If your looking for some solid tips for trading cryptocurrency you’ve landed in the right place. I’ve learned some lessons the hard way in my 7 year span of crypto trading. I’m hoping to spare you some of my pain. Whether your just a beginner or consider yourself a bit more advanced these tips should help you out. So lets get right into them.
Tip 1. Don’t Buy High
What I mean is that you don’t want to buy in when things are going up. The best time to buy cryptocurrency is when the market is down. This can be anywhere from a few percent to upwards of ten. You see people are always buying in and buying out. When prices start to go up that is when you should be selling your positions. Then when it starts to go down again you buy back in. Rinse and repeat.
Tip 2. Selling Is Okay
Our next tips for trading cryptocurrency in 2021 is that selling is okay. Look know one is saying you have to hold onto your coins forever. You can always take profits and buy back in again later. Believe me this is so important. I wish someone had told me this a long time ago. You see you can always have coins to hold onto for the long term which is fine. However you should also take some profits along the way. Its crucial or what’s the point.
Tip 3. Buy 3 Coins at a Time
This next tip is a little bit of my secret sauce. Whenever I get into a crypto trade I always buy 3 different coins at a time. I also put exactly the same amount of money in each one to spread out my risk. This way if one goes down at least I have 2 other coins that could be doing well. Its all about risk management.
Tip 4. Try Swing Trading
Swing trading lets you take smaller profits, cut losses quicker, and hold cryptos for less time. To make it work, your rules for trading need to be specific to the shorter time frame. Though the gains might be smaller, the shorter holding period means you can compound your gains into big profits over time. It’s a strategy that’s allowed me to turn an account to being up 800 percent in 12 months. While there are no guarantees in crypto its still a viable strategy to test out.
Tip 5. Keep Adding To Your Account
Most cryptocurrency exchanges will let you add money recurring. This means you can automate deposits into your crypto account. By doing this you will get in the habit of becoming a better overall investor. Saving and growing money is important. So is being disciplined. Now that you’ve gone over our top 5 tips for trading cryptocurrency in 2021 check out our 3 best exchanges to get started with directly below.
Top Rated Crypto Exchanges
Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.