10 Crypto Trading Rules I Wish I Knew Earlier

Crypto trading is a promising journey, but not without risks. If you are just starting out, there are many pitfalls that can lead you to make mistakes and lose money. Here are 10 golden rules - valuable lessons I have paid for - to help you avoid common mistakes and build an effective trading strategy.

1. Do Not Bet All on One Coin Reason: Despite the seeming potential of that coin, the crypto market is inherently unpredictable. Just a small shock can cause the price to plummet freely. For example: LUNA was once considered a "savior" but then completely collapsed, causing many investors to lose everything. Lesson: Diversify investment portfolio: Divide your capital into multiple potential coins such as ETH, SOL, LINK... to minimize risks. Invest cautiously: Always carefully evaluate the fundamental factors of the coin before making investment decisions.
2. Don't Buy Just Because the Coin is Booming (FOMO) Reason: When the market rises, the fear of missing out (FOMO) can make you buy at the top. This means you are buying when others are selling, leading to immediate losses. Lesson: Patience: Waiting for a rational buying point based on analysis rather than emotion. Market evaluation: Don't just focus on the "green candle" but forget to consider the fundamental factors and long-term trends.
3. Control Emotions, Don't Let Them Dominate Trading Reason: The crypto market is full of volatility, easy to overwhelm emotions over reason. When making a profit, excessive confidence can lead to risky decisions; when losing, fear can make you sell off hastily. Lesson: Establish a trading plan: Before placing an order, clearly define the target profit level and stop-loss point. Stay calm: Always adhere to the established strategy, do not let emotions dictate your investment decisions.
4. Be Cautious With Advice From Influencers Reason: Many famous people in the crypto community only care about increasing their followers and profiting from their fame. They may be paid to “shill” coins that they don’t really believe in or invest in. Lesson: Self-research: Be proactive in researching and evaluating projects, coins through reliable sources. Independent assessment: Do not blindly follow advice from influencers; ask questions and verify information before making investment decisions.
5. Partially Taking Profit When the Market Rises Reason: No one can accurately predict the peak of the market. If you do not take profit, profits can quickly evaporate when the market turns around. Lesson: Take profit gradually: Sell a portion when a certain profit is achieved to protect the investment capital.Reduce risk: This helps ensure that even if the market fluctuates sharply, you still have a safe profit.
6. Use Leverage Carefully Reason: Leverage can amplify profits, but at the same time also double or even more ( the risk of loss. Most new traders often fall into the trap of using excessive leverage, leading to account liquidation. Lesson: Understanding leverage mechanism: Before using, make sure you fully understand how it works and the risks involved. Risk management: Always set stop-loss levels and do not exceed your financial capacity when trading with leverage.
7. Run Fast When the Coin Market Only 'Promises to Soar' Reason: Many projects rely solely on the promise of 'will moon' without a real foundation or application. Coins like these are often just bait to attract investors, and ultimately, they become 'exit liquidity' for profit takers. Lesson: Thorough research: Understand the development team, technology, and practical applications of the project. Investing in real value: Prioritize projects with solid foundations such as AVAX, ADA, DOT...
8. The Market Does Not Care About Your Emotions Reason: The crypto market always operates according to its own rules. When you become overly confident or panic, the market will not hesitate to 'defeat' you. Lesson: Stay humble: Always remember that the market can change at any time, and no strategy guarantees 100% victory. Continuous learning: Analyze your trades, learn from failures, and adjust your strategy accordingly.
9. Bear Market - Opportunity to Build Assets Reason: When the price drops, many investors panic sell. This is the time for those with long-term vision to accumulate assets at a discounted price. Lesson: Patience accumulation: Do not panic when the market drops. Instead, take advantage of the opportunity to buy at a low price. Trend analysis: Learn to recognize signs of market recovery to not miss out when prices start to rise.
10. The First Year Is a Valuable Learning Time Reason: No one becomes an expert overnight. The initial mistakes, painful as they may be, are valuable lessons that help you improve your trading skills. Lesson: Record and analyze: Record every transaction, success and failure to draw lessons. Persist in learning: Consider the first year as a 'tuition fee' for knowledge and practical experience. Over time, you will gradually refine your own trading strategy. Conclusion Trading crypto is not just about pursuing quick profits but also a continuous learning process. Each rule contains valuable lessons that you should remember to not only protect your investment capital but also develop sustainable trading skills. Remember, success in trading does not come from luck, but is the result of discipline, patience, and continuous self-improvement. Wishing you successful trades and always learning incessantly.