Investing in cryptocurrency is a make or break. Growth is exponential so as the dip. So, before you get yourself into the crypto world, have an in-depth understanding of what you’re getting yourself into.
Research
Before you put your fiat into cryptocurrencies, invest some time to get yourself familiar with coins that you have your eyes on. Whether they are the top 10 coins or coins that are recommended by someone who is already invested in them, you still have to do your own research. Having more than enough information would help you make a sound decision.
Invest only what you are prepared to lose.
This is the general rule of thumb in investment. The cryptocurrency market is very unpredictable. It can be an irrational market; shills and FUDs can be the driving force of fluctuations in the crypto market as some people FOMO when there’s a shill and some do panic sell when there’s a FUD.
Take security measures seriously.
Don’t be complacent when you’re online. Make sure to use a very strong password. If you have difficulty remembering passwords, you can use a password manager that way, you’ll only need to remember your master password. This may sound silly but please don’t share your password to anyone.
For added security, enable 2-factor authentication (2FA). Back up your 2FA recovery seed, just in case your phone malfunctions or is lost.
Use hardware wallets. If possible, don’t keep large amount on exchanges – exchanges should only be used for trading whilst long term holds should be kept securely in a private wallet.
Last but not least, be careful with phishing emails. NEVER give out your private keys!
Don’t panic!
When most of the coins are in the red, take it as an opportunity to buy. Correction in the market is healthy especially when there’s a disproportionate growth.
Diversify
Invest in different coins. Diversify your portfolio, that way you are reducing your risks of losing
Re-balance your portfolio
Carry on doing your research. Over a period of time, review all your coins; identify which coins are performing well and which coins are providing you enough growth. Trade the low performing coins to coins that have more growth potentials.
