To be successful in the crypto world, there are many things required. Some of the following can stand as strong rules that can make people successful and increase their overall portfolio value. Many people aim to be successful in the crypto world but they lose focus make some bad moves and end up with huge losses. The below 5 points are something that I consider to be very important to be successful in the crypto world.
They say "Practice before you preach" but I have to admit that even I need to focus on some of the below points. I know for a fact that the below 5 are the most important rules in the crypto world but it can sometimes end up being the most challenging one to practice.
1) Stay invested in Bitcoin
Bitcoin is the mother of all cryptocurrencies. It has been this way for over a decade and will continue to be in the coming decades too. Every crypto in the market is in some way influenced by the price and value of Bitcoin. This is why we can see huge market movements when the price of Bitcoin is affected. The price of Bitcoin also attracts new investors to the market and when new people are attracted, they also would like to try out some altcoins.
This is something that I have missed in the last few years. I don't have any Bitcoins with me. There used to be a time when the price of BTC was around 3k dollars and I had close to 1 BTC back then. But when the market was down, I converted all my BTC to purchase Hive during the early days of Hive. Only after that did BTC pump and reach even 60k dollars in value. Those were some bad moves but still, I don't regret investing my time and money in Hive though.
2) Invest only the money that you are ready to burn
Some people are greedy and some people would like to take heavy risks. They usually invest their hard-earned money into crypto and might lose them because of bad moves. I had a friend who invested in crypto during the previous bull run. Somehow he felt that there was going to be a bull run and he sold his car, he sold his belongings, he pledged his gold and house, and invested a huge amount of money in the crypto market. This was right before the previous bull run. His focus was fully on Polkadot. He did buy a lot of ADA too back then.
To his luck, the bull run started and some of his investments grew 10 times and 20 times his investment value. He booked profits only for the value of his liabilities in the real world and kept the remaining and diversified it. Today he is very successful in crypto and he is living a great life in one of the richest countries in the world. The above story can be inspiring but we have to be very careful while investing. What if the bull run had not happened and all his investment was lost? So we have to be prepared for the odds too.
3) Book profits whenever the market is good
In this entire process, this is the most important step. Many people think that the bull market is just starting so the value of the coin might go up even further and it would be a good time to book profits after that. But the reality is that the bull market may not last for a long time and if we end up not booking profits, it may not be a loss for us but it would become a missed opportunity for us because only with swing trades, we will be able to make some decent amount of money that we can reinvest.
Sometimes greed can stop us and we might want to hold long term and have some sentiments with us. We have to break all those barriers when it comes to profit booking. If we have invested in something and if the value is already 2X, we should be happy and book our profits. I agree that the investment can even go 5X or 10X but today we see a 2X value and it is a good one to book profit it is better to exit and reinvest if the coin reaches the same low value again. This is what successful investors do.
4) Have enough stable coins to buy during bear markets
It should be a good practice to keep enough stable coins with us all the time. It is highly essential to have enough funds saved for the bear market. Not for our expenses but for our further investments. Most of the time people easily lose their stablecoins when the bear market trend starts. The bottom point is difficult to identify and we shouldn't panic-buy when the market starts becoming red. The best time to invest is when the market is bleeding. In such cases, it would even be easy to book our profits just in a few days. But situations like that happen only once in a while.
Another good way to invest during the dip is when we have long-term goals. If we know that some coin is very low right now and might again hit its all-time high soon and when the overall market is improving and most importantly even if the price is not improving, we are okay to hold it for the long term. If all these things are visible, then it can be a good time to invest and wait for the right time to sell.
5) Some altcoins disappear over time
Some people say that when the Bitcoin season starts, after some time the altcoin season also starts and would start providing great returns. I do believe that but I would say that we have to be very careful with alt coin investments unless we know very well about the project. There are so many altcoins available in the market today for investment. The problem with these altcoins is that the project might disappear and many projects have done that. Some altcoins might have a great plan but no proper funding and they gradually lose. Some altcoins are good but still, we have to be very careful with the investment we are making. I have experience in losing some money in new projects and emerging projects. It is better to invest only in well-established cryptocurrencies.
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