A Few Things to Consider While Getting Involved in Crypto

Among many, cryptocurrency is a hot topic now. It can be overwhelming if you are not familiar with the market.

Like any other investment, it is good to first dip your toes before you go deeper.

There are a few rules to consider while getting involved in cryptocurrency.

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Source: The Economic Times

Some of which are:

Invest What You Can Afford to Lose

This is like a thumb rule and that is why I put this rule on top.

Crypto market is very volatile and it can turn you from zero to her and vice-versa.

Also the crypto market is susceptible to factors like government regulations, hacks etc.

This is why its important to not invest more than what you can afford to lose.

Buy What You Understand

Irrespective of the fact you understand about a crypto project, there is a possibility that the project could collapse but its better to buy what you understand.

Being an investor, you have to understand about the project, it's technology, the use-cases, team, their behavior with the community members etc before going to invest.

There is no Win-Win Situation

Being a crypto trader, you have to understand that crypto trading is a game of balance. There are instances when nothing happens and the courses are very balanced. However, for every trader that makes money, another one loses money.

Controlling Your Emotions

It's sometimes easy to get caught up in excitement while making profits in a streak or depression because of making big losses.

In both the situations, the result is same.

Avoid FOMO

Crypto market has a lot of manipulation. There are different factors that move prices up and down.

We should never buy in FOMO at ATH and then selling at all time low.

Expect the dips. Be patient.

Watchout For Scams

Crypto is not free from scams. Scammers exploit the interest of people in crypto.

One of the downsides of new investors entering the market is the increase in frauds, scams etc.

But again, all of these things goes back to the thumb rule which is, Don't invest more than what you can afford to lose.

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young-kedar last year

To add to it, I'll say having realistic expectations in your investment(s). Crypto might uncannily look like a 'get rich quick scheme' but it's really not that. Don't expect to fly to the moon from day and thinking that you'll say there forever.

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isaacngore last year

An investment in crypto is mostly for the future, I agree with you on the rule to invest just what you can lose. If this is considered in any investment made, the cost of investing won't be a big investment. Sometimes we just have to take that risk to put in more to an investment that there is a clear understanding of how it works.

poshtoken last year

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