A Day In The Life Of A Crypto Trader: Profitable Tips & Risk Management Tactics

Markets are never easy to navigate, no matter how skilled or experienced you are as a trader. Crypto trading is even more stressful than other asset classes due to the 24/7 market that never sleeps and significant volatility relative to other trading instruments.

Here is a glimmer into the day in the life of a crypto trader, complete with profitable trading tips and capital-protecting risk management tactics, plus how to get the most out of your trading career.

Crypto Trader Daily Checklist, Strategies, & More

A crypto trader begins their day glancing over a custom-built watchlist to get a read on any major changes that might have occurred overnight that could impact any anticipated or open positions. If limit orders were set, active orders would be the next logical stop before to see what did or didn't fill. They might also check the news via a social media feed like Twitter for faster updates about what's trending. 

With the first few moments of focus on catching up on nighttime volatility, with a sigh of relief or with renewed confidence, the trader will next check price charts. A quick look at candlesticks can be enough to tell more experienced traders a lot about what's going on in the market. For example, wicks suggest support or resistance has been found, while large candle bodies suggest there was a lot of force behind the movement. 

Depending on the type of trader they are, they might check a variety of different timeframes. Longer-term swing traders might examine the monthly, weekly, and daily, while day traders will watch timeframes from the daily down to the hourly and even the minute-by-minute tick. Combining candlestick chart patterns with signals from technical indicators for confirmation can help to ensure any trades taken are profitable.

Smart traders watch for a breakout on high volume and often play it patiently and wait for a retest of the breakout trend line before taking a trade. Stop losses get placed according to proximity to support or resistance, while take profit orders are placed in advance to ensure paper gains are locked in when the target is met.

In today's macro conditions, crypto trading has additional demands that must be met in order to survive. For example, buy-and-hold strategies are out the window during a crypto winter, replaced with more flexible long and short positions on leverage. The most elite traders know how to get hedged during volatility and build a risk-averse portfolio of uncorrelated assets.

Before bed, the same trader will re-review the market and move stop losses accordingly in case volatility hits while they're fast asleep. Overnight hours are often the time when liquidity is the thinnest and volume is low – the perfect time for whales to play games and stop out traders while they rest. When these traders wake up, they do it all over again, with no breaks – because the crypto market even trades on the weekends.

PrimeXBT Mobile App: The Perfect Trader Companion

Clearly, being a crypto trader is more challenging than influencers might try to make it look. It requires patience, dedication, skill, training, and complete control over one's emotions. There is no room for FOMO or fear, only risk versus reward. Traders can make their lives a little bit easier by picking up the perfect trader's companion app – the PrimeXBT mobile app for Android and iOS devices.

From the moment a trader opens their eyes first thing in the morning, they have access to the hottest global markets at the tips of their fingers. The PrimeXBT app lets anyone build a custom watch list of assets like gold, Bitcoin, oil, the S&P 500, and many more. More than 100 different trading instruments are available under one roof. With access to a wide variety of global markets, it's easier to build a portfolio of uncorrelated assets.

PrimeXBT also provides built-in technical analysis software, so there is no need to juggle several apps or platforms just to get a read on the market. Chart where you trade for added convenience. The tools include all of the most popular technical indicators, such as the RSI, Stochastic, Bollinger Bands, Parabolic SAR, and others. Draw support and resistance, trend lines, Fibonacci retracement, or get creative.

If you need help putting all these powerful trading tools to use, PrimeXBT also offers an educational website called the PrimeXBT Trading Academy, complete with video tutorials, trading tips, and market updates. All content is directed by expert trader Dirk Hartig with more than 20 years of trading under his belt. The free educational materials are some of the best investments you can make.

PrimeXBT Contests offers traders a risk-free and no-stress break from global markets, with weekly trading competitions using virtual funds. With no loss of personal funds, traders can have fun, compete for prizes, or use the simulated market environment for backtesting trading strategies and stepping up their game.

When it is time to get some sleep, traders can rest assured that their funds are secure and entrusted in an award-winning margin trading platform. Recently, PrimeXBT was awarded the Most Trusted Crypto-Asset Trading Platform by Crypto Expo Dubai. The platform utilizes bank-grade security and a strict cold storage process for protecting customer funds.

Make Life As A Trader More Manageable With PrimeXBT

If you are a trader, and this sounds a lot like your life – or if this is the life you aspire to have as a trader – then consider PrimeXBT as the solution to staying on top of global crypto markets that are always on, no matter if its a holiday, night, or weekend. The top-notch trading tools let traders of any skill level stay profitable and protect capital. 

The PrimeXBT app is completely free to download from the Google Play Store for Android and Apple App Store for iOS users. Convenience, safety, and control are just a few taps or clicks away with the PrimeXBT trading platform.

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This content contains sponsored advertising content and is for informational purposes only and not intended to be investing advice.