It's another hectic day in the world of crypto-investing. Bitcoin Cash is surging and Bitcoin looks like it could be in for a rather large correction.
Today I'm here to share three rules that I think all successful crypto-investors should stick to.
Your first and most important priority is to never lose money. I know we can all get swept up in the hype of cryptocurrencies, but it is important to never rush into this. We never want to lose money, and the easiest way to make sure that doesn't happen is to conduct research research research. The crypto scene is inherently risky but you can protect yourself against this risk by making sure you invest in coins you know will see growth over time. Coins like Bitcoin, Ethereum and even smaller ones like IOTA are seeing consistent growth and are "safer bets" when it comes to investing your money.
Once you know you won't be losing money. You want to make sure you're earning money. Again, as long as you invest in low risk coins with larger market caps, coins that you have done thorough research on, coins that have active dev teams and communities, then this step should be covered easy.
The final rule you want to follow is maximising your money. This rule is harder to stick to due to volatility and well no one can really predict the future. However, understanding a coin from top to bottom, the team, the community and how that coin interacts with the larger crypto-verse should put you in good stead to know how to maximise your money. You should always be looking to take advantage where you can. I can't tell you exactly how to tick off this rule, but being patient is important for this step. Don't rush into things and you should maximise return as well as you can.
So those are the three rules I follow when I invest in cryptocurrencies. Obviously the most important is to make sure you never lose money. We are in a risky business, but you can mitigate that risk through patient, well timed and thoughtful investing.
If you have any rules that you follow for investing in cryptocurrencies I'd love to hear about them with your comments.
Happy trading!