Here’s How to Become a Successful Crypto Trader

People who are trying to become a crypto trader know that it isn’t a walk in the park. The process involves a lot of research, planning, patience, and time. As you get the hang of it, you become efficient in trading crypto responsibly. This eventually becomes a part of your daily routine as a high priority.

There are traders who are thoughtful and careful in their buying and selling moves. Then there are those who are not that sensible. Do you know the difference between them? The responsible one has two distinct behavior traits that distinguish him from the others: accountability and planning. Planning helps you mitigate several trading risks you face. It also ensures the accountability aspect stays fulfilled as well over the long term.

The Importance of Planning

Given that it has been established that long-term success requires responsible crypto trading, we need to understand what makes planning so important for a trader to be reliable. All crypto market sentiments and trends are essentially driven by keeping a clear head and having your emotions under control. Some ways that help you keep your emotions from worsening your trades include:

Beef up the security
Make a trading plan
Use Stop-Limit Orders
Avoid the Fear Of Missing Out (FOMO

Tip #1: Beef up the Security

People searching “how to become a crypto trader” often miss out on a crucial detail: beefing up the security of their trading account and the wallet in it! In order to protect your trading habits, you should use a combination of a complex alphanumeric password and two-factor authentication that prevents unauthorized access to your account.

But that’s not enough on its own. You should also be sensible enough to not fall prey to common scams and get-rich-quick schemes. While using external third-party wallets and the trading account it is a feature of, you should be wary of keeping your credentials private. This includes your private key as well, not just your password. Consider using a hardware wallet for your crypto currency safety to ensure maximum safety of your investment!

Tip #2: Make a Trading Plan

A number of things need to be determined before you create your trading plan:

The assets you intend to trade
The maximum loss you can bear (risk appetite)
At what price you want to stop trading
The degree to which your crypto portfolio needs to be diversified
Exit and entry prices for particular trades

You may also consider additional factors such as the amount of leverage you can afford (if at all) and how your overall crypto asset allocation appears.

Tip #3: Use Stop Limit Orders

It’s impossible for anyone to be glued to their smartphone screen or laptop all day long. This makes the situation tricky, specifically when we consider how volatile cryptocurrency generally is. Therefore, if you want to be a responsible trader, you need to protect your cryptocurrency against the volatile market. This is where stop limit orders come into action.

A stop-limit order prevents market loss by making a limit order that gets issued once the asset price reaches a pre-defined value, which is known as the stop price. The limit order gets triggered by the trading platform as soon as the asset reaches the stop price. The trading platform will then start observing whether or not the asset price recovers to the preset limit. If it does, your investments will be sold by the trading platform.

Tip #4: Avoid the Fear Of Missing Out (FOMO)

Overall, if you want long-term success, you need to learn how to become a crypto trader responsibly. That said, please understand that even responsible traders need guidance from time to time. Therefore, Orion Trading will keep sharing more tips on how to make winning cryptocurrency choices. Stay tuned for that!