BTC's price moves in response to the Fed's announcements, as its decisions on interest rates, inflation and liquidity impact investor sentiment and risk appetite.

 might be decentralized, but its price movements are influenced by global events, including US monetary policy. Every time the US Federal Reserve makes a statement or shifts its tone, Bitcoin traders react swiftly. Why does a traditional institution such as the Fed have such a strong grip on the crypto market? This article examines how and why BTC’s price responds to Fed announcements, from interest rate decisions to inflation outlooks.

​The Federal Reserve (the Fed) is the independent central bank of the United States, tasked with managing monetary policy to promote maximum employment and stable prices and to moderate long-term interest rates. Its decisions ripple through every financial market, including cryptocurrencies such as Bitcoin.

The Fed’s primary functions include the following:

The Federal Open Market Committee (FOMC) is the Fed’s policy‑making body, 

 of the Board of Governors, the president of the New York Fed and four rotating presidents of regional Federal Reserve Banks. They meet eight times a year to review economic conditions and set policy.

Decisions made during these meetings — especially regarding interest rates — are highly anticipated by financial markets. Traders analyze not only rate decisions but also the tone of the Fed’s statements. A "hawkish" tone signals higher rates to fight inflation, while a "dovish" tone suggests looser policy that aims to stimulate growth.

As the issuer of the world's primary reserve currency, the Fed's policy decisions have global ramifications, influencing borrowing costs and impacting assets such as bonds, equities, commodities and even cryptocurrencies like Bitcoin. This global impact explains why traders and investors closely analyze these statements and adjust their strategies accordingly. 

Key Fed events that have triggered BTC volatility

From interest rate decisions to inflation commentary and economic outlooks, key communications from the Fed often lead to sharp swings in BTC’s price.

Why does BTC’s price move every time the Fed speaks?

BTC’s volatility in response to Fed speeches boils down to macroeconomic influence. Fed announcements shape expectations for inflation, interest rates and liquidity, which are key factors for crypto markets. Following are some real-world reactions.

September 2024 — Fed cuts rates by 50 bps

 its benchmark interest rate by half a percentage point. This move was more aggressive than the 25 bps cut many investors had anticipated.

Following the announcement, Bitcoin's price surged toward $61,000. The larger-than-expected rate cut signaled increased liquidity and a more accommodative monetary policy, boosting investor confidence in risk assets such as cryptocurrencies. 

 at 4.25%–4.50% while tapering quantitative tightening, announcing a reduction in Treasury rolloffs from $25 billion to $5 billion per month. Despite downgrading growth forecasts, the Fed maintained three rate cuts in its 2025 projections, and avoided hawkish rhetoric on inflation overshoot. 

Bitcoin responded by skyrocketing 20% to $86,000 with traders interpreting these signals as sustained monetary support. This surge demonstrated how a dovish hold — coupled with clear guidance on balance sheet policy — can unleash rapid risk‑asset appreciation.

On Apr 16, 2025, Fed Chair Jerome Powell 

 that Trump’s new tariffs could drive inflation higher while choking off growth, mirroring 1970s‑style stagflation. He said the Fed would “wait and see” before shifting interest rates. Bitcoin briefly jumped toward $86,000 as traders eyed it as an inflation hedge, but then tumbled about 2.5% to roughly $83,700 within minutes, mirroring a broader stock sell‑off. By the next day, BTC had climbed back near $85,000 as markets digested the news.

Powell’s comments added uncertainty to the Fed’s policy outlook. While some view Bitcoin as a hedge against inflation and a way to escape traditional financial risks, it still tends to move with risk assets like stocks, often falling on poor economic news.

What traders and investors are really reacting to

When the Fed speaks, crypto traders read between the lines. Every speech, press release or policy statement is scrutinized for forward guidance.

Trading Bitcoin around major news — especially when it comes to the Fed — requires a disciplined approach.

The bigger picture: Is BTC becoming more macro sensitive?

Yes. Bitcoin's price is becoming more influenced by broader economic trends, such as monetary policies and financial market dynamics. In its early years, Bitcoin's value was driven mainly by internal factors like technological advancements and crypto-specific sentiment. However, with growing institutional adoption, Bitcoin has become more tied to traditional financial markets.

For instance, in March–April 2024, BTC 

, echoing similar rallies in stocks and bonds. This move demonstrated how Bitcoin’s price is now closely tied to macro liquidity and institutional trading flows, behaving more and more like a high-risk asset.

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Bitcoin’s price reacts to Federal Reserve announcements because the Fed’s policies on interest rates, inflation and liquidity directly impact investor risk appetite and market dynamics. Rate hikes or cuts alter the appeal of risk assets such as BTC, while inflation fears or economic uncertainty drive demand for alternatives. Traders monitor Fed signals to anticipate liquidity changes and adjust strategies, cementing BTC’s role as a macro-influenced asset. As institutional adoption grows, Bitcoin increasingly mirrors traditional markets’ sensitivity to macroeconomic shifts.

Intermediate

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Explainer: Why does BTC’s price move every time the Fed speaks?

Walrus is a decentralized storage protocol that efficiently manages large data files (blobs) through an innovative encoding method called Red Stuff. Learn more.

 systems excel at managing decentralized computation, but struggle with efficiently storing and retrieving substantial chunks of data. Enter Walrus (WAL), a groundbreaking decentralized storage protocol built on the 

Designed to solve storage limitations while maintaining the security and decentralization principles of 

, Walrus represents a significant advancement in blockchain infrastructure. This article explores what Walrus is, how it works and why it might be the future of decentralized data storage.

 is a decentralized storage protocol that efficiently manages large data files (blobs) through an innovative encoding method called Red Stuff. It operates on the Sui blockchain with a network of independent storage nodes to ensure high integrity, availability and authenticity for 

Walrus emerged from Mysten Labs, creators of the high-performance Sui blockchain. Recognizing a fundamental challenge in web3, the team set out to solve the problem of efficient data storage that had plagued blockchain systems since their inception.

Mysten Labs identified that traditional approaches required complete data replication across all validators, creating exponential costs at scale. This inefficiency made storing substantial files prohibitively expensive and limited blockchain applications.

The team developed the revolutionary Red Stuff encoding protocol, delivering the speed and efficiency of centralized storage while preserving principles of decentralization. In March 2025, Walrus secured $140 million in funding, led by Standard Crypto, with participation from a16z crypto, Electric Capital and Franklin Templeton Digital Assets.

Walrus tackles the fundamental problem of storage inefficiency in blockchain systems. Traditional blockchains require every validator to replicate all data, creating exponential costs as networks scale. Such inefficiency has prevented widespread adoption of decentralized storage for data-intensive applications.

Walrus solves the cost barrier through its innovative Red Stuff encoding technology. By eliminating unnecessary redundancy but maintaining security, Walrus dramatically reduces storage expenses as compared to existing solutions. The resulting cost structure makes decentralized storage economically viable for everyday applications that were previously priced out of the market. 

In addition, Walrus addresses the scalability limitations that plague current decentralized storage networks. Existing solutions often collapse under large datasets, while Walrus's architecture efficiently handles terabytes of information across 

, gaming assets, social media content and AI data. 

Finally, Walrus resolves the centralization problem inherent in traditional storage solutions. By removing single points of control, Walrus prevents censorship and unauthorized data manipulation. Applications built on Walrus benefit from guaranteed data availability and integrity, free from centralized authority interference.

Walrus uses Red Stuff encoding with two-dimensional erasure coding to store and retrieve data efficiently. The protocol achieves faster processing across its storage network by employing simple XOR operations instead of complex calculations.

 (DPoS) consensus model, whereby users stake WAL tokens to participate. 

 with higher stakes store and serve data during each epoch, aligning economic incentives with network security.

When users upload files, Walrus divides them into "slivers" distributed across multiple nodes, creating redundancy that preserves availability even when some nodes fail. Operations are organized into epochs, with committees of storage nodes managing network data, while Sui blockchain integration handles coordination, verification and economic incentives.

Walrus offers several innovative features that enhance its functionality as a decentralized storage solution.

 WAL tokens to participate in network operations, while storage providers stake to secure validator positions. Malicious behavior faces swift consequences via slashing penalties targeted at dishonest participants.

The protocol distributes rewards to storage nodes based on their staked amount and performance. Reliable operation and data integrity receive financial incentives, encouraging operators to maintain a long-term commitment, since they benefit from the network's continued growth.

WAL staking empowers token holders with governance authority over the protocol's future. Stakeholders vote on critical upgrades, parameter adjustments and strategic initiatives, ensuring Walrus evolves according to community needs, rather than vis centralized decision-making.

Walruscan serves as the comprehensive network explorer for the Walrus ecosystem, offering transparency into all operations. The dashboard presents real-time storage metrics, currently tracking approximately 309 TB used across 3.5 million blobs within the total available capacity of 4,123 TB.

Users can monitor network activity, including writes, reads and node performance. These metrics allow users to evaluate storage providers based on actual performance rather than marketing claims, helping them select reliable operators for their specific needs.

Walruscan also verifies data availability and provides detailed statistics on pricing, staking amounts and reward distribution. By making these metrics publicly accessible, the explorer fosters accountability and trust between users and service providers while providing valuable insights for investment and development decisions.

NFT projects can leverage Walrus to securely store metadata and digital assets. The protocol's tamperproof storage ensures the longevity and authenticity of valuable digital collectibles while maintaining consistent accessibility.

Decentralized social media platforms can benefit from Walrus's ability to store user-generated content efficiently at scale. Images, videos and text can be distributed across the network without relying on centralized servers, creating truly censorship-resistant platforms.

AI development teams can utilize Walrus to maintain data provenance throughout the machine learning lifecycle. Datasets create verifiable records of origin and modifications, critical for regulatory compliance and ethical AI development.

DApps can overcome storage limitations through Walrus integration. Because computation is separated from storage concerns, DApps can handle larger datasets without sacrificing decentralization principles, while blockchain gaming can achieve new levels of asset persistence and player ownership.

Walrus achieved a major milestone in March 2025 with its successful mainnet launch, securing immediate listings on prominent exchanges such as Bybit. Prior to this, the team conducted rigorous testing of the Red Stuff encoding algorithm while attracting $140 million in funding from leading investors.

For Q2 2025, Walrus plans to establish strategic partnerships with major DApps across multiple blockchain ecosystems. Its Q3 2025 road map focuses on security enhancements with encrypted storage and customizable access control systems, particularly benefiting users with sensitive data requirements.

In Q4 2025, Walrus will prioritize network scaling and performance optimization in order to handle increasing data volumes while maintaining efficiency. Looking to 2026, development will center on comprehensive developer tools, including language-specific SDKs and integration frameworks to simplify building with Walrus.

 powering the Walrus ecosystem. Its maximum supply is 5 billion tokens. WAL enables storage payments, validator staking and governance participation across the network.

Walrus’s tokenomics model creates natural demand as users purchase storage with WAL, while validators stake tokens to secure operations and earn rewards. Governance rights empower WAL holders to vote on upgrades and parameter adjustments, ensuring the protocol evolves according to stakeholder priorities.

The WAL token is to be allocated as follows: 

WAL’s distribution will follow a strategic release schedule extending to March 2033, with vesting periods ranging from 50 months to 8 years.

WAL's price trajectory is closely tied to Walrus's growth as a decentralized storage solution for web3 applications. Currently trading at approximately $0.4138 (as of Apr 17, 2025), WAL has shown promising momentum following its recent mainnet launch and exchange listings.

While cryptocurrency price predictions are inherently speculative, several analysts have offered forecasts for WAL's future value. CoinCodex 

 $0.50 and $1.04 in 2026, with an average price of $0.75. Looking further ahead to 2030, CoinCodex forecasts suggest a range from $1.12 to $1.59.

DigitalCoinPrice offers a similar outlook, predicting that 

 $0.81 and $0.97 by the end of 2026, with the most likely price hovering around $0.90. For 2030, DigitalCoinPrice anticipates WAL potentially crossing the $2.00 threshold.

These projections suggest a positive long-term outlook for WAL, supported by growing demand for decentralized storage solutions. However, WAL's future value will ultimately depend upon Walrus's technological development, widespread adoption across various web3 sectors and broader cryptocurrency market conditions.

Looking to trade Walrus tokens? Bybit now offers the WAL/USDT Spot trading pair. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Walrus demonstrates innovative technology and strong backing in the decentralized storage space, investors must carefully weigh its growth outlook against potential risk factors.

WAL shows promising potential, with substantial financial backing and innovative encoding technology. Increasing demand for decentralized storage solutions provides a favorable market environment. However, potential investors should 

, particularly given Walrus's early position in its development journey.

Walrus revolutionizes web3 data storage by combining innovative Red Stuff encoding with Sui blockchain technology to deliver efficient, secure solutions for NFTs, social platforms, AI, gaming and DApps. With substantial funding, technical advantages and growing market need, Walrus demonstrates tremendous potential for the future of web3 data management.

walrus crypto.png

Walrus (WAL): Your solution for large-scale data on web3

The proposal suggests replacing Ethereum’s current execution layer (EVM) with RISC-V, aiming to improve scalability, simplify the execution layer, and boost efficiency.

The S&P 500 dropped 2.36% as all sectors fell amid Fed concerns and China trade tensions. Gold hit a record high above $3,450 amid rising haven demand driven by recession fears, USD weakness, and Trump’s attacks on Fed Chair Powell. Market uncertainty and geopolitical tensions continue to support the rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are down by 0.63%, Bitcoin rose 3.33% while Ether fell 0.81% over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is BERA, up 3.0%, following Berachain's Governance Guardians announcement, new ecosystem projects, and community updates.

Berachain (BERA), launched in August 2021, is a high-performance Layer 1 blockchain that uses a Proof-of-Liquidity consensus mechanism to enhance network security through ecosystem liquidity. It offers Ethereum compatibility with EVM-identical execution. 

 saw the launch of Governance Guardians, new ecosystem projects like BeraToners and Lair Finance, and collaborations between Berachain projects like Euler and Beraborrow. The community remains active with multiple initiatives and ongoing promotions.

Check out the latest prices, charts, and data of 

 suggests replacing Ethereum’s current execution layer (EVM) with RISC-V, aiming to improve scalability, simplify the execution layer, and boost efficiency. This change would allow smart contracts to remain compatible with existing Ethereum infrastructure while providing significant optimizations for the execution of smart contracts, especially in relation to zk-EVM proving. RISC-V-based smart contracts could bring efficiency gains of up to 100x in certain cases, particularly by optimizing time-consuming processes like state computation and block execution. Two potential implementation paths are proposed: maintaining dual VMs (EVM and RISC-V) or transitioning to a RISC-V interpreter for EVM contracts. This change could simplify the execution layer and enhance the long-term scalability of Ethereum.

Yesterday, BTC spot ETFs saw $339.7M in total inflows, with $303.1M from non-GBTC funds and $36.6M from GBTC.

, with an airdrop to follow. Users can earn points by depositing tokens such as ETH, USDC, and USDT. Those who previously participated in the Cred farming season and ranked in the top 31,250 can now claim their SuperAlien NFTs by minting all rewards on the site.

Beginner

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Vitalik Buterin's proposal to replace Ethereum's EVM with RISC-V for enhanced scalability and efficiency

Canary Capital has filed with the SEC to launch a U.S. Tron (TRX) ETF that would include staking benefits, allowing investors to earn extra yield. 

The S&P 500 futures fall 1.5% amid US-China trade concerns and Fed warning; over 100 companies will report earnings this week. Gold hit a record ~$3,375, up 1.43%, on safe-haven demand amid tariff and geopolitical worries. Fed hawkishness may cap gains. CoinDesk Indices, which tracks the broader crypto market, rose 1.80% in the past 24 hours, while Bitcoin and Ether gained 2.70% and 3.41%, respectively. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is STX, up 9.4%, following the announcement of Stacks gaining institutional support with major exchange listings and custodian backing.

Stacks (STX), founded in 2013, is a cryptocurrency project that enhances the Bitcoin blockchain by enabling decentralized apps (DApps) and smart contracts without altering Bitcoin's features. It operates as a Bitcoin Layer 2 (L2) blockchain, ensuring security through Bitcoin while allowing developers to build modular applications on top of the network. 

 with its listing on top 15 exchanges, the launch of the Grayscale STX Trust, and support from top-tier custodians like BitGo, Copper, and Figment.

Canary Capital has filed with the SEC to launch a U.S. Tron (TRX) ETF that would include staking benefits, allowing investors to earn extra yield. This proposal is part of a broader trend, with Canary also seeking approval for ETFs based on assets like XRP, Solana, and Sui. The fund would aim to provide exposure to Tron’s price, but the SEC has yet to approve staking in crypto ETFs. This move follows the success of Bitcoin and Ethereum ETFs, which have attracted significant institutional interest.

During the week of April 14–18, 2025, U.S. Bitcoin spot ETFs recorded a modest net inflow of $13.7 million, entirely from non-GBTC products, as GBTC saw no activity. Since inception, total net inflows have reached $35.5 billion, with non-GBTC ETFs contributing $58.3 billion and GBTC experiencing $22.8 billion in outflows.

Orochi Network airdrop participants can now 

 their earned $ON tokens on the Monad Testnet to increase their Bonus Level and earn rewards faster. A minimum of 50 ON is required for the first claim, and subsequent claims have no minimum. New users can still join by signing up and starting the Prover. Daily check-ins open at 6 AM UTC and fill up quickly.

Canary Capital files for SEC approval of Tron ETF with staking benefits

Bybit Learn

Strategies

Trading

Having a well-planned trading plan helps to mitigate confusion and maximize profits. Learn how to trade crypto responsibly.

2305-T3930_How_to_Create_a_Cryptocurrency_Trading_Plan_1600x900.png

Having a solid, well-crafted trading plan is essential for market trading. It can spell the difference between market success, on the one hand, or — on the other — giving in to FOMO, forgetting to factor in vital information, or regretting a decision not to trade later. An effective trading plan considers your trading style, risk tolerance, as well as your understanding of 

, clear entry and exit rules and trading spread. It defines you as a trader, providing a road map for the way you trade. 

Whether you’re day trading, swing trading, shorting the market, or trading derivatives, formulating a trading plan is essential to identifying effective trades and capitalizing on them without anything getting in the way. 

We’ll take you through a step-by-step look at how to formulate a cryptocurrency trading plan while covering all the advantages of this essential strategic framework for informed traders. 

A trading plan is a blueprint for trading that organizes your trading techniques and strategies into a logical framework. This framework makes it easy to assess the viability of trades and stay focused on your trading strengths. 

Your trading plan is your map of risk, market focus, analytics and strategic approach. Every trader needs a plan to navigate cryptocurrency markets confidently. There are countless trading techniques, patterns, and strategies with successful track records, but only a few may suit each trader’s attitude, expertise and experience optimally. A trading plan hones your focus, keeping you motivated and targeted on the right trades. 

Cryptocurrency trading plans are the type of financial product that requires meticulous research and careful forethought. Once a crypto trading plan is created, it shouldn’t change whenever there’s a bump in the road. The only time that a trading plan changes is if the trader uncovers a better way of trading — and that takes extensive testing and logging of successful repeat trades.

A trading plan empowers the focused trader by providing several benefits. From risk reduction to easing away fear and guarding yourself against greed, a good crypto trading plan may not guarantee success, but it certainly makes a significant contribution toward it.

Here’s an overview of the main benefits of having a crypto trading plan formulated around your unique approach.

A trading plan aligns your market engagement with your trading strategy. It gives you a controlled environment in which to derive measured results. This allows you to track your trading performance and goals while making adjustments to improve potential outcomes. 

A good plan logs all of your trading positions and lists the specifics of your strategy. These details can include the type of 

 for each trade listed. In this way, it becomes easier to refine your approach and improve your chances of entering and exiting successful trades.

As management theorist and influencer Peter Drucker reportedly said, “If you can’t measure it, you can’t improve it.”

Using a crypto trading plan eliminates a great deal of stress that can accompany unprepared trading. Once you’ve created a trading plan, you’ll be able to follow the steps necessary to analyze price movements objectively. 

Gone is the greed that far too often fuels high-risk trading. This lets you enter into positions confidently, thanks to an organized rule set that’s been formulated without emotions, haste, or irrelevant information getting in the way.

High volatility and fast news flow have a powerful impact on cryptocurrency markets. It’s easy to get wrapped up in market sentiment, losing track of your trading vision. This can lead to impulsive decision-making. A pre-written plan provides the focus to stay within the bounds of a thoughtful strategy.

“Pressure is what you feel only when you don’t know what you’re doing.” - Former Pittsburgh Steelers Coach — Chuck Noll

Every reliable trading strategy requires testing and adjustment before you can use it to forecast success. Testing calls for trading discipline, repeating promising patterns and indicators and entering in similar market conditions over and over. Only through trial and error and carefully assessing your trading journal will you come to know which strategies are golden. 

A well-defined trading strategy involves comprehensive market research. With a continuously trading market, there’s very little time to stop and analyze market movements. Not only are you factoring in the constant flow of information supplied by 

, but you’re also analyzing trading patterns, slippage, and risk. 

The only way to stay organized is to have a specific trading plan devised beforehand. Ensure that your trading plan contains all the factors that you use to assess the viability of trades. These include market research criteria, news sources, and any other preferred indicators. 

A trading plan prevents overtrading. There’s no way to avoid losing trades at some point. However, managing your risk per trade is a simple way to keep portfolio losses from growing exponentially. In the midst of a high-conviction trade, this discipline may prove to be difficult. You can’t expect to get the timing right every time.

Whether you’re following a fixed risk-to-reward ratio, sticking to reasonable stop losses, or limiting trades to a percentage of your trading capital, stipulating your policy for managing risk ensures that you trade responsibly. 

Following a predetermined trading plan prevents you from trading during inopportune times. Trading impulsively when the market presents slim opportunities will quickly eat away at profits from your successful days. 

The scope of trading set out in your trading plan frees up time for analyzing patterns and trading opportunities. Your goal is to trade when you know you have a statistical advantage backed by insight instead of wasting time and money.

Here’s a step-by-step breakdown of how to create a cryptocurrency trading plan that sets you up for the best chances of success. 

Step 1: Refine Your Goals, Approach, and Time Available for Trading

Set out trading goals. This way, you’re motivated by (and learning from) all the small wins along the way to becoming a seasoned trader. Shape attainable goals bound to fixed, realistic time periods. With a 24-hour market, you may have to choose trading windows that make the most sense for you to track unless you’re using trading bots.

Take a look at your schedule and assign yourself daily trading periods based on how much time you have available to focus on. Certain trading styles will require more trading time than others, so weigh your options and availability carefully.

From day one, start logging your entry and exit positions in a trading journal. Use a spreadsheet stored online (in the cloud) so that you can access your trading activity from all your devices — and have a secure backup so that your data is never lost. 

If necessary, take screenshots of notable trades to learn from later. Keep them in your trading journal as well. Logging crypto trading activity is the best way to test various trading strategies reliably. It also allows you to measure the effect of adjustments to your approach. 

Step 3: Determine the Analytics That Work Best for You

Find the type of analytics that grant you the greatest market insight and stick to them. Use comparative analytics like on-chain metrics, transaction count, active addresses, and even predictable socioeconomic factors from reliable news sources.

Note on paper or computer the methodology that works for you, and never stop refining your strengths. Many experienced crypto traders keep a spreadsheet of fundamental and technical metrics as part of their trading plan. This technique makes assessing trends and growth easy at a glance.

Unless you’ve tried out various trading styles, it can be difficult to determine which one best suits your approach and personality. If you’ve already tried your hand at trading, then you’ll know whether you prefer scalping, day trading, range trading, swing trading, trading positions, or inter-exchange arbitrage. 

Scalpers hold trades for seconds to minutes at a time. Day traders trade within the span of a day, rarely holding positions overnight. Swing traders hold trading positions over a period of days to weeks following trends, while position traders hold their trades for weeks, months, or years.

Notes on trading styles should also include fundamental trading rules you’ve amassed while trading. 

Keep a record of general guidelines for trading.

 For example: Not chasing anything in an uptrend due to the chance of retracement catching you. Or: Waiting for downtrends to break entirely before pouring your money into a coin. You might even have a goal of determining how much you want to stabilize your portfolio by using a percentage of coins like Bitcoin and Ethereum.

Every trading style and strategy will require a different holding period. As mentioned above, scalpers will hold trades for minutes, whereas swing traders may hold trades for days or weeks. You may find that longer trading periods make you somewhat anxious. If so, you’ll prefer to stick with shorter ones. It all depends on how you’re trading. 

Your trading style largely defines your holding period. Therefore, specify the duration of your trading plan so that you’re always on top of your strategy and risk. 

Focus on identifiable patterns that are based on your knowledge and experience. With a bit of time and practice, you can learn how to spot and use indicators like 

, to name a few. Use the trading patterns and indicators that you understand and trust the most as your starting point, but never stop learning and adding to your arsenal as a new methodology presents itself.

List each of your trading strategies step-by-step, adding as much detail as possible. Set out a definitive list of each step it takes to open and close a successful trade. For example, a step-by-step trading strategy would note the current price of the cryptocurrency, the trading trigger for your chosen indicators, and your desired entry and exit points. This can apply even for minute-by-minute evaluation.

Step 7: Decide on a Risk Management Strategy

Choose the percentage of your portfolio that you’re willing to risk per trade. Always decide on an investment amount that doesn’t exceed what you’re willing to risk. Many traders opt instead for a risk-to-reward ratio to decide the value of trades. In this case, a risk-to-reward ratio of 1:5 would mean that risking $10 worth of Ethereum would potentially produce $50 of profit in a trade. Determine the trades that suit your 

, and note them in your cryptocurrency trading plan. 

Develop your own rules to assign to your trading plan. Examples could include: Avoid more than three consecutive losses on the same trade. Cut your trading budget if you run two or three days of trading losses. Always set a stop loss that limits loss on your trades by the value of your portfolio you’re willing to risk. 

Risk tolerance largely determines trading limits. Nevertheless, you can set percentages such as 5–10% of your trade amount to cut losses or 1% of your overall portfolio. Maximum loss percentages give you rules to follow when you might not otherwise have the will to lock in a loss. Risk-taking varies by traders and sometimes by market conditions or circumstances. If your portfolio has swelled 10x, you might naturally feel a bit more emboldened to increase trading limits.

Every crypto trader’s trading plan is uniquely personalized to their approach and strategies. Use our step-by-step guide to walk yourself through creating your own crypto trading plan. 

To help formulate a trading plan like the example below, try to ask yourself these questions:

Here’s an example of what a real trading plan could look like after following our guidance. 

— Gain enough experience with swing trading and reading technical indicators to grow my portfolio by 15% during a maximum time frame of six months and reassess risk. 

 — Gain enough experience in momentum trading to grow my portfolio by 40% and begin trading cryptocurrency futures.

 — Once successfully trading futures, increase the risk to 3% of portfolio capital per trade, and reach a further 20% growth from the mid-term goal. 

Traders are often attracted to cryptocurrency trading because of the large swings in the market and the potential for a quick profit, even short-term trading. Getting involved in cryptocurrency trading is also relatively easy, with powerful exchanges available to trade.

Take advantage of a cryptocurrency trading plan to assess the viability of potential trades. As you learn more patterns and indicators and find ways to improve your strategies, track them in your trading journal to see if they will work in your plan. A plan helps you focus and avoid getting distracted by all the shiny trading objects in the cryptocurrency space.

The key to using a crypto trading plan successfully is to stick to the trading framework you’ve created. You can adjust or expand it when your plan no longer serves you. Your plan can be somewhat fluid, as long as you are intentional and logical about the changes. 

Former U.S. President Dwight Eisenhower said, “Plans are nothing; planning is everything.” While a plan is essential, planning your strategy also ensures that you take a thoughtful approach to trading. When large sums of money are on the line, you don’t want to leave anything to impulse and chance.

How to Create a Cryptocurrency Trading Plan

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