You’ve probably heard of bitcoin. In fact, unless you live under a rock, you have most likely heard of bitcoin and the cryptocurrency craze that has taken the world by storm. You probably also know that this particular cryptocurrency is now the most valuable commodity in the world. Maybe all of this information has got you pumped, and now you want to become a bitcoin trader.

Well, to be honest, cryptocurrency trading has changed the lives of many people, turning some of them into millionaires when all they had starting out was a few hundred or thousand dollars. Because of bitcoin and other cryptocurrencies, these traders are not so broke anymore.
However, how do you begin to invest in bitcoin and other cryptocurrencies?

How do you get one foot in the door in the world of crypto trading?

The Beginnings of a Crypto Journey

I’ll begin by telling you my own story. I began trading cryptocurrencies in August 2016 with only $7,000 in my account. Of that $7,000, only about $3,000 was actually my money. I had saved during the course of a long time. I guess we could call it my life savings. The rest was a debt that I borrowed from a bunch of friends and family.

When I started trading, I was trying anything and everything out. I would try out every system I heard of, go and implement any tip I saw on Twitter or given to me by my friend and so-called gurus on the internet, and I pretty much let my emotions take control of my trading. As you might imagine, I lost a lot of money quickly this way. Soon, my account had been mowed down to about $3,300 in a matter of weeks. I had lost all of my life savings and a part of the money I had borrowed.

That’s when I decided to take a step back and get my affairs in order. I decided to spend a lot of my time learning about cryptocurrency trading in depth. Lucky for me, the market got into a massive upswing and that, combined with the knowledge and skills I had begun to accumulate on trading, allowed me to turn that $3,300 to more than $500,000 in the course of a year. Needless to say, it was a good year.

So, what are the basic rules I followed that got me that fortune?

I Learned Not to Panic

One of the things that made me lose a lot of money, in the beginning, was my panicking whenever the market went into a dip. I would exit a trade because I thought the world was going to end and take my money along with it. What I eventually had to learn is that dips are not only normal, but they are healthy as well. About 90 percent of the time, a coin will fall in value and then bounce right back to where it was.

In fact, much of the time it will rise to a value much higher than the level it was at before the dip. By having a well-defined risk-reward ratio, you always know when to get out of a dip when it goes too far and when to hold on.

I Learned Not to Overtrade

Another problem I had, in the beginning, was overtrading. I felt like I had to be trading every minute of every day. It didn’t help that the cryptocurrency market is a 24-hour market. It didn’t help that there always seemed to be some kind of action going down with some coin, and it was all so tempting.

I eventually realized that the more I traded with no plan or strategy, the more I lost money. I eventually decided to define a strategy for myself that gave me an edge over the market and stick to it. I traded only when the setup was right and not at any other time. That is how I started to make money.

I Learned Not to Get Greedy

A greedy trader will eventually end up as a broke trader. There are times when you’re having a good run, and the trade has surpassed all of your expectations. This happens during times of high volatility, in particular. During this time it’s very tempting to hold on way past what your plan or strategy allows and take more money from the table.

Well, I can tell you now for free that that doesn’t work more than half the time. Always stick to your rules. That’s why it’s so important to research them thoroughly to begin with so you have enough faith in them to stick to them.

With this rules in mind, you can make a lot of money in the world of crypto. Of course, there is more to it, especially when we get into the nitty-gritty. However, this article was mostly about the soft skills and not the hard skills. Keep your head down, and your psychology right and you too can take advantage of the massive opportunity that is the world of cryptocurrencies.

Author's Bio: 

Md Rasel is a professional blogger.