Cryptocurrency Trading Strategies for Beginners
What you’ll learn: risk first, account structure, spot vs. derivatives, 3 simple strategies (DCA, trend, breakout), and a 7-step action plan.
1) Risk First
- Define max risk per trade (e.g., 0.5–1% of capital).
- Use stop-loss orders; never average down without rules.
- Separate long-term investing from active trading wallets.
2) Spot vs. Derivatives
Spot: own the asset; simpler and safer for beginners. Derivatives: leverage amplifies moves—only after you’ve proven discipline in spot markets.
3) Three Starter Strategies
- DCA (Dollar-Cost Averaging): buy a fixed amount weekly; no timing stress; great for core positions.
- Trend Following: buy when price is above a moving average (e.g., 200D); exit when it closes below.
- Breakout: buy new 20–50 day highs with tight stops; skip choppy ranges.
4) Tools That Help
Use a reliable exchange, a portfolio tracker, and alerts. Backtest rules on historical data before risking capital.
5) 7-Step Action Plan
- Write rules in one page (entry, exit, risk).
- Pick markets (BTC, ETH, top caps).
- Start with DCA for core; add trend setup for trades.
- Risk ≤1% per trade; always set stops.
- Journal every decision.
- Review weekly; cut what doesn’t work.
- Scale slowly; protect capital first.
Nothing here is financial advice. Crypto is volatile—only risk what you can afford to lose.
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