3 life pro tips for the teen cryptocurrency trader who’s already made thousands – MarketWatch

Navigating the treacherous cryptocurrency market is not for the faint of heart. While the gains over the past year have certainly been spectacular, the recent whipsaw reversal is a reminder of just how wrenching it can be.

As you can see, bitcoins BTCUSD, -1.04% path to recent nosebleed levels has seen its share of sizable drawdowns, including the current one.

So whats a trader to do? And in this case, whats a 13-year-old whos already turned $2,200 in profits dabbling in the crypto market to do?

Thats the question Sam of the popular Financial Samurai blog tackled after one middle-schooler asked for some help plotting his financial future.

Heres the letter he received:

Im 13, live in an upper middle-class family, have good grades in school, and want to start planning out my future now. I want to learn the major mistakes other people have made before I can even grasp the chance to do the same.

I run an eBay .account where I make ~$400 gross a month buying and reselling high tier shoes and clothing. The money usually ends up in my desk drawer, but I have been dabbling in the investment of cryptocurrency and I have turned around a $2,200 profit so far.

I know that money comes with work and gambling for it is the worst thing you could do. I want to be able to live a happy and wealthy life and I know I have all the utilities but I dont know what to do. I am willing to work and take risks to sustain financial growth but I dont know where to start.

If anyone is willing to give me three pieces of advice for my future I will take them with full consideration. Thanks! Daniel

Wise beyond his years, clearly. But its just as clear that Daniel has a lot to learn, and quite likely, a lot of lumps to take in the coming years.

First off, Sam, who acknowledges that he was much more interested in girls, skateboards and beer at that age, told Daniel to go ahead and be a kid while he can. Dont get too bogged down in real life just yet. Enjoy middle school while it lasts, then hit the books hard when high school rolls around.

People today who complain about life not being fair more often than not didnt take school extremely seriously. Education is what will set you free, he said. Get the best grades and test scores possible to give yourself as many options as possible.

His second piece of advice is to learn from the inevitable mistakes. At this age, Daniel can recover from any sort of hits he takes.

Investing in cryptocurrencies sounds like a great way to make and lose everything, Sam said. If you end up losing your $2,200 profit by not at least taking some profits, youll always be reminded about this loss before making more significant investments.

He explained that people who only started investing after 2009 are in for a rude awakening.

Never ever confuse brains with a bull market, he said. Study the previous bubble implosions to better prepare yourself for the next one.

Lastly, Sam tells Daniel to always focus on building his personal brand, and take care in crafting an online image that wont backfire. The internet never forgets.

Dont post compromising pictures of yourself that might come back to haunt you. Dont write hateful commentary, only love or nothing at all, he said. Focus on helping someone first before asking for help. Be resilient. And never fail due to a lack of effort. If you can consistently tilt towards the positive, you will surround yourself with other positive people in return.

And, of course, listen to mom and dad.

Any more advice for Daniel? Share in the comments section.

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3 life pro tips for the teen cryptocurrency trader who's already made thousands - MarketWatch