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How to Prepare for the Next Crypto Bull Run

Why Trade Cryptocurrencies?

Due to their decentralised nature, cryptocurrencies are free from direct central bank intervention, interbank dealers controlling order flow, or giant pension funds moving prices. Being a relatively new asset, crypto is often volatile and subject to large price swings, making the risky, but potentially hugely profitable assets to trade.

The Best Way to Learn Crypto Trading

The best way to pick up the skills of crypto trading is to have experience. While there are plenty of resources online to build up your basic knowledge of trading shares, no amount of reading can replace actual trading experience.

For beginners, there is no need to rush into putting up capital. demo trading account or cent account to learn the ropes before committing to an actual live account. Copy-trading is also a great way to start trading crypto without much experience. Copy enough trades, and you might just pick up a thing or two about the habits and strategies of successful traders.

3 Crypto Trading Tips for Beginners

Trading is a mind game

Unlike with forex or gold trading, stock traders heavily consider fundamental factors when it comes to shares. For good reason too, since a company’s performance like its earnings and revenue can strongly affect its price. However, understanding technical analysis can help identify entry and exit points, as well as determine stop loss and take profit levels.

Trading is a mind game

Unlike with forex or gold trading, stock traders heavily consider fundamental factors when it comes to shares. For good reason too, since a company’s performance like its earnings and revenue can strongly affect its price. However, understanding technical analysis can help identify entry and exit points, as well as determine stop loss and take profit levels.

Risk management is the key to the long term success

Because shares are sensitive to events like earnings reports or news events, they can be prone to large movements. Add that on to the fact that stock exchanges only trade for certain hours in a day, it can be easy to miss exit points, especially if you’re trading in a timezone far from an exchange like the NYSE. This is why setting a stop loss to cut losses is important, especially if your positions are leveraged.

Risk management is the key to the long term success

Because shares are sensitive to events like earnings reports or news events, they can be prone to large movements. Add that on to the fact that stock exchanges only trade for certain hours in a day, it can be easy to miss exit points, especially if you’re trading in a timezone far from an exchange like the NYSE. This is why setting a stop loss to cut losses is important, especially if your positions are leveraged.

Start a trading journal

While stocks are prone to movement based on news and events, a fundamentally strong company (like from having a good price-to-earnings ratio) will perform in the long term. If a company is well-chosen, temporary fluctuations are often seen as noise. Knowing your trading habits can help decide your trading time frame, and consequently the kind of analysis you should be doing: are you looking at a yearly chart with a 1-day timeframe? Or a daily chart with a 5-min timeframe?

Start a trading journal

While stocks are prone to movement based on news and events, a fundamentally strong company (like from having a good price-to-earnings ratio) will perform in the long term. If a company is well-chosen, temporary fluctuations are often seen as noise. Knowing your trading habits can help decide your trading time frame, and consequently the kind of analysis you should be doing: are you looking at a yearly chart with a 1-day timeframe? Or a daily chart with a 5-min timeframe?

How Long Does a Crypto Winter Last?

Due to the relative youth of cryptocurrency, historical data is scarce. The previous and first crypto winter happened roughly from 2017 to 2018, when an oversaturation of ICOs and a bubble burst saw Bitcoin prices draw down almost 80%. The current winter, however, is the result of a general risk-off environment as central banks raise interest rates to fight inflation, while at the same time fending off a recession - an environment that some foresee will last roughly another one to two years.

Preparing For The Next Crypto Bull Run

With Bitcoin down almost 60% year-to-date and with the collapse of multiple crypto firms, these are dark times for the asset class. Many people have termed this a “crypto winter”, and some have even deemed this the end. However, like every other asset class, cryptocurrencies are historically cyclical, moving between bull and bear markets. Now that we’re on a downturn, what’s left to do is gear up and get ready for the next bull run - if and when it comes.

Have cash on hand

And we don’t mean stablecoins. In a crypto winter, even stablecoins are vulnerable to crashing. For instance, Terra’s USD-pegged coin. Having fiat currency, especially a safe-haven like USD can ensure you are liquid when the time comes to start averaging in your crypto investments. Inflation eroding away at your value? Short-term bonds or funds can allow you to fend off some of the effects of inflation while still allowing you to jump in on a bull run - which has historically lasted anywhere between over a year to four.

Avoid revenge trading

Just because the market shows signs of recovery does not mean that you should YOLO your entire capital into one single trade. Never trade with more than you can afford to lose, and, like with any other asset, avoid having an emotional reaction and stick to the plan. Investing into crypto? Averaging in is your best bet.

Educate yourself

Beyond stalwarts like BTC and ETH, coins, blockchains, and projects fall in and out of favour every cycle. Getting involved with the blockchain community and being up-to-date with the news can give you an in on up-and-coming coins, or early news about events like Ethereum’s move to proof-of-stake.

How to Start Trading Crypto

Ready to start trading crypto? Open an account now to enjoy low trading costs and personalised service.

Step 1
Pick an Account Type

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Open An Account

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Step 3
Pick a Trading Strategy

What coins do you want to trade? What are your exit and entry points? Go in with a plan and stick to it.

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Trading Hours
Symbols StandardPrime StandardPrime Short
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Symbols
Spreads
Commissions
Margin Percentage
Contract Size
Maximum Leverage
Trading Hours
Symbols StandardPrime StandardPrime Short
Symbols
Symbols
Spreads
Commissions
Margin Percentage
Contract Size
Maximum Leverage
Trading Hours
Symbols StandardPrime StandardPrime Short
Symbols
Symbols
Spreads
Commissions
Margin Percentage
Contract Size
Maximum Leverage
Trading Hours
Symbols StandardPrime StandardPrime Short
Symbols
Symbols
Spreads
Commissions
Margin Percentage
Contract Size
Maximum Leverage
Trading Hours
Symbols StandardPrime StandardPrime Short
Symbols
Symbols
Spreads
Commissions
Margin Percentage
Contract Size
Maximum Leverage
Trading Hours
Symbols StandardPrime StandardPrime Short
Symbols

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