Here are five absolute must-does before investing in cryptocurrencies.
5) Read and follow ALL the news
If you think you’re ready to jump in the crypto market, come up with a news feed and keep yourself updated every single day. Follow the market for a while and then decide for yourself if your heart is strong enough to handle the shocks that come with this, sometimes sadistic, pleasure.
Also, when you think you’re ready to jump in on a coin, read the whitepaper, research the team and think about the potential of their technology. Nevertheless, don’t forget to keep track of their road map to capitalize on their achievements.
4) Learn how to trade
Learn about exchanges, their commissions, wallets, security, private keys, public keys, and every new term that was ever used in the crypto space.
3) Understand that you are playing a game of high risk – high reward
NOTHING is guaranteed when it comes to investing in cryptocurrencies. Don’t expect to win forever and don’t believe too much in yourself. What worked today many not work tomorrow so first off, expect to lose whatever you invest and invest whatever you can afford to lose.
Second, if you won big sell and let others take a gamble as well.
2) What comes up, most go down (Don’t be greedy)
Every asset in this world has a maximum potential and when that potential is reached, the only way to go is down. Cryptocoins are no exception to that so if you managed to double or triple your money, it’s probably time to cash out unless you’re absolutely fanatic about that specific technology or coin.
Remember to sell whenever the price allows you to and try to control your greed. Also, always remember that you’re going to make less money than the person who invested before you. If people made millions with their initial investments, you’re going to make hundred of thousands at best.
1) Always be skeptical
Always be skeptical of opinions, no matter how credible the person in cause sounds like. The easiest way to find out if someone is playing games with you is to think about that person’s personal interest.
For example: the famous pump and dump scheme when someone is using his or her influence to pave the way for a coin, only to sell it when the price goes up. This way you’ll be left with an useless asset while that person in cause will cash out as soon as possible. When money is involved, there are no good intentions.