Over 560 million people, from 400+ million in 2023, own cryptocurrency worldwide. 35% increase in a year.
That’s millions of newbies onboarded without the faintest idea on how to trade cryptocurrency.Â
Unlike the stock or gold market, cryptocurrency is a different kind of volatile.
Tokens can lose all their value overnight while other tokens rise to new all time highs at the same time. Â
It has been estimated that 84% of retail crypto traders lose money in their first year.
This is why it is important, as a beginner, to not leap in without first understanding the basics, best practices and more importantly, a strategy to not just survive but thrive in crypto trading.
The Best 9 Crypto Trading Tips for Beginners
Tip #1: Start Small and Learn By Doing
This is probably one of the most important crypto trading tips youâll ever get as a beginner.
Always start small. Do not make the common mistake of rushing into trades with thousands of dollars and without a plan only to lose it all in a couple of minutes.
Start with minute amounts and divide them between multiple tokens.
Fund your trading account with an amount you are willing to lose.
Think of it as a sort of tuition fee into the school of crypto trading.
This is the amount you should use to learn the ropes and get comfortable with your cryptocurrency exchange.
Be hands on and learn from your wins and losses.
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Tip #2: Focus on Risk Management
The foundation of any successful trader in any sphere, especially crypto, is risk management.
In a space as volatile as crypto it is probably even more crucial.
The idea is to protect as much of your capital as possible and avoid being liquidated at all costs.
There are many risk management techniques some of which are:
- Stop Loss: This is an automation tool that automatically removes you from a trade when your set price is reached. Say you buy a token and set your stop loss order to a maximum of 10% loss. Once this price is reached, your token in that position is sold to prevent further losses.
- Position Sizing: This basically means how much of your portfolio you are willing to deploy to a particular position/ trade. As a rule of thumb, you should risk no more than 1%-2% of your crypto portfolio on a single trade.
Donât expect to win every trade. But by managing your risk properly with the appropriate techniques, you should be good.Â
Tip #3: Donât Chase Hype or FOMO Coins
During every bull market hype or FOMO coins naturally pop up.
They trend on Twitter and pump for a week making everyone who doesnât have a piece feel left out before crashing 90%.
In 2021, Dogecoin spiked 12,000% in five months, only to lose 75% by the end of the year. Shiba Inu did the same.
If you blindly follow the hype, you will always be late and become someone’s exit liquidity.
A survey from Finder in 2023 showed that 28% of crypto investors bought coins because of social media hype, and most lost money within months.Â
One of the underrated crypto trading tips is to ignore the noise and stick to a plan.
Tip #4: Keep Your Emotions in Check
Crypto punishes emotional traders.
Fear and greed drive most market moves. Fear of being liquidated and greed to get more money.
Both emotions are so significant that they became officially known as the Crypto Fear and Greed Index, and have been tracked since 2018.
For example, during the March 2020 crash, Bitcoin hit $3,800 while panic was at its peak.
Those who panicked sold at the bottom, while disciplined traders who held or bought made over 400% returns by the end of the year.
One way to keep your emotions in check is to have a preset entry and exit point and stick to it.
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Tip #5: Understand Market Cycles
Crypto prices don’t move 100% randomly. It moves in cycles. During bull markets, prices of tokens increase and during bear markets they decrease.
One of the most popular cycles in crypto is the Bitcoin halving.
It happens every four years and has historically triggered bull runs.
After the 2012 halving, BTC rose 9,000%. After the 2016 halving, it rose 2,800%. After the 2020 halving, it peaked at $69,000 in 2021.
But bull runs don’t last forever.
They are usually followed by brutal bear markets. In 2018, Bitcoin dropped 84% from its peak. In 2022, it fell 77%.Â
Understanding cycles is one of the best crypto trading tips that keeps you from overexposing during peaks and helps you prepare for the bear market better.
Tip #6: Diversify Your Portfolio Wisely
The next important tip is diversification. Donât put all your eggs in one basket.
It canât be overemphasized how important this is, especially in a market as volatile as crypto.
Beginners often make the mistake of putting all their money in one altcoins that âis predictedâ to moon. Donât do that.
It is also important to know that diversification is not just buying a bunch of random altcoins.
You should aim for a balanced portfolio made up of strong established cryptocurrencies like Bitcoin and Ethereum, tokens with real use cases and reliable tech foundations and a small percentage left for tokens with high risk and high reward.
Balance is the key.
This is one of the best crypto trading tips for high crypto earners.
Tip #7: Use Reliable Tools and Apps
Imagine trying to build a house without a hammer.
Even with so much knowledge about the crypto market if you donât use the right tools you will end up getting nowhere or worse, getting rugged.
Avoid taking investment advice from random telegram or discord groups.
Rely directly on market data. Make use of platforms like TradingView and CoinGlass to get real-time market charts.Â
Use reliable exchanges like Coinbase, and Kraken and Binance for trading.
They have the most market volume and are the most secure with all the best security features.
Tip #8: Always Do Your Own ResearchÂ
DYOR. Itâs a common saying in the cryptosphere but very underrated.
You can read reddit posts and watch youtube videos to get another perspective but at the end of the day, base your financial decisions on your own research.
Read the projects whitepaper, check their tokenomics and liquidity, take a look at the team and their past projects, check their important smart contracts via the contract address on chain, check development activity on their github if public.
No active development is usually a red flag and you should avoid it.
$4.6 billion was lost to rug pulls last year alone. Most victims just never checked project fundamentals. Always do your own research. It is the number one rule.
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- Breet: Best BTC to Ethereum Exchange in Nigeria (2025)
Tip #9: Prioritize Security Above All
Losing coins to a hack is worse than losing a trade.
As a digital space that more or less lives on the web, crypto is prone to web attacks. The list of crypto hacks, especially since 2020, is long and devastating.
In 2022 alone, hackers stole $3.3 billion from DeFi protocols. The Ronin bridge hack alone cost $625 million.
And so many others. The point is, the security of you and your funds should be your utmost priority.
This is one of the most underrated crypto trading tips.
Make use of hardware wallets like ledger or trezor for storing crypto longterm.
Use only platforms with strong security track records and features.
Avoid clicking random links on telegram, twitter or discord requesting to connect to your wallet. They are most likely drainers built to automatically steal all your funds.
If you use a non custodial wallet, make sure to keep your private keys and seed phrases secret and in a safe place. Anyone with those control your funds.
About Breet
As a beginner, trading crypto can be a lot.
Stressing about entry and exit points is already a headache, you shouldnât also have to stress about withdrawing profits. This is Breet’s forte.Â
Breet is an Over-the-Counter cryptocurrency exchange built for Nigerian and Ghanaian traders.
The process is simple, you deposit crypto and you get Naira or Cedis, almost instantly, in your local bank account. No P2P stress, order books, fees or long waiting times. It is perfect for beginners.
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Conclusion on Crypto Trading Tips
In the end, crypto is not the get rich quick scheme people make it out to be. Itâs easier to be liquidated in 24 hours than to become a profitable trader. That doesnât mean itâs impossible.Â
The traders who thrive arenât the ones who guess the next big meme coin, but the ones who consistently follow the basics.
Start small, manage your risk properly, diversify your portfolio, do your own research, and always stay secure and avoid clicking random links.
By 2025, the market is bigger, regulations are tighter, and scams are smarter. If you want to last, stick to fact-driven crypto trading tips that prioritize safety, discipline, and long-term growth.
Frequently Asked Questions About Crypto Trading Tips for Beginners
Which Crypto Trading Strategy is Best for Beginners?
For beginners, the best trading strategy is always to keep things simple and stick to the basics. Make sure to start with small amounts, manage risks properly with stop loss and properly sized positions, keep your emotions in check and always do your own research.
Also consider dollar cost averaging on more stable tokens with strong use cases. Buying overtime and at different positions to reduce risks relating to position timing.
How to Start Trading Crypto As a Beginner?
All you have to do is learn the basics, pick a reputable cryptocurrency exchange, learn its layout and user interface and then start trading, remembering to apply all the basic tips mentioned in this article.
How Much Money Do I Need to Start Trading Cryptocurrency?
There is really no set minimum amount to begin trading with. The threshold usually only exists in centralised cryptocurrency exchanges where $10-$50 is usually the minimum amount to buy a position. On decentralised platforms however, you can buy tokens for as low as $1 or $2 depending on the platform.
What is the Most Profitable Crypto to Trade?
It depends. The classics like Bitcoin, Ethereum and Solana are usually the choice for crypto traders to invest in mid to long term. Select meme coins like Pepe and DogeCoin are also heavily traded but these are volatile and it is practically impossible to predict with 100% certainty which crypto is going to move in which direction 100% of the time. It all depends on market and sentiment analysis.
What Hours are Best for Day Trading Crypto?
This is usually determined by the duration of the day which liquidity peaks. This falls within the period the major stock markets in the world overlap in activity.
It is usually between 14:00 – 16:00/17:00 GMT
