The Crypto Rulebook: The coin markets are a strict school – especially when you are new to the topic and just tapping in. There are 1001 ways to get burned quickly, and suddenly you hold more bags than on a shopping tour with your girlfriend. Unfortunately bags of shitcoins instead of lingerie. Cryptocurrencies are soaring, and therefore you will notice a growth of worthless altcoins and scammy projects.
In this post, we collected the most important learnings for cryptocurrencies and projects – use it as a rulebook and you will be happier with your results!
The Crypto Rulebook: Investing in Cryptocurrencies
- It is normal to have a massive loss from time to time – on the other hand, you will have sexy 500% gains on other coins over time if you invest time to do your research correctly. It is always about getting more heavy gainers and to weed out the losers fast.
- Stop investing in hyped coins once they increased already very much. The Crypto Rulebook: It is likely that you step into it at a peak and end as a bag holder. There are pump and dump groups that are responsible for this short-term growth and merely hop to the next dead coin for a quick profit. Don’t just feel that something is right – use your analytical brain to decide where you invest.
- Don’t get scared if Bitcoins soars or drops – it affects the altcoin market negatively, yes – but this won’t last long. What did you buy first when you entered the crypto game? BTC maybe? And then you took a % and invested it into altcoins, right? The Crypto Rulebook says you are not alone with that. So don’t shit your pants, just sit it out and don’t look too often at your portfolio. The money will flood into altcoins again over time.
- Check the projects you invested in twice a week. Follow them on Twitter and check if they are active.
- Don’t develop an emotion to your coin, don’t think this or that is cool and they used a fancy graphic or have a fresh new website. Only the numbers count and the ROI they generate for you, nothing else.The Crypto Rulebook says yes!
- Check the GitHub of the projects. If there are months without any progress, get out.
- Once a new coin hits the exchange, the time has shown that is usually hitting its all-time high after one year. In the crypto rulebook we note this. As many of them never reach these heights again! Keep that in mind and create a selling strategy. Don’t get too greedy. Have a plan, get in, get out, determine the next project with your research strategy. Get in, get out.
- For most of the coins that are worth it to invest in them, Bittrex is enough. There are exceptions though if you look at WTC for example.
- Get a hardware wallet, once your funds grow. We recommend a Ledger Nano
- Don’t use futures and margin trading as a newbie – crypto is volatile enough for high gains, and the risk is much lower without any leverage.
- Always have some free BTC in your exchange wallet for quick opportunities.The Crypto Rulebook again no worries!
- Never trade outside an exchange, if there is no escrow. Just don’t do it.
- Use Twitter, follow all the coin companies to stay ahead with their news, and find exciting sell opportunities.
- The young crypto market is driven mostly by the news and by emotions. Check coinmarketcal to stay ahead of what is going on.
- Share the knowledge you gain with the community. Be helpful. Get involved and get your rewards. Once you start building your contact base, you probably will get some info. The Crypto Rulebook, good job!
- Don’t ask on internet forums and Facebook which coins you shall invest in. Most people are clueless like you but will shill you the coins they hold themselves, due to their wishful thinking. Remember No moon, no Lambo, just hodl.
- It is your money – don’t use shitty passwords. There are many bad guys much more smart with computers than you. So stay safe, save your passwords non-digital only.
- Mining is not really rewarding anymore in most cases. Before you stack up tons of graphic cards, do your research like with any investment you would do.
The Crypto Rulebook: In conclusion
This is just a small reference, or taste. As the The Crypto Rulebook: complete would be HUGE! Saving for another time 😉 Again use what you learn here to guide you in the fundamentals of crypto. Until next time, enjoy!