10 Habits of Highly Successful Crypto Traders

10 Habits of Highly Successful Crypto Traders

Table of Contents

  • Introduction
  • Take Your Research Seriously
  • Develop a Solid and Reliable Strategy
  • Understand and Use Crypto Volatility To Your Advantage
  • Be Smart About Choosing Trading Exchange/Platform
  • Starting Small is Smart
  • Patience is a Must-have Trait
  • Stop Losses Are Helpful
  • Maintain your Calm and Composure
  • Keep Learning
  • Always have an Exit Strategy
  • Final Word: Incorporate These Crypto Trading Habits Into Your Routine
  • FAQs

“Motivation is what gets you started. Habit is what keeps you going.” - Jim Ryun.

Getting into cryptocurrency trading is the easy part - you create an account and buy your first Bitcoin, Ether (ETH) or Litecoin (LTC). However, it’s what comes next that determines your potential for success.

The cryptocurrency market is known for its volatility in prices, market sentiment and regulatory changes. However, there are habits that crypto traders have consistently applied to their trades through the years.

Here are the top ten habits of successful crypto traders you should know (and start applying in your trading):

1. Take Your Research Seriously

Cryptocurrency is a serious business because it involves financial and mental commitment. As such, it is in your best interest to always conduct thorough research to make informed decisions.

Start by comparing the coin you’re interested in with others in the market. Evaluate its pros and cons, considering factors such as potential value, use cases, and the overall market sentiment towards the coin.

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Keep an eye out for other coins operating in a similar space or offering features similar to the one you’re exploring. Understanding the competition allows you to assess the potential growth and value of the coin compared to its rivals.

Take a deep dive into the project’s technology and understand how it works. Learn about the origin of the technology and get to know the team behind it. Assess the existing features of the coin and determine if they align with its intended objectives.

Additionally, explore the future roadmap to understand the planned developments and improvements for the upcoming years and the reasons behind those plans.

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2. Develop a Solid and Reliable Strategy

When we talk about a trading strategy, we mean having a clear plan of action that considers the constantly changing nature of the crypto market.

To develop a reliable strategy, you’ll need to understand how the market works. Crypto markets can be quite volatile, so it’s important to keep an eye on trends, news, and factors that can influence prices. This knowledge will help you make more informed decisions.

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Next, it’s crucial to be aware of your current financial position. This means being sincere to yourself about how much money you’re making or losing at any given moment. This allows you to assess risks, set realistic goals, and make timely decisions when opportunities arise.

Being able to identify opportunities is an essential part of successful trading. When the market presents a chance to make a profitable move, being prepared to act swiftly is crucial.

Remember, no trading strategy is foolproof, but having one in place increases your chances of success.

A bitcoin stacked on top of 5 bitcoins

3. Understand and Use Crypto Volatility To Your Advantage

Volatility refers to the price fluctuations that cryptocurrencies experience. Unlike traditional assets such as stocks or bonds, cryptocurrencies can go up or down within relatively short periods. For example, Bitcoin could be $30k today, and three days later, it’s at $33k, and vice versa.

As a trader, you can take advantage of this volatility to potentially profit on both upward and downward price movements. By carefully analysing market trends and using effective trading strategies, you can potentially make money whether the price of a cryptocurrency is rising or falling.

On the other hand, if you’re considering a long-term investment in cryptocurrencies, you need to recognise that volatility can be a challenge. Investing for years at a time requires patience and the ability to weather price fluctuations without being too reactive.

cryptocurrencies on top of a crypto price chart

To make informed decisions about investing in cryptocurrencies over extended periods, it’s important to understand what makes cryptos volatile and why. Factors such as market demand, technological advancements, regulatory changes, and investor sentiment can all contribute to volatility.

By staying informed about market trends, conducting thorough research, and keeping up with industry news, you’ll better understand whether a cryptocurrency is a suitable long-term investment for you. Remember, knowledge is power!

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4. Be Smart About Choosing a Trading Exchange/Platform

A crypto exchange is an online marketplace where you can buy, sell, exchange, swap and trade cryptocurrencies like Bitcoin (BTC), Ether (ETH), Tether (USDT), and Ripple (XRP).

Cryptocurrency exchanges like Obiex offer you the ability to create wallets to send and receive crypto, as well as other features like utility bill payments, P2P exchanges, leveraged trading, staking and more.’

There are over 500 cryptocurrency exchanges worldwide, and choosing which one to use can be challenging. It’s like choosing from a basket of similar-looking oranges.

However, certain factors can narrow your decision. These include security standards, transaction fees, trading volume, available cryptocurrencies, ease of use and customer support.

This article explains in depth how to choose a crypto exchange:

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There are over 500 exchanges worldwide, and choosing which one to use can be challenging. It’s like choosing from a basket of similar-looking oranges.However, certain factors can narrow your decision. These include security standards, transaction fees, trading volume, available cryptocurrencies, ea…

5. Starting Small is Smart

Starting small is often a smart approach to crypto trading.

Crypto markets can be volatile, so starting with small amounts allows you to learn and gain experience without risking most of your capital, investment or money.

Trading with small amounts of money provides a valuable learning experience. It allows you to understand the market dynamics, try different strategies, and learn from any mistakes or successes.

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As you gain confidence and experience, you can gradually refine your strategy, increase your trading size and scale up your trading activities.

Consistency and discipline are key factors in achieving sustainable growth, and trading should be approached as a journey, not a get-rich-quick or ponzi scheme.

A chart showing profit and a hand showing thumbs up next to it

6. Patience is a Must-have Trait

Here’s why being patient is so important:

Rushing into trades or making impulsive decisions based on emotions can lead to poor outcomes. Feelings like fear or excess excitement can cloud your judgment and result in hasty choices that may lead to loss or less profit.

Taking your time to think about a trade before committing to it allows for thorough analysis and evaluation. You can assess various factors such as market trends, indicators, news, and the overall risk/reward ratio. Making decisions based on a well-thought-out plan increases the likelihood of making profitable trades.

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It’s important to remember that successful trading is not just about short-term gains but consistency and overall profitability over time. Being patient helps you avoid becoming overly emotional or anxious about the outcome of each trade or getting caught up in short-term market fluctuations.

7. Stop Losses Are Helpful

Stop losses can be a valuable risk management tool when trading cryptocurrencies. They help protect your investment by placing an order to automatically sell (or buy in the case of short positions) a cryptocurrency if its price reaches a particular level. This allows you to limit potential losses in the event of an unexpected market price change.

By using stop losses, you establish a clear exit strategy before entering a trade.’ This helps you maintain discipline and avoid emotional decision-making, preventing significant losses that could impact your overall trading capital.

Stop losses also help you increase the likelihood of entering profitable trades. If the market moves in your favour, your stop loss can be adjusted to secure your profits or move it closer to the current price. This allows you to secure your gains and potentially maximise your profits.

Please note that stop losses are not a perfect risk management strategy and should be combined with proper analysis and risk assessment. Choosing an appropriate stop loss level requires a careful consideration of market volatility, your risk tolerance, and your trading strategy.

A hand pointing at a whiteboard that has ETH, BTC, RIPPLE, FEES and Economics written on it

8. Maintain your Calm and Composure

When faced with losses, it’s natural to feel disappointed or frustrated. However, it’s essential to avoid making impulsive decisions based solely on these emotions, as it can lead to further losses. By staying calm, you can make rational decisions based on thoughtful analysis.

Losses can be valuable learning experiences. They provide an opportunity to reflect on your trading strategy, identify any potential mistakes or weaknesses, and make improvements.

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Markets can go through cycles of volatility, and losses on one coin or trade don’t necessarily mean future losses on others. By calmly assessing your losses, you can gain insights that will help you minimise losses in future trades and potentially enhance your profitability.

9. Keep Learning

The crypto world indeed moves at a rapid pace. Paying attention to the news, reading articles, watching educative videos and listening to podcasts are good ways to stay updated on the latest happenings in the crypto space. This will help you understand market trends, new developments, and potential opportunities.

Trading tactics and strategies evolve with time, so it’s crucial to keep learning and improving your skills. Explore different resources, attend workshops or webinars, and read educational materials to expand your knowledge and refine your trading tactics. Learning is a key ingredient for success, no matter the type of trading you are interested in.

A black and white toned hand holding a yellow clock

10. Have an Exit Strategy

Having a solid exit strategy helps you protect your capital and make informed decisions throughout your trading journey.

An exit strategy is a plan that outlines when and how you will exit a trade. It is designed to help you manage/avoid losses, secure profits, or both.

Every trader has different goals and preferences. Some prioritise maximising profits, while others focus on minimising losses and risk exposure. It’s important to assess your own objectives and align your exit strategy accordingly. Understanding what you want to achieve will influence the type of exit strategy you adopt.

Male hands adding coins to 3 stacks of coins

Final Word: Incorporate These Crypto Trading Habits Into Your Routine

Cryptocurrency trading can be profitable, but it comes with risks like any other financial venture. Start with only what you can afford to lose, and never invest without doing your research. It’s a journey that requires diligence, continuous learning, and a long-term perspective.

By incorporating essential crypto trading habits into your routine, you can enhance your chances of success in the crypto market. As we said earlier, motivation gets you started, but habits are what keep you going.

So, while it may not always be easy, by applying what you know, staying informed, and embracing a growth mindset, you increase your chances of reaping the rewards that the crypto market has to offer.

Remember the top ten habits of successful crypto traders, develop a solid strategy, and integrate these crypto trading habits into your routine for sustained success.


Q. What makes a successful crypto trader?

A. Successful crypto traders often exhibit habits such as conducting thorough research, developing solid trading strategies, understanding and utilizing crypto market volatility, choosing reliable trading platforms, starting with small amounts, practising patience, implementing stop-losses for risk management, maintaining composure during losses, continuous learning, and having a well-thought-out exit strategy.

Q. How do you trade successfully in crypto?

A. To trade successfully in crypto, one should take research seriously, develop a reliable trading strategy, understand and use crypto volatility to their advantage, choose a trustworthy trading exchange/platform, start small to gain experience, be patient, use stop losses for risk management, stay calm and composed during losses, keep learning about market trends, and have a well-defined exit strategy.

Q. What do most crypto traders use?

A. Crypto traders often use a combination of research tools, technical analysis, and trading platforms to execute their strategies. They also stay updated on market trends through news, articles, videos, and podcasts. The specific tools and platforms can vary among traders based on their preferences and the type of analysis they employ.

Q. How can I learn crypto trading fast?

A. Learning crypto trading fast involves a combination of studying educational materials, attending workshops or webinars, watching tutorials, and actively participating in the market with small amounts. Continuous learning, staying informed about market developments, and practising trading strategies will contribute to a faster learning curve.

Q. What is the best time to trade crypto?

A. The best time to trade crypto can vary depending on the specific cryptocurrency and your trading strategy. However, many traders find increased volatility and trading opportunities during peak market hours when major financial markets overlap. Additionally, monitoring news and events that may impact the crypto market is crucial for timing trades effectively.

Q. How does a beginner start in cryptocurrency?

A. For beginners, starting in cryptocurrency involves steps like educating oneself about blockchain technology and different cryptocurrencies, choosing a reliable crypto exchange, creating an account, securing a digital wallet, and starting with small investments. It's essential to conduct thorough research, understand the risks, and gradually gain experience in trading.

Q. How do I learn crypto trading?

A. Learning crypto trading involves a combination of self-study and practical experience. Beginners can start by reading educational materials, watching tutorials, and attending workshops. Actively participating in the market, staying informed about market trends, and continuously refining strategies through real trading experience is crucial for learning crypto trading effectively.

Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.