Trading

i) Using leverage

1) TL; DR: just avoid leverage. It's enticing for sure, but with that comes a lot of risk, and I've seen many good traders wipe out months of gains because the market surprised them. I myself lost $20k trying to long what I thought was a 'dip' but then huge breaking news released out of nowhere and I watched Solana dump $30 over the course of a few days. You always think it can't go lower Things almost always go lower than you expect them to. E.g. post October 10th: BTC 122k to 89k on Nov 18th, and most alts completely wrecked! Almost nobody expected things to crash to this extent. until it does. Anything is possible in this space.

2) If you do leverage trade I still strongly discourage it… , what I've found easiest is just shorting after huge bearish world news (think tariffs, war etc.). Your chances of winning are considerably greater. Longing sensibly once a bottom seems to have formed is also then a decent move since the likelihood of a cataclysmic destruction of the world that sends markets to 0 is highly unlikely, but of course this comes with experience. Also with Trump in office, bearish news that dumps the markets is probably going to happen a lot...

3) If you do wish to leverage trade, it's best to find one coin you're very familiar with For me, SOL, having spent a lot of time trading memes on the chain and hence tracking its price. and solely focus on that. Specialisation is your edge in these markets. Do not waste your time trying to be a jack of all trades: you only need to be really good at one thing to be very profitable. He who chases two rabbits catches none.

4) Also, if you're leverage trading, expect some sleepless nights as you pray not to get liquidated… it's just not worth the mental drain to be honest. Take $139 as an example.

I've completely quit trading with leverage for a multitude of reasons. However, having followed the blueprint above, I'd quite literally never had a losing trade. Of course, emotions play a huge role in this. You must stay grounded, wait for very favourable conditions, and accept that for certain trades the R/R just isn't worth it, even if it ends up working out in the end, because it very much could have turned out very differently.

ii) Spot trading

1) If you're trying to buy into a coin on a dip, first DYOR and make sure that the coin has its fundamentals in place and isn't actually going to 0 before DCA'ing in. In almost all cases, for established coins, you'll be fine. This advice appeals more to newer coins with less grounding and if the dips are very sharp (of course there'll always be outliers however (See LUNA )). Twitter is a great resource for the latest crypto news, and if you intend on getting serious about crypto you must have an account and be active on it (specifically the niche of CT - "crypto twitter"). You'll almost always find people discussing whichever coin you're in, so you use it! It's also a great place to make connections and build a reputation in the space (can come in very handy if you intend on working in the space in the future). Regardless, I've seen people average down on hour old coins all the way to zero and lose everything since they never recover. Of course, some of this boils down to luck. As a trader however, you should be attempting to make +EV trades. Why gamble on hour old coins when you could simply bid established year old communities on dips?

2) Never fall too in love with a coin. Sure, some coins are great, but you need to know when to either take profits or take your L and get out. I've mistakenly held bags of coins that went -90% because I believed in the 'tech' instead of following price action. Sometimes a coin can be great, but issues with the team etc. can lead to a massive dump out of nowhere and you'll be stuck holding the bag. Take Temporal 3022 as an example case, great tech but the developer got greedy.

3) An extension to the above is to stay active. Crypto isn't for the faint hearted. To consistently be a profitable trader you need to really be in tune with the market. Stay up to date with any coins you're in, join communities etc. I mean it's your money we're talking about here, you need to put in an effort to stay informed.

4) Sizing into a coin at $300m for a 2x is almost always better and returns you more than purchasing another coin at $20k and holding it till $1m would. How? Because you're able to safely purchase a lot more. Here's a simple example to showcase:

Coins at $300m are also likely well established and unlikely to rug, whereas the chances of making a 50x off a $20k coin are slim to none.

5) Social media sentiment serves a contrarian indicator. When everyone's excited and feeling euphoric, it's usually time to take profits. The euphoria most likely doesn't last long and there'll be a dip soon after, allowing you to add to your position at a lower price and own more tokens than you would have done had you just held.

iii) Market psychology

1) Crypto moves on narratives, not fundamentals. AI season, DeFi summer, NFT mania, catch the narrative early or miss the pump.

2) Fear spreads faster than greed in crypto. A single tweet from Elon can crash the entire market in minutes.

3) Bull markets make everyone feel like a genius. Bear markets reveal who was actually swimming naked.

"In crypto, your biggest wins and losses will both come from the same trait: conviction."

iv) Risk management

1) Position sizing is everything. I've seen people lose their entire portfolio on a single altcoin that went to zero.

2) Take profits on the way up. Nobody ever went broke taking profits, but plenty have gone broke not taking them.

3) Set stop losses, but remember crypto can gap down 50% overnight. Traditional risk management doesn't always work here.

4) Never invest more than you can afford to lose. Crypto is still largely experimental technology wrapped in casino psychology.

v) Adjusting for macro

1) Crypto doesn't exist in a vacuum. When the Fed raises interest rates, risk assets (including crypto) tend to suffer because capital flows into safer, higher-yielding bonds.

2) Global events matter more than you think. Trade wars, banking crises, or geopolitical tensions can send shockwaves through markets. Stay informed about world news, not just crypto news.

3) Bull markets are made in bear markets. When everyone is fearful and prices are depressed, that's when the smart money accumulates. When euphoria peaks and your taxi driver is giving you crypto tips, it's time to take profits.

4) Correlation with traditional markets. During genuine crises, crypto often correlates with stocks despite the "digital gold" narrative. Don't assume crypto will save you when everything else is crashing.

vi) Portfolio diversification

1) Don't put all your eggs in one basket. Even if you're bullish on crypto long-term, having exposure to gold, stocks, bonds, or real estate provides stability when crypto markets crash. Diversification isn't about maximising gains; it's about surviving the worst-case scenarios.

2) Gold as a hedge. When central banks print money and inflation rises, gold historically holds value. It's boring compared to 100x memecoins, but boring often means sleeping better at night. Consider allocating 5-10% of your portfolio to physical gold or gold ETFs.

3) Index funds for stability. Whilst crypto can 10x or go to zero, index funds (like S&P 500) provide steady, predictable growth over decades. If you're making big profits in crypto, consider moving some into traditional assets to lock in gains.

4) Cash is a position. Having liquidity means you can buy dips without panic-selling other positions. Smart traders always keep 10-20% in stablecoins or cash, ready to deploy when opportunities arise.

vii) Security and wallet management

1) Not your keys, not your coins. Exchanges can freeze accounts, get hacked, or go bankrupt (see FTX). If you're holding long-term, move significant amounts to a hardware wallet like Ledger or Trezor.

2) Never share your seed phrase. It doesn't matter how trustworthy someone seems or how official an email looks. No legitimate service will ever ask for your seed phrase. If you share it, your funds are gone forever.

3) Use a separate wallet for trading. Keep your long-term holdings in cold storage and use a hot wallet with smaller amounts for active trading. This limits your exposure if the hot wallet gets compromised.

4) Beware of phishing and scams. Fake websites, impersonator accounts, too-good-to-be-true airdrops. If something promises guaranteed returns or asks you to "validate" your wallet, it's a scam. Always double-check URLs and contract addresses.

viii) Technical vs fundamental analysis

1) Technical analysis works until it doesn't. Chart patterns, RSI, moving averages, they can give you an edge in timing entries and exits. But in crypto, fundamentals often trump technicals. A rug pull doesn't care about your support levels.

2) Understand what you're buying. Does the project solve a real problem? Who's the team? What's the tokenomics? If you can't explain why a coin should have value beyond "number go up," you're gambling, not investing.

3) Volume and liquidity matter. A coin can have perfect charts, but if there's no volume, you can't exit your position without crashing the price. Always check 24h volume and liquidity pools before buying, especially on lower cap coins.

4) Use both, not one or the other. Fundamentals tell you what to buy. Technicals tell you when to buy. The best trades combine solid projects with good entry points. Don't ignore either side.

ix) Remembering the long-term

1) Time in the market beats timing the market. Even the best traders miss moves. If you believe in the long-term thesis of crypto, holding through volatility often outperforms trying to catch every swing.

2) Your mental health matters more than profits. If checking prices every 5 minutes is affecting your sleep, relationships, or productivity, you're over-invested. No amount of money is worth your peace of mind.

3) This is a marathon, not a sprint. Some traders make life-changing money in a week. Most lose it just as fast. Sustainable wealth is built through consistency, patience, and surviving long enough to capitalise on the big opportunities.

4) Learn from every trade. Keep a journal (like this one). Review your winners and losers. The patterns will become clear over time. Your biggest teacher isn't a YouTube guru or a Twitter influencer, it's your own experience and reflection.