With what happened in 2022, many crypto traders lost interest as they saw their capital being washed away from the crypto market due to the bear market. 

However, despite the turmoil and losses experienced in the market, many crypto traders still made huge amounts of money from trading cryptocurrencies. The difference between those who were successful and those who weren’t was the skills they possessed. 

This article gives you a comprehensive guide to the necessary skills one needs to level up and become a successful crypto trader in 2023.

What makes a successful Trader? 

The major thing that differentiates a successful trader from the average trader is not the amount of time they spend in the market but their skills. 

Just like how certain degrees and practicals help a doctor become a reliable surgeon, the same applies to crypto trading. There are certain skills one has to have to become very successful with trading. 

Skills help a crypto trader navigate and make profits even when there’s a bearish trend or fear in the market. So to become very successful while trading cryptocurrencies, one must possess the necessary skills by 2023. 

Top 5 Skills To Have As A Trader 

Below are the top skills that will help an aspiring crypto trader succeed in 2023. 

Research

To become a successful crypto trader in 2023, one must have the soft skill of conducting extensive research before trading. Before trading, there is a lot of information that one has to learn and be aware of. 

Failure to conduct research prior to a crypto trade could result in a massive loss in the market. Both technical analysis and research about the macro environment have to be done before a crypto trade. Other factors, such as the Greed and Fear index, must be considered before crypto trading starts. 

Access to and full knowledge of such information give a crypto trader better control of the crypto market. However, a lack of information such as this will make one feel lost and helpless, which in turn leads to a loss of funds on the market. Without Extensive research, a crypto trader won’t know when or how best to enter or exit a trade. 

Apart from learning about the obvious signs of the crypto market, good market research also lets one know the amount of money they can afford to lose in the current market.

Source: Abhijit Paul

Develop a Trading Strategy

Going to the crypto market without a trading strategy is like going to an examination without proper preparation. A trading strategy offers answers to the tests ahead and helps a crypto trader navigate challenges in the market. 

Apart from navigating the market, a crypto trading strategy contains different methods a trader plans to use to make money on the crypto market. The crypto market is very complex, and depending on only one method to make money has limitations. 

For different scenarios, a crypto trading plan already has the next steps one should take on the market. For instance, a crypto trading strategy might influence a trader to switch to arbitrary trading if they are having difficulties with day trading. 

Different trading methods are part of a crypto trading strategy, which also contains steps to conduct market research. A crypto trading plan should have instructions on the different things to look out for whenever a trader does research. 

Risk management

If you lack risk management skills, it will be extremely difficult for you to make progress in the crypto market in 2023. Risk management is the one skill that will set you apart from other traders, pay attention to it.

The first step to take while managing risk in crypto trading is setting up a trading plan, which has already been discussed above. The next step is investing what you can afford to lose. 

The crypto market is characterized by volatility, which changes the price of cryptocurrencies within minutes. Therefore, a trader should make a list of what they can afford to lose or gain in the crypto market. 

Source: MakeUseOf

In practicing risk management, one should also control how one uses leverage while trading. Leveraging means using borrowed capital to trade in the crypto market, and while this approach can increase profits, losses can also be massive.

Staying Relevant and up to date 

The crypto market is ever-changing, so you either stay relevant and up-to-date or get punished for using outdated methods in the crypto market. 

New technologies are coming out for crypto trading and other investments in the crypto industry, such as copy trading and auto trading. One needs to keep up with the trend and learn how to use these methods and strategies to continue making money in the crypto market. 

To stay relevant and up to date, one must know the latest signal or market trend, which can help one jump into the market and make profits quickly. You can also begin sharing your trading signals on BingX for new traders to copy in order to earn and assist them in making more profits this year. 

Practice Constantly 

If there’s anything that can help you sharpen your skills in the crypto market, it is by constantly practicing in it. Those who are very successful in the crypto market learned by navigating the market for a long time. 

While trading, a crypto trader can either experience profit or loss, and each scenario can be used to learn many things about the market. When a crypto trader suffers a loss, they learn how to avoid such a loss next time, and when they make a profit, they also learn how to keep making such a profit. 

This is why practicing constantly is still recommended if you want to get successful while trading cryptocurrencies in 2023.

Level Up Your Crypto Trading With BingX

2023 can be a good trading year for you in the crypto market. It sure will be a survival of the fittest, and only those with the necessary skills will scale through the year on profits. 

Some skills that will help traders increase profit within the year are risk management, research, creating a trading strategy, staying updated, and practicing constantly. 

BingX is the leading social trading exchange in the crypto industry. It offers derivatives and spot trading services to users across the globe in over 100 countries; it has operational licenses, including Canada, Hong Kong, the United States, Australia, and Taiwan.

Join our BingX Community to earn and learn more about crypto, copy trading and strategies!

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