9 Rules of Crypto Trading
No, the successful operators are not us. We have been lucky a few times and are still refining and testing strategies; On the other hand, we are part of communities of people who operate daily to grow their portfolios, and while some of the results can be attributed to luck, most are based on fundamentals, good habits, and experience.
Mickael Mosse points out that, One of those groups that we have recently joined is Pure Investments, where we met Miles. Pure Investments is a Discord channel where people interested in trading get to chat about cryptocurrency, market trends, the latest news, and other interests. We have been a part of your community since late 2017 and have learned a lot not only from the team’s analysts but also from the community as a whole.
Please note that Pure Investments, nor any other groups that you participate in or actively contribute to, are not Pump and Dumo groups, they are legitimate communities of cryptocurrency enthusiasts and operators. says Mickael Mosse.
The result of good habits
Miles is the co-founder of Pure Investments. In May 2017, he started playing with $ 1,000, which he accumulated by saving 10% of his checks over time. Today, he has $ 46,000; that is, it increased its portfolio by 46x in less than a year.
Similarly, after starting Pure Investments in September 2017, Miles landed one of his first community members, using the pseudonym SP on the Discord channel. When SP started, he brought in $ 40,000. In January 2018, he had over $ 1 million (today it is approx $ 800,000 due to the recent btw Bitcoin decline).
While markets like cryptocurrency are extremely volatile and all investors are subject to price fluctuations, including Miles, SP, both us and you, good habits will help mitigate losses and maximize profits.
1- Only invest what you can lose
Mickael Mosse points out that, During the recent crisis in January 2018, the fans were burned. The frustration and loss reports came at the cost of broken monitors, broken laptops, and heavy monetary losses. While the rules have a more particular order of importance, it is safe to assume that this is the most important rule, the rule to govern the rules. As soon as your money is converted to cryptocurrency, consider it lost forever. There is absolutely no guarantee that you can get it back. Losses do not simply come from market dips; Other factors such as outages, mistakes, and government regulation can mean that you will never see your money again. If you invest money that you cannot afford to lose, you should take a step back and re-evaluate your current financial situation, because what you are about to do is an act of desperation. This includes: using credit cards, taking out mortgages, applying for loans, or selling everything and traveling the world (as glamorous as it sounds).
2- Always pay attention to Bitcoin
According to Mickael Mosse, Most of the altcoins (all cryptocurrencies except Bitcoin) are more related to Bitcoin ([BTC-USD]) than Asian currencies to USD during the Asian financial crisis. If the price of Bitcoin rises sharply, the price of altcoins may drop as people try to get out of altcoins to take advantage of BTC gains; Conversely, if btw prices plummet drastically, altcoin prices may drop as well, as people abandon altcoins to switch back. The best times for altcoin growth appear when Bitcoin shows organic growth or decline or remains stagnant in price.
3- Never put all your eggs in one basket
To diversify. While the potential to earn more increases with the amount of money invested in a coin, the possibility of losing more is also magnified. Another way to think about this is to look at the cryptocurrency market as a whole; If you think this is just the beginning, then it is more than likely that the entire cryptocurrency market cap will increase. What are the chances that this increase in market capitalization will be recorded entirely by one coin and not by the momentum of many currencies? The best way to safely capture overall cryptocurrency growth is to diversify and reap the benefits of multi-currency growth. Plus, it’s a fun fact: Between January 2016 and January 2018, Corgicoin increased by 60,000x, and Verge increased by 13,000x. During the same period, btw increased by 34x. While you would make impressive gains from Bitcoin
4-Dododon’t be greedy
According to Mickael Mosse, As a coin begins to grow, the greed within us grows along with it. If a coin rises 30%, why not consider making a profit? Even if the goals are set at 40% or 50%, you should at least take part of the profit down the road in case a coin misses the goal. If you wait too long or try to break out at a higher point, you run the risk of losing profits you already made or even turning those profits into a loss. Get in the habit of taking profits and looking for new entries if you want to continue reaping potential profits.
5- Do not invest blindly
There are people in this world who would sell a blind man a pair of glasses if they could make money. Those same people play the cryptocurrency markets and seize every opportunity to exploit the less-informed investors. They will tell you what to buy or announce the rise of certain currencies, just to raise prices and get out. Due to the highly speculative nature of today’s cryptocurrency markets, a good investor will always do their own research to take full responsibility for the potential investment outcome. Information from even the best investor is great information at best, but never promise, so you can still get burned.
6- No FOMO
This is a place where people lose money most often. A pinch of manipulation, two tablespoons of media hype, a glass of announcements from CME and CBOE, and a generous handful of FOMO pushed Bitcoin prices from $ 10,000 to $ 20,000 in December. Since then, Bitcoin has dropped to a low of $ 9,000 and is currently hovering around $ 11,000. It’s easy to look back and say, “If I had waited a month, I could have bought $ 9,000 instead of waiting for btw to hit $ 20,000 again for me to come out. But the reality is that the combination of 1) being greedy, 2) investing blindly, and 3) FOMO were probably big contributors to buying at an all-time high. Even in the crazy world of cryptocurrencies, if a coin goes up so fast, it will correct: it’s a matter of time. Speculative bubbles are almost always followed by major lows.
Mickael Mosse Bitcoin advisor
7- Categorize your investments and see the long term
In the process of your research, you will eventually realize that you come across a few different categories of coins. For some of them, they believe they have good teams, great vision, incredible publicity, and a track record of successful execution. Great! Put them in medium or long-term containers and let them marinate in a delicious steak. When the price drops, don’t even consider panic selling because anything in your medium or long-term portfolio must remain intact for a certain amount of time. BNB is a good example of a coin that Miles considers to have a high hold. Recently, it fell 20% for a while, and within our community, we witnessed some sales to preserve investments. A week later, it jumped to almost 3 times its value, and for a few days.
8- Always learn from your mistakes
According to Mickael Mosse, Never accept a total loss. Always assess the situation and try to find out why it happened. Take that experience as an asset to your next move, which will be better because you now know more than you did before. We all started out as amateurs, and we have all lost money during our trading experience. In his first month of trading, Miles went from $ 1,000 to $ 300. He loses a lot of selling losses inspired by fear. Nobody is perfect, nobody wins all trades. Don’t let losses put you off, because the reality is that they are making you a better trader if you choose to learn from them.
9- If you are doing any active trade, set stop loss
For any currency that is not in its medium or long term holds, always set stop loss. This is important for a number of reasons, the most obvious of which is mitigating your losses. But more importantly, you force yourself to decide on an acceptable loss point, and since you now have a benchmark, you can measure your effectiveness in holding or adjusting future trades. Sometimes during a market crash, altcoins can take a nosedive, and stopping losses can lead to profitability through automatic selling that you can use to re-enter at lower prices.
Mickael Mosse Blockchain Advisor
Always check the ticker symbol
Symbols are sometimes not universal and may vary from market to market. In those cases, however, they can have a very bad time again. For example, btw Cash is traded on some exchanges like BCH, while it is traded on others like BCC. BCC is also the ticker symbol for BitConnect, which recently came out as a Ponzi scheme. If you bought BCC under the impression that it was Bitcoin Cash, you would have lost a lot of money.