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is personal is in line with a (correct) Technical Analysis(TA) fits your risk profileWe're sure there are more characteristics to invent,but it may be clear that a good trading strategytoday, may literally be worthless tomorrow. It mayalso be clear that the trading strategy which worksfantastic for the first person, but this tradingstrategy won't work out for someone else, becauseyou is a completely different kind of trader.That's why it's also risky to invest (a lot of) moneyfor a trading strategy of someone else, becausethis strategy doesn't take into account your ownsituation and preferences. You can find countlessvideos of (supposedly) successful daytraders, forextraders and crypto traders, who are sharing theirultimate trading strategy with you on YouTube.22

Sometimes for a lot of money, sometimes for free.Sometimes as an expert, sometimes as a hobby.Free advice is not necessarily worse thanexpensive advice.But do you want the best trading strategy whichsuits you so well and takes into account everythingyou want to put into crypto trading and achieve?Then you'll have to put in the time and energyyourself. And quite honestly: achieving success onsomething you've built and invented yourself is thebest feeling in the world. But what then areimportant elements in a successful tradingstrategy?1.2 Key elements of a successful trading strategyOur crypto experts generally apply these 6 keyelements which in our opinion, fit within a23

successful trading strategy. They provide a solidfoundation, they are flexible and they guarantee adynamic character so that the trading strategy isand remains sustainable. We'll list them downbelow and then briefly explain them.1. Trading rules2. Risk Management3. Trading Timeframes4. Technical Analysis (TA)5. Back testing6. Reinventing yourself#1: Trading rulesTrading rules are rules that you impose on yourself.A successful crypto trading strategy stands or fallswith the discipline you subsequently exercisewhether or not you keep yourself to those rules. Ifyou notice that you're not keeping to your ownrules, you'll run an increased risk of getting24

surprises and risks which could turn out to be bad.With trading rules you can think of the followingrules for instance:I'm never allowed to have more than X% of my capitalin open positions.I lower that percentage by X% after 3 losing trades in arow.I may only enter into a trade if it has been noted in mylogbook.I use a stop loss of maximum X% of my purchase price.Depending on your risk profile (calm down, just tenmore seconds of patience), you can fill in a numberat the place of the X which corresponds with thekind of trader you are.The greater the risk you dare to take, the greateryour profits or losses may turn out to be. However,it is wise not to let them exceed 3% in the case ofthe first 2 points.25

#2: Risk ManagementRisk management (or your risk profile) is, of allthese elements, most in line with the personal levelof your trading strategy.One person is enormously risk-averse, the otherperson on the contrary loves the thrill and likes toexplore the limits. As a rule of thumb applies: themore risk you take, the bigger the profits or thebigger the losses could be. Conversely, the lessrisk you take, the smaller the profits or losses canbe.Do you invest only with a certain percentage ofyour savings? Or with all your savings? Or with allthe money you own at all? Or do you even take outan extra mortgage on your house and then starttrading with every cent you own that representsvalue?26

As you'll understand, the risk you're taking in eachof the above mentioned situations varies a lot.With every trade you should ask yourself thequestion: What will happen if I completely lose thisdeposit? Can I miss this money? What would I do inthat case?#3: Trading TimeframesIt goes without saying that a strategy also has to fitin with the kind of trader you are. We brieflydistinguish three different types of traders:Day trader (several trades per day)Swing trader (trades which are open for days, weeks ormonths)Investor (long term trader / HODL'er)Whereas a day trader is constantly looking at thenumbers to spot every subtle change in price andopportunity or threat, an investor will mainly spend27

a lot of time looking for that ultimate long-termopportunity that looks promising and then leave hisinvestment alone for a longer period. A Swingtrader is a bit in between here.A day trader doesn't take more or less risk than aninvestor, it's just a form that is much more intensive,but because of that can also yield more. Sometraders also choose a dual trading strategy, whichis aimed at an investor component (for exampleHODL on Bitcoin) and a day or swing tradercomponent in which there is active trading (onAltcoins for example).So it is important to determine for yourself whattype of trader you are and what timeframes areimportant for you to follow.For a day trader for instance these timeframes arethe 4 hours, the 1 hour and the 15 minutes,28

whereas for a swing trader these timeframes arethe 1 month, 1 week and 1 day. But also, differentday traders can use different timeframes. Evenhere it is again very personal.#4: Technical Analysis (TA)Element number four has a strong connection withthe first one, the trading rules. In this element you'llmainly determine on the basis of which indicators,candlesticks, patterns, et cetera you're going totake or sell your positions.Questions which you'll ask yourself fall into thecategories: Which indicators must give a green lightbefore I may take a position? Which indicators should give a negativesignal before I'm going to sell a position? Which candlesticks are decisive for me indetermining momentum? Which crypto will I invest in, or will Ideliberately ignore?29

Technical analysis is also strongly linked to the fifthelement. Or maybe the fifth element is just part oftechnical analysis.#5: Back testingBack testing is a technique or activity in which youcan test how those variables would have performedin the past based on variables you set yourself.Even though past results are no guarantee for thefuture, it does add value to determine whether youare thinking in the right direction with certain tradingrules.Backtesting is therefore an excellent way ofdesigning, optimizing or throwing away a conceivedcrypto trading strategy.#6: Reinventing yourself30

Once you have found your ultimate trading strategywith elements 1 through 5, it's time to reap themaximum benefits from it. So employ this strategy(within your risk profile) as thick as possible in orderto maximize your profits. As it happens before youknow it, your strategy has been outdated and youshould start all over again.That's why there is also element number 6. Astrategy that didn't work in the past may suddenlyturn out to be a gold mine in the future. A strategythat works brilliantly for your neighbor doesn't haveto work for you. Always remain critical of marketdevelopments and their effect on your strategy. Anddare to sharpen your strategy in between, wherepossible.The best metaphor we can use for this is themetaphor of the lumberjack. You can cut manymore trees as a lumberjack if you don't just keep31

chopping trees all day, but if you take a breakevery now relax so you can stay sharp.How to choose the right trading strategy?In case you were hoping for an 'easy trick' withwhich you could become shamelessly rich, thenunfortunately we have bad news for you. There isno easy trick or everyone would do it. Of course,you could always unexpectedly stumble upon ahuge windfall or a fortunate market development,but that would be more luck than wisdom.A proper crypto trading strategy is tailor-made, andit is closely connected to your personal situation.That's why you can't always use the 'perfect'trading strategies of other traders. Nevertheless,they're not completely useless or unusable.Especially use them to get inspired. To see howothers have developed their strategy andsubsequently implement it in practice. Learn from32

their successes and mistakes. And use them all inyour own trading strategy.Trial and error. Put something on paper, start it,adjust it, test it, adjust it again, keep optimizing andperfecting it. That's how you'll come to the righttrading strategy which suits you.Advantages and disadvantages of working withtrading strategiesWhere we normally like to opt for a summing up ofa number of pros and cons via several bullet points,today we'll keep it short and simple. Of course,there are advantages to trading strategies,otherwise we would never have started writing thisbook, but there are also disadvantages. We'll brieflysummarize them for you.AdvantagesThe biggest advantage of trading strategies is ofcourse their structure. You know when you have to33

do something, why you're doing it and what's instore for you. It gives you focus and a direction. Itensures that your rational brain does the thinkinginstead of your emotions. In addition, with a tradinglog you build up a history.You have a foundation in which you keep track ofwhich trades have turned out to be successful foryou, or not. And such a document is worth gold tofall back on at times when you still have doubts.DisadvantagesComing up with and maintaining a trading strategytakes quite some time.Apart from that it could happen - certainly in thebeginning - that you are confronted with a phasewhich we call "consciously incompetent". In thisphase you'll actually find out how much there is stillwhat you don't know.34

But rest assured, this phase too will pass (soonenough). And based on new experiences you'll beable to fine tune your own crypto trading strategyand make it even better.3. Cryptocurrency investment strategiesA good strategy to apply for holding Bitcoin or othercryptocurrencies is to only invest money that you donot need on the short term. Bitcoin for example, inits current state is still extremely volatile, and if youfollow its course closely, and expecting only growth,you might be in for an emotional rollercoaster.2. 5 steps for a successful Crypto InvestmentStrategyStep 1: Decide how much money you want toinvestThe first step to a successful cryptocurrencyinvestment is always to determine the investment35

amount. Only when you know how much you wanttoinvestincryptocurrency,youcanstartdeveloping an appropriate strategy for this. Forexample, if you only want to invest a small amount,then it may pay to choose the somewhat cheaperaltcoins that you have done enough research on. Itis crucial to understand what value the coin haswithin the financial system.If you have more budget, then investing in Bitcoins,for example, could be an option. Therefore, alwaysdetermine the investment amount in advance andmake sure you don't deviate from it later on. It canbe very tempting to invest more and more savingsin cryptocurrency.Although in some cases this can be smart (forexample when you don't need the savings and yousee nice investment opportunities), it is stillimportant to keep sufficient savings in normal36

currency. This way, in case of an emergency, y to be able to finance necessary(unexpected) expenses.Step 2: Determine your appropriate investmentstrategyWithin investing in cryptocurrency, there are manydifferent strategies imaginable. For example, youcan choose to invest in the long term or in the shortterm. Which strategy suits you best dependsentirely on your personal situation. Possible factorsthat may influence the strategy choice are, forexample, how long you want to invest the money,how much time you want to invest yourself (daily orweekly) in your cryptocurrency and how muchknowledge you already have about crypto coins.There are generally two strategies you can followwhen investing in cryptocurrency. The first strategyis to hold coins for a longer period of time in order37

to maximize profits. The second strategy is socalled day trading, where you buy crypto coins withthe aim of selling them again in the short term.There are generally two strategies you can followwhen investing in cryptocurrency. The first strategyis to hold coins for a longer period of time in orderto maximize profits. (long-term investment) Thesecond strategy is so-called day trading, where youbuy crypto coins with the aim of selling them againin the short term.Set your goalsTrading stocks or cryptocurrencies is a big gamebetween "Bulls" (buyers) and "Bears" (sellers). Onegroup is betting that the price will go down while atthe same time the other group is betting that theprice will go up. Within Crypto Trading, you canroughly set two goals:38

1. Collecting more Bitcoin: By trading Altcoinsagainst Bitcoins, you ensure that you getmore and more Bitcoin in your possession.People who choose this option trust thatBitcoin is going to become much morevaluable in the long run, so they want to setas much Bitcoin as possible.2. Collecting more Fiat currencies (such asEuros, Dollars and more): By trading Bitcoinor Altcoins against Euros, for example, youcan ensure that you own more and moreFiat. This group of people use Bitcoin likeany other tradable unit. So, they do notbelieve in the underlying value, but mainlyfind the volatility of the coin interesting.Long term or Short Term?The basics of trading and investing are easy: Buycryptocurrencies when your price is low and sell39

them when the price is high. This is also called"long" in trading terms.You can also do it exactly the other way around,sell your cryptocurrencies when the prices are highand buy back when the price has dropped. This isalso called "Short" in trading terms.Anyone who starts trading will basically always takea "long" position. You buy Crypto and sell it whenthe price is higher. Short positions are mainly usedby experienced traders who also use ers, as it can also lead to you losing yourmoney very quickly.Step 3: Find the coins you want to invest inChoosing interesting cryptocurrency, especially inthe beginning, is probably one of the most difficultsteps. When is it interesting to invest in a currency?40

When should I definitely not invest in a currency? Ifyou knew the answers to these questions, youwould be a millionaire within hours. Unfortunately,no one knows the answer to these questions 100%for sure, so in a way it always remains a gamble.but thanks to this book you have gained moreinsight into why Bitcoin can be a safe investment inthe long run and how you can lose your moneyquickly by getting into a pump and dump schemewithout prior knowledge.So, by gaining enough knowledge about the coinsyou want to invest in, you can indeed make a goodprediction. Of course, it's always smart to spreadopportunities. Therefore, never invest in just onetype of cryptocurrency, but spread your deposit atleast over 2 to 3 different coins. Of course, it is alsotrue that gaining knowledge remains an ongoingprocess. It is therefore not possible to say at a41

certain point that you have 'sufficient knowledge' ofyour coins and then not do any further research.Step 4: The right momentIf you have been reading up on specific coins for awhile, you probably already have an idea of theideal purchase moment for yourself. To determinethe ideal purchase moment, it is in any case wise tocarefully analyze the prices of recent times. Oftenthere is a clear pattern to be seen in the pricedevelopments of specific currencies. In addition, itis also important to determine the moment of sale.When do you finally sell the coins again? Themoment of sale is different for everyone. It dependsentirely on the sales value with which you would besatisfied. Although the moment of sale is differentfor everyone, it is definitely wise to determine inadvance at what price value you plan to sell yourcryptocurrency. Of course, no one will ultimately42

force you to actually sell it for that value, but it doesgive you something to hold on to in the uncertainworld of cryptocurrency.Step 5: Ask for HelpEspecially when you are just starting to invest incryptocurrency, there are many things you won'tknow exactly yet. Although there is an enormousamount of knowledge to be found on the Internet, itcan also definitely pay off to ask for help from theexperts every now and then.More and more financial advisors can provideexcellent advice on investing in cryptocurrency. Ofcourse, it is important to be critical when choosing afinancial advisor. Costs are often high, but the rightfinancial advisors who specialize in cryptocurrencycost nothing in practice. They provide far moreprofit than the cost of the advice you are spending.43

At Stellar Moon Publishing, we work with a numberof advisors who can provide you with appropriateadvice to develop a profitable strategy for yourcrypto investments. Check out the contact optionsat the back of the book and let us know if you needhelp with your approach.44

Essential tips for cryptocurrency success45

The rules of safety are written in blood. This is astatement that every soldier who serves his or hercountry is familiar with.Although we are not discussing the risk to humanlife here, it is extremely inconvenient to lose yourvaluable Bitcoins due to mistakes made whileyou’re trading and investing into crypto currencies.Give each transaction a reason.Only enter a trading position; a price at which youwant to sell or buy your coin.If you know why you want to sell or buy it andtherefore have a clear strategy in mind.Not all Crypto Traders can make a profit becausethis is a zero-sum game (where you make a profit,someone else on the other side loses).46

Large coin holders (also called Whales in the cryptoworld) drive the alt & Bitcoin market - yes, the same"whales" responsible for

an insight into the best trading tips and strategies for 2021. This book has been written by a group of cryptocurrency experts. With this book, we strive to provide you with the best curated information