Cryptocurrency trading can be a grueling endeavor. The 24/7 markets can make it time-consuming and stressful due to the lack of respite. However, the never-closing markets also make it ideal for part-time traders who may have a full-time day job. With the right strategy and the correct execution, someone with a day job can make cryptocurrency trading another reliable source of income. Here are 5 tricks for successful part-time trading in the cryptocurrency space.
1. Trade On Exchanges With Mobile Platforms
When you are trading in a 24/7 market, you need to be able to check on your positions at a moment’s notice. In order to do this, you need to be trading on the best cryptocurrency exchanges with good mobile platforms. Binance is the best altcoin exchange in my opinion for this reason. It has a great mobile application and has great execution speeds, so you can easily enter and exit positions at a moments notice no matter where you are.
2. Do Your Technical Analysis On The Weekends
When you are a trader with a full-time job, you may not have the time or the energy during the weeks to plan out your trades and study the markets. For this reason, you should set out time on the weekend for studying all the cryptocurrency charts and building your watchlist. You should know what levels you would look to get long at, and once you are in each trade what you will be doing. This way once you are at work, you do not have to worry about figuring out your trade plan. You already know all the key levels cause you did your research on the weekend. When the crypto sets up and you get an alert that it broke a key level, you are merely just executing your plan rather than trying to figure everything out on the spot.
3. Set Alerts At Key Price Levels
In a 24/7 market, it is difficult to catch every move since a breakout or breakdown could happen at 4 in the morning. However, you can increase the chances of you catching a breakout if you do your homework like we mentioned above on the weekends and set price alerts on all of the cryptos on your watchlist. With the right alerts, you don’t have to be glued to your phone or the computer, with fear that you will miss the breakout. You should set your price alerts just before the breakout or breakdown level. If your plan is to buy immediately on the technical breakout, then this will allow you to get to your platform in time to prepare the order so you don’t miss out.
4. Size Appropriately
Oversizing your positions makes trading more stressful than it needs to be. You lose focus on what the market is telling you, and instead focus on your PNL. If you are unable to watch your trades every minute of the day because you have a day job, you need to be trading size that is small enough so that it doesn’t distract you. If you feel the need to check on your BTC investment every 5 minutes, you are probably trading with too much size. Risk proportionally to your account size, and don’t risk a huge portion of your net worth on each trade.
5. Communicate With Other Traders Regularly
Successful trading is hard to come by when you try to do everything yourself. It is even harder in a 24/7 market with so many names moving at all hours of the day. For this reason, having trading buddies or being in a trading community can be a huge asset. Even with setting alerts and doing homework on the weekends, you still may miss out on a big move because you overlooked a setup. If you have other traders who are looking at the same markets and setups as you, they can be a huge asset to your growth as a trader. They will also be just as good, sometimes better, than setting alerts on all of your charts.
Check Out Crypto Street
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Kunal Desai is an American day trader (stocks and cryptos) and founder of Bulls on Wall Street and Bulls on Crypto Street, two online trading academies and informational publications. He has been featured in many high profile publications like Inc, Forbes, Buzzfeed, and Fortune. He has spoke at trading and business events all across the World.