Bitcoin has grown a lot in the last few months. So it’s no surprise that becoming a crypto trader is probably on your bucket list. But it’s not worth doing if you’re not going to kill it completely. Many people just like you already have the passion and curiosity for crypto trade but don’t know where to start. This guide on how to become a top crypto trader in 2021 is a starter pack to help you get the most out of trading. Use it as a companion.
1. Just Close Your Eyes and Decide to Finally Start
There’ll never be a right time to jump into crypto trade. So set your mind to it and make that leap of faith. Let’s face it, saying you’ll start trading and actually making the decision to start is no joke. There’s a mountain of stuff to learn and there are just as many scary stories as the beautiful ones.
But here’s the thing about hard decisions: they tend to pay off in one way or another. Starting now and looking back at what you’ve learned at the end of the year is better than looking back with regret wondering what would have happened if you had just started.
2. Research Until Your Eyes Hurt
No, really, there’s a lot of stuff to learn in crypto but don’t let that stop you. Grab your coffee, jotter, and pen and dig in. This part can become overwhelming if you don’t have a plan. So take it one step at a time. There are more than 3000 unique cryptocurrencies and many traders make money trading several of them. But you can’t jump into all of them at once.
Bitcoin is always a great place to start. Understanding what Bitcoin is used for and how its price behaves is the key to understanding the rest. So set a checklist of things you want to learn about Bitcoin and set a time table to do that.
After Bitcoin, you can research other currencies and see what works for you. Read articles, news, tutorials, and watch videos. Search the term ‘Bitcoin’ on Google, Quora, Reddit, Twitter, Facebook and other social media platforms to find as much information as you can.
Here’s a checklist of things some things to start reading first:
- What is Bitcoin and how is it used?
- Cryptocurrency and its uses
- What is USDT?
- How to buy and sell cryptocurrency in Nigeria
3. Set SMART Trading Goals
Yes, SMART comes up in almost everything and it stands for Specific, Measurable, Achievable, Realistic, and Timely. You’re probably tired of hearing it but it goes without saying that doing anything without a goal or direction isn’t a good idea.
If trade like this, you’ll find that you can’t properly track how well you’re doing. You’ll also be more prone to greed which can make you lose money. So how can you set these smart goals? Here’s are some short examples of how you should go about setting these goals.
Not Specific: I want to be a top trader by October
Specific: I want to execute 12 trades and make 100,000 per month from trading
Not measurable: I want to execute many trades by the end of 2021.
Measurable: I want to execute 12 trades every month.
Not achievable: I want to grow my capital from 5000 to 50,000,000 in my first week.
Achievable: I want to execute 3 trades in the first week of February.
Not realistic: I want to be the biggest trader in Nigeria in 3 months.
Realistic: I want to be good enough at trading crypto to hold 3 crypto webinars this year.
Not Timely: I want to grow my capital.
Timely: I want to grow my capital by 100% in 3 months.
4. Pick the Right Cryptocurrency Exchange for Your Needs
Cryptocurrency exchanges have different features but not all may be useful for your goals. Study exchanges and how they work and see which features will make your work easier.
We like to say that picking an exchange is like picking a barber or hairstylist for the first time. You want a platform that always has your back. Look out for the following:
- A free and simple sign up process without too many steps
- A way to instantly buy or sell cryptocurrencies
- A process to sell, send, receive, and store Bitcoin safely
- Other profitable cryptocurrencies like XRP, Litecoin and Ethereum in case you want to try something new
- Customer support that responds to your issues quickly
Some exchanges also offer different platforms so that you’re not limited to a single type of device.
5. Use a Spreadsheet to Track your Trades
Spreadsheets get a lot of bad PR because they seem so serious. But they’re really useful for tracking your trades. You can keep track of the number of times you trade, your capital, gains, losses, and everything else. You can record minor details that help you make better trading decisions in the future.
When you use a spreadsheet like Google Sheets or Microsoft Excel, you aren’t leaving anything to chance. A good beginner spreadsheet should have the following columns:
- The name of the coin you bought e.g Bitcoin/BTC
- The quantity you bought
- The price you bought at
- The price you sold at
- Percentage gain or loss
- Observations or comments about the trade
6. Join a Community of Crypto Traders
There’s no better way to learn how to trade crypto than joining a community of people who already trade. Here, you’ll see all the raw issues they face and you can ask questions in real time. Finding a mentor in crypto trade is never easy. Not many people will have the capacity or willingness to take on the job of helping someone else master trading.
The best way to hack it is by being around these people in their immediate environment. Attend the same training and conferences they do. For example, the Quidax telegram community is full of capable traders at different stages of learning. They ask and answer each other’s questions all the time. You can ask questions, observe, and learn. You can also stay current on what’s happening in crypto.
7. Practice as Much as You Can
The old saying that practice makes perfect goes here. Don’t trade once a month and expect to be a seasoned trader by the end of the year. That’s not how to become a top crypto trader. It’s not jazz please 😂. The more you trade, the more sense it will make. You also get to make mistakes and learn from them. But remember, it’s not going to be rosy all the time.
If at any point you feel like you’re failing, tell yourself that you’re failing forward. This means that each time you lose, you learn what not to do next time. This is the philosophy that most crypto traders in our community including those who have shared their Bitcoin stories with us, use.
8. Keep Your Ears to the Ground
There’s always news that will influence the cryptocurrencies you trade. For example, the first outbreak of Covid-19 led to a drop in Bitcoin’s price before it started increasing. Sometimes the effects of such news can happen very quickly so stay focused on news and trends on social media.