How to Maximize Profit Potential Trading Crypto

Cryptocurrencies are one of the most profitable markets to trade. Unlike traditional markets, making 100-1000% returns can be a regular occurrence. That said, most traders lack a plan and treat the markets like a crypto casino.

Smart traders are disciplined and patiently strategize a plan of attack. The great thing about trading is that the numbers will give you empirical results, which can help you refine your tactics. 

Personally, I like to combine fundamental and technical analysis to maximize my profit potential. Here are my reasons:

3 Reasons to Use Technical Analysis

#1: Measure Price Action

CWithout charts you have no visual reference to determine good entry points for your trades.  Traders who don’t look at historical price data might as well just throw their money at a roulette table.

The age-old maxim of successful trading is to buy low and sell high. How is it possible to determine what is low without looking at prior historical data? 

#2: Know the Rules of the Game

People who are in the habit of losing money in the markets will be the first to espouse that trading is solely based on random luck. Professional traders who rely on consistent gains know from direct experience that this is not the case. 

Trading is a game and like any game it comes with its own set of rules. Those who trade professionally know the rules of the game and use trade analysis as a means to measure probable outcomes. The markets are a collective driven by individual traders and TA becomes a self-fulfilling prophecy. 

Every good trader knows that there’s an element of chance to the markets and nothing is 100% guaranteed. That said, I see the same patterns playing themselves out over and over again. 

The cryptocurrency markets do have their own unique characteristics that sometimes add new elements to traditional TA. Those in the know have the direct experience of understanding these characteristics and factoring that into their analysis. 

#3: Map Out A Plan

Trade analysis is a way of mapping out a strategy on the charts. Tactical ideas are more efficient when organized and recorded. Having a game plan drawn out can serve are a reminder and help you to manage risk for your trades. 

Charts can be used to recapitulate trades, learn from mistakes and keep track of positive outcomes. 

3 Reasons to Use Fundamental Analysis

#1: Understand the Specifications

Cryptocurrencies are a merge between finance and technology. The underlying tech of any given coin can have a huge impact on its market value. Some cryptocurrencies are used as a fuel source to unlock certain features.

Coins that offer more utility tend to be in greater demand. Popular features can increase buying pressure in the markets which can drive prices up. 

#2: Measure Supply and Demand

Supply and demand is another important factor to consider when making a trade.  Fundamental analysis measures the price according to supply, distribution, inflation, market cap, transactions and trading volume.  

Statistics can be used to help find cryptocurrencies that may be undervalued. It’s possible to get in early on emerging markets before things become “priced in.”

#3: News Events can Affect Prices

Major news events can trigger a market reaction. Those who are most connected to new information are the first to get in before the herd reacts. There can often be a snowball effect of traders racing each other to chase the markets. 

Once the majority of traders respond to the markets, everything becomes priced in and it becomes difficult to profit.


Trading is a zero sum game so the markets are super competitive. To make consistent money as a successful trader you need to have an edge. Combining fundamental and technical analysis has the potential of increasing your ROI in the markets. 


Rocky is a cryptocurrency analyst, strategic consultant, educator, position trader and investor. He started his journey learning about Bitcoin in 2013, became obsessed with it and dropped everything to work full-time in the space since 2015.

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