Welcome to today’s cryptocurrency lesson. In this article, we want to share our top tips for cryptocurrency investing with you. We are doing this so that hopefully you can learn from the mistakes and experience that we and other members of the cryptocurrency community, have made before and have experienced before. You can also visit https://trustedbrokerz.com/broker-reviews/ for Bitcoin broker reviews. So, let’s get started.
First and foremost, you are responsible for your own investments – not your friend, not your mom, not some random person on Twitter or on YouTube. It is your money, so take it seriously, and accept the personal responsibility of not only making your own investment but also making your own trading decisions and of storing your cryptocurrency securely.
Secondly, remember DYOR – this stands for “do your own research,” and it is a mantra of the cryptocurrency community. Again, it is your hard-earned money – so, do spend the time to learn about a coin or a token before actually investing in it. Articles, YouTube videos, and other experts on the Internet can serve as an essential part of forming your own opinion. However, it is not a substitute for reading the white paper, visiting the websites, and doing your own market research for yourself.
Coming to number three, be hungry to learn. Read, study, get the crypto news, read the white paper, etc. Check out our articles later in this site for more information on the best places to find reliable cryptocurrency information. The market rewards the studious and punishes the lazy. Decide which you want to be and act accordingly.
Next is number four, be ready to make a mistake, it happens to all of us. Anyone who says that they have never lost a trade or never lost any crypto or never made some mistakes with crypto is probably blowing smoke up your butt. Mistakes happen, learn from them, treat them as the valuable lessons that they can be. A missed learning opportunity to become a better investor or a better trader is worse than losing a few dollars.
Number five: Get in tune with market cycles. The market will not go up forever nor will it go down forever. Timelines are important – understanding the basics of how to interpret charts can go a very long way in your understanding of how to interpret these trends. By the way, for the time being, bitcoin is the king of the markets – the others will largely follow the movement of Bitcoin with some exceptions.
Number six: Do understand how to look at charts, and how to recognize important things like what is resistance and what is support. Support and resistance are vital things to watch out for when planning your trading/buying/selling and your overall investment strategy. Also please do keep in mind that things like big numbers tend to be critical levels of support and resistance. For example, $20,000 for Bitcoin was a hard level to pass due to the psychological factor. It had only passed that on a number of exchanges very very briefly. The smart traders set their sell orders for $19,900 understanding what a psychological barrier $20,000 was.