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How can I become a crypto trader?

5 Tips to Become a Profitable Crypto Trader in 2024

Kamau Kamwana
The Crypto Quill
Published Jan 2, 2024
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90% of crypto traders lose money regardless of their educational background, intellectual prowess, or prior experience.

In this article, I will share five secrets that will help you avoid losing trades and become a profitable crypto trader in 2024.

But first,

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See the post on my website here: 5 Tips to Become a Profitable Crypto Trader in 2024
Now let’s dive in!

How to Become a Successful Crypto Trader
The first step to becoming a profitable cryptocurrency trader involves developing an effective trading strategy. This involves various things, as discussed below:

1. Diversify Your Portfolio
To minimize risk, it is crucial to spread your investments across multiple cryptocurrencies.

You can learn from my strategy. I buy several altcoins with a market cap ranging from 100 million to $400 million and sell them after a given time based on my analysis of the market.

However, this involves thorough research, and you must ensure you don’t fall for rug-pulls by purchasing altcoins that have no credibility.

By diversifying your portfolio, you reduce the potential impact of a single coin's price volatility on your overall investment.

2. Cost Management
Choosing a reputable exchange with competitive fees is essential for preserving your Return On Investment (ROI) when trading frequently.

For instance, high transaction fees by some exchanges can eat into your profits. So, it's important to select an exchange that offers reasonable fees.

3. Flexible Trading Schedule
Unlike traditional markets, cryptocurrencies trade 24/7.

As a crypto trader, it is crucial to plan your trading times around your chosen assets and strategies. Be aware of market activity during different time zones and adjust your schedule accordingly.

However, this mainly applies to day traders and scalpers. For those who focus on the long-term, like me, you don’t need to worry much about schedules and time zones.

4. Stay Informed
Staying up-to-date with the latest news and trends is crucial for successful crypto trading.

This is especially important for cryptocurrencies, unlike other financial assets, as crypto prices are largely affected by fundamentals like news.  

Therefore, keep a close eye on both general news and cryptocurrency-specific news to stay ahead of the market and make informed decisions.

Utilize news alerts and subscriptions to ensure you don't miss any important updates. Consider signing up to my weekly newsletter HERE.

5. Technical Analysis
While I mainly use technical analysis to identify my entry and exit positions, implementing technical analysis can largely help support your trading decisions.

There are various technical indicators you may use, but their effectiveness depends on your trading strategy.


Technical Analysis Chart
For me, I mainly use Moving Averages (MA) and Moving Average Convergent Divergent (MACD) in combination with the trend and price actions to identify potential entry and exit points.

6. Risk Mitigation
To protect your investments, always set stop-loss orders on your trades. However, this only applies when you are trading Contracts for Difference (CFDs).

For those who may not know, there are two ways to trade cryptocurrencies. You can either buy the actual cryptocurrency on exchanges and sell it at a higher price, or you can trade crypto CFDs the same way you trade Forex.

Thus, applying stop-loss orders for crypto CFDs just like with FOREX is essential. Stop loss orders automatically sell your assets if the price reaches a predetermined level, limiting potential losses.