It was early 2023 when I started crypto trading. I have been trading in the stock market and commodities market for the past 10 years or more. In 2022-2023, the crypto market started booming, and I thought I would try this new trading asset too. I have always been enthusiastic about all new assets and trading products, and this one was definitely appealing to me.
Now that the year 2025 is ending and over two years have passed since I started trading cryptos, I can definitely say that this asset class has a lot of potential and there are many key differences of crypto trading from the equity market that traders should know.
Firstly, there is a bigger time frame for trading as the crypto market is open 24×7 (though volatility is very low during weekends). So, I had to adjust my strategies accordingly so that I am not stuck to the screen all the time. Here are five of the top things that I learned after trading cryptos for over two years using Indian crypto trading platforms:
1) Use 5-10x leverage: Although most crypto trading platforms will give you a leverage of 100-200x, it’s difficult not to fall for the 100x leverage in crypto trading. Yet, it is essential that you use lower leverage. Otherwise, a movement of just 10% and you’ll easily get liquidated. And trust me, a movement of 10-15% is not unusual in crypto trading. Using lower leverage gives me the option to play around with positions at my will and avoid being liquidated by the market.
2) Few Trades, Bigger Bets: As the crypto market is open 24×7, it’s easy to start overtrading. You’ll think it’s just another trade. Yet, I found myself trading even at 2 AM in the night and 6 AM in the morning. You have to learn that more trades do not mean more profits. Moreover, overtrading results in more losses and brokerage fees. In cryptos, when the odds are high, I take bigger bets. But I always know my risk appetite, as no trade can be guaranteed to be correct.
3) Nothing is Certain: As I mentioned earlier, nothing is certain in the crypto market. In equities, companies can have good quarterly results, a good order book, and the prices can go higher. However, in the crypto market, no matter how much analysis you do or how confident you are about your trade, something can come up that will go against you. Have a stop loss in mind, know your risk appetite, and follow it. Furthermore, also remember, the market will open again tomorrow and you don’t have to go all in on a single trade.
4) Avoid Trading on News-Based Days: If there is any major news in the market that can affect crypto prices, like Fed rate cuts or major announcements by the US president, I avoid trading that day. The trade may go in the direction you assumed but only after hitting the SL, as the volatility can be uncontrollable on these days. In most cases, the next day is easier to trade as you now know the direction and how the market behaved.
5) Mind the Brokerage and Liquidation Charges: The brokerages are higher in the crypto market compared to the stock market. And if brokerage charges are high, know that liquidation charges are also higher for cryptos. Make sure to at least keep a SL above the liquidation point. Trust me, it can save you a lot of unnecessary funds lost in liquidation fees.
These are the top five learnings for me in the crypto market. I am still learning, and I am sure the market will teach me many more things in the upcoming months and weeks. I am also planning to start algo trading in cryptos, for which I’ll share my experience soon. Till then, keep learning and happy trading.
