I have compiled a set of rules for long term cryptocurrency investments. Have a look and give me your thoughts.
Rules are as follows in chronological order of importance!
- Make a plan and stick to it!
- Educate yourself on how markets work, how to read indicators and trends. Never stop your education!
- Invest only what you can live without and afford to lose.
- Research your investments carefully, look for ground breaking innovations and qualities that will stand the test of time. Don’t forget to seek out indicators and features that cater to mass adoption in the future.
- Never invest more than 10% - 15% of your annual income, depending on your debt load.
- Use dollar cost averaging or similar techniques when purchasing, as investments are volatile and waiting a day or a week could benefit you.
- Don’t put all your eggs in one basket, diversify with multiple carefully considered investments.
- Don’t buy into mainstream news, with mainstream news usually comes all-time highs.
- Buy the rumors and hype, sell the news!
- Wait until you’ve 10x’d your initial principal before you take any profits out. At that point it’s up to your gut feeling with how much to take out. For example, If you only take out your initial principal x 2, you have doubled up and are still leaving the majority of your investment to continue building wealth.
- Remember if you take out profits to early, you might be kicking yourself a year or two later (Bitcoin is a good example).
- If the market takes a swan dive, HOLD, HOLD, HOLD!
- Some people see red waterfalls on charts as a great opportunity to BUY, BUY, BUY!
- If you’re not willing to risk it all, you have no business here.
- Refer to all previous rules.