Crypto Rules to keep in mind

Published on: October 06, 2021

I have been exposed to cryptoverse for over 4 months and I am still the same, afraid to roam around the crypto planets, I only stayed to my comfortverse, crypto earth. Lol. My mind is clouded by cryptos and their chains, smartBCH- tokens on benswap, losses, gains, and many more bugging my head.

I've decided to leave earth for a while to discover new opportunities (?) or risks to say the least. That was on the month of September. And with my experiences specially on sending bch as an investment and purchasing tokens, I've realized that it is pivotal to keep these rules before enrolling yourself in the crypto world.

• Buy Low, Sell High

When I was a complete noob and didn't know how these things work (although i still don't know a lot right now), I thought it was fine to buy crypto e.g BCH at any time you want. Later I knew from fellow users on noise.cash and informative articles on few sites the rule for beginners if you want to gain profits "Buy low, Sell High". This rule applies to traders of course and everyone else who wants to gain profits when the rocket is on, or buy when it dips. As well as for those who are not into long term investment who aims for profits.

Surely you've heard about this rule, right? I was alone figuring out this complex world. When you try to sell because you thought it's high already but after selling it gets higher. Meanwhile, when you try to buy at a low price yet after buying it dips even more. That was a frustrating experience for me, for most of us I guess. Yes we can do prediction and we have powerful hunch but we can't always be accurate at estimating.

• D.Y.O.R.- Do your own research

We see our fellow read.cashers, noisemakers or other personalities out there who've gained a handsome amount from investments. And due to the current hype towards smartBCH tokens, and how other good investors able to gain profits in a short period of time, it is utterly tempting to step your foot, dive deep and look for tokens who will give you profits as well, any tokens that sounds good, I guess.

Yet, It's dangerous if you'll just dive into it without prior research. Profits is mated to losses. A wrong move will give you losses and a combination of luck, timing and researching might render you profits.

Do.Your.Own.Research- we do this, don't we? I guess not so. Sometimes we are caught by our excitement and greed that we forget about this essential rule. Few jump into opportunities and all I can say that I've done that too...just keep this with you (I'm talking more to myself). Take responsibility for your action. If you win, that's good. But if you lose, then that was your doing, your action, your choice.

You will always read this "This is not a financial advice, dyor" to posts or articles and this remind you, us to do, our part and not just rely on them. Although that phrase is tricky, much encouraging us to follow them.

This article is not an advice so please dyor as much as possible. We are responsible for our hard earned money, aren't we?

• Invest what you can afford to lose

Doesn't mean you're investing, you will gain certain profits, right? That depends on which project you chose to invest in. Cryptocurrencies are volatile. Once you decided to BUY any crypto particularly BCH, you shall ready yourself with how the price fluctuate. It takes time for the price to recover and if you purchase it at its ATH or what you supposed is its low price, then you'll have to deal with your temporal losses. Since I do really believe in bch, you won't lose in bch.

Invest what you can afford to lose is a universal rule we are all aware of. Being in this verse teaches us to gamble and be wise enough as well. As this is like a milky way full of crypto buddies, there are numerous projects you'll and we will stumble upon. Let's take for example, the DEXs on smartbch, and the tokens listed on them. The hype is incorrigibly irresistible that's why many have decided to onboard, purchased tokens, staked tokens and added tokens on liquidity pools for the aim of gaining profits, who knows they might get massive profits from taking such opportunities-risks. (With the first ever rug pull of token from Benswap, we should be aware by now that this rule is true.)

Let's say, the tokens' price depreciated even more (which is happening right now) and that's the consequence of the rule. A bit of a warning. And now it's up to you on how you'll deal with your losses. The price might recover(?), tho, it is a matter of when.

New Rule;

"Invest the same amount of what you can afford to lose or enjoy the gains"

As I've seen gamblers, bet all their money at once because they believe more to winning. This is also, very similar to crypto. Let's take tokens as examples again, shall we? You bought millions of tokens despite of the risks because you believed they will give you gains. (the more investment, the more gains). Your trust on the project and boom! You got that. massive Profit. You invested using a huge amount and now you shall enjoy your gains.

I've experienced it first hand how I regret putting a little investment which gave me profit. if I've put more, then I could have more gains as well, right? So, in order to avoid regretting, invest more, that's how other people do- in this scenario, investing more was born.

Investment is for gains and losses. You are gambling to win or loss. Now, how much can you afford to lose or win at the same time? That applies.right.here. The amount you can afford to lose yet the same amount you want to enjoy the probable profits.

Lead image- Unsplash.com