Crypto trading tips for beginners
In the volatile world of crypto, you will need nerves of steel, a winning game plan and an intuitive trading platform if you want to win. You’ll find the nerves of steel and intuitive trading platforms through research, research and more research. There are plenty of trading strategies out there and several platforms where some of the most popular day trading strategies are range trading, scalping, and arbitrage. If you want to save time, you can instantly buy our trading book and learn as you go.
Playing Bitcoin Volatility
The Chicago Mercantile Exchange (CME) offers options on Bitcoin futures, opening up a wealth of volatility strategies for traders. Crypto has 5X the volatility of traditional asset classes. Volatility trades are ideally directionless, meaning there is a possibility of making money whether Bitcoin goes up or down.
In simple language, a big move up or down is in your favor. Stefan Mihaylov, one of the founders of HAVE.crypto is a successful trader with over 3 years of active trading experience, shared with us about crypto day trading strategies and what exactly it takes to be successful in crypto trading.
Stefan believes there are three key aspects to successful crypto day trading:
1. You’ve first got to learn how to read the charts. And one of the best ways to learn this is through price action; the technique that the majority of professional traders use. Once you have learned how to read the charts, you will know why the market is going up, down or sideways and then you will recognize which strategy to put into play in that direction.
2. Trade with a proven trading strategy or a combination of strategies. A proven strategy is one that is comprehensively back-tested and has been shown to work consistently. It is only in this way that you will have the confidence to stick with it during the lull periods.
3. Have a solid trading system. One that is defined not only by the technical aspects but also the business behind trading; a proper structured trade that is in line with the overall trading plan that has been proven to work. In contrast to what most new traders think, trading is not just about strategies, but the system itself also contributes greatly to becoming a successful trader.
Most of all, Stefan has a famous trading mantra – “Win big, lose small”. Trading is all about having an edge in the game and knowing the mathematical probability behind each trade. By winning big and losing small, a single win can potentially cover 3 or more losses. If you apply this methodology in the long run, you will be a winning trader.
To learn more about Stefan’s method of trading backed by mathematical probability, you can check out our trading book for only 20 EUR.
Trading Crypto Doesn’t Have to be Cryptic
Regardless of the strategy you choose, you must be willing to accept losses in a volatile market like cryptocurrency. Have your exit plan ready before you enter any trade. Don’t follow the hot tips crowd; invest only in coins that you actually believe in — even for just the day.
Also, keep in mind that the market provides endless opportunity. So don’t bite your head off if you’re playing cautious and miss one, and don’t chase the gazelles that have already run off of the farm. Trading is more than anything an emotional journey — you must keep a clear head and stick to your chosen strategy through thick and thin.