Crypto has been doing well lately which means that more people will be wanting to get involved with crypto trading. I've been involved off and on with crypto for 3 or 4 years now. I've made a ton of mistakes early on and lost money because of it. Even to this day, I still make mistakes, but I'm slowly getting better. If you can avoid and learn from my mistakes then hopefully you will minimize your losses and maximize your gains. With that being said...
The following isn't financial advice. These are merely my opinions. Especially if you're investing a lot of money, PLEASE consult with a professional financial adviser before making any financial decisions/investments.
-Don't invest more than you can afford to lose
The number one thing I could tell anyone new to crypto trading is this. If you need the money to pay bills or your kids' college fund, don't invest it! If you can afford to lose it and it wouldn't really hurt you, then by all means go for it.
-Don't start out TOO small and especially don't try to day trade if you only have a small amount invested
The reason for this is simple... exchange fees will kill you. I'm a very small time investor and while you can technically make money with even a $1 investment, most exchanges will not only charge you a fee for each trade, but usually a flat fee as well for when you go to withdraw your funds.
-Try not to panic sell!
I'll admit that I'm guilty of this one, but if you've invested into one of the bigger cryptos such as Bitcoin, Litecoin, Ethereum, Ripple, etc.... there's a good chance that they'll go back up in price eventually. It just takes patience... sometimes a lot of patience.
-If overall the markets look bad, don't be afraid to trade to dollar-pegged cryptos
There's a few out there, but the idea is that they're always worth $1 USD. If you want to possibly cut your losses then you can trade to one of these cryptos and buy back in when the markets seem more promising.
-Don't stare at charts all day
Trust me, it can drive you insane. It can cause you to panic when things start to go downhill. This actually happened to me tonight... I stared at charts, panic sold when things started to look bad, and then right after things went back up. At most, don't look at them more than once every 3-6 hours. You'll keep your sanity in check that way... trust me.
-Don't trust others with your money
It's easy to get caught up in crypto hype. You'll hear people say "hodl" (or hold) trying to get you to hold onto cryptos that have been doing well. Follow your gut on this one and keep your emotions in check. Also, don't get too emotionally attached to a particular crypto or cryptos. Emotions can financially ruin you.
-If you make money, you win
My biggest piece of advice to anyone is that while you can make a lot of money, you can also lose a lot of money. Don't be afraid to cash out your chips after you've made money regardless of what others will tell you. If you're investing, you're doing so in hopes of making money. If you make money, you win. Simple as that.
