Beginning Your Crypto Journey: Dos And Don’ts
The cryptocurrency space is fascinating, and nobody that has heard about it hasn’t been intrigued by the yearly returns it offers. It has been an incredible journey since the first one was introduced in 2009. With the lucrative track record and obvious returns, many now see crypto as a haven for investment.
Aside from investing, some people use it for different purposes. Some use it to buy and sell goods or services online. Some use it to place bets on point spreads or casino games. While a few use it to safe keep their fiat currency to avoid devaluation through inflation. But there is a problem.
Many people focus too much on the positive that they fail to see how bad things can turn out to be, and the recent crash has taught us a valuable lesson. In that case, you need to understand the crypto world before you jump. Therefore, before you start with cryptocurrencies, here are the dos and don’ts you should keep in mind.
Table of Contents
Know Your Risk Level
Before becoming a crypto investor, you should know your risk level. In this case, you should know how much you can afford to lose that would not affect your overall cash flow. Also, you should avoid anything that will leave you cashless for a long time. In that case, you should have a threshold for how much you can afford to lose.
Some experts peg the loss ratio to about 10%. So, you can set your strategy to take a hit of about 10%. In that case, when you buy a crypto coin and it is already going down more than 10% of the original price you bought it, you should sell. We understand there is a chance it will start a bullish trend when it hits 20%, but there is no telling if it will lose over 90%.
Only Enter Projects You Understand
Numerous projects are coming up in the crypto world, and if you’re not careful, you can lose sight of your initial goal. Therefore, you should take the time to learn about a few projects, and if they fit into your plans, you can invest your time and money in them. Therefore, you should first spend the time.
Undoubtedly, there are enticing projects with good returns, but if you don’t want to lose big in crypto, you should stick to what you know. This recent crash taught us that bubbles burst, and if you’re not careful, you can be caught in the crossfire. So, stick to what you know.
Stick to One Project
Yes, it is possible to be distracted and feel like you’re missing out. FOMO is real. So, you should spend your time learning how to avoid it and stick to a project you understand. Take time to study one project, see if it is solid, and go all in. But you should remember your risk level before getting started.
Don’t Be Impatient
One key ingredient to winning in the crypto world is patience. You must be patient whenever you want to bet on a project. The huge returns come later on and not immediately. Therefore, if you’re not patient, you can miss out on the real deal and loss money to strange investments.
Therefore, you should plan how long you want to invest and how much you want on your return. In that case, you should research, learn about the different crypto projects and decide which one fits your plan. Once you’re done, you can go all-in with the project and hope you’re right about it.
Avoid Make-Money Quick Schemes
You should know that Ponzi Schemes also exist in the crypto world. That is why you need to do your research and be sure that you understand the project before you put your money. In that case, you should never lose sight of the growing industry, but you should be vigilant of different projects that come up.
Therefore, you need a system that can help you filter shady dealings, give you a good insight into the project, and take you to the mood. If you don’t want to avoid these schemes because they can give you a good return before the burst, you should know when to get in and out. Or else, you’ll take a big hit financially.
Find Airdrops and Giveaways
Giveaways and Airdrops will help you increase your assets if you can get them right. Although the crypto world is already saturated, you can still find a good whitelist that you can jump, and once you understand how to claim airdrops and giveaways, you will be able to increase your bank.
In that case, you should learn how to track giveaways and pick airdrops before you become a part of the crypto world.