The cryptocurrency industry is filled with numerous opportunities for investors. However, the lack of clear guidance increases the chances of new investors losing their money before they can even start.
This article provides the six commandments to follow as a beginner in crypto. It is a result of years of experience in the cryptocurrency industry. New investors can rest assured that they can achieve the desired results by abiding by these rules.
Six Commandments for Crypto Beginners
- Never Invest What You Can’t Afford to Lose
This golden rule applies to investment in any financial market. Do not put in an amount of money that will significantly impact your lifestyle if the investment fails. The temptation is especially hard when you make a few bucks off your cryptocurrency investment.
Resist the urge to take on debt to acquire more cryptocurrencies or use the money for immediate needs. If you can avoid these potholes, there’s a big chance you can weather different market movements with relative peace of mind.
- Learn First, Earning Comes Later
New crypto investors stand a greater chance of success if they spend sufficient time educating themselves. Thankfully, there are several crypto guides to learn from on different websites. You can also look for opportunities to meet industry veterans. You can attend meetups, join AMA sessions on Twitter, or listen to podcasts.
The cryptocurrency industry is also unique with the increased number of exchange platforms where you can learn to earn. These platforms offer you crypto coins or tokens in exchange for reading articles about blockchain and Web3. These incentives are designed to drive the adoption of cryptocurrencies.
Here is a list of some popular learn-to-earn websites you can check out.
- Follow a Teacher and Community
To better understand the opportunities and cryptocurrency trends, you need to have a community where people guide each other and help others to learn from. There are numerous Discord servers, Telegram channels, and Facebook groups with crypto investors.
You may want to join free project groups or premium communities. The advantage of premier/paid communities is the chance to learn from experienced investors. Free groups are usually so chaotic and spammy, filled with scammers.
- Do Not Chase Get Rich Quick Schemes
One of the primary reasons why investors join the cryptocurrency industry is to grab quick bucks. In several cases, however, this desire for quick profits makes investors fall victim to get-rich-quick schemes.
As a rule, avoid investing in projects that offer lucrative and unsustainable yields. Experienced investors find it helpful to invest in only time-tested projects like Bitcoin and Ethereum. You can expand your horizon by gaining more knowledge of the underlying technology.
- Never trade with emotions
One of the basic rules to teach yourself while trading or investing is to set aside your feelings and always be critical. This advice is not so simple to inculcate just by reading. You will need to write it on paper and read it aloud to absorb it.
Remember that one profitable trade does not guarantee that your next trade will also be lucrative. The next trade is independent, just as your first trade in every respect. Also, try not to get emotionally attached to your investments. They are simply vehicles to make money.
- DYOR (do your own research)
This 4-letter word is vast, time taking, yet the most crucial part of crypto. It can make or break your investment and faith. DYOR, in simple words, means a step-by-step research method to make a better decision regarding your next investment. This principle applies whether you’re trying out a new decentralized exchange or trading platform.
Furthermore, do not buy a coin because a YouTube influence or celebrity promotes it. Research to understand the project’s core fundamentals, team members, and market fit. Only invest if you’re satisfied by these metrics.
