Crypto Trading Reality Check: Are You Making Money?

The advent of cryptocurrencies has changed the trading and investing landscape of the world. A lot of people have jumped on the bandwagon but these are people that have no prior education in such things. This is a problem but many wouldn’t admit it until they are in a financial mess. Although trading and investing in the crypto space is different from the traditional space, the fundamentals are still the same. . The rules are what I hope to pass across to you here in simplicity and clarity. Crypto has not changed the rules of investing The purpose of trading or investing is to make more money. The question is, are you really making money? Do you measure your profitability? Many are often carried away by emotions. For example, they make 7 trades, make profits with 4 and take losses in 3. That looks like a win on the surface but sitting down to do the math might prove otherwise. And besides, . Are you really making money? Have you done the math; account for your profits and losses to see if there is a net profit or net loss. This is very important. taking account of the fees reveals a lot To help set the right perspective concerning the fundamentals, these are the rules of investing: 1. Never lose money This point is too important. Make your calculations clearly. If you are losing money, it’s better to change your approach. Traders often fall in the trap of making losses even when they still have some sort of winning streak going on. The essence of Stop Loss is to save time. But time can be your friend if you know how to use it. Meanwhile, . It can get you used to losing money. It’s better to plan well to guard against net losses because there is no point in all you do if you lose money in the end. Stop Loss can be your enemy 2. When you think you are smart, that is when you are being the fool Often times, people like to believe they are smart. And they like to believe they are smarter than other people. If you think like this in investing or trading, it might ruin you. This is because what you think you are smart about, there are always some others way ahead. In fact, the best investors in the world do not think of themselves as smart. This is why they make a lot of money. . When you start thinking you are a smart genius, you might just be one step from a pit. If you assume that everybody else is smarter than you (and you are keen on not losing money), you will make the best decisions. Those who believe they are smart lose a lot of money 3. Focus on the medium term and long term Time is a friend not an enemy. Even if you are going to do a short term trade, . It makes no sense to sell at a loss (except for personal issues). make sure the medium and long term growth prospect is solid 4. Have actual investing goals Many people don’t have investing goals. This of course means they do not have an investing strategy. A strategy is very necessary because without it your success will be luck and your failures will be bad omen. You don’t need awkward superstition in trading or investing. Have a clear goal. . Or the fact that you didn’t catch the deepest dip. Have your own goals and measure your success by them. If you look at other people, you will disrupt your rhythm, make greedy decisions and make losses. Never be disturbed by the profit someone made that you did not because you sold too early 5. Never rush in and out of any trade I made a buy not too long ago, and upon further research I found out that the information that made me buy the coin was actually complicated and that it could not serve the purpose I expected it to. Many would have just rushed to dump it immediately. But I waited; if I dump, I would make a loss and that is unacceptable. So, I had to devise a plan to make a win from it. If you are rushing in, it’s most likely a bad decision. If you rush out, it won’t be a good decision either. So, be calm. . Time is an asset not a liability In these few words of mine, I hope I’ve been able to convince you to make money in trading and investing in the crypto ecosystem. 2018 will probably be a good year for trading (because of volatility). But remember to sit with the math and make sure you are making money not losing it. **If you think this article is very helpful, give it a good clap so others can see it