Julia Beyers

Want to become a successful trader and get financial freedom? We have analyzed the trading industry and collected 7 golden tips for traders in 2021.

Crypto Trading in 2021: 7 Tips for a Successful Trader

There’s no industry in the world that’s experienced the same extreme level of growth as the crypto industry has. In the last 5 years, global cryptocurrency trading has increased from $3 million per day in 2016 to over $1 billion in 2021. That’s over 300x in just 5 years. 

The main factor driving this growth is the low barrier to entry to crypto trading. Unlike traditional investing and trading, the financial and regulatory barriers to crypto trading are minimal. Anyone with an internet connection can set up an account and start trading. 

However, this quick growth means the crypto market is rapidly changing. That’s why, if you wish to become a trading student, it’s important to keep informed about the industry, including the history and current trends. 

Short Introduction to Trading History

Cryptocurrency trading started with Bitcoin. A small group of people realized they could buy and sell bitcoin online without any regulations or restrictions. Some early Bitcoin exchanges were set up, but trading was very much like the Wild West — full of risks and no oversight at all. However, things have changed a lot since then, and so have the rules of the game if you want to be successful. 

Rules for Success

1. Remember — It’s Not a Hobby

When you’re trading cryptocurrencies, real money is on the line, and real people are trying to earn money trading just like you. Many of those people are professional traders who have sophisticated tools and years of experience. It makes cryptocurrency trading a high-risk and competitive environment. You need to approach trading like you would starting a business, not a hobby. If you don’t take it seriously enough and aren’t willing to invest time and money to get started, you likely won’t get far. 

2. Make a Proper Trading Plan

Don’t just dive headfirst into crypto trading. Instead, create a plan to ensure you have everything in place to maximize opportunities and minimize risks. 

Determine what kind of trading you want to do. It could be day trading, high-frequency trading, long-term investing and holding, automated trading, or any other strategy. After you’ve made your choice, carefully pick a cryptocurrency exchange and other trading tools that fit well with your trading plan. 

3. Know Your Trading Capital

Your capital is everything when you’re trading. It’s how much money you have to buy cryptocurrencies and trade to earn more. You need to manage your most important asset with care. Determine how much capital you’re willing to risk. It should be an amount you can afford to lose, especially when you’re still new to trading. You should also know what you’ll do if things don’t initially go to plan. 

Always keep track of how much capital you have, where it is, and how much return you’re getting over time. If your rates of return are low or negative, you need to change your strategy. 

4. Never Be Greedy

Earning money is the primary reason people get into trading. However, greed is the main reason they lose money and are forced to exit, too. Good traders are not greedy. They are calm, patient, and calculating. Sometimes, when trading, you may spot an opportunity you think is a sure thing. You might feel tempted to get greedy and bet everything you have all at once to maximize your return if you’re right. It is a deadly sin of trading. If you make a habit of doing it, you’ll inevitably end up losing all of your capital. 

5. Take Help of Technology

There are so many amazing tools on the market for traders these days. Some of the main ones are:

• trading portfolio trackers and managers
• portfolio rebalancing tools
• market charting tools
• trading algorithms
• automated trading bots
• real-time market data and alerts
• trading data analytics tools
• crypto news aggregators
• mobile apps (for trading on the go).

Exploiting these technology tools is a necessity for successful traders these days. They allow you to keep on top of the tidal waves of data generated every day. You don’t need to use all of them. Choose the tools that best compliment your trading style and get good at them. All you need is a system that gives you insights that are slightly more accurate or slightly faster than most traders. 

6. Protect Your Trading Capital

Keeping your money safe is especially important in the cryptocurrency world. Keeping it all in one place is always a bad idea. You could lose your private keys, your exchange could fail, laws could change, or you could even be hacked. 

The best way to protect your trading capital is to diversify your storage methods. Make sure the exchange you use has a great reputation and great security standards. Whatever funds you aren’t currency trading should be kept safe using a mix of secure online and offline (cold) storage. 

7. Always Learn to Be in Trend

The reason cryptocurrency has made so many millionaires is that the market is new and expanding quickly. Those that saw the larger trends were able to jump on board and make a fortune. When you’re trading cryptocurrencies in 2021, you need to constantly learn to spot and take advantage of trends — whether it is the latest Bitcoin price change or the update on Ethereum. Don’t get too comfortable with a system, even if it’s working. You’ll likely have to change things up very soon. 

Conclusion

Becoming a successful crypto trader is easier than ever in 2021. The tools and technology are right there for you to start, and the opportunities are endless. Nevertheless, the nature of trading means there must be winners and losers. Those that don’t prepare properly will lose. If you’re willing to put in the work, treat trading like a business, and follow the tips in this article, you can absolutely be a winner. 

Happy trading!

---

About the Author: Being in love with communications and human relations I found myself in Journalism. Another passion of mine is the crypto world and I believe in the crypto future. So I have spent the past 8 years studying as much as I can and sharing my own experiences with people. I am writing now about new trends – how crypto keeps changing the world, businesses and our future.