Crypto Trading Tips I’d Give My Younger Self


If I could send a message to myself a few years ago when I started trading crypto, here’s what I’d say…

So, you're still living in late 2019, but I'm in the future... Interesting times are ahead, to say the least… Go visit a lot of people, and gift yourself with extra toilet paper around Christmas, you’ll thank me later. Anyway, I can’t say too much or I might break space-time, but when it comes to trading, remember to stay detached and have fun or you’ll lose more. Don’t let your emotions take you on roller-coaster rides of buying highs and selling lows. The only rule is that anything can happen. In other words, there are no rules that work all the time. But there are patterns that can help along the way. Here are some...

Letter continued....

Watch your own balance first.

Don’t obsess with a coin’s price, what really matters is how it's affecting your balance. I started doing better when I paid more attention to my own balance than the perfect price entry or exit on some coin.

Think about it, if you’re trading (not investing) then what really matters is getting in at a nice dip, ride it up for a while and then sell for a profit.

Or, if you want to stay in for more possible upside, use the trailing stop loss method. That means you keep resetting the stop loss just under the price as it rises. This allows you to keep making gains if things are going well, but sell off in the event there's a pullback.

Buy off hours.

Humans wake up hungry. That's why it's called breakfast, because we're breaking a fast where we went without food overnight.

Crypto traders are the same, they wake up hungry for freshly baked coins, heads filled with all the possibilities their blockchain futures promises.

Problem is, all this anticipation and euphoria can drive a price into the fantasy realm. That's why they say to never trade on emotion. You know, those moments when everyone else is jumping in … a bright morning and you just want in. That’s FOMO, and how you can see big losses.

Just sip your coffee or tea and wait for a juicy dip. Often they occur when things slow down in the afternoon. Or, sometimes they happen smack-dab in the middle of a rally.

Though I’ve seen later afternoon on weekends with especially low volume and price. But don't waste your precious off hours watching prices, just check in and know that those are could be deal times (or not).

Alt-coins follow Bitcoin like a band follows the conductor.

It’s annoying to holders or promising alt-coins that do much more than Bitcoin, but it’s true…

Most crypto traders figure this out pretty quickly, but I didn’t realize it at first. Bitcoin is still the boss and other coins rely on its success for their own prospects.

That doesn't mean a band member (an alt-coin) can't go rogue. I've seen Ethereum shoot up while Bitcoin dumps, or even Solana recently. But that is rare.

The rule of thumb is that alt coins go up when Bitcoin goes up, and down when she tumbles. Of course, so sort of flippening event could change this…

Bitcoin now responds strongly to the stock market.

With more mainstream adoption of crypto, we’re seeing the blockchain markets respond to what’s happening on Wallstreet.

Just last year in later September when the stock market dropped hundreds of points, crypto took a beating too. And they both started recovering at the same time as well.

An easy place to check stocks and futures is the homepage of

Get an exchange that allows stop losses.

Like many, I traded my first crypto on Robin Hood. But after a while, I didn’t like how Robin Hood doesn’t allow stop losses. A stop loss order will sell your coins should they drop to a certain price, which can save you if there’s a huge dump.

Sometimes are called stop limit orders, but make sure your exchange offers these as they can save the day if there's a massive dump, unless you really have diamond hands and then you don’t need stop losses.

Make sell orders lower than the stop loss trigger price.

When setting a stop loss, make the sell order a bit lower than the stop loss trigger price. If there’s a fast sell off, your stop loss order can actually get skipped.

For example, if your stop loss trigger is at $1.05 then set the sell price to like $1.00. If the price is falling fast, you want to make sure your order will still execute. I’ve had stop loss orders fail and it’s the worst.

However, Stop losses can backfire.

Some people say just invest, HODL, and don’t worry about stop losses.

But for traders (rather than pure investors), we like to ensure there isn’t a huge selloff that might wipe out too big of a chunk of change.

However, I’ve seen many times a price where drop to my stop loss trigger, sell off my coins, and then rocket right back up (ouch!).

This is the risk with stop losses. However over the years I’ve seen greater loss is occur without stop losses than with them.

In the end, treat it more like a game than a part-time job and only throw in money you’d otherwise spend on fun. That’s all a lot of this is now, but fun has a big future… And more practical uses are already happening.

Regardless, we live in a crazy enough world without making crypto stressful. The relaxed trader makes more money than the panic seller.

Last notes to my younger self in Fall, 2019:

Yes Bitcoin is well above $10,000, but some alt-coins have seen even bigger percentage gains. I know $175 for Ethereum seems high, but not from where I’m sitting… And you know that meme coin, Doge? Well, maybe $0.0025 isn’t such a bad deal either. Just don’t wait for Elon to get onboard…

What next?

Stay tuned as I like to cover the latest in the crypto universe…

Standard disclaimers: This is not financial advice, and meant for educational purposes only. Note the author may hold the coins mentioned. Remember: Trading cryptocurrency is extremely risky and people should only invest what they can afford to lose.

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