1.Decide Between Perpetual vs Options Trading

Determine how much leverage you have first. If the market is on a down trend, and you believe it will turn around, with perpetual trading you will have to pay all the way through the decline, catching a falling knife, as there is no protection from liquidation. If the price pattern keeps going up and down for an extended period of time, oftentimes as things go against your market perspective, you will keep having to put more money in. With options, variation doesn't matter as long as it breaks out before expiration and you only have to pay once.

2.Utilize Diamond Hands Strategy

Decide how much risk you can take if you were to put your money towards an investment for a year. How will you split it with the possibility it can go down more? If you're worried the market will go down – take 20% of your portfolio and if the uptrend is established with a moving average you can put more in.

3.Know When to Cut Your Losses

With BTC (CRYPTO: BTC), you just want to hold the asset as it has a great long term value, we’re seeing it used to buy oil and other commodities and there is more room for growth. You don't want to sell blue chips. Unless another chain comes in that is a true Ethereum (CRYPTO: ETH) killer. If you start to see relative to the whole market, that the order changes in the market cap, you can start questioning the position of the blue chips.

If you wanted to use a more technical way,  look at a holding period over the last 30 days to check what has been the largest decline in bitcoin? E.g. 20%. Cumulative return – how much of a probability that cumulative rem goes down? Historically when we've seen this decline, it will experience a bear run for longer. More technical traders will have longer moving average, 200 days for example.

4.Diversify Your Risk with Blue Chips

As someone starting out with cryptocurrency trading, diversification with blue chips can be a good strategy. Although altcoin and more recently meme coins can give you a very high profit, they are also very risky and can rekt your portfolio. However, you can never go wrong with blue chips like BTC and ETH. They put your portfolio at a lower risk of liquidation and are also profitable in the long run.

5.Practice Smart Trading 

It is generally good advice that once you make a substantial profit from your trade, you should sell your initial investment and keep your trade position open with your profit. This guarantees that you continue trading without risking your initial capital. This advice of taking profits on the way up will naturally produce FOMO but it is especially important for such risky assets – take the profits when you can and do not get greedy and if you must get greedy, at least get back your initial capital.