2 Simple Rules For Buying or Trading Cryptocurrencies in 2022 for Beginner and Experienced Traders
There are two simple rules for buying or trading cryptocurrencies in 2022. They are pretty simple:
- Diversify your portfolio
- Don’t invest what you can’t lose
Due to the high profits many cryptocurrencies have been showing along the last years, many people see it as a get-rich-quick opportunity and put all of their savings into one asset, making them susceptible to big wins, but in most of the time, big losses.
The goal here is to get stable profits and minimize losses.
How to do that?
Diversifying your portfolio
Because many cryptocurrencies have up to 18 decimal points, you are able to invest little (US$10, for example), and be able to get proportional profits or losses.
That’s different from stocks, for example, that you can only get 1 stock from whatever the price it is being sold.
- You can get 0.00032 BTC but you can’t get 0.00032 AAPL(Apple Inc. Stock).
With US$10, you are able to get 10 different cryptocurrencies, investing US$100 each.
Then, you can use those 10 different cryptocurrencies to trade with other cryptocurrencies, which can get you more than 20 different cryptocurrencies.
For example:
You have US$10. That, in BTC today, is 0.00032 BTC.
The minimum trade between BTC and other crypto coins are 0.00010, on Binance, for instance. That way you can invest in other 3 cryptocurrencies you like with just US$10.
If something really bad happens and one of the coins you have go to zero, you won’t lose your whole investment and you are able to cashout the others at anytime you want to protect your assets.
Do your own research (DYOR)
You must do your own research on the coins you want to buy. Many are very cool projects that have a lot of potential, but others are just scams that want to get rich with your money.
That’s why diversifying is the best you can do to protect your assets and do not lose everything if a cryptocurrency you thought was a potential profitable investment simply collapse.
Don’t invest what you can’t lose
If you are able to save US$10 a month to invest in crypto and forget about it for at least a year, then you are able to start trading.
If those US$10 are needed to pay for your food, electricity bill, mortgage or anything else you need for survival, then don’t invest at all. Start learning for when you are ready to invest, you will make the most of it.
- Be patient
Imagine, everytime you get a change from something you buy, you put it in your piggy bank. When you break it after 12 months, you are going to have saved a good amount to do something you want.
Maybe, 12 months later your currency will be affected by inflation and the money you saved would be worth less, but still you would be able to do something with it.
The same happens with crypto. Invest with caution and don’t expect big profits quick. Understand that thinking in the long term and diversifying gives you safety to avoid losing all your investments.
Keep your Crypto safe and secured
- Don’t ever write your wallet phrase key into your computer.
- Don’t ever give your wallet phrase key to anyone(except people you really trust, such as family member or close friend).
- Remember, if anyone have your wallet phrase key, they are able to move the assets you have there anywhere, and you won’t be able to retrieve it.
- If you have an account on a trading exchange, such as the ones we recommend here, verify your id and activate 2FA.
- Don’t click links from people you don’t trust.
- Remember, there’s no such thing as get rich quick. Specially in Crypto. To get rich quick you must risk a lot, if you risk a lot, you can lose a lot, too. And unfortunately, most of the time you are going to lose if you risk a lot.
Stay safe.
