Crypto Basics
How To Not Get REKT in Crypto
If you don’t want to lose all of your savings on crypto then keep these rules
Don’t trust influencers
Many newbie crypto investors don’t feel confident in their strategy. That’s why they suppose it’s worth listening to popular influencers and other famous personalities. There’s nothing wrong with reading someone else’s analytics or keeping up with the news, but always leave the elbow room for critical thinking. Do not trust even reputable analysts and traders, make decisions based on your thoughts.
Don’t give the shirt off one’s back
No doubt, we all want to get fast and high income. Driven by greed we may put more money than we can afford to lose. It’s not always “the more you invest, the more you get”. Try to live by the rational rule: invest as much money today as you can painlessly lose tomorrow. Don’t put all of your savings in crypto.
Stablecoins are your airbag
Hype coins can make you a fortune, but they can drop as fast as they skyrocketed. The best way to keep money safe is to save some of your income in stablecoins. The market offers a great variety of them: $USDT, $USDC, $DAI, and more. Stablecoins will expand even more with time. Today lots of states think about creating their own digital assets that are backed by national fiat currencies. So it’s not only a secure option but a big trend.
Don’t put all your eggs in one basket
The key to this rule is to hold your coins in different places. It’s important to understand how to store cryptos correctly. There are 2 types of storage: hot and cold wallets. You can use a hot wallet for online payments or trading, while the cold one is the best solution for holding. We explained the difference deeper in this video. Of course, you can hold your coins on an exchange, but don’t forget to say RIP to them. Remember the FTX crisis?
No drama, please
Try to relax before making any decision on buying or selling your cryptos. Any risk can be acquitted, however, spontaneity sometimes may lead you to losses. Always operate with a cold mind if you don’t want to enter into a dubious adventure. Don’t let emotions make you fall into the trap and don’t read too much news. The DYOR strategy will always help you to weigh the risks.
Buy Low, Sell High like an OG
Market volatility can make you doubtful for sure. While others make mistakes and buy BTC or other coins that are hyping, be smart and purchase crypto at its lowest. HODL and wait for the coin to go bullish again. Remember that every pump and dump move is just a cyclical tendency. Use the 5th rule and act concentrated. So if you want to end up rich, go crypto shopping when its price is low and become a vendor when the price is increasing.
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