Topic: 5 things you need to know before trading crypto (Read 779 times)

This is a simple subject but one that many do not really seem to fully understand, many think that holding is a great strategy and it is but only if you apply it to the right assets, there are very few coins in this market worth holding for the long term and yet I see many newbies holding all kind of altcoins in their wallets and instead of selling them when they go up in value or when they begin to crash they keep holding them thinking those coins have a future.

But we know the truth, most of the coins in the market will at some point crash and never recover or will completely disappear and all of those holding those coins will regret the day they decided to hold those coins.

I think the guide is mostly centered more on a newbie where the basics must be followed and after that they might make their own decisions about trading just like what you did because you learn so much in trading alone with a lot of losses you still managed to carry it all along.

And why is that?

Now is even very much discouraging to diversify into other coin as the ones that we have diversified into even after the through research that we did on them before buying them have mostly failed all of us, and I think that when talking of diversification now, people are finding it too confusing to really know the right project because it is not that easy to spot anyone out talk less of having the one that we can use for trading and this may be responsible for the reason why bitcoin has been the main dominant of all these coins in the market for now.

To trade any coin now, I think that bitcoin should still be the only coin that should be traded in other to have any profit form the effort or time that we have dedicated to trading. It would be worst to waste money and time on a bad project.

Additional to what OP and other say's,
*Never expect instant returns
*never tried to make loans just to funds in trading
*Expect market change and tend to be contented of what you've got
*prepare for possible losses

Everything can happen around, only we have to prepare ourselves for all the changes occurs. We live in a roller coaster a-like market, tend to control our emotions by then for we aren't be falling into FUD/FOMO. We can't rely upon the future of our trades on the other hand, though listening to other's advice is good but we have to make our own decision as well, a thing we should have to master and need attention.

   Why do you compare now and 2017, you can try to compare 2011 and now, and you can calculate how much profit
they made with holding. I think that saving some Bitcoins for the future is very important, with some other alt-coins
as well. And we need to be ready to hold 5+ years! With all the ups and downs along the way we need to be strong
and survive.
   Early adopters had the same fears and doubts, some people quit but some didn't. They are rewarded now, and in
future I believe who ever holds crypto-currencies will be rewarded for that.

I mostly agree just, for the time being, I don't dare to hold. considering that Hold is currently compared to hold in 2017 is very different. Most coins held in 2018-2019 are difficult to recover. I don't know, but I feel more comfortable as a fast/day trader. The point is we should have a take profit target or a cut loss target as a percentage. we can see Ethereum prices rose fantastically in 2017. however, when down and until now the price is still relatively low price I guess. and indeed every job has risks and in the crypto world the risk of loss is undeniable.

Talking of altcoins that will not be good for long term, I don’t think that we should generalize all altcoins for that.

There are some altcoins that as long as bitcoin exist, they will also exist, and those coins are the likes of Ethereum and some utility token, and also don’t forget that without exchanges, since we are yet to start using decentralized exchanges which I really don’t see people using, there will always be centralized exchanges like binance that will continue to keep up to expectation which you also know that they all have their utility token, so some of these altcoins will still stand with bitcoin in the future, juts that they will be very few and if I am to continue holding any altcoin after the next altcoins season, it will be Ethereum and any other utility token like Binance BNB.

Of course, trading is so wide so learning only 5 things won’t be enough better if you become an expert one you must make a plan and fix your strategies before trading. Learning is the best thing for a trader you should limit your amount and get Knowledge. A trader must be patient and never lose your hopes if the market falls just buy as much as you can.

Diversifying on a legit on several projects can be tough and difficult, since we're still having serious struggles to face on wards. That can be more challenging if you didn't have enough capital to cover the possible losses that we're about to have once we got involved seriously with trading. Furthermore, it needs a decisive ability so that we may focus on a certain asset to buy and trade in the future of our potential profit gains. You can eventually determine which of the factors we need to have before trading, just choose one of them to avoid uncertainties.

I commented on this in a past post, Hold is very good, but people should know time to sell their coins. Let's look at the case of people who bought altcoins in December 2017, if they are holding their altcoins from December 2017 until today, then they will only be accumulating large losses, Neo in December 2017 reached $130 and today is below $13.


There was a day when I was trading and I forgot to put Stop - Loss and the price dropped a lot and the result was that I had a lot of losses, after that all my trade went wrong, I had to stop and relax. the psychological factor has a big influence on trade

5 things is still not enough. Real traders need to have a strong mentality and always be alert, never too out of their discipline.
I think psychological factor is really the key to the success of traders. I had failed trades many times until I was determined to follow the plan and always kept a stable mentality when making transactions, the results were clearly different.

Holding works when you are dealing with coins that are worth holding, but there are some coins that you have to risk and use to trade in a short time before they dump because once they dump, you may never get that opportunity again to withdraw from them as the value would have been too low.

It is very necessary to diversify because I don’t think we will make it that much if we rely on a particular altcoin, except maybe bitcoin that has covered it all, but it is a very wise thing to do when we share our money into coins that we can be sure will give profit yield in the future so that when a coin is yet to rise, the other one we diversify into can rise and give us the profit on investment with them, but we have to do a very good research in choosing this action of diversifying into many projects.

It's our choice on where to pick the exchange we want, Traders don't choose a new exchange because of it's the risk of getting scammed or manipulated by a new exchange. New/existing traders should choice the well established and trusted exchanges Because they have many histories that make different traders being satisfied with their exchange.

I only see a limited number of reason why traders choose to trade on a new exchange, The first thing I think is the availability of a new coin, Some starting coins are only established to a small exchanges and If we have that coin and want to sell it, Traders has no choice but to use a certain small exchange to make a trade to their new coin. The second reason is the promotion that exchange makes, This is what exchange owners make to grab attention to the traders and trying themselves to have many traders and to build up traffic into their exchange.

Trading in cryptos requires a lot of patience, commitment, and research. Crypto exchanges are coming up almost every other day which makes room for malicious individuals to introduce scams into the crypto market. It is imperative that you carry out extensive research to learn everything about an exchange before investing in it.Learn about the exchange’s availability in your area; see what other people are saying about their experience on the exchange, and, most importantly, find an exchange that prioritizes security and carries out verification procedures.

I think we should make it six things that you need to remember before trading crypto. All you said is true and I agree with that. But I think you forget the patience. All we know that those who have lot of patience are the one who become successful here in crypto industry. So always remember that you need to invest your patience also.

Well said, knowledge is the best tool that you can use to be successful in trading because it allows you to explore more things and acquire the thoughts and opinions of others. Trading is speculative and it depends on the person itself if they are willing to continue trading despite of facing difficulties and challenges. Some of you get confused sometimes about making decisions, it's okay but tries to look for some information online that can help you analyze things or ask for the experiences of others that can give you some idea to cope up with your problem. Sometimes, it depends on us if we wanted to make it riskier because we are the one who is making all the actions and decisions and sometimes we are just suffering the consequences.

I don't think that only 5 things we need to know before trading process since many of us have our own perspective like strategies and techniques that we need to consider. Yes, bitcoin is the best choice bit there are a lot of crypto currency have a potential and can give a good and huge profit in the future.

If we are about to invest in cryptocurrency, agree with you that let's have Bitcoin in our wallet, this should be our priority as this is the King of crypto, it is dominance over others and for a decade  still its number one. Other things to consider is to ask yourself first, are you aiming for short term or long term, as this has been very important, as not all altcoins are good to hold in long term and not all good to hold in short term, doing research, checking the team is really important as well.

As for diversifying your portfolio, I don't think that's really necessary if you have full knowledge of Bitcoin and investing in it alone. As long as you understand everything about Bitcoin and the risks that are involved you won't really have much problem with it. Moreover altcoins hardly brings much profit as BTC, and most of them don't go up when Bitcoin is down, they usually follow the direction of Bitcoin.

But, I'm really against your idea, it's still good, everyone has what works best for them. Some of us don't really value altcoins, and there are those that values it. So, if you value them, you can still go for it and diversify your portfolio. But, remember no altcoin will be good for long term holding. Simply, altcoins are here for trading or else for short term investments.

As for investments, that's for sure that anyone that wants to invest in cryptocurrency should invest what they can afford to risk. These crypto assets are volatile and you can lose your money within a short time.

We cannot avoid unexpected changes in digital market but nothing is hundred percent random either. Bitcoin make abrupt changes but anyone with experience and knowledge can spot them. It would be better if he deals directly with bitcoin. He should hold some of it too. In my opinion, bitcoin should be the first choice of all investors. Risk management and mitigation strategies are a must with new coins.

That is a good decision but in some cases you should consider the market situation since if you hold and the market  is falling just like what happen last year for sure you will be emotially affected by the current situation. But if you consider on many things and be open minded then it will be suitable since for sure the person who hold are always the winner especially with bitcoins.

Thanks! Yeah, definitely only invest what you can afford to lose. I'm glad that HODLing is working for you - I mean, it is a proven strategy. Diversifying a portfolio (like yours is) is also important.

The world of cryptoassets can seem incredibly confusing to new traders. We get it – we’ve all been there. Even experienced crypto traders make mistakes from time to time. Successful crypto trading is all about being prepared before you do anything – that’s where we come in. We’ve compiled a guide of all the things you need to know before trading crypto.
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As a human being newbies or experience trader can't avoid mistakes is part of our life, but pfcourse for the newbies mistakes is the very best ways to start analyst trading to get a good decision. We know crypto is volatile currency different to predict which coins can bring potential to get profits sometimes even if they monitor and analysts it into tge coin market or into the exchange where we trade we can't expect the quick dump, your guide is good but I advise nibody can get perfect trading always becareful to avoid a lot pf mistakes cause of loses.

We never know what will happen with the market, so that we should take the profit as much as we can and leave the market for a while. Until we can see a clear sign to us to back to the market, we can buy the other coin again, or we can stick with the same coin if the opportunity is there. The analysis we did in bitcoin and altcoin, can work and give us the info on what the price we can buy the coin.

But don't expect to make a profit if the market is not moving so fast because sometimes, after the next few hours, the market will fall, and that will make us get the loss. Yes, we should be alert in the market and cautious if we want to trade.

Indeed and no matter how much you are sure with your entry because you did a technical analysis and every TA you did gives a positive sign, and there is an event coming in their way, but when the Bitcoin dropped unexpectedly it will affect the coins/tokens that you are holding too, so we should also take this into consideration and always be ready when this happen, we should be alert in the market and not just buying and setting sell order.

I like those 5 points.  Some additional things for a new investor are:

A) Keep in mind that for every trade, you lose money in fees. Also, every time you move money to and from an exchange, you lose money in fees. This has to be considered because it cuts into your profit.

B) Exchanges are inherently risky. You’re taking a chance on the exchanges getting hacked or stealing your money.

C) There may be tax implications when you make a profit from a trade depending on what country you live in. In America, you are supposed to track every trade and report it.

You have mentioned some key points which are essential for trading if you want to survive profitably in this volatile market for long time.
1-Invest what you afford to loose as you will have the courage to bear that much loss
2-Dont blindly follow trading signals as they push you to invest in shitcoins for which they get paid
3-Gain expereince by learning from your past mistakes
4-Hodl but know your profit points where to sell
Other can be your plans and strategies to trade wisely in this market.

It's a big part of this industry where news creating big influence to how market will be driven. If you do understand how to handle FOMO and FUD then you are in a good position for your investment, It's a tough call balancing your emotions when you are engaging with situations that hard to resist. Though by keep practicing and have trust with your own judgement allows you to have greater control over your emotions.

There are many things you must need to know before entering the world of trading, and this is some tips I will give base on what I experience before in trading, I give much effort in studying and make my research in trading because I'm scared to back to lose my income, knowledge in trading is one of the most priority needs because it gives you a critical thinking what you will do next. In trading, you need to trust yourself too. It is better if you must set a goal for your every trade like you must earn profit even it is low it is still a profit. And always do a practice in trading there is a lot of software or websites supports the practicing in trading and that was good too, and last is make your strategy in earning, and that's the one you need to explore.

Numer 6.

Don't trade on Exchanges which keep your funds on their wallet address. I think you have heard what happend with Binance, Bitfinex etc...

**3 words - Non-castodial account!**

Thanks to that, each user keeps money on their individual wallets, and the trade is carried out through a smart-contract connected to the stock exchange.
No possibility of mass hacking attacks or loss of funds in the event of bankruptcy of the stock exchange.

**Personally, I recommend 2 exchanges that have this option.**

BBOD.io | Bitcoin, Ethereum, Altcoins Futures Trading (http://bbod.io/)
EMX

It can minimize the risk if you prefer to hold the top coins since they are the one who are supported more by the traders so whenever the value gets dump for sure there's a bounce back since those supporters and the dev will not want their coins to be devalued nor been left behind by those top competing coins in the market. And if you select to hold much better if we look for the top 10 not the top 100.

That's an interesting take - I think you could HODL any coin if you wanted to, but it may make more sense to HODL only the top coins as you said. And yes, having a diverse portfolio is important to help limit overall risk.

Yeah! Those are some fundamental truths about trading that all newbies should know. Thanks for your input! I think just learning as much as possible is important for any new trader.

Not giving in to FOMO and FUD can be really challenging - we're all human and we all want to get the best out of our trades/investments. I think you're definitely right about that.

Definitely! Learning about the fundamentals of trading is super important. I think ensuring that you do your own research, and don't give into FOMO and FUD also covers you quite well. And as you said, only invest what you can lose.

Hahaha! No, that's totally fair. HODL and DYOR are both really important strategies, but no strategy is foolproof. So I have coins that I HODL but I also CFD trade on eToro. I think we've all made mistakes at some point or another - that's just the way trading as a noob goes. Brushing up on trading skills is definitely important.

Thanks! Those are some good points. FOMO is definitely one to watch out for, on top of not giving in to FUD. I think doing your own research is also crucial to making successful trades.

Instead of feeling bad and down during bearish market, don't you think buying more bitcoin would be more beneficial. We all know that this bearish market is not destined to stay forever. Though we cannot predict the exact time for the pump but the fact that it will come remains same. Above all, even during the bearish market, bitcoin shows good changes in amount making trading possible.

Thank you for these interesting tips. I also start to trade and recently faced with different methods. Recently, I found that https://www.monfex-academy.com/masterclass-refers-new has a good training for trade beginners. There are a lot of informative courses, lessons etc.
I also prefer to make money online and think that it's a good method.

I feel like if I do this then I will be safe already.
If there is a camera outside this time then all can be seen.
Besides, we are in the time of satellites where everything could be seen everywhere.

Do not be a joke to anybody. As I can see the anti crypto is still retaliating. Better be ready as always and help those which are in needs.

Yes, without knowledge about trading it is impossible to predict the prices, within days it is impossible to get knowledge about trading and start applying. We will get to experience only with practice on trading because without practice, we cannot understand the mistakes.

Trading will never be easy without enough knowledge.
It's not like a single lesson where we can learn and apply everything. It's a continuous process of learning.
We can't handle our emotions if we don't know how the market flows so before we start trading, we have to focus on gaining knowledge first.

I want to add the author's ideas. These are the two factors that help traders win in the long run. According to my 3-year trading experience, I think that it is very important to plan and manage capital and trade.
It will be the deciding factor of winning or losing in a month of your trading. Because there are people who have very good knowledge of the types but don't control the psychology when trading, so he loses more money.
We should practice psychology and discipline before trading really. it will be better.

For me, most of the people said its correct. The first list in my mind before entering trading cryptos is known as the nature of the trading industry, like what is the difference of trading crypto to a stock market ( which is cryptos price is very fluctuating, and it can be volatile by an hour ). The second thing is you should learn the basics of trading and gaining some knowledge. The third one doesn't be afraid to ask, to try, to explore, to failed ( at first attempt) because it will help you to become a better trader. The most important is don’t spend some money that you can’t afford to lose because in this kind of industry there's no easy money, especially if you don't want to make any effort.

This is the major reason why I am involved in long term trading and that too only with bitcoin because in that way I am able to avoid majority of the stress giving news, predictions and trends. Cool minds are always able to make right decisions and I, along with majority of the day traders, am unable to have good control over my emotions when my crypto asset is having bearish market.

I was reading an article where I found 5 more things we need to know before trading crypto. Following are the points need to be followed by the investors -

• Research: Do a lot of research before trading cryptos. Don’t go through a few articles on the internet and conclude that you know enough about Bitcoin, because knowing it like you know the back of your hand takes time. Find a mentor in the crypto space who is resourceful and trustworthy.
  
• Baby steps: Start with small investment before investing more money. Timing is the key when it comes to investing in cryptocurrency. Once you decide on an entry point, don’t change your mind just because someone told you otherwise.
• Broaden your horizons: When investing on Crypto, diversify your portfolio. Other than Bitcoin, you can also invest on other altcoins equally across different components maintains a balance.
• Keep your coin in wallets: It is good to store your coins in cold wallets than hot wallets.
• Buckle up, it’s going to be a wild ride: As a new investor, you need strategies to help you manage price fluctuations. Aside from diversifying, you should buy and hold Bitcoin — this means resisting any temptation to get into short-term bets. In the crypto space, passive investment has a better chance of succeeding than an active one.

Source: https://cointelegraph.com/news/top-five-tips-for-new-bitcoin-investors

These things are really important when we are intend to start become a trader. I wouldn't be agree if someone who are newbie to trade ans he just make a yiutube channel as a source, because there is no point that explain an analyst as a whole, even most of the video just explain how to get profit only, that is worst thing to me. But I'll agree if a video or youtube channel be used as an introduction to know the feator of trading place because the majority of trading place platform are same.

I'll add another important thing before someone who start to trade and this is my opinion only. I'll add an experience/evaluation that need by everyone who start to trade. The history will repeat itself always imagined in my mind, at least it will help me when I find the same candle chart or the same movement price I'll be easy to deal with it and I'll get more profit because I have known it. Then, an evaluation after I trade will help me at least to remind the strategy that I use and something that must pay attention when I use the strategy again.

Newbies mostly forget about this. It is just the same as how it is in spending money outside.
Just spend what you can afford.
Same with trading, spend only what you think you could lose.
If it wins then it is a good thing but always be ready for the trade to go south. Shit happens.

There is no such thing as a perfect trade. All those videos that you will see was just their better side. Of course they wont let you see how they lose a lot of money.

That's a witty valid point. 

But what the OP gave as pointers are really of importance in trading.
However, if you want to experience the heat of trading, you need to be on the field, right?
And since you already know those basic points, you can use those as your guide.
Because the real battle is sometimes totally different than what you expect.
Skills and experience will give you better advantage on this quest.

I agree with these 5 things guide in trading. Its really good to have our own research for us to personally know. Aside from asking with other experienced crypto traders, doing our own research is something that we can finalized our decision making. My other most important thing in trading is to trade amount that you are willing to lose. Its really good to set a certain amount because it will also give you a sense of security. All others are very important as well.

Sometimes, the celebrities and the politicians will impact the trading market a lot. So it is important as well to subscribe news updates.

Crypto currencies are the way to earn money quickly with ease. There is no business or asset in this world that can make a person millionaire while he is just a teenager. The important thing is to invest in the right coin and hold it for a good duration of time. No big efforts are required. Just a simple investment and holding. I would suggest to make bitcoin as the first choice while making investments.

Without a sound knowledge of trading, it will become difficult to survive in this profession for long. Learning the fundamentals are essential before entering into any new territory. First try trading with demo accounts as this facility is available in famous exchanges. This will help in developing patience during the blunders also. It is okay to invest in one asset as far as it is a potential one, like bitcoin.

Be a crypto Jedi - extinguish your emotions as far as possible  Otherwise greed and panic will take over you, and like thousands of people who bought BTC in December 2017 and sold it in panic, you will end with terrible losses. Usually, it is best to behave oppositely to what most people do - buy when panic takes place, sell when there is greed.

Of course, it does not apply to all cryptocurrencies, some of them are nothing but a pump and dump traps. So then if you see that some very small coin suddenly has 100% or above daily gains - be aware, that this is a pump stage. If you fall to that trap, people responsible for pump will make money out of you, by dumping useless crypto to the people who got blind by greed and easy money dream.

That's a piece of good information which should be known to all, I also think as like as you have mentioned here, I believe that without having own research no one could gain anything from here, the only secondary source of information is not enough to make a good impact with your investment, so own research result is very crucial to bring any positive result, with your point, one thing I want to add that every investor should have a back up money so that they shouldn't depend on the investment solely, But overall my opinion, Holding is the best policy to make your money enhance without any hassle.

Yes. Research in the potential coins you want to trade is a very good start that will help you minimize from losses. And invest only what you can afford to lose since we should not expect that making profits will happen all the time, losses will surely occur sometime. And the best thing is you should know when the best time to trade or just when to do long term holding which is the safest way to earn profits.

I dont see FOMO in your list which many times have occurred to me.
When you see a price that keeps on getting up it is easy to make a decision to buy with the wave and then suddenly a dump comes.
But it could also be the brother of greed.
Since you are in FOMO mode, even if the price is declining little by little you just became a hard headed fool trying to wait for another pump which wont happen again.
That is base on my own experience.

A very good guide that you share for how things should be understood before trading crypto, This is a new science that I have to do to trading.During this time I play only holding crypto investments. Thanks for a very useful guide

Diversification of investment capital is very important although you really need to have a good knowledge of the potential profit inherent in the particular area or coins that you want to dive in your investment capital before you find yourself in trouble financially.

Crypto trading is not always successful, there will always be risks that we can't get rid of. These tips are helpful and necessary for us to overcome all the risks that we will encounter here. We should also know how to handle our emotions because crypto is unstable and is volatile. We must learn how to deal with every market situation and take it as an opportunity to earn. Doing your own research will be a good start for you to succeed in trading.

Yeah never expected anything is the best thing to survive in cryptocurrency, the market is really agile and even we already well prepared in any condition , market still able to surprice you with it's movement. So, having a low expectation for our investment is the best option to take

This is why when holding for long term crypto is to always observe and be updated about the project. It happens we lose and ain't get profit at all because of too much hold longer we did not expect prices declined. Above mentioned to do your own research is very crucial before we invest to avoid losing money in the end. And one more important thing before trading crypto is never on greed that this kind of attitude towards trading crypto will give losing money.

There's always risk following behind you. People should remember that one. Since the market is very unpredictable. You never know what might happen.
Keep your expectations low and you will never be disappointed. At least that's what I always do, eventho sometimes it's kinda hard to pull myself together.

Great points out there specially this one. Which I will be elaborating more. Researching isn't something you'll be doing for no reason. It is solely a tool of yours building such knowledge out of your own effort, proves and validates your unclear thoughts and specially a precious treasure you'll be bringing out all throught out on your trading journey. DYOR will help you survive in every problem that might occur in your trading journey.

Nice advise from op but I will say that hodling for too long isn't very nice. Sometimes when you would have let go and make a new start, you hodl longer and eventually losses the trade.

Indeed. People who have met cryptocurrency for the first time will always expect that they could earn money quickly, that is why they lost their patience to wait that will result having huge loses in their investment. Trading is really not easy, but if you can overcome your emotions and have patience in trading you could simply become a good trader because it is the best ways to minimize your losses and avoid panic selling.

DYOR is always been in the list but new traders never do. Quite often rather. I highly consider these spots. Do your own research as well, set fund, PLAN, Execute only on what has been in the plan, and avoid letting such emotions be the one that controls you because they often forget these lists specially the last one that is why fortune turns out to be a bad luck. Anyway great list by the way.

In reality all the peoples are expecting the quick profit so once they invest they never waiting for longterm. I always suggest to participate low level trading for beginners because one or two times they loose the money and they will understand how market will grow and dump. Once they understand how to tackle all the situation they will earn further investment.

well you did not mentioned "Arbitrage" i think this is also profitable for traders if they know how to handle and use this strategy.
yeah another risky area but more easy than daytrading IMO.

but good thread ,reminding me of the past when i was new here,i normally see this kind of advises and now its here again,always helpful threads

before trading in crypto i guess the first one a new trader should remember is that there is no sure strategy that he is going to win at every position made. as a newbie he will lose money and its discourage not to get into trading unless you have DYOR and the best way to do it is just to INVEST only the extra amount they got and  HOLD on to it for long term investment.

Sometimes having too much focus on the market made us so stressed in the long run. Much better if we seldom check on the market trend movement in order to avoid being emotional, and learn how to be specific on your decisions in order to be strong enough to face such challenges in trading your crypto assets.

The reminders of OP is not new the world of crypto currency in which OP just remind it again to us more specific and detailed. Anyways, as the time passed by many of us here still heard about the scammer, spammer and those fake projects in which there are still a victims as we always remind for them but in the end they still victimized.

Not just only DYOR will play all the time, it is something we need to hear also from the crowd or seek advice from your mentor. Not just you think you have enough knowledge in trading it will warrant you for succeeding profit gains. We also know and must have to choose what is the best coin in the market today. Cause the most common failure of traders today is because of this which I think that it was easy to make trades and gain when we are about to choose those who have already names in the market.

You're right . All coins are easily affected by the news so there is a need to be extra careful in investing. Any news can affect the coin you are holding and it's easy to change the value in the short term. We are just ordinary investors so we usually do not do much research, but now it is certain that the research should always be the top priority because the current market is more risky and more unpredictable this year.

I usually have a backup plan if the coin drops suddenly because if the market goes down it will be very difficult to invest and it can completely cost you huge losses. The best advice to focus on monitoring this market every day and only trust in yourself.

Absolutely OP was right and all he stated is correct! That's a great point. In that way, you can be able to earn a massive profit in trading. It is very important for you to be able to gain more knowledge. Not like trading without knowing, it might lead you to nothing. Do your own research is very important in trading to avoid possible loses. Probably also tools can help just like automated trading bot but don't rely upon this. And also avoid the HYIP group.

I also think a lot of traders need to learn not to necessarily follow the crowd.

Unfortunately in this industry there are a huge number of so-called signals and 'pump and dump' groups that are out there trying to take advantage of inexperienced traders.

These traders likely don't understand or know about your first five rules, and so are sucked in quickly.

This ties in slightly with DYOR, but I think a lot of traders use crowd momentum as one of their indicators—for newbies this can be dangerous.

If you are going to be a trader then learn HODL only if you are going to stop trading at the risky market situation but its the reality of market condition always so you can't simply skip trading practice and make money in short term so you should try to understand the conditions better and make strategies based on it.

And tools which may not be essential for a beginner and short term trader when you know the risk of doing it and willing to lose your money,you just have to be strong with the fundamental of buy low and sell high.

All of this are recommended to be observed whenever you are trading in crypto most specially if you are a new one. Hodl is optional for me. If you are just a new one here, you are not really required to hodl. Overcoming fear is a really important one, if you are going to be scared of taking a risk, crypto is not a good place for you. It's all about risks and removing doubts inside your mind because the price of the coins are very volatile so expect always that there will be changes.

Yeah, patience is the key. In trading you need a lot of it, trading doesnt require a short span of time to gain, but rather it needed a plenty of time , it is not in a blink your coin will pump just like what you want , you need to be patient and wait for that moment that you may sell your coins in a fair value.

One more thing, always care with the news because crypto price is always move when the coin have a bad or good news. Always be up to date and be the first person to know the news about crypro will make us safe in crypto currency trading. Beside that, we also have to know the technical analysis to do a day trading or if we want to pay our living from trading we have to really understand technical analysis

You didn't mention the most important quality you need to have
Patience: don't rush into any trades and you have to have lots of patience to sometimes know when to continue a trade and when to abandon it and move on, many people has lost funds because of impatience and I happen to be one of them, I rushed to sell too early because I didn't have the patience to wait for the trade to mature, sometimes it could be that you bought a token and it dips immediately and you know that it's almost certain that it would rise back but impatience could make you sell low and move to another trade.

For HODL only suitable for coins that are stable enough or can be said for coins that are in 1-50 coinmarketcap rankings, the rest if you choose to HODL will lead to more destruction, I prefer to sell if it has decreased 10-20% because it's the limit I can bear, also don't put all the fund in one coin better to seperately.

Yeah, dyor ( do your research) is such a big thing that a startup trader must know and do , choosing a wrong coin in trading must be the most wrong thing to do, dont be fooled by their whitepaper , sometimes reading their whitepaper is not enough. After researching try to trade a little bit to gain experience step by step.

All of the things mentioned in the OP are true, and I also have a similar opinion. Trading is not just buying coins at low prices and
selling coins at high prices, but there are some rules that are must be run like investing money that we can afford to lose, do not
be fanatical about one coin, do technical analysis and fundamental analysis to see the movement of coins in the market, and most
importantly do not become panic traders. Those are some basic rules that need to be known before starting trading, I suggest not
to break the rules, This is in order to gain profit in trading and avoid losses.

FOMO and FUD is the hardest. You may not even engage in trading but just investing crypto for holding coins but you will always think of losing money when prices drops and bear market continues for years.  A friend, a holder who had kept his coins for years since 2015 tried to update his wallet and took profit because of FUD. You may find yourself in such situation during bear market. If the price of BTC rise so high, you wouldn't really think of the riches to lose after that.

I agree with all the things that you have provided.
It is totally good to make own research about a certain investment or cryptocurrency and take note having enough knowledge will help you to avoid big losses.
Make sure you will only invest the amount that you are not afraid to lose.
I am also a holder but most of my holding is top rank cryptocurrencies just like bitcoin, ethereum, and ripple. it is totally good to hold if we experience bear market and do not do panic selling if you see rapid falling down of the price.
I always remember that quote "Don’t put all your eggs in one basket" and actually my money is separate in different cryptocurrencies but the 50% of that is in bitcoin.
Using any kind of trading tool will totally help you to become a better trader and lastly, keep on learning until you become a professional trader.

I just want to add for the list is learn first the fundamentals of trading. Before engaging in trading you must have gain an experience first so that you can realize what is the do's and don't also it wouldn't hard for you to deal with problems. Always remember that set aside our emotion because this will be only a hindrances in our trade. I like the idea of diversifying our trade to avoid losing all of our funds, just like what other said "don't put all the eggs in one basket". Remember as well that invest only the money that you can afford to lose.

^ Definitely right and I am also using these trading tools to make my trading activity easier or less hassle-free. Just like using Gunbot for Autobot trading, you can set when the buying point and selling point no need to monitor the market. And next is the portfolio tracker like blockfolio, which is you can track the bitcoin price and other coins that you had while in travel. On the other hand, I don't like etoro trading platform because it seems like they are feeding their traders either into a trap or potential benefits by allowing a user to copy the works to their professional traders.

Also poor for those who bought at highest price and keep holding until today to just find their asset has down more than 50%.

Holding is good but holding it is useless IF you don't know when to buy and when to sell.

This point is important to me,
I will invest when there is cold money or the results of a bounty and Airdrop campaign, I know that investing is risky so I have to be willing to lose whatever I experience, when I experience losses I will not be angry or stressed because my money invests money from bounties. it's cold money, so there's no need to force borrowing or anything that makes you complacent by investing.

Hmmm nice list. I honestly though at first HODLing was a joke and well, the joke punched me back in the face. DYOR and investing what you can lose are the top 2 for me though, especially DYOR. Without it, its like fighting a war without a gun. I'd also advise brushing up on your trading skills though since it is before trading crypto, id guess thats already a given.

Agree to those points above but these are the things i do want to add up.

1. Read and understand on what you are getting into. Cryptocurrency is quite a broad space.
2. Learn trading basics and coins would be traded.
3. Be keen on reacting either FOMO or FUD.

The best one is that only invest on the amount you can afford to lose as always.

The world of cryptoassets can seem incredibly confusing to new traders. We get it – we’ve all been there. Even experienced crypto traders make mistakes from time to time. Successful crypto trading is all about being prepared before you do anything – that’s where we come in. We’ve compiled a guide of all the things you need to know before trading crypto.

https://www.youtube.com/watch?v=RQtvpNYtLfw


Do Your Own Research (DYOR)

DYOR or Do Your Own Research is a super common term within the crypto community. DYOR is pretty self-explanatory, but serves a reminder to always investigate coins before you buy them or start trading with them.

There are tons of resources online for you to start with. From cryptocurrency subreddits to Youtube, Quora, Twitter and BitcoinTalk forums, you’ll honestly never run out of new things to learn. Starting to trade crypto is a personal decision, but you can make sure that you’re guided well and you have a wealth of knowledge at your side.

Invest what you’re willing to lose

This point is utterly crucial. Never invest more money than you are willing to lose. That’s just a bad idea. Taking loans, maxing out credit cards, or even just trading outside of what you’re comfortable with and can afford, is a recipe for disaster.

Only ever invest what you’re willing to lose. There is always a risk to crypto trading, no matter how well you’ve researched a coin, so always be prepared for a negative outcome.

HODL

We’d say that 99% of successful crypto investors and traders are massive proponents of HODLing. To HODL is to hold on to your coins, even when the market dips rather than sell up and cash out. HODLing generally sees you achieve a much better result in the long run!

Just think of those poor sods who sold their Bitcoin just before the price soared to their highest heights in December 2017 – ouch.. HODLing is almost always the way to go – rather wait out bear markets and make an informed decision when it comes to ridding yourself of a digital asset.

Diversify your portfolio

Ever heard the old saying, “Don’t put all your eggs in one basket.”? Yeah, the same applies here. When you first start out, it’s important that you research more than one coin that you’d want to trade with. Don’t spread yourself out too thin, but ultimately you’re likely to have more success trading with two or three coins instead of one. Of course Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH) are all fantastic choices, but also do some research and find out about other altcoins that may work really well for you.

Putting all of your money into one trade, could ultimately result in you losing all of it. If that coin dips you’re in trouble, so rather diversify your trades across a few coins to mitigate your losses!

Overcome Fear, Uncertainty and Doubt (FUD)

One of the most crucial things you need to know before trading crypto, is how to overcome FUD. FUD stands for “Fear, Uncertainty and Doubt” and is a crucial factor in determining whether a crypto trader will be successful or not.

Unfortunately, this one is up to you – overcoming FUD is your own journey. However, what we can say is that you should always listen to your gut and your knowledge, over others. Don’t give into fear-mongering and always do your own research (DYOR) before acting.


https://www.youtube.com/watch?v=ALTY72Qsgzo

Tools for trading

Having read this guide, we hope you now feel comfortable with all of the things you need to know before trading crypto. The 5 key things to remember are: FUD, HODL, Diversification, DYOR, and Investing only what you can lose. Other than that, always remember to stick with your gut and make informed decisions in every aspect of your crypto trading.

eToro is the world’s top social trading platform. Want to find out more? Click here.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.

https://www.etoro.com/blog/market-insights/5-things-you-need-to-know-before-trading-crypto/