The Four Keys to Making Money from Cryptocurrency Trading

A blog about trading cryptocurrency and how it can be profitable.

By: Larry R. Loeb on March 4, 2018

When it comes to cryptocurrency trading, the basic principles of trading – or indeed, investing – are still the same. And that’s the ability to buy low and sell high. Sounds simple yeah? Well, if you want to make money off of cryptocurrencies, then it’s imperative that you follow these four key rules:

1) Only invest what you can afford to lose

The fundamental rule of making money investments is that you should only invest what you can afford to lose. You have got to be willing to lose your entire investment. But do not let this put you off; chances are you will not end up losing all of your investment. However, it is wise never to overstretch yourself when investing in stocks and bonds. Remember Warren Buffet’s 2% rule? Basically, he only invests 2% of his portfolio in any one stock.

2) Do your research

There are lots of uneducated people out there who buy into a coin without doing their own due diligence first (I’ve made this mistake a few times

The Four Keys to Making Money from Cryptocurrency Trading

The cryptocurrency market is booming, and many people are getting involved in trading. And if you are one of them and have been trading for some time, you’ve probably asked yourself: how can I make money from cryptocurrency trading?

But here’s a secret: you might be doing it all wrong.

Many people get into trading with the aim of earning huge profits; however, this is often unrealistic. The cryptocurrency market is volatile and uncertain, which means that no matter how experienced a trader you are, you will never be able to predict the future.

So instead of aiming for huge profits, traders should focus on developing a profitable strategy that will bring them smaller but consistent gains over time. And if they manage to do that and implement it consistently, they’re very likely to earn more than they could ever hope by chasing the next big market surge.”

If you want to make money from cryptocurrency trading, you need to know how to do it. For example, if you want to trade Bitcoin, you need to know what moves the price of Bitcoin (hint: its supply and demand!).

And second, you need to know exactly when and how to enter and exit your trades.

If you don’t follow these two keys, you will fail at cryptocurrency trading. If you follow them, there is a good chance that you will succeed.

THE FOUR KEYS TO MAKING MONEY FROM CRYPTOCURRENCY TRADING

1. KNOW THE PRICE DRIVERS OF EACH COIN YOU TRADE

2. CHOOSE A GOOD EXCHANGE TO TRADE ON

3. KNOW WHEN AND HOW TO ENTER AND EXIT YOUR TRADES

4. USE STOP LOSSES AND TAKE PROFITS

In case you are new to cryptocurrency trading and you want to know how you can make money from it, here are the 4 keys to making money from cryptocurrency trading.

1.Crypto Trading is a Zero-Sum Game

2.A Small Slice of a Large Pie is Better than a Big Slice of Nothing

3.Manage Your Risk

4.Trade Often, Trade Small

The first key to making money from crypto trading is understanding that crypto trading is a zero-sum game. This means that for every buy trade there will be a seller on the opposite side of the trade and vice versa. If an individual makes a gain on the market, then another individual has suffered losses and vice versa.

I don’t know if this will be helpful to anyone, but here are four things that I think are important for making money from cryptocurrency trading:

1. Know What You’re Trading

2. Know the Market

3. Make a Trading Plan and Stick to It

4. Don’t Panic, Don’t Get Greedy

1. Be Patient

Don’t trade for the sake of trading. Don’t short just because you want to make a profit as quickly as possible. The best trades are the ones that play out over weeks and sometimes months where you slowly build your position until you’re ready to take profits. It’s ok if it takes a few days to finish setting up a trade, so long as you don’t rush into anything and risk losing money because you didn’t properly evaluate your options.

2. Always Use Stop Losses

Make sure you have stop losses set up so that if the price goes against you too much, your position will be closed automatically at a reasonable loss. This way, even if a cryptocurrency suddenly drops in price, you’ll be protected from the impact of the drop.

3. Risk Management: Risk vs Reward

Don’t risk more than 2% of your account on any one trade. If you have $10,000 in your account, only risk $200 per trade. If you have $5,000 in your account, only risk $100 per trade. So on and so forth.

4. Practice Good Money Management & Risk/Reward Ratios with Technical Analysis

This is one of the most important things you can do

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