Many people want to know how to join the crypto bandwagon. You will need to conduct research before buying any coins because there are rules that you must follow when choosing a token. Many people who don’t understand these rules often lose their hard-earned money by getting involved in useless tokens that eventually become worthless.
This article will discuss the important rules that every investor must follow in the future.
Let’s take a look at these rules.
Table of Contents
1. Do your research
Many Initial Coin Offerings (ICOs) and other “crypto-exposed” projects are out there. Many of them might offer to pay you a return on invested funds or promise enormous gains, but as we all know: the higher the gain potential, the riskier it becomes. It is good to invest your $10 in a project with a 1% chance to bring back $1000 instead of investing it into another ICO where the chances to lose everything are much greater.
Be wise and do not just follow investors who brag about their large profits and success stories without first researching yourself. It is also important for you to choose the top crypto trading platform like Bitcoin Loophole with proper research.
2. Do not fall for the hype
Do not invest in something you do not understand. The crypto world is full of idiots (talking about myself here). Many people get rich quickly or claim to have the best product on the market that will surely go up in value. These kinds of statements are often empty promises without any real substance. There are many ICO’s that are just money grabs with no actual work put forth by the developers or company behind it.
Do your research – nothing is sure, especially in this new emerging technology ecosystem. Be wary of false claims and scams and keep an open mind to new possibilities.
3. Patience
Patience is one of the most important rules to remember if you want to succeed with crypto trading. Never rush into buying or selling because you feel that it may cost too much or that the price will go lower than your expectations. You should always resist the urge of buying or selling because you fear that you might lose money.
Only time and patience can yield market prices for your trades, so do not let fears guide your decisions in trading whatsoever. Patience is a virtue, as they say. This saying holds when dealing with cryptocurrencies since its highly volatile nature makes it even more prone to losses from those who cannot control their urges to trade based on emotions rather than logic.
4. Beware of scams
Nowadays, the term “cryptocurrency” is used in connection with pump & dump altcoins. Many people had learned this term when they lose money by buying some crappy coins, thinking they are legit. If you don’t know what pump & dump means, go to Google and search for it or read our page about trading.
The Bottom Line
If an exchange gets hacked and takes your funds (which has happened multiple times), then there goes your money, and there is nothing you can do about it because you don’t have access to those keys; essentially, they own them now because their system was compromised and they lost control of their wallets.
Read also: Crypto Scams That You Must Be Aware Of