Insights from professional cryptocurrency traders

Professional trader, investor, writer, and advisor in the cryptocurrency space. Since 2013, he has been actively involved in the crypto market. Since then, Nik has attracted a large following on Twitter, where he also shares personal insights and chart commentary on the market through social media accounts. He has also written token reports and shares his market insights through An Altcoin Trader’s Blog.

Crypto Circle Academy interviewed professional trader Nik Patel to discuss topics related to trading and investing, his overall market strategy, and daily life as a cryptocurrency trader and investor.

Crypto Circle Academy: How did you start trading cryptocurrencies?

Nik Patel: I knew nothing about cryptocurrencies before. Later, in December 2013, I stumbled upon the Dogecoin subreddit on Reddit, and eventually found crypto Twitter in February 2014. I started trading from the month I registered on MintPal.

Crypto Circle Academy: How were your early trading results? Were there any failed trades?

Nik: The worst trade was my very first one. In February 2014, after registering on MintPal, I bought Mazacoin, noticing it had been surging for several days. Ultimately, that trade cost me two-thirds of my initial capital.

Crypto Circle Academy: How long did it take for your trading to become profitable?

Nik: I spent about four months studying cryptocurrencies. Fortunately, in 2014, I was lucky and used the remaining time to learn thoroughly, adjust, and refine my trading strategies. It took me over a year to become profitable outside of cryptocurrencies.

Crypto Circle Academy: Do you still trade in non-crypto markets?

Nik: Yes, I participate in all trading markets. Besides cryptocurrencies, precious metals and indices are also major investment areas.

Crypto Circle Academy: What is your most successful trade?

Nik: In terms of return on investment, I bought Neutron at about 130 Satoshis and sold it at an average price of around 6800 Satoshis, yielding about 50 times the initial position.

Crypto Circle Academy: We just discussed the peaks and troughs of your past trades. What do you think differentiates successful trades from failures?

Nik: In successful trades, you follow your own rules completely. In failures, you often break your rules and make emotional decisions regardless.

Crypto Circle Academy: Many successful investors might strongly agree with this answer. The success of a trade isn’t determined by the actual outcome. A successful trade might incur losses in the future, and a failed trade might turn profitable. The key is to develop a wise strategy and stick to it long-term.

Having experienced years of Bitcoin bear markets, what lessons have you learned?

Nik: When everyone (including myself) only cares about the price of altcoins against Bitcoin, don’t forget the dollar price. That was the bubble in January 2018. After that, I started considering both price and historical context in my decision-making process.

Crypto Circle Academy: Interestingly, group psychology on social media can trigger and deepen biases. When discussing community topics, which traders do you admire most?

Nik: Tom Dante might have had the biggest influence on me regarding trading processes. In daily trading, I learn from him how to fine-tune strategies and continuously optimize trading.

Crypto Circle Academy: Strategy optimization is an endless task, vital for all investors. What do you consider your strengths, and how did you discover them? What advice do you have for novice traders seeking an edge in the market?

Nik: Cyclical position trading is a major advantage of mine. I identify undervalued projects with strong fundamentals that remain in an uptrend throughout the market cycle. I recommend new traders keep detailed trading logs, analyze their strengths and weaknesses through continuous learning.

Crypto Circle Academy: Most successful traders probably keep trading logs. Tracking performance (especially in the early stages) and leveraging strengths while avoiding weaknesses is very important. Do you usually set multiple trading strategies or look for specific trading methods?

Nik: For intra-week or intra-month trading (less than a week or a month), I generally follow core technical analysis strategies. For long-term positions, I extensively research fundamentals, buy at historical lows, and follow market cycle patterns.

Crypto Circle Academy: What is your longest holding period?

Nik: Over a year.

Crypto Circle Academy: Cryptocurrencies sometimes resemble life. Holding long-term in a rapidly changing market and implementing risk management is a major challenge. What do you think is the best indicator for evaluating the profitability of a coin or token?

Nik: Token issuance structure. Inflation is a stable indicator that can yield high returns or lead to token decay.

Crypto Circle Academy: Do you incorporate on-chain data metrics into your trading strategies?

Nik: I like to monitor on-chain trading volume to assess whether there is speculation (based on trading). I also review various detailed metrics, such as the largest holders.

Crypto Circle Academy: Do you prefer technical analysis or fundamental analysis?

Nik: For long-term investments, I usually start with popular fundamental indicators and then make decisions based on technical analysis. For intra-week spot trading, I rely solely on technical analysis. The same applies to leveraged trading.

Crypto Circle Academy: Let’s continue with some more practical trading points. These are important factors to consider that may not have received enough attention. What does your daily trading routine look like, and how do you stay positive and sustainable while closely monitoring the screen?

Nik: I tend to conduct market assessments of all assets on Sundays to understand the demand for the week. Then, I record this in my logs, mark charts, set alerts at key price levels, and attach my actual demand in those areas. Finally, I execute trades and monitor regularly.

Most trades take over a week to complete, so I spend most of my time writing blogs, freelancing, reading, exercising, etc. I don’t like staring at screens—that’s why I don’t participate in day trading. When working from home, I use prompts and systems, so I don’t need to watch the market for long periods. I dislike this lifestyle, so I don’t engage in day trading.

Crypto Circle Academy: What tools are most important during trading?

Nik: I don’t need many tools. Just a laptop, a monitor, a tablet, TradingView, and a few brokers, depending on the assets I trade. That’s enough.

Crypto Circle Academy: Of course, price prediction is an unavoidable topic. What do you think the price of Bitcoin was at the end of 2020?

Nik: $26,000.