16 Crypto Day Trading Rules to Follow

What are the crypto day trading rules to follow? The main objective of crypto day trading is to watch out for those potential trading opportunities that will provide you with a high return and allow you to make the most of it.

You can make a quick profit in crypto day trading if it suits your style and personality but you may not always be successful.

Generally speaking, crypto day trading is not an easy feat mainly due to the volatile nature of the crypto coins as well as the market itself.

Yes, it is true that just like any day trader you will experience some hiccups and slumps in the process, which are inevitable.

Therefore, if you are not cautious in your endeavor, you may even see your long position slowly glide down into oblivion.

However, there will be nothing to worry about your crypto account and results if you follow the rules of day trading to the last word.

This will prevent those miniscule losses from becoming bigger and cut through your account because these rules will save you from incurring those losses in the first place.

16 Crypto Day Trading Rules to Follow

Crypto Day Trading Rules to Follow

No matter how well you have done your homework and how great an idea you have mapped out, until and unless you follow the rules that you ought to, it will be really difficult for you to get the results as you expected while day trading your crypto assets.

If you do not have your own rules, here are the proven ones that will help you reach your crypto day trading goals.

These rules and principles in this article will guide you all through the way to achieve your trading objectives as well as help you to overcome those situations with more confidence that you will see over and over again all through.

1. Create Conviction

In order to be a better and more successful crypto day trader, you will need to create conviction.

And, this needs much more than creating your trading plan. You should think about your trading objectives and balance the two to find the right trading pattern.

You may follow others’ ideas but if in case that fails you will be inclined to blame the other person and avoid your responsibility.

Therefore, before creating your plan you should make sure that you:

  • Do your homework
  • Do proper analysis on your own and
  • Develop a thought process which is exclusively your own.

Now you should go ahead with creating your crypto day trading plan and execute it.

2. Build a Plan and Follow It

It goes without saying that you should day trade crypto with a proper plan. When you know the trading pattern you want to follow, you will be able to:

  • Cut down on your mistakes
  • Be resilient during difficult situations
  • Be emotionally charged
  • Be rational irrespective of the market conditions and
  • Be sure and confident.
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It will not only help you to go ahead with your endeavor but will also help you to know where you went wrong, if at all, as well as the areas in which you did well. This will eventually help you to hone your trading skills.

3. Accept Responsibility

Crypto day trading results may not always be the same or as expected, as said earlier.

Good or bad, you should accept responsibility for the same. Ideally, this should be the case because the account is yours and whatever you gain or lose, it is your responsibility.

This is an important rule to follow because all trading results are nothing but information regarding your trading decisions made earlier.

This information will be valuable to you if only you accept responsibility for it. This will make you a much better decision-maker.

4. Follow Trading Tips Cautiously

If you want to follow some crypto trading tips given by others, you may, but make sure that you do not follow them blindly.

Be rational and judgmental and think why exactly someone would be so interested to ‘help’ you out so selflessly.

Make sure that you do not rely on their way of thinking and judgment completely, if there is anything at all behind those recommendations.

On the contrary, there is a high chance of an underlying motivation because every free advice has it.

Therefore, before you choose to follow someone else’s tips, ask these questions:

  • Are they asking quietly to buy a specific crypto coin?
  • Are they long?
  • Are they using you as their own security blanket by being in it and following their path?
  • Do they expect anything from you in return, and, if so, what is it?
  • Are they looking for notoriety?
  • Do they want to put you at risk or really want to help you out?

Always make it a point to know what you would do next if you follow them and something goes wrong.

This is because when and if you lose, you will not find them with an answer to it or to share your losses!

5. Do Not Trade to Pay

When you day trade your crypto, there has to be a clear objective followed by rational decisions.

But, if that objective is to pay for something, the rationality behind your decisions is gone.

It will no longer be a process but more of an ego or trying to make a statement and it is all based on your emotions and neediness.

This is where and why things go wrong and you start losing, thereby killing the results.

6. Make Adjustments

You should also be flexible with yourself as well as your crypto day trading plan so that you can make adjustments to it during any adverse situations, personal or in the market.

If you cannot make adjustments as and when required, it can be disruptive.

If you can scale your crypto activities back and forth depending on the prevailing conditions you will be able to remain on the right track, always and ever.

7. Avoid Bitcoin FOMO

This is an absolute no-no in crypto day trading. Yes, Fear Of Missing Out or FOMO may happen but it is just an idea that you will fail to execute.

Always stick to your trading strategy so that you do not chase anything moving that you typically should not.

The best way to overcome FOMO is to:

  • Get down to the basics
  • Reconsider you analysis results and
  • Decide on your next step.
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Remember, someone may need to buy the top or sell the bottom but that someone does not necessarily need to be you.

8. Reduce Mental Stress

Sometimes crypto day trading may really get hard and you may start making mistakes and even miss out on the big opportunities.

This happens due to indecision which will result in a confused state of mind when you will be unable to judge the market conditions.

In such a situation you should try and reduce mental stress. The best way to do this is to make small trades, whether you buy or sell.

This will free up your mind, relieve the pressure, reinstate internal order, and put you back into the rational mode.

9. Do Not Invest

Remember, it is all about crypto day trading and not crypto investment.

Therefore, do not let your trade become an investment even if the positions you hold do not turn in your favor as you expected.

When trading becomes an investment, it will create an internal conflict.

Always follow your plan and sell it when it meets stop loss but never ‘hold’ your coins.

This will save you from being invested emotionally in the position and become needy. This will result in a loss, eventually.

Therefore, when you feel that you have started to justify ‘holding’ your crypto, focus on your trading process and do some more research.

10. Do Not Add To the Losses

If you incur a loss, do not add to it and magnify your mistake by turning to things like “Dollar Cost Averaging’ because it will only make you feel better and do no good to your trade.

DCA is a good option as an entry strategy but not when your stop loss goes wrong and you intend to ‘average down.’

This will not only compound your damage but will also cause emotional burden unnecessarily and amplify your stress level.

11. Market Ups and Downs

The crypto market is volatile and there will be ups and downs but do not let these affect your trade by being extremely emotional.

Do not consider these situations as extremes because it will adversely affect your trading results eventually and it will make you most vulnerable in these extreme conditions.

When the market is strong and bullish you will make more money and when you do so you will be confident.

The size of your position will expand but you will tend to do less research which will make your risk management sloppy.

When the market is down, on the other hand, you will reduce your trading size and activity.

Depression may also creep in causing negative behaviors instead of being bold.

Things will never be that good or bad if you consider your trading plan and interpret the market conditions regularly to manage your trades without putting your heart instead of your brain into it which will result in emotional stress.

12. Avoid Tops and Bottoms

You should avoid tops and bottoms during crypto day trade because that will, once again, create a need.

Since this need will not be consistent due to the volatility of the crypto assets, your trading results are bound to suffer.

Remember, your trades will become excessively expensive when you try to buy bottoms and sell tops.

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Instead, follow your trading plan and make the best while being in the middle of things.

13. Know When to Sell

You should know when exactly the right time to sell is. Typically, you should sell when you can and not when you have to.

If the market is liquid, slippage will be low since the spreads are tight. You can move or add large positions easily when the time is good.

However, when trouble comes, liquidity will dry up and the spreads will widen.

In these times it will be hazardous to make even a small sale.

Therefore, always consider the conditions of the changing market and the size of your position before selling.

14. Ignore Stories

You will come across a lot of stories about crypto day trading on the internet.

These are quite infectious, and, at the same time, are quite dangerous when you try to emulate them.

More often than not, these stories are partially true and most of those that are told by some anonymous avatars are completely false.

If you follow them it can be very emotionally draining, and, being fictional stories, these will hinder your long term development plans.

Avoid them to avoid such stresses and, even better, complain about your losses loudly so that you chuck your competition.

Follow your own process and game instead.

15. Resource Allocation

Never use your resources extravagantly while crypto day trading.

Do not use more than that is required in one trade especially, though the entire thing is contextual.

Allocate your resources based on the available probability. This means, the higher the probability, the higher should be the resource allocation.

Also, consider your risk appetite and how exactly you plan to manage the risks inherent to the trade.

Remember, there is no specific formula or a fixed percentage of resources to use in crypto day trade.

Still, you should not allocate an amount that you cannot afford to lose because if you lose today, you cannot play tomorrow.

16. Make Changes When You Underperform

If you really want to enhance your crypto day trading results, make some changes in your trading methods to put you back on the track when you underperform, which is quite a normal occurrence.

However, ensure that these changes are small. This is because big changes or starting all over from scratch will create stress and cause emotional chaos.

You will then not be able to deduce what the exact problem in your trading approach was in the first place.

Also, make one change at a time. This will allow you to work efficiently and productively even through difficult times.


Crypto day trading is a lucrative way to increase your crypto assets instead of simply holding them, a mentality which is crippling the community.

With these rules now known to you, it will be a lot easier to succeed in this environment.