March 24, 2023

Useful Tips for Cryptocurrency Trading in 2022

3 min read

The cryptocurrency market is one of the most diluted markets in the history of finance. The issue with the industry is that it spawns hundreds of projects that can be publicly traded. While the craze of ICOs has died down a little thanks in part to the crypto winter, it is still a very chaotic place that requires a lot of time and effort to learn how to navigate successfully.

It is simply impossible to create a strategy that can beat the market reliably. However, you can certainly try to focus on something that will work for your specifically by following some rules and tips.

Do not overuse fundamental analysis

Many retail traders, especially ones with background in financial markets and investments, come to the crypto industry with a bravado and unsubstantiated confidence. They enter the market and soon learn that traditional methods of analysis rarely work if ever.

For example, Terra Luna was a famously unsustainable coin that managed to amass millions of US dollars only to collapse in May of 2022. It was criticized heavily for uncontrolled inflation and shady accounting, but people wanted to trade regardless. The crash of Terra Luna spawned a new token LUNC which is another coin that was formed after the hard fork during which a group of original network users decided to change the governance method and make it more decentralized.

The revival of LUNC and LUNA in the market in the end of September of 2022 is exactly why you should not use fundamentals to analyze the crypto market. Both LUNC and LUNA were up by 57% and 31% respectively in just a week after the announcement that Do Kwan, the founder of Terra Luna, became a wanted fugitive in 195 countries!

Focus on DYOR!

The main motto of the whole crypto community is DYOR which stands for “Do Your Own Research”. In essence, it means that you should never follow advice of someone on the internet. The crypto industry is still full of unreliable bad actors, influencers who don’t know anything about investments, and people who are acting like all-knowing gurus that do not provide any logical explanation to their forecasts.

If you want to start investing in crypto, you should prepare to start reading a lot. Whenever a new project pop ups on the horizon, dive into its whitepaper, try to analyze it, read it carefully, and make an informed decision about whether to buy new tokens.

When it comes to speculative online trading, make sure that you are not just buying into the hype. Many investors received memorable burns after putting money in ETH ahead of the infamous merge that caused a 12% crash just 6 hours after it was concluded. Do your own research!

Consider using automation

There are many ways you can try implementing automation methods in your trading routines. DCA buying, GRID bots, arbitrage, and many other interesting solutions powered by cloud computing are excellent for crypto industry in particular due to its around-the-clock nature and chaotic price movements.

Just a couple of decades ago, automation was something that can be used only by a handful of institutionalized investors. Today, thousands of retail traders can use powerful trading scripts on their favorite exchanges while paying a couple of bucks per day.

Bots can be extremely useful when you want to be more active on the spot market, have an efficient scalping strategy, or want to test a sophisticated method of analysis with instant execution of orders. Using bots is quite cheap and allows you to quickly start making profit in the crypto market.


These three simple steps will prevent you from making devastating mistakes when starting your crypto trading career. It is important to stay level-headed and use strategies that can protect you from losses instead of those that focus on brining the maximum profit. Caution and patience will take you to wealth and independence. Read more crypto news!

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