- Not everyone can be a successful cryptocurrency trader, but plenty are trying all the time
- There are a number of personal qualities that a successful crypto trader needs
- We run through what we think are the top three characteristics that you need to be a top trader
Most of those who enter the cryptocurrency space may not consider themselves traders, but they become them almost by osmosis. Some become wedded to a coin and hold it to death or glory, but many more flip from coin to coin following advice in trading groups or from social media, often losing each time. Very few of those in the cryptocurrency space can be considered a bona fide cryptocurrency trader, so what is it that marks out the winners from the losers? We run through the three key qualities that every cryptocurrency trader must have.
Discipline is required in various aspects of a trader’s journey. First there is the discipline to learn the ropes – how to research, how to chart, how to place trades. Then there is the discipline required to not leap right in but to instead find and develop your trading style. Then there is the discipline needed to stick with a trade against a dozen outside influences, and even your own instinct.
Perhaps the most essential quality a trader needs. Very few trades are going to be overnight successes, even in the crypto world. Once you have made your purchase it is tempting to check back every hour to see how it’s doing. This is called babysitting and it shows that you aren’t confident in an aspect of your trade, probably because you’re anxious about losing money (this shows that you are not in the trading game for the right reasons anyway).
A patient trader sets his sells and his stop loss and perhaps some alerts along the way so he knows when key targets have been hit, then leaves the trade alone.
The nature of being a cryptocurrency trader is that you will win and you will lose. Wining teaches you very little about yourself – it’s how you respond to the losses that counts. Providing you have followed step 1 and not lost everything on a bad bet, you will have capital left after a loss. There’s no harm in altering your trading strategy to fit different circumstances, but reacting recklessly after a loss is going to bring your trading activities to a swift halt.
If you really want to be a cryptocurrency trader you are going to have to learn to put your losses, and your wins for that matter, behind you and move onto the next trade. The ability to accept a loss, learn, adapt, and try again is what separates the wannabes from the successes.
Are You a Cryptocurrency Trader in the Making?
Of course, this is far from a comprehensive list. There are a plethora of other qualities and levels of knowledge that a good cryptocurrency trader needs, but this list should give you an overview of the kind of person that has the potential to be a success in the space. If you worry about your capacity in one of these areas, hodling through a bull market might be a better option for you over trading in and out.