Dear reader,
It has been a while since I have created a post on publish0x.com.
But this is probably one of those moments, where you have to communicate with the ever growing Crypto Community. Many of us, me included, are fairly new to the Blockchain Technology, Cryptocurrencies, Non-Fungible Tokens (NFTs), etc. So we go with the trend and try our luck, hoping to become one of those filthy rich multi-millionaires or even a multi-billionaire!
Whoever entered the game around December 2021 has been probably hit by a sudden realization. IT'S NOT THAT EASY!
The crypto market has been literally cut in half since End of December 2021 and it is still trying to recover.
Even big players like Elon Musk or Mark Cuban have made huge losses. So you are not alone! However, those people recover their losses through other high return businesses, while the average joe is losing their money for good. With that money gone, you have been probably working your butt off in a 9-5 job and are now irritated, if not even upset!
That's totally understandable. I have been there as well! In order to minimize my risks, I have set couple of rules that I want to present just as an example. DISCLAIMER: This is of course no financial or legal or any other professional advice. Please always Do Your Own Research (DYOR!).
There is no way to avoid risks at all costs. There is no way to predict that Crypto Market with certainty. Because there are just way too many factors involved that might have unexpected impacts on Bitcoin and therefore consequently on Altcoins.
Since my personal indicators / rules have been very popular with my fellow Community members on TORUM, I have decided to share those here as well. Maybe you will like it. Maybe you won't. But if you do have criticism, please feel free to leave a comment with feedback! I am always open to learn something new and improve my approach accordingly!
HERE WE GO!
My TOP 9 indicators / rules
#1 Never Invest Money That You Cannot Afford To Lose
This one is my most important rule! Only invest money that you can afford to lose. I have seen so many people devastated after having blindly invested into coins / tokens that suddenly crashed and wiped their life savings, college funds, etc.
If you disregard this rule, you will find yourself most probably facing debts, personal problems because of the inability to pay rent, insurances, put food on your table, etc. Also this might cause huge problems with your significant other if you go behind their back and invest money from mutual funds.
There are not just financial risks involved. You are literally putting your existence in jeopardy if you go ALL IN and have no clue what you are doing. Acting without a plan will probably handicap you for a long time.
I know that the idea of becoming a millionaire over night is very tempting. But then again, you will have to realize that it is not that easy. If it would be, everybody would be a millionaire by now.
#2 Take Calculated Risks
How do you calculate your risks? Simple: DYOR!
You should never invest in a project without having researched it first.
- Who is behind the project?
- What are their credentials?
- What do they want to achieve with their project?
- Is it something that people would be interested in?
- Is it bringing any benefits to their users?
- What about their Whitepaper?
- Do they have a RoadMap?
- If so, have they been accomplishing set goals?
Don't believe anything that you read on the internet or elsewhere. To be perfectly frank, you shouldn't be believing me neither. I am not an expert and I certainly do not claim to know it all. Actually, I had a fair share of falling for well thought out and long term scams / rug pulls several times. But you always learn from your mistakes. After having lost money on several occasions, you will start vetting those projects for RED FLAGS that you missed out on your initial investments.
You cannot avoid all risks. But you can minimize them by covering as much information as possible.
#3 Don't Go With The Hype
This own is probably one of the rules that you will have to write down and post it next to your screen! Because we all know how tempting it is to buy something because of FEAR OF MISSING OUT (FOMO)!
There was a coin or token named after a very popular NETFLIX show - SQUID GAMES. This particular crypto was soaring within several hours. People only heard / read the name, associated NETFLIX and the show with it and started to invest blindly, without having followed the rules #1 and especially #2.
After having invested their money, people started to realize that they could buy in, but not transfer / withdraw nor convert it nor sell it.
Just couple days later, they did a huge RUG PULL. Several two digit millions of USD have vanished.
If a coin or token starts to increase out of the blue, you should double check before investing. Trust me, even if you miss out the opportunity to buy in cheap, you will have the markets tendency to experience a SELL PRESSURE shortly after it having experienced a BUY PRESSURE. Because people that were much faster than you will try to create PROFITS! Usually, they are WHALES and will drop that coin / token immediately when they have reached their TARGET PRICE.
#4 Don't Invest In Just A Few Cryptos
Don't put all your eggs in one basket! Diversify your portfolio. You will find that while some coins turn RED and fall, others will suddenly turn GREEN and rise.
You just need to figure out which of those coins have certain tendencies. Sometimes you can see patterns repeating in cycles. But sometimes those patterns will change. So there is no definite indicator. You will have to regularly adjust.
#5 Never Stop Learning
As I have mentioned before, there will always be many factors that one cannot influence.
A simple tweet can make a Crypto soar or crash.
The governments can announce new sets of regulations and therefore impact that market.
Technical features of coins / tokens can change and consequently make the price go down or up.
Always stay on your toes and keep learning. Reading news every day should be part of your daily routine. Always DYOR!
#6 Teach Other People
I know "teaching other people" might sound weird. Because how can you teach someone else, if you are fairly new yourself, right?
In this particular context, "teaching" is more about communicating with others. There is no way that you can read and know everything yourself. So interacting with other people can be useful.
Exchanging information can lead to new input. So there are always elements of "teaching" and "learning" involved.
#7 HODL
If you have bought coins / tokens, you should HODL. Of course you can go and trade. But you should be doing it with another account and a different portfolio. The one that you want to grow over time, should be for just hodling. Because we all know that BITCOIN didn't becoming that valuable over night. It took like a long time for it to be recognized.
If you want to make sure that hodling actually benefits you, make sure you can stake them. Sometimes exchanges or wallets have the ability to let your crypto work for you and generate "passive income".
#8 Shitcoins
I try to avoid OVER HYPED coins / tokens. Among those are SHIBA and DOGE and all kinds of other dogs and cats related Cryptos. Those so called meme coins usually have no use case and are aiming at peoples tendencies to buy stuff just for giggles and fun. Sometimes it is more psychology based and you will sooner or later experience "BUYERS REMORSE".
#9 REKT
Last but not least, this RULE is actually rather a CONSEQUENCE REMINDER!
If you don't follow any indicator or rule that is mentioned above or your very own set of rules, then you will probably have a bad time.
Please be careful, especially when you will be using DECENTRALIZED FINANCE (DeFi) or DECENTRALIZED EXCHANGES (DEX).
I hope that those were a few information that you consider to be of value and that you can either make use of or discard and add your own. If you have constructive feedback, please leave a comment! Thank you!
