• About Us
  • Careers
  • Contact
No Result
View All Result
Monday, October 20, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Articles

How To Trade Crypto Responsibly

11 April 2022
in Articles, Opinion, Tutorials
Reading Time: 7 mins read
108 5

Last updated on November 16th, 2022 at 11:58 am

The cryptocurrency market is highly volatile, and trading comes with the risk of incurring losses owing to different reasons. As a crypto trader, it is crucial to practice responsible trading. Astute crypto enthusiasts tend to map out a plan to follow while trading cryptocurrencies to ensure that they attain desired milestones without depleting their resources.

People who are always logical avoid making impulsive decisions about their portfolios.

This article outlines some of the steps that can be taken to cultivate responsible trading ethics.

Steps To Take

It is advisable that when first entering the crypto market, you take the following steps to become a responsible crypto trader.

• Have a Strong Financial Foundation

Jumping into the crypto market with no background knowledge may not be a prudent move. It is advisable to have a solid financial base before purchasing any cryptocurrency or conducting any trade.

The cryptocurrency market is rife with risks, volatility, and unpredictability. Things do not always go as planned, thus having the proper knowledge allows users to know which decisions to make at certain points in time.

To gain a comprehensive understanding of the crypto sector, there are several free and paid courses available on the internet. Youtube, for example, is a free data source that could be useful. Users must sift through the noise to find authentic information.

• Always Research 

Doing due diligence before purchasing any cryptocurrency can often save traders from future problems. At the moment, the crypto market is flooded with thousands of cryptocurrencies, many of which are aggressively attempting to persuade consumers to invest in their projects. Some are genuine and intend to follow through on their objectives, while others are not. When deciding on a crypto project to invest in, it is best to examine its stakeholders, use cases, tokenomics, features, team members, and other relevant factors.

Scanning through project-related information reveals several aspects of the project. Investing in a project because a celebrity or a superstar endorses it is generally a bad idea.

• Only Use Funds That Can Be Lost 

Given the volatility of the crypto market, it is crucial to remember that the chance of crypto value plummeting drastically exists. Depending on market conditions, the value of a token can plummet by 50% or more in a short period of time. As a result, cryptocurrency traders should only invest funds they are willing to lose. Using one’s savings to buy or trade cryptocurrencies may be a bad idea. Selling all of one’s possessions and investing everything in cryptocurrency bears a colossal amount of risk.

• Diversify Your Crypto Portfolio

Every investor, whether in the traditional financial space or the crypto market, understands the importance of investment diversification. Diversifying cryptocurrency holdings mitigates the risks associated with them. Investors tend to diversify their token portfolios by including stable currencies, popular tokens such as Bitcoin and Ethereum, metaverse coins, and DeFi coins.

Diversification helps to ensure portfolios are balanced. If the value of one cryptocurrency declines, there is a chance that the value of other tokens will rise to compensate.

• Decide on the Right Crypto Platform 

As a crypto enthusiast, especially a new one, it is necessary to opt for a crypto exchange that ticks the right boxes. Some new traders prefer trading platforms with beginner-friendly user interfaces and simple settings that make it easy to navigate the terrain.

Some countries have restricted the use of cryptocurrency trading platforms within their borders. For example, Americans cannot use the standard Binance exchange. In addition, KuCoin and OKX are not permitted in the United States.

Only a few crypto exchanges, such as Coinbase and Gemini, are permitted to operate in the United States.

Another thing to consider is if the exchange is decentralized or custodial. Custodial or centralized exchanges hold the crypto holdings of their users. Before a trader can swap tokens on a custodial exchange, they have to relinquish control of their cryptocurrencies to the crypto exchange. This means that if an attack occurs, there is a probability that they may lose their holdings. Popular centralized exchanges include Coinbase, Binance, and Kraken. 

Traders that opt to swap their tokens on a decentralized exchange retain custody of their tokens. Decentralized exchanges could be peer-to-peer trading platforms or Automated Market Makers. Popular decentralized trading platforms include UniSwap, Pancakeswap, and Sushiswap. 

• Know When to Cool Off

The crypto market is volatile, which may require crypto traders to make decisions on the fly. A split-second choice can either make or break a user’s portfolio. Some traders may not know when to take a break and recover in this fast-paced market.

Some exchanges have a cooling-off period feature built into their system that limits the number of trades a customer can make. This feature is available on the Binance Futures trading option. This feature is available to crypto traders on exchanges such as Binance.

If a user activates this feature, they won’t be able to undo it until the designated period elapses. Taking a vacation, especially after a loss, allows traders to strategize and make rational, emotion-free judgments.

• Adopt a Crypto Trading Strategy

Making impulsive decisions can lead to the loss of one’s crypto holdings. Because of the market’s volatility, users may experience FUD (Fear, Uncertainty, and Doubt) or FOMO (Fear of Missing Out) when making crypto trading decisions. Having a plan decreases the likelihood of a trader making decisions based on rumours or unexpected fluctuations in the value of tokens.

Typically, a crypto strategy will include the types of crypto trades that the user prefers, such as spot trading, futures trading, or margin trading.

It should also include the criteria that must be met before a trade can take place, as well as the objective of the trade.

What are the set limits? When to enter and exit positions? The plan may also include the option to utilize limit orders or stop orders.

The strategy should be developed while the trader’s thinking is clear and free of emotional entanglements.

• Follow Security Procedures

With the value attached to cryptocurrencies, scammers are constantly on the lookout for accounts and wallets to drain. For example, typing a tweet with the terms, ‘Trust Wallet’ and ‘Metamask’ on Twitter will evoke comments from several bots pretending to be part of the customer service team of the crypto wallet. 

Typically, they request that users reveal the seed phrases of their wallets in exchange for assistance in resolving any issues that the users may be experiencing. If the targeted users provide their seed phrases, the cryptocurrencies in their wallets are as good as stolen.

Some cryptocurrency wallets and exchange accounts enable users to use security features such as two-factor authentication (2FA). Because of the 2FA feature, it is difficult to access the account if the password is compromised.

Crypto enthusiasts should use unique and strong passwords for all of their crypto accounts. Using the same password for all accounts increases the risk of losing all cryptocurrency assets to hackers.

In Conclusion,

  • Every crypto trader needs to trade responsibly. 
  • Making trading decisions without keeping emotions in check may lead to problems. 
  • Knowing when to cool off and take a break from trading improves the overall trading process for crypto traders. 
  • Conducting due diligence on crypto projects reduces the risk of purchasing scam tokens.

If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram. 

Share66Tweet41Share12
Rose Nnamdi

Rose Nnamdi

Related Posts

Ethereum vs Bitcoin: Innovation vs Stability — Which Strategy Will Win the Next Decade?
Articles

Ethereum vs Bitcoin: Innovation vs Stability — Which Strategy Will Win the Next Decade?

19 October 2025
Should You Add Crypto to Your Retirement Portfolio or Avoid It for Its Volatility?
Articles

Should You Add Crypto to Your Retirement Portfolio or Avoid It for Its Volatility?

19 October 2025
The Ethics of Blockchain Time: Finality, Permanence, and Forgiveness
Articles

The Ethics of Blockchain Time: Finality, Permanence, and Forgiveness

19 October 2025
Why are AI Tokens Surging in 2025?
Articles

Why are AI Tokens Surging in 2025?

19 October 2025

Editors Picks

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

byOlayinka Sodiq
21 July 2025
0

What Is a Rebase Token and How Does It Work?

What Is a Rebase Token and How Does It Work?

byOlajumoke Oyaleke
28 June 2025
0

What Are DeFi Options Vaults, and How Do They Work?

What Are DeFi Options Vaults, and How Do They Work?

byOlajumoke Oyaleke
26 June 2025
0

What Are Teardrop Attacks in Crypto?

byOlajumoke Oyaleke
17 June 2025
0

What Are Fractional NFTs, and How Do They Work?

What Are Fractional NFTs, and How Do They Work?

byBlessing Lisafi
7 February 2024
0

Read More

Chain of Thoughts

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

byOlu Omoyele
27 September 2025
0

...

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

byOlu Omoyele
30 August 2025
0

...

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Markets Update

Your Weekend Crypto Roundup | October 2025 (Week 3)

3 days ago

Crypto in Latin America: Adoption Booms as Media Visibility Falls

6 days ago

Your Weekend Crypto Roundup | October 2025 (Week 2)

1 week ago

Your Weekend Crypto Roundup | October 2025 (Week 1)

2 weeks ago

What $1 Billion in Liquidations Means for Market Stability

3 weeks ago

Why Crypto’s Cross-Chain Future Depends on Regulatory Readiness

3 weeks ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    Billionaire Tim Draper Leads $3.2M Seed Round for Ryder to Replace Seed Phrases With TapSafe Recovery

    bychainwire
    18 October 2025
    0

    Seascape Launches First Tokenized BNB Treasury Strategy on Binance Smart Chain

    bychainwire
    16 October 2025
    0

    xMoney Launches $XMN on Sui, Expands Listings Across Global Exchanges

    bychainwire
    15 October 2025
    0

    ZETA NETWORK GROUP (NASDAQ: ZNB) STRENGTHENS BALANCE SHEET WITH USD 231 MILLION BITCOIN-BACKED INVESTMENT AMID MARKET TURBULENCE

    bychainwire
    15 October 2025
    0

    On-Chain Cultural Assets: Decoding City Protocol’s IP Capital Market

    bychainwire
    14 October 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Markets
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverse
      • Glossary
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00