Three basic rules in cryptocurrency investment

[Flow-er]

There are several rules of investing in cryptocurrency and this must be followed if you want to be save your money and if you don't want a pathetic story, you need to follow the rules to the latter. In this thread, I will be sharing 3 basic rules that you need to follow if you're investing in cryptocurrency. These rules could also be applied in any form of financial investment . The problem that investors have, is that they do not have a certain rule that guides them on how to approach an investment.

Firstly, invest the amount that you can afford to lose. This is very important because you need to invest about 2% of your account in a particular venture and you don't want to blow all your account on a single investment. The fear of missing out(FOMO) would make so many people to invest all the account thinking that you will become rich overnight.

Secondly, you should know about the potentials of the assets that you are investing on in cryptocurrency. You should understand the digital currency that you are investing on so that you will not make huge losses and it will give you confidence on the investment

Lastly, develop a working strategy for yourself before trading and if you're not an experienced trader, the best strategy to use in cryptocurrency is the hodl strategy. We will be holding the cryptocurrency for a very long period of time for future gain.

 

[PolySteam]

People keep talking about "making money" but what is money? I think too many people are concentrating on the wrong thing too much. Why always look as value in terms of fiat value? We should be using our crypto not selling it for fiat unless we really have to. It's a good idea to keep a large amount of your portfolio into stable coins like tether and usd coin. This way they remain as stable as fiat does and perhaps even better.

If you live in a country with a low value inflating currency then you should rather keep most of your funds in usd coins or tether. That way you don't feel inflation as much and your coins are normally values higher towards your own counties currency. This is why many people use crypto instead of their bank account. It's not about "making money" it's about the acquisition of wealth in whatever form suits you best. Your objectives should include collecting and keeping crypto not fiat.

 

[btaliat]

Weldone for the job done well. Many people do not really see crypto as a risky investment. They do believe it is a kind of investment you can venture into if you want to make quick money. They always think that's how easy it is. And this has made people to lose their hard earned money to it.

Crypto investment is a careful investment that takes a lot of research before one can be gaining there or else it will become gambling if we don't take our time to research before making money on crypto. We may decide to rely on fundamental analysis or even technical analysis if not both at some instances in order to increase our potential gains.

Many have thought that they need to invest big while the market is booming and some buy much coins when there is bearish market. These strategies may be wrong. Most times, people lose using these strategies. The marker may crash even when it seems it is going to the moon . likewise, market may further crash if we buy in the bearish time.

The best advice has been offered by the poster in its first paragraph for us to use only what we can afford to lose to avoid much loss.

 

[Shaf]

In addition, it's more important than anything for any cryptocurrency investor or trader, new or old to practice proper risk management.
I've felt the pain of loosing all of my portfolio and it's not good.

If I had learnt to cut my losses, use the right strategy of taking profit and using stop losses, it would have been a different scenario. For most people, we get greedy whenever a trade is going in our favour and leave trades open. However, fundamentals can change very fast as we've seen with Luna and you lose your money.

Another thing is that one should learn the proper way to diversify in cryptocurrency. A healthy portfolio must contain more of Bitcoin or Ethereum, in my opinion. This is because they are slower movers this loses there are smaller. They also have strong fundamentals and have withstood the test of time. Other coins can make up 50% or even less of your portfolio and should be small enough to manage.

 

[Ithedicious]

Investing only what we can afford to lose does not really make sense to me in the crypto space , If I am to invest only what I can afford to lose obviously that will be too minute to make a difference in the crypto space and at the end of everything i won't even be able to invest anything reasonable . If you cannot invest anything reasonable how will you expect to make something reasonable from the crypto space ? Not really about investing what you can afford to lose but this is what we must consider .

If I am to invest in any cryptocurrency of my choice , the most important thing I will do is to try as much as possible to Risks certain amount of money even more than what I can afford to lose after I have carried out my own personal research about the cryptocurrency I am invest on .

For trading , I am not a cryptocurrency trader and I don't even have any experience in trading . I just believe that as time goes on I would have to learn a perfect trading strategy that will help me to trade safely without losing.

 

[Lens1000]

The thread that you shared is very educative and so interesting too. When I saw the topic, I jumped on it and I found out that the content is in really good for consumption most especially for those that want to trade cryptocurrency. They are simply the basic rules that must be followed. It is highly recommended to use the rules because they are very important

it is highly recommended that you should always invest the amount that you can afford to lose because with this, you can come back the next day to trade. you should not invest more than 2% of the account. When you invest about 2% of the account you can still come back the next day to trade because if you lose such an amount, it will not affect your account. Another one that you shared is very important because you must also take into account the assets that you want to put your money on. You must carry out a due diligence on the assets that you want to invest your funds. This will allow you see if it's an asset that will give potential profit in the future. It is an important aspect to take note of.

 

[coin456]

Three Basic Rule which i follow
1. No over leveraging
2. No investing in meme coins
3. Always for risk management

 

[Suba]

Currently crypto investment is seen as equivalent to stock investment, but crypto prices are more volatile so the risk is very high. Every investor will of course have his own way that is used as a rule for himself, both from experience and from other sources such as sites and Youtube. Since 2012, I have known Bitcoin through faucet sites, (very different from the faucet sites that are currently widely spread out there). Based on my experience the first time I bought Bitcoin using money from online work. So the basic rules in crypto investment are first when you want to buy/invest in crypto, use idle money or money that you don't use to meet your daily needs. Second, because crypto is at very high risk, set investment diversification using the formula 100-your age = high risk investment. Third, if you are a novice investor then you only buy crypto that has potential or has a high market cap. such as Btc and Ether, Fourth, take profit, determine the time when you must take profit especially when the crypto market is bullish.
For crypto trading we must have different strategies and we must first master technical and fundamental analysis. I think crypto trading is more difficult than forex trading.

 

[Mika]

I have invested in crypto market, here are my investing strategies.

Set a buy order limit: Crypto market is very volatile, it goes up and down frequently. Anything from political upheaval to inflation, recession, economic policy, etc, can move crypto price. When Russia started war in Ukraine, crypto market fell. But after few weeks the market improved, thanks to Russia selling oil for Bitcoin and Ukraine receiving donation in crypto. Therefore, when you set a minimum biy order limit, the bot will automatically buy for you when the price falls.

Invest for a long term: I started investing in crypto in the beginning of 2021. Before that I was mainly using crypto as a payment option and used to convert crypto to fiat as soon as I received. When I decided to invest, I made a 5-year plan. This is the reason I am not afraid of the current bear market and I am not panic selling.

 

[Limivorous]

3 basic rules of cryptocurrency investment:

1. Do not put your money that you can not afford to lose.
2. Understand the real potential of cryptocurrencies.
3. Prepare a working strategy for trading.

 

[Phytology]

Cryptocurrency investment is an emerging market that has been growing rapidly in the last few years. It’s important to know what you are doing before investing in it so you don’t lose all your money.
Rule 1: Don't put all your eggs in one basket. This means that you should not invest all of your money into a single cryptocurrency or type of cryptocurrency, but instead diversify by investing in many different types of cryptocurrencies to minimize risk.
Rule 2: Do your research before investing. This means that you should do research on the cryptocurrency and company before deciding to invest, as well as researching any other information about the industry itself, such as its history and price trends over time.
Rule 3: Be patient and don't panic sell when prices go down.

 

[Dora Wi]

Sound tips, I mostly agree. Aside from only investing what you can afford to you, I'd add that learning about and applying good risk management is a must. There are lots of sources online to learn from.

 

[Sotherefore]

Thank you for sharing . In terms of the fact that so many people are advised to invest what they can afford to lose and investing 2% of your overall account balance in cryptocurrency to me may not really be necessary , after all you won't be able to earn any reasonable profit if you have to invest a minut sum of money in cryptocurrency.

Normally it depends on people. There are so many people that are willing to invest and take risks for themselves and as such those people are likely to make the best money provided they are taking this risk in something that is worth doing.

Personally I wouldn't just want to invest a little sum of money in cryptocurrency , I'll try as much as possible to invest 30 to 40% of my overall net worth in cryptocurrency if I have opportunity to see a potential coin. It is a risk that is worth taking for me and I might succeed making good profit from it.

 

[Peninsula]

Thank you for the amazing tips. I totally agree that one should always go with the capital they can afford to lose. Also, trading with a strategy and solid plan helps going towards success just like a map. You need to stick to the rules and never ever include emotions while trading.

 

[Abessive]

Well explained, in a crisp and concise manner. Another important golden rule you forgot to mention is - RESEARCH.

Never invest in a cryptocurrency you haven't thoroughly investigated. We all lead busy lives, therefore it can be alluring to invest a little sum of money in an alternative cryptocurrency that you read about online. However, there is a lot of false information available, and it is your money. Your financial goals and techniques are only known to you. While research doesn't ensure success, it greatly lowers the likelihood of falling victim to fraud or purchasing a cryptocurrency with poor long-term potential.

 

[roseberry]

totally agree with this, i personally suggest, don't invest your hard earned money , before you learn everything about crypto

 

[Canzone]

Here’s what I think-

1. For long term investment, choose coins that have been listed in the yearly top 10 consistently for 7 years or more.
2. For scalping and day trading, choose coins that have stable volatility and high liquidity
3. Staking is highly profitable, and is a saviour when the market is bearish

 

[Lens1000]

Cryptocurrency is indeed an admirable way to make reasonable amount of money if you want to try out any form of investment the major reason is that if you try to invest in crypto it has a lot of benefit an a lot of profitability but before you rove into such kind of investment you would need to gain enough experience on how to trade cryptocurrency an how to analyse crypto using the chart . Technical and fundamental analysis is is a skill that must be gained by anyone who wants to invest in cryptocurrency and it is very important.

 

[saoussen5765]

Even if the money you are going to invest you could afford to lose, if you know that the investment on such trade or cryptocurrency is a loser investment do not do it as it is like throwing money from the window.

 

[uptrendfinancialsignal]

Cryptocurrency investment is indeed an admirable investment that you could try out because it is one of the ways that you can make certain amount of money for yourself on the internet. People are really using crypto to rake in reasonable money and that is exactly how they've been doing it and it is really working out well for them. It is always better to ensure that you due diligence on the crypto coin you want to choose before you invest so that you will make respectable money because it is an investment with high level of risk and it's lucrative.

 

[saoussen5765]

Cryptocurrency investment is indeed an admirable investment that you could try out because it is one of the ways that you can make certain amount of money for yourself on the internet. People are really using crypto to rake in reasonable money and that is exactly how they've been doing it and it is really working out well for them. It is always better to ensure that you due diligence on the crypto coin you want to choose before you invest so that you will make respectable money because it is an investment with high level of risk and it's lucrative.

This is not by only storing cryptocuccrency in a wallet this is not a profitable investment as they could decrease or increase in value it should be movemented means invested in various staff in order to make reasonable amount of money.