Top 7 Daily Rules To Be Followed By Crypto Investors

The cryptocurrency capital market has continued its strides to being one of the most preferred mode of investment among small and big investors with no discrimination. The bitcoin which is the biggest crypto coin for example can be purchased to its one millionth fraction (Sathoshi), making it available at lowest of denominations in fiat currency equivalent. There have been a wide number of new investors recorded in the crypto currency world, especially with the introduction and popularity of the blockchain technology. However, one cannot deny the fact that the cryptocurrency market is as volatile as every other investment markets. As a matter of fact, cryptocurrency is more volatile as a result the unavailability of regulatory bodies. So as an investor, you can go to sleep and the next minute you wake up, you find out that your investment have either taken a bullish rise or a bearish depreciation. It is therefore imperative that while investment in the cryptocurrency market is a good investment, some rules have to be followed by investors. And since the investment market is an everyday thing, these rules are dubbed daily rules. Without wasting much time, let’s get familiar with the rules.

Invest what you can afford to lose only

This is the number one rule of investment. Most experts in cryptocurrency say that once they invest money into a crypto coin, they virtually make themselves believe that the money is gone forever.  Although they make sure they get their money back, they use this act to ensure that they are investing what they are willing to lose. The dips in the prices of cryptocurrencies are affected by many factors, most of which are out of control. So it does not entirely depend on how smart you are with investment. Bugs, hacks and government regulation can affect the prices of coin. The bitcoin crashed when there a hack on the South Korean internet servers.

Diversify your investment

Just as there is a potential to earn more when you have high investment in a coin on a bull market, there are equal potentials to lose your investment when that same coin enter a bear market. The best way to invest and cash out big in the cryptocurrency market is to diversify your investment, spreading your earnings across multiple coins. Data shows that when the coins leading the market capital rises, it simultaneously leads to the rise of other crypto coins.

Don’t be greedy

The whales of the cryptocurrency market are where they are because they know when to call it quit on profits. Don’t be greedy; consider calling it a profit after 30% increase at most. Some investors who are blinded by greed keep their investment for too long and end up losing all their investment. Have it at the back of your mind that bitcoin went from $20,000 USD to $3,400 USD in  one year.

Put a goal tag on that investment

Putting a goal tag on your investment prevents trigger sales. Such that when you invest in a coin and you find it taking a dip, you do not go into panic and sell. You can categorize your investments into long, short and medium investment plans. Some coins takes up to 20% dip for some given period, and before you know it, they are on a 50% bearish rise.

Learn from mistakes

Luckily for you, you do not have to learn from your own mistakes. The crypto market is like a cycle of events, everything that you are doing on a daily basis have been done by other people. So while you are keeping an eye on that investment, go online and search for materials, learn from the experience of others. And if you happen to make mistakes, learn from them.

Pay attention to the price of Bitcoin

Most altcoins are affected by the price of bitcoin. A rise in price of bitcoin leads to a reduction in price of these altcoins. And a dip in price of bitcoin does the reverse on them. The best time that altcoins rise in price is when the bitcoin is stagnant in price.

Keep a tab on the team management of the coin you are investing in

Always make sure that you are in tune with the updates of the management teams of the coin that you have your investments in. Most coin management teams operates account on Git and other social platforms.