5 Easy Steps Crypto Trading Strategies for Beginners In 2018

Hey what's up everyone..  so some of you may have bought your first coins recently. And yet now you're wondering what can I do with them. So today I want to share with you some crypto trading strategies. That I feel like are particularly friendly for beginners.

Before I begin I want to say my usual disclaimer that "this is not official investment advice". And to take everything I say with a grain of salt. Now that's out of the way. Let's get started.

This is just a quick agenda of what we'll cover :

·         

•        HODL
• ·         Cost averaging
• ·         Contrarian trading – Warren Buffett (Buy the dip, Lock in profits, Increase your position)
• ·         Re-balancing portfolio (Cut your losses)
• ·         Lock your coins away

HODL

The most straightforward strategy is just a huddle or to hold. That means to buy some coins and just pretty much don't touch them and forget about. Forget about them for a few years hopefully if everything goes right they will be worth a pretty penny.

Once you revisit them after waiting for a long time that way you don't have to worry about any crashes. You don't have to worry about them going to the moon just keep on holding.

 Cost Averaging

 Something else that I recommend for beginners is called cost averaging. So if you feel like a coin is particularly high right now but you still want to buy.  But you don't want it to like start dropping a lot immediately after you buy, this is a good strategy. Basically you buy at consistent intervals like every day, every week, every month  it doesn't matter. Just pick an interval and split your money across that.  And put in like maybe ten dollars or hundred dollars every once in a while.

That way it's more conservative because the lows are less low. And the highs are less high. You're averaging you know this it's called cost averaging. So rather than like putting all your money in up here and then dropping down a lot. Cost averaging protects you from like really big drops and really big losses.

Contrarian trading (Buy the dip)

I'm something else you might have heard of a lot it's called buy the dip. Basically what that means is that if something that's gone up pretty high and once it starts dropping you can start buying some.

One tip I have though is to be patient when it starts dropping, you could possibly buy a little bit. But don't get too excited and like put all your new money in and buy like immediately when it starts dipping. Why? Because I've done that a few times and then once it's dropped some more later on, you've kind of hoped that you save some money to buy it for an even better price right. And so be patient. Don't be too patient but basically just get a good feel for it and just like be ready for if it drops even more. And if it doesn't drop more then you can always save it for the next downturn, okay?

Contrarian trading (Lock in profits)

The next thing is locking in profits, okay. This is something that's really hard to do because it goes against human nature. And so basically when a coin starts going up up and up or going to the moon as they say.  We all give like really greedy we're like oh we're gonna get Lambos, we're gonn become millionaires. But instead the smart thing to do is to start locking in some profits every once in a while. Because as they go up really high they can also drop really fast. And if you held it all the way up and all the way down then what's the benefit of it.

I'm not saying like sell all of it at once but just like maybe a small percentage at every like designated interval of a rise.  According to your own strategy.

Contrarian trading (Increase your position)

 Another similar strategy is called increasing your position. Basically that's like when it goes up you sell a bit and then when it drops back down you rebuy in. Now this is also definitely a nerve-racking strategy, because you don't know if it'gonna hit a point where you're willing to rebuy. It may never hit there and just go it go back up open up again.

How to work with that is to first not sell everything and just do like part of your stack. And then also just have in mind that if it doesn't go back down to a price you're willing to rebuy, just use the profits to like buy another coin you've been keeping your eye on. So that way it's a win-win right.

Re-balancing portfolio (Cut your losses)

Okay now this is the opposite as a side of the spectrum. But also really hard to do because it's against human nature and so everyone's heard of the the phrase like “you're not at a loss until you sell”.

The problem is that if like fundamentals change or if like the market sours on a particular coin. You might have like big losses and not want to sell it. But it might be smarter to sell it and redirect those funds to another coin. That will help you recoup your losses faster right so this is definitely like more of an art than a science. But just something you want to consider and like fight the biases to like really be really stubborn and hold it until like the end of time. Okay

Something else kind of flipping gears in terms of reap in terms of balancing your portfolio this is something that's a little bit more hard to manage. Because it takes more time but definitely a good thing to do. And so you can split your portfolio in multiple ways. Like you can have part of it for long term holding. The other part for day trading you can have part of it designated for like blue chip coins. The other part for really risky icos right. But the whole point is to like have a distribution and to re-balance of skewed. 

Let's say like part of it starts out at like 13.9% but it grows really fast like 30%, you might want to sell part of your biggest portofolio and then spread it out amongst like other coins.

To follow the strategy that you set forth in the first place so in that case. You'd be re-balancing getting the proportions more even to what they were before. And so this is similar to like mutual funds right if you're a regular investor. They split things between like stocks and bonds, like 70/30 or 50/50. Depending on like how risky you want to be and what your goals are.

Lock your coins away

Okay,  finally locking away your coins is a good strategy if you have part of your strategy that calls for not touching a share of your coins for a long time.

 In that case you might want to put them in a paper wallet or some other place that's like harder to access real quick. Because I know a lot of people will get bored and they're like oh I want to trade daily or like oh I wanna FOMO. FOMO buy or panic sell and they go against their predefined strategy. And then end up regretting it later.

 If you're the kind of person that might do that and put your hand in the cookie proverbial cookie jar then you might want to lock away your coins, okay.  So that's it.

 I hope you enjoyed this article and if you have any questions please feel free to leave me a comment below.