Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

The 10 Commandment of Crypto Investing

By Mr Zeus | MrZeus | 28 Feb 2021


These are intended for newer investors, but it's always useful for the more experienced of us to review these every once in a while

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Commandment #1: Diversification is a key concept in any portfolio, but don't overdiversify. There is no need to buy each of the top 50. 

 

Commandment #2: Do your own research. Be wary of the '100% optimism.' Every coin has warranted criticism

 

Commandment #3: ETH and BTC are the big movers. These are great places to start your crypto journey while you research alternative coins.

 

Commandment #4: Time in the market is superior to timing the market. Set a target price and hold! (or as many cryptonauts say--"HODL")

 

Commandment #5: Invest only what you can afford to lose. No one likes losing money, but don't use money that you need for necessities. That rent money needs to be spent on rent.

 

Commandment #6: 20%, 30% and 40% dips in a bull market are normal and healthy market dynamics. Do not panic and sell during dips. See commandment #4

 

Commandment #7: Stay away from leverage trading. It's a rollercoaster than can take you off the tracks in a heartbeat.

 

Commandment #8: Dollar Cost Averaging (DCA) is a fantastic strategy. Decide on a weekly or monthly buy and make it a habit. 

 

Commandment #9: A coin's 'low' price is not a good reason to dump money into it. Buying $100 of a coin that is $0.05 is the same as buying $100 of bitcoin. The difference? That low cost coin is likely much more risky.

 

Commandment #10: Be objective. Have a plan. Emotion and money do not mix. 

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MrZeus
MrZeus

Investing should be an objective experience. When we bring in emotion, we tend to self-fulfill the prophecy of buy high, sell low.

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