best-books-on-cryptocurrency-trading

People love making lists of best cryptocurrency trading books:

  • “Top X books to learn trading cryptocurrency” (reality: “Amazon search results for cryptocurrency books with 4+ rating”)
  • “X books every crypto trader should read” (reality: “Huge list of books by known crypto trading figures I’m pretending to read”)
  • Any list of “classic” cryptocurrency investing books (reality: “Outdated books best used for filling the void on your shelves”)  

Throwing 5, 10, or 30 book suggestions doesn’t help because when people have a lot to choose from, it becomes difficult for them to choose even one to start with.

I know that you don’t all the time in the world to go through lists of suggestions and then evaluate each book based on its description. Those lists are lazy.

Let’s try a different approach.

In this post, I’ll tell you about the 3 books that helped me during my journey to a six-figure trader. Just three. If you’re only going to read just three books in 2019, let it be these three.

I’ll also give you specific details on each book, including:

  1. How the best cryptocurrency trading book will help you
  2. One valuable takeaway that made the best cryptocurrency trading book special to me
  3. What type of trader should read the best cryptocurrency trading book

 

Book #1: The decision-making book that changed how I approach crypto trading

 

the-art-of-thinking-clearly

The Art of Thinking Clearly by Rolf Dobelli

 

You shouldn’t be surprised to see a book on decision-making here. After all, trading is about making the best decisions in a given time frame.

It is the first skill that a trader should learn but not many do.

Rolf is a fantastic writer who has managed to distill several important lessons into 99 chapters, each two or three pages long. Each chapter has been researched well and contains a thought-provoking idea.

I stumbled upon this best cryptocurrency trading book early in my trading career and continued to apply what I had learned with consistent results.

The book helped me immensely when it came to understanding the mindset of the market. I also learned about the several pitfalls and thinking traps that an everyday trader has to deal with, especially in the volatile crypto markets. While I avoided those pitfalls religiously, my fellow traders had to learn only after committing the mistake.

 

The biggest trading lesson I learned from the Art of Thinking Clearly is…

 

No matter how good of a trader you are, and no matter what you do, some trades will always go against you.

The smart thing is to not get attached to your trades and murder your “darlings” or losing trades when it is time.

Using stop-loss orders helps with this and prevents you from ruining yourself when emotions are running high.  

In crypto trading, money management doesn’t work if you don’t adopt the proper mindset. Without self-discipline and eyes on the prize, you’ll get distracted by greed or fear and end up making a costly mistake.

What type of crypto trader should read this book?

 

Everyone. It will not only help with your trading but also make you aware of some of the pitfalls we encounter in our daily lives.

This is a must-read for those who manage traders as it will help you improve your team and reduce the chances of a screw-up.

Making better decisions is important in every aspect of our lives. When you start thinking clearly, you become more efficient with your time and resources. That’s something no one should ignore.

 

Book #2: The book I recommend to crypto traders who’re just starting out

 

cryptoassets

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske and Jack Tatar

 

Chris Burniske and Jack Tatar aren’t your average crypto traders…

… actually, they’re not crypto traders at all.

They’re expert fund managers.

So why should you listen to their advice?

Because they paint a no-bullshit picture of the cryptocurrency landscape for you and lead you through it without any dishonest maneuvering.

I cannot emphasize how important that is for first-time traders who’re just jumping on the cryptocurrency ride.

When done properly, trading isn’t as glamorous or thrilling as they show you in movies.

Intelligent trading is boring. But most beginners don’t want to have that conversation.

This best cryptocurrency trading book walks you through a framework and several mental models that you can use to evaluate cryptocurrencies and trading opportunities. You can adopt these as per your own investing strategies.

The best authors further explain how different cryptocurrencies create real-life value with the help of blockchain technology. Understanding the value propositions of cryptos will help you correctly assign them value while trading or investing in cryptocurrencies.

The best cryptocurrency trading book also manages to touch on risk management, portfolio theory, and asset allocation  – something that all novice trader should be familiar with.

 

The #1 crypto trading lesson I learned from Cryptoassets:

 

Cryptocurrencies provide a great investment opportunity in today’s age, something that was never before available to traditional investors and traders.

But before you start removing your shirt to go skinny-dipping into a vault full of digital gold bars, you owe it to yourself to get familiar with the market and what it takes to invest in crypto.

Do your homework!

Read the white papers, pay attention to trading pair diversities, keep an eye on legit forum chatter, and store your cryptos safely in a cold wallet.

Once you’ve familiarized yourself with the risks you’re taking and done your research, trading cryptocurrencies smartly will come easy to you.

 

What type of crypto trader should read this book?

 

You should read this best cryptocurrency trading book if you’re just starting out as a crypto trader, or if you feel like you don’t have crypto trading “figured out” yet.

Plus, this is a great book for traditional traders and investors who’ve previously dabbled in forex and commodities. The writing will help you clearly understand the history, present, and future of the cryptocurrencies world.

 

Book #3: The only technical analysis book I’ve ever read

 

japanese-candlestick-charting-techniques

Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East by Steve Nison

 

Believe it or not, candlestick charting originated in Japan by traders who dealt with rice. Thanks to Steve Nison and his book, this method caught on in the West only a few years ago and how!

When visualizing the market through the candlestick lens, various patterns emerge frequently which can you identify the market trend properly and the direction of the price action.

To me, candlestick charts are more clear than any other format and I use them exclusively.

It is rather straightforward to understand candlestick charts and how to read them. The book actually excels in combining candlestick patterns with technical analysis: trend lines, RSI, MACD, moving averages, volume, etc.

The author also provides a rationale behind each style and trend that is identified by the candlestick charting in the examples he has chosen.

This is a comprehensive and perhaps the only best cryptocurrency trading book on technical analysis that you’ll need on your shelf.

 

My favorite memory from Japanese Candlestick Charting Techniques:

 

“Ten men, ten tastes”

This Japanese proverb appears in the 13th chapter of the book and means that everyone has their own preference or style.

The proverb helped me calm down at a time when I was learning as much as possible about mastering Bitcoin trading and dealing with information overload.

You see, some colleagues of mine would recommend a particular method while some would swear by a completely different one. This caused a lot of stress as I didn’t know which methods I can’t ignore and which might lead me to my doom.

It took me some time to realize that I should simply use a method that goes well with my trading style, doesn’t confuse me, and doesn’t leave room for excuses.

Of course, I knew I’d have to get well-acquainted with the method that I would choose and that’s where this best cryptocurrency trading book reassured me with its comprehensive theory and examples.

Now I advise every trader to do what comes easy to them and go with the method that seems natural and “makes sense”.

Any other method or plan will only work against you because you won’t be willing to pour your heart into it. Something will hold you back and that’s harmful to your financial and mental health if you’re in this for the long term.

 

What type of crypto trader should read this book?

 

Once you’ve gained an understanding of cryptocurrency and blockchain, you should pick this best cryptocurrency trading book up if you’re serious about trading. No matter what kind of trader you are, you’ll learn a lot.

I’ll say it again, this is the only best cryptocurrency trading book on technical analysis that you’ll need to master the craft.

 

The best way to learn crypto trading isn’t from books

 

Even if you somehow get your hands on the best cryptocurrency trading book ever (if that even exists!), you should understand one thing: reading books is good, but you need to take action too.

Don’t spend your whole life studying best cryptocurrency trading books. It takes a long time to read a book. You can make a lot of trades in that time and trading will actually help you understand the books better.

Here’s my plan for using books to improve your trading (even if you’re just starting out):

Read a best cryptocurrency trading book from the list.

Just 1.

Then go out and use 2-3 of the things you learn in the book to make a trade.

That way you start to make the concepts real.

You internalize them.

You’ll learn more from one book using that method, than if you were to read even 100 books in a row…just reading.

Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day!

Richard Baker

Live from the Platinum Crypto Trading Floor.

Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgment and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.