You are not the only one who is smitten by the cryptocurrency revolution, as the realization has made almost everyone in this world to go gaga over the cryptocurrencies. While the idea to trade or invest in the cryptocurrencies is nothing wrong, what one should not do is to blindly pursue the practice without understanding the significant rules and procedures. Being disciplined is the only way to earn success in the field you desire, in where comes certain must-follow rules of success, naturally!
Such must-follow rules of the popular crypto trading practice are what we are here to discuss, especially the top 5 ones, which, from a beginner investor to an experienced investor should never fail to oblige all the times.
FOMO, a big no-no!
FOMO aka the Fear Of Missing Out always leads the investor to the path of decline or the path of devastation and hence, stay away from the concept of investing in the cryptocurrencies due to FOMO. The cryptocurrencies are a relatively nascent concept and therefore, speculative pumps and hikes are very much common in this evolving world, to which you should not succumb and unnecessarily suffer the losses or miss out the future opportunities! So, when a cryptocurrency is suddenly enjoying a high ride, try to understand the reason for that before pumping your money into it in the name of investment and later, do a foul cry, when the prices fall down drastically!
In the world of investments, one practice that you should blindly follow is the practice of diversifying your investments, which, in the case of volatile cryptocurrencies is a very much essential practice! Sure, given the growing acceptance, the cryptocurrency market is sure to survive but, still, there is no guarantee that a single coin would drive the entire market to the success of the future and hence, diversify your investments in one or more dependable coins to enjoy a stable ride, always!
Do your homework
Any investment practice should only be started after doing some homework aka basic research to make sure the decisions that you make are a viable one. Especially while choosing a specific cryptocurrency as your investment choice, you should spend quite your time in learning the background of the coin, its purpose, what welcoming change it can bestow the community, the experts’ opinion about it and so on to ensure you only choose that coin that would make it to the future successfully! Doing your homework is very much needed to stay away from the fraudulent cryptocurrency projects and ICOs that are here only to loot your hard-earned money!
Only invest that much you can afford to lose
No matter, the crypto trading or whatever trading you wish to pursue in the future, always remember this one simple, yet, significant thing, which is, to invest only that much you can afford to lose! It is because no matter how much expertise you attain in the trading practice, the losses are inevitable and with the given volatile situation of the cryptocurrencies, investing too heavily in them is not at all an appreciable deed!
Exit Plan, a better plan
Contentment always allows you to play safer in the world of investments, especially with the stabilizing cryptocurrencies, one should always aim for contentment by setting an exit plan and sticking to it earnestly that prevents them from acting greedy!