Crypto trading basics for a volatile market
Trading crypto is risky if you treat it like a lottery. Learn how to manage volatility, pick secure platforms, and build a practical trading toolkit.
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Success in crypto trading is less about being a genius who can predict the future and more about being a stoic who can control their own impulses. It’s about having a plan and sticking to it when the world is going crazy.
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Crypto trading basics
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A hot wallet is software-based and connected to the internet, offering high convenience for frequent trading but increased exposure to online threats. In contrast, a cold wallet is a physical hardware device that keeps your private keys offline. The script recommends using cold storage for long-term holdings (HODL positions) to protect them from exchange risks or hacks, while keeping only active trading capital on an exchange or hot wallet.
The 1-2% Rule is a risk management strategy where a trader never risks losing more than 1% to 2% of their total account balance on a single trade. This is achieved by setting a "Stop-Loss" order, which automatically closes a trade if the price hits a certain level. By following this rule, a trader ensures that even a string of losses will not wipe out their account, providing them with dozens of "lives" to stay in the game and refine their skills.
On-Chain metrics involve looking at data directly from the blockchain, such as the number of active wallet addresses or the movement of coins onto and off of exchanges. For example, "Exchange Outflow" suggests investors are moving coins to private storage to hold long-term, which is a bullish signal. Technical Analysis (TA), on the other hand, focuses on price charts and human psychology, using indicators like Support and Resistance levels or the Relative Strength Index (RSI) to predict future price movements based on historical patterns.
Dollar Cost Averaging is the practice of investing a fixed amount of money at regular intervals, regardless of the asset's price. This strategy removes the emotional stress of trying to "time the market" and prevents beginners from falling into the trap of FOMO (Fear Of Missing Out). Over time, DCA allows an investor to buy more of an asset when prices are low and less when prices are high, resulting in a better average entry price and a more sustainable investment foundation.
Spot trading involves buying the actual cryptocurrency, meaning you own the asset and cannot be "liquidated" even if the price drops significantly. Futures trading involves speculating on price contracts and often uses "leverage," which is borrowing money to increase position size. While leverage can amplify profits, it also means a small price move in the wrong direction can result in the exchange "liquidating" your position, causing you to lose your entire initial investment instantly.
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Creato da alumni della Columbia University a San Francisco
"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."
"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."
"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."
"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."
"Reading used to feel like a chore. Now it’s just part of my lifestyle."
"Feels effortless compared to reading. I’ve finished 6 books this month already."
"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."
"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."
"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"
"It is great for me to learn something from the book without reading it."
"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."
"Makes me feel smarter every time before going to work"
"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."
"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."
"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."
"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."
"Reading used to feel like a chore. Now it’s just part of my lifestyle."
"Feels effortless compared to reading. I’ve finished 6 books this month already."
"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."
"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."
"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"
"It is great for me to learn something from the book without reading it."
"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."
"Makes me feel smarter every time before going to work"
"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."
"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."
"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."
"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."
"Reading used to feel like a chore. Now it’s just part of my lifestyle."
"Feels effortless compared to reading. I’ve finished 6 books this month already."
"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."
"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."
"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"
"It is great for me to learn something from the book without reading it."
"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."
"Makes me feel smarter every time before going to work"
