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Trading crypto can be stressful…

This is a 24/7, 365 market.

There’s no “market close”, weekends don’t mean a thing here. Comparing crypto to Wall Street is apples to oranges… 

There are so many different factors at play.

I want to level up not just your knowledge bank of blockchain, but your trading skills too!

Sure you can see some insane gains here, but how long is that going to last?

Consistency is key, so if you want to stay in the game…

1. Recognize the King… BTC

BTC makes this market.

Wherever BTC goes so does the rest of the market, up or down

Now it won’t always be like this once this market matures over the next few years. But hey, that just means you’re still early.

Until then though, if you’re setting up trades, recognize where BTC is heading before you set up your trade.

If you think BTC is about to plummet, chances are your favorite new digital asset will plummet with it. The same can be said for the inverse though!

This isn’t always the case, but for the large majority of the time, there is a strong correlation between where BTC is heading and the rest of the digital asset market.

Look at the BTC chart before you decide to jump headfirst into any other cryptos. This will give you a good indication of where the crypto market as a whole is heading.

2.  Blue Chips, Too Early For Your Own Good?

Let’s put this in perspective.

Maybe you were around for the mass adoption of the internet and the personalized computer (PC).

Remember how many people called the internet a fad? Just didn’t understand it? Or flat out refused to get an email address?

Well, here you are today…

You can see a similar trend happening now with digital assets. In terms of the development of the internet relating to crypto, you’re in the late 80s early 90s stage.

Sure some people have their own PCs, or maybe even a cellphone in their car. But it’s still not fully developed, we’re still using the dial-up internet version of blockchain applications.

And just like the internet bubble, this bubble will pop

There is no good reason for Doge or Shiba-inu to be worth a combined  $27 billion….

But how do you find the Amazons, the Apples, the Nvidia’s, and the Microsofts? The giants that stuck around? (I miss Radio-Shack).

Here’s one blue chip for you now, Chainlink.

As an example, Chainlink has massively underperformed in this latest run-up in comparison to other major coins like Ethereum, BNB, or Solana

Are you just too early for your own good on blue-chip projects like this?  YES

To fundamentally change our economy, as blockchain will just as the internet did, these things take time. So even if the project that you just know is going to be around in 12 years isn’t quite performing how you expected it to, remember this. 

There are multiple ways to get “shaken out”.

The most common tactic, besides big red candles, is price suppression. Most people rather chase the green candles rather than hold on to the asset they know will still be around after the bubble bursts.

3.  Dollar Cost Average, DCA

If you’re looking to set up a long-term portfolio or even a trade to execute within a day, my go-to strategy I preach is Dollar Cost Averaging (DCA).

DCA is simple, average your position into an asset over time instead of throwing it all in at once. This gives you a hedge against the volatility that comes with crypto. If it goes down you lower your average entry. 

Then whenever you’re personally satisfied with your returns, do the same thing but while making a profit. 

Here’s some secret sauce though, I’m always leaving a small portion of my position in case it really takes off. Just 10% or, maybe even less. We call that a “moon bag”. 

I’ll tell this strategy to Ken Giffin from Citadel or Uncle Joe. Don’t FOMO like the commercials want you to. You’ll want to be here long term, if we drop 30% tomorrow through dollar-cost averaging, you’ll be able to seize that opportunity. 

By dollar-cost averaging, and having patience, you’ll have yourself a nice portfolio before you know it.

4. Don’t Get Greedy.

This market is wild.

You can find multiple crypto projects that have 1000%, 2500%, even 5000% returns or more within a month. Hell sometimes even within a day like what happened with Waterfall.

But how do you know when to take profit?

This is one of the hardest questions to answer in crypto trading. Most people would have sold BTC at 1,000 if they bought it at 30…

Yet here we are at +$30,000 per BTC.

So how do you know when to sell? In short, whenever you’re personally satisfied with your returns. Profit is profit, but consistent profit is key.

If you’re having a hard time deciding when to take profit, remember the tip above. DCA and leave a “moon bag”, that’s my personal strategy. But make sure to do what you believe is right for you.

5. BTC > USD

You might not like this statement, but that’s okay. I’m here to tell you what you need to know, not what you want to hear.

Our dollar is going down the drain

In the words of  Robert Kiyosaki, the author of Rich Dad, Poor Dad, “savers are losers”.

No, that’s not a personal jab, it’s just an economic fact.

You’re not saving any purchasing power by letting money sit in a bank account for years and years.

You’re actually losing purchasing power every year, and an alarming amount of it.

Fundamentally changing your mindset from making USD to making BTC is one of the most important things you can do for your long-term crypto trading success.

Now it doesn’t have to be BTC, it is for me, I’ll stacking sats’.

But transferring profit from short-term trades into long-term holds (Like BTC, ETH, LINK, XRP, whatever you personally choose)  could bring your trading career to the next level.

My strategy is make my profit, put it into appreciating assets, and follow this next tip especially.

6. Get A Hardware Wallet

I can’t stress the importance of this enough.

If you have a long-term portfolio just sitting on an exchange, consider it gone. 

No one can predict the future, but we can prepare for anything.

With all the craziness that is going on in the world, the cyber attacks, the government’s ability to freeze financial transactions as we saw in Canada.

Please, put your long-term assets on a hardware wallet. My personal favorite is the Ledger Nano S. Until your crypto is on a hardware wallet, it’s simply an IOU from an exchange.

Say it with me “not your keys, not your coin”. Stamp this phrase into your noggin for everything you do in digital assets. It’s the first commandment of crypto.

Extra Tip: (wow lucky you!)

Don’t Fall for the Hype Train

I see this happen all the time.

People get into a project, and because of the decentralized nature of crypto, community forums around the investment. Everyone hypes each other up and spams bullish sentiment on social media, especially crypto Twitter.

Only to realize a few days later that the top was already in! This is far more common in crypto than on Wall Street.

Don’t fall for the hype train, especially if it’s not an asset you think is going to be around long term. Take your profits, put them into the blue chips of your choosing, on a hardware wallet of course, and get out of dodge. Don’t let the community of “moon boyz” keep you from taking your profits.

Crypto Never Sleeps.

Author:
Jake McCarthy

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