Risk and Patience
I have only been trading for two weeks thus far. I have found that 2 words keep entering my mind to describe crypto trading. The first being risk. Now some would argue that without taking risks in life, you might get left in the dust. Sometimes not taking a risk and playing it safe is fine, but there can always be a what if. What if I would have taken the risk and tried something new, who knows? Maybe I would have been successful. I guess you will neve know unless you take the risk and do it. Every trade is a risk with crypto trading. You have to be risky to invest in anything. My personality is fitting for a trader, I am willing to take risks. I enjoy playing poker and buying an occasional lottery ticket. That’s a risk you have no control over. Trading is different, but still a form of gambling, but with more control. With crypto trading, I am doing it in a smart way, (as smart as possible in this game). If you only risk what can afford topotentially lose, you should be all right. My first trade was on Gemini, (which only trades Bitcoin and Etherium) I bought some etherium. Now it can go 50/50 from here on out. There is a chance it will go way up this month, or potentially go into a bubble. I am risking that it will go up, and make some nice profit.
This leads nicely to the second word on my mind, patience. Now on my father’s side of the family, the men are not patient creatures. We all get road rage, and hate waiting in line. We sometimes rush to get things done, and sometimes that leads to mistakes. There should be no rushing in crypto trading. You should never just guess and buy coins you know nothing about. Do some research first, check the trend of the coin. Once you do decide to buy some coin, you must be able to show patience with long term investments. If you’re a day trader, you wouldn’t really purchase and hold onto types of coins that are more long-term investments, such as Bitcoin. There was a time over the weekend when I almost traded away, but something held me back. I guess it was my patience conscience. Of course, just like with risk, you can be over patient as well. If you hold onto some coin for too long, you might miss the payday and end up losing in the end. It makes for a quick day, when you are constantly checking your coin prices on Kraken or your favorite exchange.
I think if you can harness the right amount of risk and patience, have a little bit of luck, and take a page from the great Kenny Rogers, and know when to hold ‘em, and know when to fold ‘em, you and I can become successful crypto traders, one coin at a time.
Randy Tarpey CPA