If you’ve ever thought about investing in cryptocurrency but were too afraid of failing, don’t. There are dozens of newcomers by the day and they’re enjoying the experience of owning a popular market.
Once you decide to jump in, here are 4 basic rules you can follow.
Table of Contents
Set a Realistic Capital Number
The fact of the matter is that the cryptocurrency market is just about the same as with every other investment platform, which means it carries risks that make you lose money.
As a golden rule, all investors both beginner and seasoned alike should never put in money that they’re not comfortable with. This means you should not put in your entire life savings or take out a payday loan just so you can put them in crypto.
Ask yourself- will you be fine if you lost all the money you invested in? While no one likes to lose money, their financial standing, assets and basic needs shouldn’t be compromised when going into cryptocurrency investments.
Ignore FOMO
FOMO is short for ‘fear of missing out’ and is widely experienced in the cryptocurrency market.
There’s a strong temptation to buy all the cryptocurrency you can afford when it’s making huge gains, but it’s not always a wise move. Chances are that something, e.g., a whale is causing all that movement because they want to make a profit. They might have bought that crypto coin at a lower price than what it is now.
Traders should keep their emotions in check when working, or else they’ll lose a lot of money and probably the whole cryptocurrency portfolio. Instead, look at the trend and make your decision based on that data.
Money Management is Important
The first rule in trading is that you should always buy low and sell high. However, this may not be enough because you’ll still need to make decisions in-between.
Start small when in unfamiliar waters so you’re safe. Do not buy all the cryptocurrency you want in one go. Spread it out and invest in several types of cryptocurrency after you do your research on them. You can learn trading online and through trusted sources and platforms.
Fill Out With Technical Analysis and Predictive Charts
It’s probably okay to know very little about cryptocurrency when you’re first starting out, but as time goes by you’ll be expected to learn the ropes and have something deeper than common knowledge on the market you put your money in.
Once you get the hang of working a cryptocurrency exchange you can branch out to filling out your tools, charts and apps. Crypto gps is an excellent site that can guide you to success. It has in-depth analytics and predictive technology based on market knowledge and events.
As a last piece of advice you should always take your profit out of the market and keep it somewhere safe, e.g., a cold wallet or in offline storage. Continue circulating the money you’ve invested and add more only if you’ve experienced huge gains when trading your cryptocurrency to cash.
