1 Don't Invest more than you can afford! This rule seems obvious, but believe me tulip mania can affect even the most frugal of us. Watching your new investment shoot up 50% in days is not only thrilling it mocks all traditional norms of investing.
2 Don't Chase a coin on the rise Remeber what goes up must come down buying a coin when it has already surged is very tempting. missing out on the next big gain is frustrating and will cause you to chase. A sure way to take your 1st loss and learn a bitter lesson in the crypto game.
3 Don't Leave your coins on an exchange. Crypto is still in its 1st or second inning meaning its very young in the game. company's can go down as fast as they go up. exchanges can get hacked and passwords can be lost. Do your self a favor and find a good wallet before investing in your desired coin or you might find yourself wondering... why me?
4 Dont sell on the way down! This is especially important if you didn't follow rule 2 and bought on the rise. Our natural impulse as humans is to run from something that is harmful to us. seeing your new investment take its 1st plunge is not only scary it can be out right devastating if you sell just because some fud hit the news or a good coin is adjusting from inflated price. In this new world of Hyper trading it is normal to see coins lose 30% of its value just to rise 50% the next round.
5 Don't Forget your taxes! In the end of the day when you pull out all your winnings because you followed your previous 4 rules don't forget to pay the tax man. Even in this new crypto world big government still wants its cut. Don't let hysteria get in the way of good book keeping. winnings now could spell trouble later
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Thank you for reading my blog and Please comment. And good luck!