Pictured: Me watching the markets in the past few weeks
In part 3, I wanted to cover my 3 simple guidelines that I use to profit with crypto, even in this current bear market.
With all that said, cryptocurrencies are one of my favorite investments. In fact, I'd bet that for most people on Steemit are at least a little interested in investing in cryptocurrencies. So I'm not gonna do a deep dive into how to setup an account on an exchange any buy your first Bitcoin or other altcoins.
None of these guidelines are anything groundbreaking, but they're just simple tips for taking a step back and making smarter decisions in this incredibly volatile and new space. So without further ado, here they are:
1: Don't believe the hype
If any of you browse reddit, you may have seen the large amount of hype around a variety of altcoins and platforms that were hyped to death. The sad part is, if you looked at any of these coins past the surface level for even the briefest moment, you could clearly tell that they did not have the fundamentals required to be a good long term investment. Don't just go chasing the coin that's up 50% today because some guy made an article and shilled it to death. Take a step back and breath before you make any purchasing decisions.
2: Do your research
Do your research. Have you read the whitepaper? Does it look legit? Who are the founders and developers. What is the community sentiment at large? Is there a real world use case for this coin/token? These are all questions you should be asking when deciding to go in on a coin.
I know several people that bought into quite possibly, the shittiest shitcoins during the massive bull run in late November and December. And yea, they did see great gains on those coins during that period. But now with the recent massive downtrend, those altcoins are even doing much worse relative to the downward movement that coins like Bitcoin and Ether are experiencing.
Moral of the story is, don't just invest in pure garbage because the numbers have been rising in the past few days! Make sure you're investing in something that has the potential to be here years from now and with a real world use case!
3: Be patient
One of my favorite quotes with regards to markets goes something like this: "Markets are a tool used to transfer wealth from the impatient to the patient".
Perfect example of this is the recent massive bull run, followed by the massive crash that is still happening. People that bought Bitcoin at nearly 20k bought into the fear of missing out and got severely burned.
Markets tend to follow cycles and what we just witnessed within the past few months is a perfect example of this. The point I'm trying to make here is don't get caught in the fear of missing out! Do you really think that shiny new coin you want to buy, that's at an all time high, is never going to come back down? Chances are very high actually, that it will. So be patient.
Don't drop all your fiat on your favorite new coin when it's at an all time high...
Conclusion
None of these tips are anything mind blowing, but with markets this volatile, it can be easy to throw these guidelines out the window and make a panicked decision that you end up regretting later.
Don't be that person! By following these 3 simple rules, I've managed to keep my portfolio in the green, despite the massive correction that markets are currently facing.
Hope some of you get some value out of this. For more crypto stuff, consider giving me a follow!
