Simple Rules for Degen Trading with Safe Money Management

Degen trading made safer: Follow these simple rules for successful and low-risk cryptocurrency speculation.

Table of Contents



For the past 10 years, sh*t-coining has been a common practice in the cryptocurrency world. Many people have lost their wealth due to the high risk involved in this type of trading. However, some people have been successful in degen trading by following some simple rules and safe money management techniques. In this article, we will discuss these rules and techniques that will help you to degen trade without losing all your wealth.




The Importance of Safe Money Management

Safe money management is crucial when it comes to degen trading. You need to have a plan in place that will protect your capital and minimize your risk. Without safe money management, you could lose all your wealth in a matter of seconds. Therefore, it is essential to have some basic rules that will guide your trading decisions.




Rule #1: Don’t Invest Big in Risky Projects

The most important rule when it comes to degen trading is to never invest big in risky projects. You should only risk what you can afford to lose. You should also invest in projects that you would be comfortable holding till they are worth 0$. This will ensure that you are not risking more than you can afford to lose.




Rule #2: Go Big on Nice Arbitrage Opportunities

Arbitrage opportunities are one of the best ways to make some profits in the cryptocurrency world. If you find a nice arbitrage opportunity, you should go for it big. However, if it fails, you should not hold the coins. You should accept the loss and move on.




Rule #3: Research First, Ape Later

If you come across a super nice shitcoin that you want to ape, you should research it first before investing. You should never invest more than 5% of your whole portfolio in any shitcoin. This will help you to minimize your risk and increase your chances of making some profits.




Rule #4: Do the Opposite of What You Read on Twitter

Twitter can be a great source of information when it comes to cryptocurrency trading. However, you should never follow the herd blindly. You should always do the opposite of what you read on Twitter. If someone is saying that a coin is going to zero, you should leverage long it. If someone is saying that Bitcoin is going to $5k, you should buy hard. If someone is saying that a coin is going to be the currency of the world, you should sell hard.




Rule #5: Take Profits When You Feel Rich

Taking profits is one of the hardest things to do in cryptocurrency trading. When you start feeling rich and see significant gains in your portfolio, it’s important to take profits. Even if you believe that the coins you hold still have potential, it’s crucial to secure your profits. Consider taking 20% to 30% of your gains and letting them sit for months without reinvesting them immediately. This strategy helps to lock in your profits and prevent impulsive decision-making.



Rule #6: Re-Calibrate Your Portfolio After Major Losses

Experiencing major losses is not uncommon in the world of sh*t-coining. If you find yourself losing 80% of your portfolio’s value, it’s time to recalibrate your strategy. Instead of chasing after crazy initial coin offerings (ICOs) or engaging in leverage trading, focus on investing in long-term gems with solid fundamentals. Diversify your portfolio and choose projects that have proven their worth over time.



Rule #7: Understand the Risks of Leverage Trading

Leverage trading can be enticing, offering the potential for substantial gains. However, it can also be incredibly dangerous if not approached with caution. It’s essential to fully understand the risks involved before engaging in leverage trading. Know when you might get liquidated and how much money you could potentially lose. Plan your stop-loss orders carefully to protect yourself from catastrophic losses.



Rule #8: Nobody Has 100% Accuracy

In the world of sh*t-coining, it’s important to remember that nobody has a perfect track record. No one can predict market movements with 100% accuracy. Sometimes it’s better to close a trade with a 70% loss than to keep dollar-cost-averaging (DCA) into a position that might never recover. Accept that losses are a part of the game, and focus on managing your risk effectively.



Rule #9: Look for Projects with Real Users, Products, and Revenue

When selecting coins or projects to invest in, prioritize those with tangible value. Look for projects that have real users, a working product, and a source of revenue. Evaluate their capitalization and ensure that they have limited or no inflation. By choosing projects with solid foundations, you increase the likelihood of long-term success and minimize the risks associated with investing in speculative assets.




Degen trading can be both exhilarating and risky. However, by implementing safe money management techniques and following some simple rules, you can navigate the world of sht-coining more effectively.

Remember not to invest big in risky projects, seize arbitrage opportunities, research before aping into shitcoins, do the opposite of what you read on Twitter, take profits when you feel rich, re-calibrate your portfolio after major losses, understand the risks of leverage trading, accept that nobody has 100% accuracy, and prioritize projects with real value.

By combining these principles with your own due diligence, you can increase your chances of success in the volatile cryptocurrency market.


Article by Paolo Montemurro – Founder and CTO Blockchain Army

Sponsored content

Related Articles

Explore how DEXTools can boost your microcap trading success offering key insights and metrics for making decisions in the DeFi market.
DEXTools' Token Creator allows teams to easily and securely launch tokens without coding or costly audits, enhancing DeFi project visibility and security.
Learn about Banana Gun's rapid rise in the trading bot niche, with remarkable growth in trading volumes, users, and revenues in under a year.

See All