Golden rules of crypto investing

Rule 2 – Choose a platform in line with its objectives

First of all, it should be understood that not all cryptocurrency exchange platforms offer access to the same crypto projects.

The most important point concerns the security of your cryptocurrencies. Having $50,000 on Binance is not necessarily advisable (it is better to have them in your own Wallet) but it is not risky either. On the other hand, in the event that you let such a sum sleep on a small Korean exchange, a good guardian angel may be recommended.

Also pay attention to trading or withdrawal fees depending on the platform. Again, Binance  is notorious for having very low fees. Register with the links/buttons directly on our site in order to reduce your costs on the different platforms, while supporting us!

We get to the point, what is my main objective?

• Take a first step in cryptocurrency without having to look at the prices? Head to the Stablecoins savings that platforms like Binance, YouHodler or SwissBorg offer, to earn from 4 to 12 % annual profits, without pressure.

• Make an investment allowing me to earn interest every day, regardless of the state of the course? So it is better to look towards platforms specializing in Staking and Masternode services, such as Just Mining or Feel Mining. Again, Binance offers many services in staking.

• Be present on a platform offering access to a very wide choice of up-to-date services and cryptocurrencies? Binance, as always.

Rule 3 – Have some notions in technical analysis and define your profile

Well, if you have made the efforts that the first point requires, you are already greatly limiting your risks.

Now, in order to maximize your profits, it is important to know when to buy and especially when to sell. And yes, this small project that you had identified, exploded upwards and you currently have a +1,400% to the bag. But you let yourself be fooled to want more, and you will sell when it will have been down -50%… pity, but well done anyway. In any case, know that you have rather the profile of a holder, a focused long term investor.

Unlike the Day Trader, you will analyze the fundamental of the project on which you are positioning yourself. The trader, aiming for the short term, will generally only do technical analysis of the market .

But whatever your profile, set goals, define and follow a strategy and then know how to stick to it!

Once you have passed this essential step, learn how to trade and use the appropriate tools, such as TradingView for example. Then of course, continue browsing our site, you will find a lot of advices.

Note that it is always said that it is better to trade in the direction of the trend. But it is possible on some platforms, like Binance Futures, to make a profit even at a falling price. This is called Short, the reverse of Long.

Last point here, you are going to need a strong mind to become an ace in the cryptocurrency markets. You will therefore have to learn to resist stress, and not get carried away at the slightest rise or fall in a price.

Take the time to know your limits and thus avoid inflicting pressure on yourself, to avoid any risk of stupidly closing your orders impulsively because of a moment of panic.

Rule 4 – Manage your risk

The cryptocurrency market is young and relatively poorly capitalized, which makes it very volatile, both on the upside and on the downside. In addition to any technical analysis of its price, the market is constantly fed by surprises, good or bad, which will have a direct influence on prices.

It is therefore common, even more so when starting out, that technical analysis does not go as expected.

To survive in this environment, it is therefore vital to know how to manage your risks. We have to recognize how much we are ready to lose in case of deviations in the expected price, that will happen sooner or later. To continue our life peacefully, whatever happens, let’s set ourselves the following principles:

• You have to invest in the crypto markets or trade only with sums of money that you can afford to lose.

• In trading, according to your strategy, position stop losses to offer you an exit door if prices fall.

• Avoid counter-trend trading, unless you are already experienced.

In short, do not bet half of your bank account on cryptocurrency, especially if you tend to have heart disease. This is not an advice, just common sense.

Rule 5 – Learn to Diversify

Now that you know the best practices and have all the keys in hand for a successful cryptocurrency investment, try to diversify.

There are a lot of horses (understand projects) in cryptocurrency. Fortunately, overall there are more good ones than bad ones. Diversifying yourself will therefore increase your chances of hitting the one that will make 350% in a weekend. But do not forget the rule n°1, you must know these projects  and follow their news. So, unless crypto is your main business and you’re very well organized, don’t put your money on 25 different cryptos.

You can also keep some of your crypto rather than selling it all when you decide to exit. This would allow you to take advantage of a bullish movement that would continue.

One last thing to conclude, focus on investing in DCA. Dollar Cost Averaging is an investment / trading technique aimed at reducing or smoothing its average purchase cost. So to avoid investing all of your capital at once. Have multiple price targets to reduce your risk and optimize your investments. This also applies to the sale, proceed in stages.

So, on all these nice words, we wish you good trades, good investments and a lucky star! What will not be too much in this universe which reserves many surprises.

Do not hesitate to share with us your feedback, your beginnings or your experiences in the market.