss, and because you now have a reference point, you are able to measure your effectiveness to keep or adjust for future trades.
Sometimes, during a market dip, altcoins can plummet, and stop losses can lead to profitability by automatically selling for fiat that you can use to re-enter at lower prices.
Step #9. ONLY INVEST WHAT YOU CAN LOSE.
It is as simple as the caption. Only give out an amount you can afford to lose.
And even if you wouldn’t lose out, still, only invest an amount you can come back and look at your portfolio without a sigh, regret or a Hiss. 😀
7. ISUAMFON OFFIONG
#1. CRYPTOCURRENCY TRADING OR HODLING IS NOT A FAST A QUICK FIX RICH SCHEME.
Perhaps, you had bought Bitcoin last year 2017 and made a 3000% or more returns in December 2017, good if it were true.
However, the truth here is investing an amount you won’t transfer the anger on the government or the big whales or even hate Crypto generally when the aftermath result does not align with purchased-expectations.
#2. FOCUS ON STRATEGIC COINS.
There is no doubt that Bitcoin and Ethereum are not what they were two years ago, yet, you want to focus your attention or buying zone on projects you can deeply trust.
This is it.
If you strongly believe in Bitcoin and Ethereum, then, you might want to stick with the two. And if with 16, then stick with them.
Perhaps, I don’t want this to be no. 36. Yet, you do no want to BORROW money to invest in crypto.
If you do, you will pay every dime of it even if it is not from crypto…So, be okay with what you can afford; who knows the next dot-com startup that might make you rich…???
We have seen the best practices towards crypto trading and investments from these top traders and writers.
While I believe you have grabbed all the points about crypto trading, I will go along to enlist just once again all the steps you need in order to have crypto trading and investment success.
HOW TO INVEST IN CRYPTOCURRENCY TRADING (IN SHORT, SO YOU WON’T FORGET)
These are the Trading Steps TradingStrategyguides wants you to take into consideration.
Step #1. Open an account with a cryptocurrency exchange
Step #2. Select your coins you want to invest for the long-term
Step #3. What price is your preferred cryptocurrency trading at? Check through multiple cryptocurrency exchanges.
Step #4. Why are you optimistic about your cryptocurrency choice?
Step #5. Store your bitcoin and altcoins using a cryptocurrency wallet
2. Hugh Kimura
Hugh Kimura recommends that you should determine the following options before going into cryptocurrency trading.
Step #1. The Characteristics of a Currency to be Aware of.
Step #2. How do You Buy Cryptocurrencies?
Step #3. How to Buy Altcoins.
Step #4. Cryptocurrency Tracking Apps.
Step #5. What Can Affect the Price of a Cryptocurrency?
Suji.Velu of Blockgeeks recommends you get aligned with trading concepts such as Cryptocurrency, Stocks, and Fiat, Cryptocurrency Exchanges, Cryptocurrency Wallets, and Cryptocurrency as a Percentage of Your Investment Portfolio.
In short, the following are the viable options/questions he thinks you should have at the back of your mind.
Step #1. Are my investments safe with the developer team?
Step #2. Does my coin of interest have a long-term plan?
Step #3. How long should I stay in this? Do I have an exit plan?
Step #4. Does it have a real-world use case?
4. Bisola Asolo
Bisola Asolo recommends that you should know the following options before going into cryptocurrency trading.
Step #1. The Economics of Cryptocurrencies
Step #2. Order Book & Stop Losses
Step #3. Technicals
Step #4. Practical Advice
Michael, on the other hand, thinks that the following are just what you need to do in order to succeed.
Step #1. Find a broker where you can trade cryptocurrencies.
Step #2. Select your cryptocurrency.
Step #3. Determine where the price is. Is it low or high?
Step #4. The best way to approach crypto trades not only as a beginner.
Step #5. Determine your target sell price.
Step #6. What affects the price of cryptocurrencies?
6. Kenny Muli
Kenny Muli gives you the best fit beginner steps you need to look out for. And if you have been here, you can attest that you might have fallen to one of the following. Let’s see how far.
Step #1. Always Pay Attention To Bitcoin.
Step #2. Never Put All Your Eggs In One Basket. Diversify.
Step #3. Don’t be greedy.
Step #4. Don’t Invest Blindly
Step #5. Don’t FOMO
Step #6. Categorize Your Investments and Look At The Long Picture.
Step #7. Always Learn From Your MistakesStep
Step #8. If You Are Doing Any Active Trading, Set Stop Losses.
Step #9. Only invest what you can lose
7. Isuamfon Offiong
#1. Cryptocurrency trading or HODLING is not a fast a quick fix rich scheme.
#2. Focus on strategic coins.
#3. Never take a loan or Borrowed money to put in in cryptos; it might work and it might not. However it is, it is up to you…
If Negative – Way out? Be Prepared to ask for donations – repayments…
“No one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing” – Suji.Velu
“Cryptocurrency trading can be incredibly lucrative if you are well equipped to take advantage of the volatility that currently exists within the market” – Bisola Asolo.
“Never take a loan or Borrowed money to put in in cryptocurrency” – Isuamfon Offiong.
Those are the best pointers to say good bye on this.
However, while I don’t want to leave you hanging. If you want to trade altcoins, I believe you should stick to what these crypto experts recommend.
With those, you can have a good return in no less time – if you are patient enough.
CRYPTO SAFE ZONES/RECOMMENDATIONS
If you want to play safe on crypto trading, I recommend you get a free $10 to use for testing out.
As for Trading Views, you can try it out for free.
If you don’t want to day trade, you can curate trading using other forextry option like IqOption.com.
With IqOption, you can start with $10; even with a free demo account.
Final Verdict: in all these, act smartly!!! Why? This is not a time to lose your money…
➡ Over to you: have you got any comment on this 7000+ case study, or did you enjoy this experts roundups on crypto trading and investments steps?
Let me know what you think below. Thanks for coming out.
I am a Top 5 Quora Best Crypto, Virtual/Blockchain Writer. I share all the best tools I know (by research + analytics) as far as you, being Productive and Unhackable are concerned. See why.
Disclosure: it remains that this isn’t a financial advice. It is for educational purpose.
Kenny Muli; please note that none of this is investment advice. Invest at your own risk!