Beginner Guide: Risk-First Crypto Trading
Most beginners focus on how much they can make. Professionals focus on how much they can lose. Learn to survive.
The Non-negotiables
Before you place your first trade, accept these absolute truths of the market:
- Capital preservation is rule #1: Never trade with money you cannot afford to lose entirely.
- Leverage kills: Using 50x or 100x leverage on volatile assets is gambling, not trading. Stick to spot trading.
- Not your keys, not your coins: Exchanges can halt withdrawals. Self-custody your long-term wealth in hardware wallets.
Beginner Workflow
Do not trade based on emotion or Twitter hype. Follow a mechanical process:
- Analyze the chart: Identify clear support and resistance levels.
- Determine invalidation: Where are you wrong? Place your Stop-Loss there.
- Calculate Position Size: Never risk more than 1% to 2% of your total account equity on a single setup.
- Execute and wait: Let the trade hit your target or your stop loss. Do not micromanage.
Common Mistakes to Avoid
- Revenge trading: Immediately jumping back into the market after a loss to "make it back."
- Overtrading: Feeling the need to be in a position 24/7. Cash is a valid position.
- Ignoring security: Failing to set up 2FA via an authenticator app (never use SMS 2FA due to SIM swap risks).