9 Basic Rules of the Crypto World to Become Successful
In the world of cryptocurrency you have to recognize some basic rules, which by following these basic rules you will most likely succeed in the crypto world. Since cryptocurrency has decreased in popularity since the beginning of 2018, I am also concerned about friends who have decreased turnover from cryptocurrency, whether it's from investing in ICO, trading or bounty. But there are still a number of things you can do to survive and tips on getting earnings from cryptocurrency without loss. Here are 9 Basic Crypto Rules for you to succeed.
1. Invest as much as you do not fear loss
This is an important aspect that you must fulfill first, where the money you use to buy crypto assets, try not to use money for food and daily needs. Because crypto activity is not always according to plan, try to always use residual funds or funds outside of food allowances and needs. This is to minimize the occurrence of losses if at any time the assets you buy experience a drastic decline in prices.
2. Buy Crypto Assets at a Good Time
Buying crypto at a good time is difficult. You will definitely experience confusion when you want to buy crypto assets at a cheap point, because we all don't know what will happen after we buy the asset. To get information when buying crypto assets, it is best for you to follow the community and discuss each other. Everyone will exchange ideas and then you can study the potential of X coins at that time. You can discuss through telegram groups, forums, social media and so on. Find someone who if he is very familiar with the crypto world, so you don't get lost.
3. Don't Sell Too Fast
Patience is the key to success in the crypto world. All people who sell assets earlier, will usually experience regret, because the price of related coins usually continues to rise due to the development of the project and the community of the developer. Large coin coins always get new users, so the community of large coins will always increase which also has an impact on prices that tend to rise consistently.
4. Have a Target and Stop, When Starting Trading
For you a cryptocurrency trader, you should have to set a target when you start buying certain coins. This target is also based on related project developments. For example, the X coin will rebrand in June 2019, so try in April 2019, you have to start buying X coins, then the target you install must be based on the size of the project, and also the level of success before. For large coins like XLM, EOS or ETH. You can target a profit of 10% - 15% for rebranding events.
5. Dispose of Emotions, Use Mathematics and Start meeting FOMO
Trading using Emotion, chances are you will experience cutloss is 80%, while the rest is just luck. You have to throw away your emotions and start using your brain to think in analyzing charts. There are a number of techniques that you can use to analyze charts, and in analyzing charts, you also need a guide, because you can't just paint a line on the candle to determine your own price.
6. Be careful with SCAM
Since ICO was popular in 2017 yesterday, more than 1000 ICOs have been recorded throughout 2018 by developers. Most are SCAMMERS and a small number are successful ICOs. Investing in ICO is indeed very beneficial if you know basic knowledge to avoid scams. And for you ICO investors, I suggest you always take part in ICO held by large companies that are already running, because they already have the basic knowledge of doing business. As for those of you who still like investing in startup, you have to be more careful.
7. Diversify Your Portfolio
Crypto Asset Diversification is an investment activity that does not only rely on one asset. You can maximize the potential of other coins that can bring you big profits. Having crypto assets of more than one coin is better than you doing all in one coin. This is to minimize failure in investing. Remember "Don't put all your eggs in one basketball", which means you should never invest in just one place. Because if you fail, you will lose everything.
8. Don't Save Assets on Exchange
This is usually a difficult choice for those of you who feel unsafe with a computer virus in your own home. However, if you are more careful, now the crypto world health is starting to decline with hackers hacking exchanges. Wallet exchange is more vulnerable to attack than personal wallets, because on wallet exchange, hackers already have found millions of dollars ready to be transferred to personal wallets. There have been a lot of cases like this, and the most popular and never forgotten is the case of MtGox which has been hacked and reported assets equivalent to 350 million USD were captured by hackers. Equivalent to 63 new lamborghini cars.
9. Use Limit & Stop Limit Orders
This is the most effective strategy in trading. Limit orders allow you to get the best price when you want to sell or buy cryptocurrency assets. You don't have to monitor the market continuously to be able to sell crypto assets, just install a limit order, then you are just waiting for someone else to take your order.
Then to stop limit is a feature for traders to avoid losses. This function is more like "if" and "then". For example, if the price of a coin touches 5 $, I will install sell limit at the price of 4 $, and automatically when the price touches 5 $, you will place a limit order at the price of 4 $.
That's the 9 Basic Rules of the Crypto World that you must apply to be successful in the crypto world. Keep in mind, that there is no instant success, so don't be too eager to get 1 million USD just with a capital of 1000 USD. All need process and all need patience. 3% profit is better than cutloss. While a consistent 5% profit per day can meet your food needs, if your initial capital is 1000 USD.