HOW TO BECOME A MORE PROFITABLE CRYPTOCURRENCY TRADER

Hey guys,

We are all aware that cryptocurrency trading is of high risk due to its high level of volatility. In other to trade cryptocurrencies and be profitable, one is expected to trade responsibly and that is why we will be looking at how to become a profitable crypto trader.

---

---

RESPONSIBLE TRADING

Responsible trading is based on how well a trader is able to avoid their emotions setting in while making trading decisions. It is how well a trader manages his or her trades in other to minimize loss.

Trading irresponsibly is common among new traders as they aim at getting rich quick thus over leveraging their positions. This over leveraging might be as a result of lack of proper understanding of leverage before venturing into trading.

Trading responsibly comes with time and experience. Traders tend to trade more responsibly as they grow to understand the type of trading that is best for them such as margin, futures, or even spot trading.

HOW TO TRADE CRYPTOCURRENCY RESPONSIBLY

---

• Secure your trading account

This is one of the most important measures in ensuring responsible trading. No matter how go a trader is, they can loss their entire funds without any trace if their wallet should be compromised. This explains why security should be a top priority while trading cryptocurrencies.

---

• Create a trading plan

Creating a trading plan and sticking to it is another good way of maintaining a responsible trading. This will guide a trader away from making unnecessary trading decisions due to emotional control. Also, a trader who is deciplined enough to maintain a good trading plan is at no risk of falling for FUD, romours and sentiments that is all over the internet.

Creating a good trading plan includes taking into consideration a number of details which includes;

✅How much capital you are willing to invest.

✅How much leverage is suitable for your trading capital.

✅Maximum daily losses/profits.

✅Choice of asset

✅Time of trading

✅Entry and exit points.

✅Investment diversification, etc.

---

• Making use of stop-losses

Losses is inevitable in trading for even the best traders also make losses once in a while. So the best thing to do is to manage those losses well for that is what separate a good trader from a bad one.

In other to properly manage losses, it is always best to set automatic stop-losses even a 5 mins off the chart can lead to an unbearable loss.

---

• Do your own research

Doing your own research is a popular term in cryptocurrency and this is because it is risky and no one would want to take the responsibility of your losses. So it is best to carry out your own proper research in other to build up confidence and take full responsibility of your trading decision.

Carrying out your own research will also help you to avoid falling for fake rumors and hype which is a very high tendency of leading to unbearable losses.

---

• Diversify your portfolio

Portfolio diversification is one of the best ways of increasing winning chances due to the level of cryptocurrency uncertainties.

This works best for spot traders while margin traders are best adviced to maintain few trading pairs in other to help them master their pattern of movement.

You can check out my previous article on how you diversify your cryptocurrency portfolio by clicking here.

---

• Understand leverage

Understanding leverage is very vital for leverage traders. Lack of proper knowledge of leverage had led many traders into accumulating unbearable losses and this is majorly because they tend to over leverage their capital thus making a small price movement against their position very detrimental.

---

• Control your emotions

I wouldn't conclude without adding emotional control for this is one of the most vital things a trader should take seriously.

Being a to control your emotions will help you to avoid FOMO (Fear Of Missing Out), it will help you to overcome revenge trading which doesn't always end well. It will also help you to avoid over trading. And most importantly, it will help you to stick firmly to your trading decision.

In summary,

Becoming a profitable cryptocurrency trader is something that doesn't happen overnight but a newbie can avoid certain mistakes by first seeking to understand certain things before venturing into cryptocurrency trading.

I believe this content will serve in helping traders especially newbies to know certain tips on how to become a more successful cryptocurrency trader.

_{10% to @Tron-Fan-Club}