Cryptocurrency has proven to be a huge revolution that is changing the way we see banking and money in general. It has made and marred so many people. Although cryptocurrency started a long time ago, its impact is felt the more in the past 2 years.
There are several crypto coins and tokens created daily with different airdrop alerts, coin capital listings, etc. with so many people keying into and investing huge sums of money into the business.
With the high rate of development of coins, many illegal individuals have leveraged on this to create coins meant to defraud people of their investments.
There was recent news that saw Bitconnect suspended for a while due to news of running a Ponzi scheme within it. Also, several coins have remained stagnant for so long with so many linking it to the creators having the motive of defrauding investors in the long run.
In this article, we would discuss some rules that will ensure that you become successful in cryptocurrency investments.
Cryptocurrency investment rules
Every business has its own rules, advantages, and disadvantages. Cryptocurrency investment as earlier stated has made so many millionaires in the past few years and also, has rendered so many bankrupt. It has its ups and downs but to experience little of its downs, these rules would be of great help:
- Never invest when the prices are high
- Do your own research before investing
- Put aside your emotions while investing in cryptocurrency
- Never sell in loss
- Learn to move on
Never invest when the prices are high: the best time to invest in a cryptocurrency is during its initial coin offering (ICO) stage. Although you can invest at any point and price, the chances of making a huge profit off a coin whose price has skyrocketed are slim. Take, for example, Bitcoin; people who made and are still making a huge profit from the coin are people who bought it when the price was low and have been HODLING it for long. People who bought it at a high price are now at loss.
Do your own research: no matter how much hype a coin receives from either blogger, authorities in the industry, friends, loved ones, and family, do not just invest blindfolded. These bloggers and authorities might just be doing some marketing for the coin owners for either a fee or a stake. This said it is important that you double check the signals, find out reviews on a particular coin from different websites, coin trading platforms, and coin markets.
You can check out the coin ratings, websites, and other details by either doing a Google search or by going to coin listing sites.
Put aside your emotions: This is always advised while doing any form of investment. Cryptocurrency investment is not an exception to this rule. No one is into cryptocurrency if not to make money off it. This said, do not allow your emotions becloud your sense of judgment and reasoning anytime you need to take a decision on a coin. Either on whether to invest or sell a coin, your judgment should be based on facts that are on the ground.
Never sell in loss: no matter how bad the market seems, it is advised that you never sell below the price you bought the coins for. At worst, you just HODL and keep HODLING until you see a headway. Whether you are to HODL for more than a year, just do so and depending on the coin in question, you can sell as soon as you notice an increase or wait till your profit margin becomes high before selling.
Learn to move on: Every business has its ups and downs, and sometimes you might experience a huge loss in cryptocurrency investment. Just some days back, someone posted on Facebook that his bitcoin wallet that had about $35 in balance just disappeared because of the deeps in the price of bitcoin since this year. It happens sometimes and all you need to do is move on! Find other coins that are still in their ICO stages and invest.