In the past year, crypto day trading has increased by 61 percent throughout the U.S. The main reason trading with cryptocurrencies has become so popular is that it’s easy and quite profitable. But, of course, to reap the profits of cryptocurrency, you’ll need to prepare a trading plan.

If you don’t have a cryptocurrency trading plan, then you’re in luck! In today’s article, we’ll give you top-notch advice on how to create a proper trading plan.

1. Choose a Cryptocurrency

Cryptocurrency risks and solutions

Before you learn how to trade cryptocurrencies correctly, you’ll need to pick a cryptocurrency to invest in. Fortunately, there are plenty of options for cryptocurrencies, so you’ll just need to do some research to choose the one that best fits your trading plan. Here are some to consider:

  • ETH
  • ADA
  • XLM
  • BTC

Once you pick one of these, you’ll be able to start your cryptocurrency trading plan. If you’re still having difficulty choosing a crypto coin, be sure to visit https://www.bytefederal.com/ for more information.

2. Create a Risk Tolerance Plan

As you may know, trading with cryptocurrencies can be risky since the market is considered volatile. That’s why it’s crucial to include in your cryptocurrency trading plan your risk tolerance. For example, if you’re only investing a little, you should consider risking no more than 1 or 2 percent of your portfolio.

3. Set Up a Crypto Wallet

Set Up a Crypto Wallet

Unfortunately, exchange platforms like Coinbase or Celcius have been prone to cyber attacks, leaving many people without their crypto. That’s why protecting crypto coins is always included in a cryptocurrency trading plan.

You can protect your crypto by buying a crypto wallet. These wallets are small and compact, which means you’ll be able to take them anywhere. Additionally, transferring cryptocurrency to a wallet from an exchange platform is quick and easy.

4. Choose a Trustworthy Exchange Service

All crypto day trading is done through exchange platforms, so you’ll need to pick one. There are plenty of platforms to choose from, but let’s give you some recommendations.

  • Coinbase
  • Robinhood
  • Celcius
  • Etoro

Keep in mind that each one charges a different gas fee for transactions, so be sure to decide how much you’re willing to pay for those transactions.

5. Do Your Research

Do Your Research

Many people make a huge mistake when creating a cryptocurrency trading plan: they only follow what others do. Trading with cryptocurrencies involves more than following the latest trends. It’s about researching the crypto projects that show promising returns.

Be sure to be up to date with the latest news and to listen to reputable crypto traders. Additionally, you should research the coins tokenomics to see if it has the potential to become profitable.

Create a Cryptocurrency Trading Plan Today!

Without a doubt, if you want to get rich with cryptocurrency, you’ll need to have a cryptocurrency trading plan. And you should stick with that plan and try not to deviate from it. Once you do that, you can expect to make profitable returns in no time!

Did you find this post about crypto trading helpful? If so, be sure to check out our other crypto-related articles in our blog!

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