Crypto trading is a wild world that has its significant and short waves. For beginners, it might be challenging to get through all of it or get most investments right. Let’s face it; no one became wise without their fair share of downfalls. Every loss or win in crypto is entirely yours because you are your bank. However, there are some cryptocurrency dos and don’ts that you need to know if you want to keep seeing that trading window.
This article explores multiple cryptocurrency dos and don’ts for every beginner and intermediary investor. These are basic mistakes to avoid as a crypto investor for better returns.
No FOMO, No FUD
Fear of Missing Out (FOMO) is for real, especially when you see the market is in its bull phase. Potential investors majorly get FOMO when they realize how much profits they could have made when the market is going up. It is also the same for beginners since they only sell their assets in a short while to get fiat in their account. Every investor must avoid FOMO at all costs as it is only transitory. Know that markets have bears and bulls; you only need to understand which ones are the best for you.
FUD is an acronym for Fear, Uncertainty, Doubt. It is generally created to bring down the prices of crypto assets. FUD is sure to create panic in beginners and sometimes in intermediary investors. Take the recent example of Chainlink (LINK). It can hold you from investing in a good project. Performing due diligence is critical to growth in the crypto space, especially for such news.
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Do Your Research (DYOR)
Market research is key to staying at your A-game and making good profits. Crypto markets have high volatility but offer high rewards. People who only consider high volatility miss out on the good side of crypto markets. The ones considering only high rewards may lose a lot of money when the market dips. Remember that for every bull, there is a bear.
Besides premium cryptocurrencies like Bitcoin, Ethereum, and Cardano Token, there are hundreds of altcoins that can make you good money for all suitable investments. Read about the projects you invest in and take notes of the markets. Learn to read trading candlesticks. In crypto, you are your bank. Every profit or loss you make entirely depends upon your knowledge and investment strategies.
Investing in any inflated coin because of some Twitter or Reddit trend is a big no. Don’t bang your head against the wall when you lose money by investing in those altcoins. DYOR and choose your coins wisely. Take help from wise humans of the crypto world.
This is a must ‘DO’ for every investor, especially crypto investors because the markets are highly volatile. One day the market can be bullish and hit ‘All-Time High’ in most coins while you get FOMO. But the other day, the market can be bearish and dips to ‘All-Time Low’ and still gives you FOMO.
Invest your money in different cryptocurrencies after reading about the project. If you are an active investor, stay put in good projects like Terra or Fantom for a long. Read the projections via its whitepaper to know if it will reward you in the future; for passive investors who do not want to trade daily or week, invest in flagship cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Do Use Crypto Portfolio Tracker
Crypto portfolio trackers are essential to know your profit and losses and tell you the investment you made at the beginning. Many cryptocurrency experts recommend using a crypto portfolio tracker like coin stats, and Cryptocurrency exchanges like BuyUcoin offer first-in-market personalized crypto portfolio trackers.
Own Your Crypto Assets
Owning your crypto assets is as important as water to a fish. While you trade fiat and crypto through exchanges, you must keep maximum tokens in your wallet. You can easily make transfers and withdrawals from the exchange wallets. It is a safe way to hold your crypto assets, and it is done to stay protected from any loss caused by cyber attacks on the exchanges.
Use Reliable Exchanges
Crypto transactions must be done through reliable exchanges, especially fiat to crypto and vice versa. For Indian users, BuyUcoin is a reliable exchange with real-time best prices for your crypto assets that also offers a P2P service for fiat deposits. P.S. Only use reliable exchanges to make your trades, fiat deposit, and withdrawal to avoid being a victim of scams.
Do not make payments through private links, websites, fake wallets, or social media. Most scammers use these mediums to receive payments and scam beginner investors of crypto.
Avoid Pump, Dump
Pump-and-dump schemes are created to scam people for fiat or crypto assets. The projects claiming their token is going ‘to the moon’ in a short span are where beginners make the mistake of investing. Besides, only put that amount of money in any project you are ready to lose if the market dips.
Do your due diligence about the project you find interesting to invest in. Do not follow what others have to say because of the current hype.
Hold Onto Dear Life. HODL is generally used in Cryptocurrency to hold onto your assets when the market is bearish, i.e., when the market is falling/ dipping/ crashing. Those who survive the storm and do not sell out see their assets going through another bull run, i.e., when the market is rising. With every passing bear and bull cycle, the value of each crypto asset tends to increase beyond its previous highest value.
Take Bitcoin as an example. Bitcoin touched its ‘All-Time High’ during the December 2017 bull rally with an evaluation of USD 20,000. The market went into bearish mode from 2019 until 2021. The market is bullish again, with bitcoin breaking all records by crossing the USD 65,000 mark. Those who did not sell during the bearish markets before 2017 and 2019-20 are making 100X money, some even more.
Every decision you make as a beginner or intermediary must be carefully calculated. Above mentioned cryptocurrency dos and don’ts are a must for every investor who has only begun. These are the most common cryptocurrencies dos and don’t that crypto experts advise following.