I've added links to other useful posts on both this sub and elsewhere on some topics. So be prepared to get sucked into a nice little rabbit hole of learning if you wanna get a great headstart.
•Learn the basics of cryotcurrency trading
•Make sure you know what the following basic crypto-related terms/abbreviations are:
ATH - All time High
FUD - Fear, Uncertainty and Doubt
FOMO - Fear of Missing Out
And many more.
•Learn how to use your exchange app. Seriously, make sure you understand all the basic tools in your exchange app.
•Learn about market cycles. It's basically a term referring to long-term price pattern used when technically analysing price of cryptocurrencies, Market cycles are a long-term price pattern used when technically analysing price of cryptocurrencies, stocks or fiat currencies. The theory of market cycles is incredibly prevalent in cryptocurrency, with Bitcoin's price succinctly completing a full cycle no less than five times in its ten year history. During a cycle, some securities or asset classes outperform others because their business models aligned with conditions for growth
•Don't chase hype. Avoid FOMO (fear of missing out) traps. Don't believe everyone who is shilling a coin. Always remember the adage: “If the shoe shine boys are giving financial advice, then it’s time to get out of the market." Practice DD (Due diligence). Don't ever chase a coin that's gone up so much. Never consider a miss out on potential profits as loss. Always do your own research (DYOR).
•The market is not always like this. Right now, it's a very volatile and bullish market. A lot of all these gains you see are not normal.
•Please only invest money you are willing to lose. Don't take out a loan, use rent money or other funds you can't afford to lose. No, seriously, there literally can't be any reasons to ever go against this rule. Ever! Only. Invest. What. You. Can. Afford. to. Loose.
•Low cap coins, lets say anything not in the top 50 by circulating market cap, come and go like the wind. These projects rarely stay around, they often can’t launch products, and most die a slow death on exchanges as founders and early investors dump them to zero drying up any liquidity that is there. Becareful with them and do a very thorough research before investing in anyone for the long term. Again, always DYOR.
•Absolutely don't touch margin trading/leverage/futures/options unless you are a pro at all of the above. Otherwise stay put in the relatively simpler world of spot trading.
•Don't ever feel bad for for investing with small amounts, any amount is good; it will help you to learn. No one cares if you've invested $100 or $1m. What matters is that you've taken a step for your future self, from which most of people are disconnected. No, this is no joke. FMRI studies suggest that when you imagine your future self, your brain does something weird: It stops acting as if you’re thinking about yourself. Instead, it starts acting as if you’re thinking about a completely different person. So when you make plans for your future by investing even just a small amount in crypto, you've successfully broken that barrier and actively planned on your own behalf to create a better world and a better life for your future self. No one should make you feel anything but proud of this.
•Your goal in long term investments are the high cap coins. The top 30, 20, or more preferably top 10 that have been around for a while. Or other altcoins whose projects you've done diligent research on and truly believe they'll grow immensely and contribute to the crypto sphere and tech in general.
•Learn to spot pump and dumps (PnDs) and runaway from them! Also, learn strategies for recovering from these dangerous schemes if you've fallen for one. Trust me, greed and high-risk will not help you recoup your losses.
•Whatever low experience, always remember there are thousands of skilled traders out there today who've experienced the same and even worse. Trust me, you'll recover.
•Never place all your trust on Technical analysis alone. They can disappoint you like that highschool friend that always never stood up for you especially when the bullies (whales) showed up to deal with you. They're also almost pure horseshit when dealing with low cap coins.
•Understand basic trade psychology, especially during uptrends and downtrends. And always keep an eye out for potential cognitive biases like confirmation bias, loss aversion, endowment effect and others that may greatly influence your decision making.
•If you're not willing or ready to commit yourself to a lifetime of learning, you shouldn't be trading or investing in cryptocurrencies.
Bonus: Don't forget to always help out other newbies when you've become more accustomed to the market. And never forget: You were once at the bottom looking at the top for advice. Humility is king!
Any other tips would be very much appreciated.
Edit: To everyone that have commented so far, thanks for all the additional tips! And to the newbies, I'd suggest you go through the comments to see the additional priceless gems contributed by others. Definitely worth your time!
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