Ten Rules for Safe Crypto-trading and Investing
1. Do your research – Every single ICO publishes a white paper. This document sets out what the coin is all about, what sets it aside from others and what it hopes to achieve. Read as much as you can and this will give you an understanding of what you’re getting into.
2. Only invest money you can afford to lose – The crypto world is volatile huge profits stand shoulder to shoulder with huge loses.
3. Watch the markets – Before spending money, spend time watching the numbers. If you spend a few days or weeks watching the ups and downs of certain coins you stand a better chance of predicting future fluctuations. Bear in mind this won’t give you any guarantees of certainty, but it’s better than doing nothing.
4. Keep your investment safe – Use proper passwords and when ever possible take your coins offline.
5. Don’t expect miracle – Give your investment time to grow and don’t be surprised when you don’t make six figure sums a few days after putting your cash in.
6. Don’t be greedy – Aim for a decent return and stick to it. Remember if you make a small profit you’re doing well and don’t risk everything chasing insane returns. Set your limit and stay with it.
7. Don’t listen to FUD – FUD stands for Fear Uncertainty and Doubt. Propaganda maybe all over the news at the moment, but it’s nothing new to the world of trading. Remember people are actively out there sowing the seeds of doubt, so they can affect the markets and the prices. Don’t buy it.
8. Don’t be “that guy…” – So, you’ve bought your first coins and now you’re an expert in crypto-currency? Take our advice and keep your predictions to yourself. If you don’t actually have insider information to share, you run the risk of encouraging people to make bad decisions.
9. Trader or Investor? – Know the difference. An investor is in it for the long haul and will hold their coins for long periods in the hope that they grow in value over time. A trader on the other hand will buy and sell on a moment-to-moment basis, moving their cash form one coin to another as the values fluctuate.
10. Passion – Whether you’re a trader, an investor or just a hobbyist, make your decisions based on what you care about. When we are passionate about something we’ll always give it a little extra. If you have a passion for what you do it makes the wins more rewarding and can soften the blows when things go wrong. When our hearts are in it, we always do better.