Cryptocurrencies are a new and exciting investment opportunity. However, like any other investment, there are rules that you should follow to be successful. This blog post will discuss five crypto rules that you should always consider. Following these rules will help you make smart investment decisions and maximize your profits.
Let’s take a look at these rules.
Always research before investing
This is a great rule to follow. Whether you are a new or experienced investor, learning about the current market and where you should place your money/how much you should invest in certain companies never hurts. Some people can lose their life savings because they did not research before investing.
Follow the rule of researching investing. Besides that, Bitcoin Era Software is the leading trading exchange platform you must choose for yourself.
Don’t miss out on applying for bounties
This is one of the easiest ways to earn cryptocurrency without putting any money into it. Most projects have a bounty program specifically designed for spreading awareness of their token/coin/platform, and many people who complete tasks through these programs get massive rewards in crypto.
There are tons of websites dedicated solely to posting bounties, so you should look around and find a couple that suits you best.
Be prepared for volatility
No one can predict the market with 100% certainty, but it is not uncommon for coins to triple in value only to drop 50% a few days later. Cryptos are extremely volatile; there’s no way around it. However, the risk is worth taking because historically speaking, cryptos have had an excellent return on investment year after year, both short-term & long-term investments alike.
This may sound like common sense, but it’s easy to get over-excited and let a little greed take over, leading to massive mistakes. Remember to invest what you can afford to lose and set a stop limit for buy orders on coins that spike in value.
Watch the news
Keeping up with crypto news goes hand in hand with doing your research. Most cryptos are still fundamentally based – meaning they have a function or utility behind them and a technological foundation & current usage.
Many cryptos pay their team members through token inflation, which has led to some big scammers getting caught from time to time. Keep an eye out for these types of things because they will affect the price of your coin.
Make smart investments
Don’t let greed lead you to make stupid decisions. If a certain altcoin is doing well, don’t assume it will continue to do so after the initial hype has died down. This can be hard for new investors, but it gets much easier over time with practice. Always set stop limits on buy orders and never invest more than you are willing to lose.
The Bottom Line
In the space of a year, cryptocurrency has gone from being an unknown to a globally recognized phenomenon. If the hype has swept you up and now find yourself with some money in crypto, here are five hard-earned lessons that you should be aware of before it’s too late.
