Here are 10 Tips to Make Your Crypto Trading Profitable

Photo of author
Written By Ishika Chauhan

Lorem ipsum dolor sit amet consectetur pulvinar ligula augue . 

The rise of crypto trading in the past decade has been remarkable. It was especially popular in the aftermath of the pandemic.

The global economy and the job market have been in financial turmoil for the past two years. The global population is now knee-deep in this mess, thanks to the conflict in Ukraine.

The global population is now looking for ways to save its pennies due to the dwindling labor market and volatile prices. Many have been counting on investing in crypto and stocks.

Although investment can be lucrative, there are many ways to lose all of your savings. Many scams and fake gurus will prey on absolute beginners who lack experience and naivety in the crypto space.

Although we can't guarantee success overnight, there are some tips to help you start crypto trading and diversify your investment portfolio.

1. Learn The Motivation Behind Every Trade

Investment and crypto trading is just like any other area of your life. You need to have a purpose. Before you invest any money in trading, it is important to know your "why".

Do you trade because you are passionate about a token or do you fear FOMO (fear that you will miss out)? Do you prefer day trading (or scalping, which is a way to profit from minor price fluctuations)?

The Bitcoin price history demonstrates that crypto markets are volatile and risky. The crypto market is dominated by the largest investors. They are eager to profit from your losses and mistakes. They are not the wealthy, but their patience and strategic investment. It is better to avoid a trade than to risk losing your investment in it to a larger whale.

2. Create A Strategy

The crypto community is full of scams. It has become more difficult to identify a legitimate trading opportunity due to the increase in scams in crypto investments.

This goes along with what was already said about the importance of analyzing a trade before you invest in it. Take a look at the currency or platform that you are planning to invest in. Is it possible to identify scams on the site? Are there any tangible results? Before you start saving, analyze and strategize.

3. Establish Targets

The most important rule in crypto trading is to be able to recognize when it's time to exit a trade. You must first be able to see the profit and loss of a trade.

It is sometimes better to keep your currency down and operate at a stop-loss level. Stop-loss is the act of getting out of a trade once it reaches a certain level in order to avoid a larger loss. Investors must be able to identify the stop-loss level. This is how you set targets for your profits or losses.

4. Risk Management

Risk management is what separates a beginner crypto trader and a big whale. Expert traders don't chase currencies with huge profit ratios. They start small to make incremental profits on their regular trades. It is better to limit the amount that you invest in one currency than to overinvest.

The high-risk nature of crypto trading makes it a high-risk venture. Crypto trading is high-risk. This is because unlike fiat currency, which is the currency notes and coins that you use to make daily transactions, crypto's value can be influenced by media hype and market expectations.

Altcoins tend to fall when Bitcoin's prices rise. This is because most traders don't know how to assess risk. It is better to not trade at these times or to set higher targets.

5. Diversification

As with any other type of investment, you should not invest all your money in one digital currency. It is better to invest in multiple assets at once than to be caught in volatility in the cryptocurrency market. Make sure you research digital currencies to ensure a profitable trading experience.

6. When to Buy

An error that rookie crypto traders often make is to purchase a coin at a low price. The affordability of crypto trading should be less important than the market rate (also known as the market cap). Market cap is the value of a coin or token in circulation. A currency with a high price is better than one with a low market cap.

7. Learn How Cryptocurrency Works

It is important to be familiar with blockchain technology before you invest. Before you can learn to trade, it is important that you understand the cryptocurrency ecosystem.

While many people are familiar with famous coins such as Bitcoin, Dogecoin, and Ripple, they don't know much about trading or blockchain. Although it can be difficult to understand the blockchain system, it is worth it for crypto trading.

8. Don’t Let FOMO Drive Your Trading Decisions

It's tempting to just invest in a currency because it's popular or the most fashionable. Trading is not about the popularity of the currency. You should also evaluate the potential for trading or investing in that currency.

9. Crowd Sales

A cryptocurrency venture can raise funds through an initial coin offering (ICO). Crowd sales are a way for investors to get involved in the currency of a variety of ventures. Crowd sales offer tokens at a discounted rate.

The venture also promises huge returns once the coin launches officially on the exchange. ICOs have proven to be lucrative, with many coins being valued at ten times their original price.

There are many ICOs that promise big returns but also some that turn out to be scams. You should be careful when you participate in crowd sales and make sure that you are familiar with the history of the venture.

10. Altcoins should not be held for too long

Altcoins lose value over time. It is important to realize that altcoins tend to lose value over time. The daily trading volumes are a key indicator of which coins are best for long-term investments.

Long-term investments are more profitable if a coin has a larger daily trading volume. Monero and Ethereum have high daily trading volumes but fluctuating prices. Before you invest, it is important to read the charts.


As crypto trading involves many risks, it can be a complex way to put your money to work. Before you start trading, set goals and assess the currency and venture you are interested in. Don't let emotions get in your way. It is better to learn about investing, trading, crypto, and blockchain technology before you begin trading.

Leave a Comment