8 Essential Trading Strategies for Cryptocurrency Investors

Peter Brandt, an expert market analyst, provides a comprehensive handbook for individuals planning to pursue crypto trading on a full-time basis.

Drawing from his extensive background in trading, Brandt imparts valuable advice to budding traders who are considering the switch from regular employment to professional trading.

Peter Brandt’s Top 8 Crypto Trading Tips

Brandt stresses the significance of skill over chance in the realm of crypto trading. He suggests that traders should depend on their own trading competence instead of gambling on the success of a single market move. It’s pivotal for traders to maintain a robust financial foundation in their accounts.

By multiplying personal living costs by five, Brandt underscores the critical nature of securing financial steadiness through genuine trading gains, not by resorting to borrowing or depleting savings.

He also underlines the necessity for traders to have sufficient personal savings to sustain living expenses for up to two years, taking into account potential losses during the initial trading year.

“Many beginners gamble too much with their $100,000 trades. Risking significantly more than 2% per trade sets the stage for failure. In my opinion, the true strategy is embracing the long-haul approach rather than a short sprint,” Brandt further explained.

Learn more: Top 9 Crypto Day Trading Courses for New Traders

Furthermore, he advises spending at least one year practicing with simulated trades to perfect a trading style, keeping an eye on the small yet pivotal details that can spell the difference between success and failure.

Realizing the inherently slim chances of success for crypto traders is pivotal. Brandt indicates that only an estimated 3% to 5% of prospective full-time traders genuinely succeed and he challenges traders to prove his assertion incorrect after two years.

Brandt clears up a prevalent misunderstanding in trading, mainly concerning the requisite for substantial initial investment. He contests that trading success is not proportional to the size of the capital. Beginning with a modest sum can, in fact, facilitate fast identification and amendment of faults, a pivotal aspect of the trading learning curve.

“There exists a widespread fallacy that becoming a trader requires a lofty starting budget. Numerous expert traders would attest that inability to turn a profit with limited capital is a sign that larger sums won’t equate to success either. Actually, smaller accounts can make mistakes more glaring and soon corrected. Successful trading is the outcome of ascending the arduous learning curve by acknowledging and learning from missteps,” Brandt concluded.

Explore further: 8 Premier Crypto Platforms for Futures Copy Trading

Brandt’s insights serve as a solid foundation for crypto traders seeking a significant career change, reinforcing the idea that success in trading comes from problem-solving and iterative learning, rather than starting with a large capital sum.