Cryptocurrency trading doesn’t need to be overly complicated. In fact, simplicity often wins in volatile markets. If you follow a disciplined strategy and stick to a clear set of rules, you can gradually grow your capital without taking on unnecessary risk. Below are 10 essential trading principles I personally follow — time-tested and practical, especially for those navigating the crypto space on Binance or any other exchange.
1. Watch the Strong Coins That Drop for 9 Days
If a strong-performing coin sees a continuous drop for 9 straight days at a high level, don’t ignore it. It might be entering a key reversal zone. Always follow up promptly — these are often high-reward opportunities in disguise.
2. Reduce Positions After Two Consecutive Green Days
If a coin has risen for two consecutive days, it’s often a good time to take profits or reduce your position. Don’t get greedy — crypto moves fast, and protecting gains is just as important as making them.
3. Be Cautious After a 7%+ Rise
If a coin spikes more than 7% in a day, expect a possible pullback the next day. Stay alert, don’t rush to enter, and look for confirmation before making a move.
4. Only Enter After the Bull Run Cools Off
Avoid entering at the peak. The best entries come after a rally has cooled off and the price starts consolidating. Patience here is your edge.
5. Low Volatility? Watch Closely
If a coin shows three days of low volatility, observe it for three more days. If there’s still no clear breakout or movement, it’s time to reallocate to better-performing assets.
6. Don’t Hold What Can’t Hold Its Value
If a cryptocurrency fails to reclaim the previous day’s cost by the next day, it’s a red flag. Exit quickly and avoid holding onto weakness.
7. Follow the Pattern: 3 → 5 → 7
In strong market phases, gainers tend to cluster. If you see three coins on the gainers list, expect five, and then maybe seven. If a coin has two strong consecutive days, consider buying a dip, but aim to exit by day five, which is often a local top.
8. Volume is Everything
Volume is the heartbeat of the market. Watch it closely:
When price breaks out at low levels with increasing volume, it’s usually a strong signal.
If price is high and volume spikes but price stalls — exit immediately.
9. Trade Only the Uptrending Coins
Stick to coins with an upward trend — it maximizes profits and saves time.
A 3-day MA turning up = short-term strength.
A 30-day MA rising = medium-term trend.
An 80-day MA climbing = major upward trend.
A 120-day MA turning upward = long-term bull run.
10. Small Capital is Not a Barrier
Even with limited capital, crypto markets offer real opportunities. What matters most is:
Following a clear strategy
Staying rational
Avoiding FOMO
And most importantly: never using borrowed money
Finally, a word of caution — don’t trade crypto full-time unless you’re highly experienced and emotionally resilient. And never, ever trade with borrowed funds. The market can be ruthless, and protecting your mental and financial health must always come first.