If trading cryptocurrencies like Bitcoin, Ethereum and XRP was easy, everyone would do it right and be making a lot of money. But it’s not easy, and when things aren’t easy you need some guiding principles which will help you navigate the stormy waters.
- DYOR: do your own research. In short, read the white papers yourself, assess the user case outlined yourself, try to feel for yourself how lively the community around a project is and investigate for yourself how inflatable/deflatable the currency is.
- Never trade out of FOMO – Fear Of Missing Out. Buying or selling while you’re marinating in cortisol, wallowing in dopamine deficiency, is asking for losses. Monitor the prices, buy low and sell high.
- You’ve probably heard it before and you’re probably thinking: it won’t happen to me. But who has never fallen into the trap of panic selling something? Certainly not the smartest thing you can do with crypto! Wait a little while, and then reassess what you want or don’t want.
- Only invest money in crypto that you can afford to miss. In other words, don’t invest money that your day-to-day budget commitments can’t do without.
- Think long-term. Hold part of your investment for a longer period, HODL. You can also let your crypto work for you and stake your crypto holdings, earning weekly staking rewards.
Keeping these five principles in mind, you are now ready to buy you first coins. We recommend two of the world’s leading crypto exchanges, Binance and FTX.
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Source: Igaming
