Trading Lessons & Tips

Updated: Jan 18, 2020

Our ever-evolving list of Cryptocurrency trading lessons and wisdom for the new and experienced trader or investor.



  1. Only risk what you can afford to lose!!!

  2. Understand risk and capital management. Not every trade will be a winner. Thus, you must allocate your funds appropriately or risk getting wiped out. Google “trading capital management” and “trading risk management.”

  3. ALWAYS keep a bag of Fiat or stable coin for prime buying spots & market corrections

  4. Don't chase a pump!! BUT

  5. A rising tide lifts all boats (a sustained volume increase confirms new trends).

  6. The most important thing to remember in charts? Volume precedes price.

  7. Never follow blindly. Always do your own research & due diligence is key. EVERYONE on social media has an agenda. You must DIG for objective information. There is no substitute for this, and it takes time. (DYOR)

  8. A profit is not a profit until you actually take it. This means you must actually sell your coins to realize a profit (or cover a short). Too many people forget that and then their coin falls back down to earth or goes negative.

  9. A prolonged, booming cryptocurrency market should scare you, not excite you. The market will always correct, one way or the other, and the swings will be huge. You must take profits!

  10. Do not trade with leverage, no matter what other “traders” say. That is for sophisticated traders ONLY, and half of them are losing money (you just only hear about the wins). It may seem like quick, easy money but in reality it’s the fastest way for you to lose all your capital.

  11. Unless you are a seasoned trader familiar with wild market swings, manipulation and flash crashes, ALWAYS set stop losses when possible.

  12. Set a strategy/plan up front and stick to it. Your strategy will (and should) evolve over time. Having no plan or deviating from yours is a sure recipe for disaster.

  13. If you lose, step back, analyze and correct mistakes. If done correctly, your losses should be minimal but your gains should be huge.

  14. Set sell orders for a portion at X, a portion at Y and a portion at Z. The Z portion is optional. Some people prefer to hold a bag for years just in case the coin is the next Google.

  15. NEVER get emotionally attached to your trades. Always look at all angles and rid yourself of bias. Welcome opposing views and analyze OBJECTIVELY.

  16. Understand that Bitcoin price, for now, will affect almost all markets.

  17. If the leadership team of a project is hidden and not in plain sight, this is a huge red flag. Scams are rampant in crypto. That said, occasionally there are enormous upside opportunities for emerging projects. For that reason, it's ideal to keep a small fraction of your portfolio for very high risk/ high reward plays.

  18. We are in the "speculation" game, not the "fair value" game. Realize that before anything else. For now, 100% of crypto trading/ investing is speculation.

  19. To that end, only projects who understand how to build hype and a strong community following will have their coins gain in market cap.