Manhattan, New York – Cryptocurrency trading has exploded in recent years, drawing millions of investors. With Bitcoin still dominating the market with a 61.23% market cap (as per statista.com) and newer coins, like Solana, gaining traction, investors must trade carefully. The difference between smart trading and financial disaster often lies in knowing what to do and avoid. It is advisable to consult with Global Financial Recovery, which will help traders and investors protect their assets.
Here’s what GFR experts recommend:The Do’s of Cryptocurrency Trading
Let’s see the do’s of cryptocurrency trading.
Research Before You Invest
The crypto market moves fast. Before diving in, understand what you’re buying. In 2025, trends are shifting towards AI-driven tokens and utility-based cryptos. Thus, stay informed.
Stick to Reputable Exchanges
Coinbase, Binance, and Kraken are some of the safer choices. Unregulated platforms have been responsible for thefts in the past year. So, be careful and don’t be the next victim.
Diversify Your Investments
Never invest all your money in one coin. Even Bitcoin has seen price swings in a month. Spreading your investments will reduce risk.
Plan for the Long Haul
Holding onto crypto for over a year qualifies for lower capital gains tax rates. If you’re thinking long-term, patience can pay off.
Set Stop-Loss Orders
The market can crash in minutes. Therefore, setting a stop-loss order ensures that you don’t end up with a devastating loss.
The Don’ts of Cryptocurrency Trading
Let’s learn the various don’ts of cryptocurrency trading that you should know before you start with it.
Don’t Fall for Hype
Social media influencers hyped Dogecoin and Shiba Inu, but most meme coins crashed just as fast as they rose. As per Moneyzine, 41% of traders in 2024 admitted to impulse buying based on online trends.
Don’t Trade with Money You Can’t Afford to Lose
Crypto is highly volatile. More than 70% of retail investors have lost money at some point. Never risk money meant for rent, bills, or savings.
Don’t Ignore Taxes
In the U.S., the IRS treats crypto as taxable property. Yet, most traders fail to properly track their transactions. This leads to unexpected tax bills. Thus, keep records of the transactions to stay compliant.
Don’t Use Unregulated Exchanges
$5.6 billion (as per FBI.gov) was lost to crypto scams in 2023. Most victims used sketchy platforms with little to no legal oversight. If an exchange looks too good to be true, it might not be safe.
Don’t Try to Time the Market
Even experienced traders can’t predict price swings perfectly. Instead of chasing “buy low, sell high,” develop a strategy and stick with it.
The crypto world isn’t just full of smart investors—it’s also flooded with scams. From fake investment schemes to fraudulent exchanges, thousands of people lose money every day. In 2024 alone, over $2.2 billion (as per Chainanalysis) was lost to crypto scams in the U.S.
If you’ve been a victim, Global Financial Recovery (GFR) can help. Their expert team of financial investigators, forensic accountants, and legal advisors specializes in tracing stolen funds, recovering lost funds, and supporting efforts toward financial stability.
