RULES FOR TRADING CRYPTOCURENNCIES
- BUY LOW SELL HIGH (Always wait for at least 25% dip before a trade)
- For every coin you want to buy, do your own research (look at the web page, what they do, read the whitepaper) don’t just buy it because you heard of it somewhere.
- Set the period for holding your coin, before you buy it. (long-term, mid-term or just short-term trade with price target).
- If you want to have a safe portfolio, sell the initial investment of every coin when it hits the 100% profit. With that you will secure your investment and all the coin does after that is your pure profit. (This does not apply for long-term investment’s or the coins in which you have a specific price target).
- Never sell in a loss!!! (only if you choose stop loss before the buy). In the history of cryptocurrencies, only a very low percentage of coins didn’t make it back from the dip. So, don’t panic when you are down on a trade.
- Don’t be emotional with your portfolio, don’t check portfolio App every 5 minutes. It will make you crazy, Cryptocurrencies market is very volatile, so you will have tremendous changes in portfolio in less than 24h. So, make a plan and stick to it.
- If you’re investing in ICOs, sell your initial investment when the price hits 3x from the original ICO price. Then sell your profit as you like.
- Portfolio allocation!!! Divide your assets by percentage into different investments (X% long-term, X% ICOs, X% mid-term, X% swing trades, X% trading). And then chose how much % from each category will you put into 1 coin.
This are the rules that I learned trading and investing in cryptocurrencies, and I think they can help you a lot in the beginning and even when you are in cryptocurrencies for a longer period. We learn something new every day.
Please feel free to add your own rule’s which you think are also important for investing in cryptocurrencies, or write your opinion on my rules.
