Crypto investment rules

No matter how experienced you are in the crypto market, you'll still be vulnerable.

And having a few rules to keep you on track and on guard always is important.

If you're expecting to read rules such as "never give out your private keys", "never send crypto to receive double from a stranger or celebrity", you will be disappointed.

Those are the non-negotiable basics if you have no plans of losing your money.

With that out of the way let's start with:

Rule #1: Have an investment strategy

Someone said investment without a strategy is gambling. And that's not far from the truth at all.

Prior to investing in any coin you already know why you're buying it, based on your fundamental and or technical analysis.

What do you plan to do with it?

Are you HODLing "forever" or staking or farming to earn passive income?

How long do you plan to hold onto the coin and what's your exit point or price?

You can have a general crypto investment strategy a coin or token specific strategy. ]

Some people are here to HODL anything and everything they buy. No staking, lending, farming, or whatever.

Others like me like to put every and any coin to work and multiply itself, in order to accelerate the wealth-building process.

I have different strategies for my "risky dollar" investments and my long term (moderate risk) picks.

And even in these categories, I may have specific plans or strategies for each coin or token.

The idea is to have a predetermined plan and strategy before you put your money in it.

Rule #2: Be flexible

The market does not owe you anything. Always remember that.

You have a well laid out plan and a rock-solid strategy, the market does not give a f**k about that.

Just like the wave of the sea, things can go either way and you also have to put that into your plans.

That means you need a "what if plan" and also be prepared to react quickly when things change.

For example, recently I had to sell off all of my KEBAB until I can tell exactly what direction the project is heading.

My original plan was to farm it until the APY becomes useless for my risk appetite and move onto another farming project.

But as bizarre things started happening too fast for my liking, I had to pull out and wait for clear signals.

I'm playing that game with my "risky dollar" but that doesn't mean I'm willing to ride it to zero.

The takeaway? Stay up to date, learn fast, evolve, or die.

Nothing is fixed. Be willing to change course, especially when you're wrong.

Being foolhardy or escalating your commitment to a wrong investment is a sure way to massive regrets along the road.

Rule #3: No regrets

What if you followed your plan and strategy and you sold too soon or bough too early?

The answer, "no regrets".

You can't accurately "time the market".

Trying to sell at the ATH (all-time-high) or buy and the ATL (all-time-low) is usually greed or fear-induced move.

And we both know that emotional investors hardly make money.

If you sold too early, wait and search for another good entry point. If you sold to take care of living expenses and the coin pumps immediately after, no regrets.

There's no way you would know that it would pump after you sold or dump after you bought.

Make rational crypto investment decisions and don't regret a thing regardless of the outcome.

Rule #4: Advise yourself

DYOR.

Learn as much as you can from all the reliable and unreliable sources that you know.

Then use all the information you have gathered to advise yourself.

I don't take anything I read online as financial advice. Everything is pieces of data or information.

To be consumed, digested and utilised in a way that suites my specific and unique requirements.

If you trust celebrities, OGs and influencers to help mould your investment decisions without using your own head, you will lose more money than an addicted gambler.

Even me. My articles and opinions are for information purposes only and that's how you should use them.

Rule #5: Avoid emotions

Some people fall in love with a token or coin.

So much so that even when they realise that this is a bad investment they explain it away with some lousy fanatical lines.

Listen most likely, in the next decade 90% of all existing cryptocurrency projects will die, get acquired, or merged.

And that includes your favourite project or coin.

This industry is in a maturing stage and a lot of coins or tokens out there are surviving on market irrationality and hype.

If you try as much as possible to avoid any form of emotion (fear, greed, pride, love, etc) in your crypto investment decisions, you stand a better chance of picking the potential winners in the long term.

When you wrong, admit it and cut your losses. When you're right learn to take profit, consolidate and diversify your portfolio.

We all like and support Ethereum but had to move onto BSC to survive the insane fees.

We all like and support Bitcoin but had to give more attention to BCH to survive the high fees and slow transactions among others.

In as much as we support our favourite crypto, we're investing to make money and if your favourite crypto is not making you money but rather costing you, then it's time to "disfavouritise" it.

Conclusion

The above list of cryptocurrency investment rules is by no means exhaustive.

And other people may have an entirely different set of rules they follow to help them survive and thrive in crypto.

What are your cryptocurrency rules, share with us in the comments section below.