One of the biggest decisions you’re going to have to make when coming up with your overall strategy is whether you are an active trader, or a long term investor, or both.
Knowing the amount of time you can devote to the space is very important here, as it’s generally going to be difficult to be a profitable day trader if you only have a few hours per week to devote to the space.
I want you to think hard about this. The harsh reality is that most people are not going to make money by trading crypto. When you consider your competition, fees, taxes, and the general disposition and skill level of the average person who finds their way into crypto, the vast majority of people are simply not going to be profitable traders.
Paradoxically, a lot of people think they are going to be profitable traders. Everyone thinks “oh I can beat the market”. Some are correct, most are not. I can’t repeat this enough times. Your brain is probably going “yeah but… I can do it!” and some of you are right, most of you are not.
That is OK though. There are other ways to make money in the crypto space, often with significantly lower risk, lower stress, and higher chances of success.
There is no shame in admitting that you don’t have the skills, the time, the risk tolerance, or the desire to beat the market. In fact it takes strength to admit this and to not get drawn in by the dreams of getting-rich-quick and retiring based on a single trade.
If you come to the realization that you are probably not best suited to trade, then you should consider yourself a long term investor. The strategy for a long term investor is simple, easy to follow, and will almost certainly return good results.
It is called Dollar Cost Averaging or DCA’ing, and we will look at that first before diving into what it might mean to be an active trader.
Next up.. ⤵️