- Invest only what you could afford to lose!
- Choose coins you understand.
- Invest periodically
1. Invest only what you could afford to lose
This is probably the most important rule.
Bitcoin could go down. The whole market could go down and never recover.
This is not what I believe. But you should take this in consideration.
Always think of the worst case scenario when investing. Not only for cryptocurrency.
You could apply this way of thinking on any market.
This way , you will always be aware of what COULD happen.
Don't play with your future.
I have been investing in cryptocurrency for a year now. Not that much. But enough to hear stories. I can tell you...I've heard some stories.
I know one guy that invested 150k dollars into 1 coin! One! He invested it a few months ago.
You know what happend? He lost half of it.
If you play the game , then do it smart. Invest your money into several coins. This way you wont lose everything when 1 coin gets destroyed.
A good portfolio contains a mix of big coins ( Bitcoin , Ethereum , …) and some altcoins.
3. Choose coins you understand
This is important. It keeps you from panic selling when the market goes in a dip or crashes.
If you really believe in a project , you will be more confident riding out the storm.
For me , I only invest in coins I use or at least understand.
4. Invest periodically
Don't go all in.
A good strategy is to buy coins at a regular basis. Weekly, monthly, ... .
You will give yourself an advantage when the market goes down.
Cash! Cash is King.
You will hate yourself if you dont have cash in a temporary downtrend.
I learned NOT to buy coins when they surge. I buy when they go down.
Buy them coins at a discount!
Thank you for reading. Hopefully you learned something!