Hey Guys, before posting anything else I thought I should give out some tips that I hoped someone told me when I stepped into this crypto universe. These tips are something that I found to be of most importance while investing/trading in cryptocurrencies.
- The first thing that should come to your mind while looking into a coin should be — What problem does the project try to solve? What are they trying to achieve and is there truly a need for a Blockchain for it. If the answer for the given question comes out to be true then only look further into the coin.
- Market cap matters more than coin price: The price of coins is relevant only after accounting for the circulating supply. The number of coins multiplied by the price of those coins is the total market cap for the token, and that is what really matters. When you buy a coin, what you should really be focused on shouldn't be the price of the coin, but what percentage of that total market cap you’re purchasing.
- Don’t just HODL. You must take profits gradually. Set targets and when you reach that target pull some money. It is not necessary cash out to fiat, but at least move that profit into a coin you been wanting to buy that may not have pumped yet or to a permanent storage of value like Bitcoin. Keep in mind the market always goes in cycles and corrects. If you HODL for a long time, you will make money but it will be significantly less then if you just take profit gradually and use that money to buy the dips. You can’t predict if it will dip tomorrow, next week, or next month, but rest assured it will dip.
- Make accounts on multiple exchanges. Kucoin, cryptopia, idex. A lot of people just make a binance or a bittrex account. Idex is one of the best exchange to get good entry points. Erc20 tokens will be listed here immediately after the ICO is over. Getting a coin at a value near its ICO price is a steal deal.
- Last thing is not to completely trust anyone. Following twitter accounts and taking their advice is good but dont trust them blindly. Before following anyone's calls, research it first. Its your money, remember Nobody became a millionaire by walking in footsteps of others. Read the whitepapers, look at the teams, and become immersed in the community.
Few random points that I read in a blog and are worth mentioning :
If you’re unsure if you should make a trade, don’t.
There’s no single portfolio allocation right for everyone.
Keep your emotions in check.
At last be greedy, but don’t get too greedy.
Hoping that this post will help all the newbies entering the crypto world. All opinions are welcome.
#JoKeR