Trade and not be afraid.

Trade and not be afraid.

From Zulfqar Chachar

Bitcoin is again starting to attract people who first hear about digital money to the market. We have compiled a list of rules that will help you not to lose everything and increase your chances of success.

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Bitcoin is again starting to attract people who first hear about digital money to the market. We have compiled a list of rules that will help you not to lose everything and increase your chances of success.

Cryptocurrencies maintain a reputation for being an asset that anyone can easily capitalize on. Hundreds and thousands of percent growth in a short time look extremely attractive to people who are afraid of missing out on their chance to get rich. But just wanting to buy digital money is half the battle; realizing your hopes is much more difficult. However, if you do not do a number of things, your chances of increasing your capital, and not being left without money, will become much higher.

 

1. Invest more than you are willing to lose

Due to the volatility of digital money, in no case should you take out a loan to buy it or sell a car / apartment for this purpose. The stories of winners who invested in time and are now secured for the rest of their lives are built on multiple losers left with nothing.

Cryptocurrencies should be treated like a game, because here a lot depends on luck, and even the most experienced traders and investors can face losses in this market. Example? Billionaire Mike Novogratz's Galaxy Digital lost $ 273 million in 2018, and the head of SoftBank bought Bitcoin in December 2017 and sold it a month later. The damage amounted to over $ 130 million in just 30 days.

But for these people, the losses were significant, but after that they did not remain without a roof over their heads or without a car. If to be precise all it was because they followed the rule and were prepared for such losses.

Experts recommend investing no more than 5% of the size of the deposit, the cryptocurrency market is too unpredictable. This is probably the main rule that should always be remembered when working with digital money, because any risk must be justified.

 

2. Trade with high leverage

It is because of the volatility of the market that the governments of large countries limit the margin trading of digital money by setting a small leverage. But some sites bypass the rules by setting high leverage, which means that the entire deposit can be emptied very quickly.

United Traders Managing Partner Anatoly Radchenko recommended “less leverage and more common sense” when trading, this perfectly reflects the strategy that an investor in digital money should be guided by. Otherwise, work in the market will turn into Russian roulette.

3. Show off your income on social media

As the market develops, people associate cryptocurrencies less and less with criminal activity, however, this area is still full of criminals, and not only cyber. History knows many cases when people lost their money after talking a lot about their success on social networks. Here is a prime example of such a situation.

Blogger Pavel Nyashin got rich on cryptocurrency, which he constantly talked about on his YouTube channel. According to media reports, Nyashin began to attract investors and traded with their funds, but this did not last long. In January last year, robbers broke into his house, beat the trader and took out 24 million rubles. They knew well where the money was, because the blogger often streamed, showed the house, and according to his friend, who asked not to be named, he often invited unfamiliar people. As a result, Paul could not cope with the loss, debts and committed suicide

 

4. Work with cloud mining

A couple of years ago, it was really possible to make money on cloud mining, but there have been and remain much more scammers in this area than honest companies. The main thing is that most of the firms that offer such services guarantee high profitability.

The market situation in 2018 hits hard on digital money mining, which only cost the closure of the overseas offices of the giant Bitmain and the layoff of 1,000 employees. Therefore, most likely, they will not be able to offer you favorable conditions for making money on cloud mining.

5. Play John McAfee

The odious antivirus developer and creator McAffee has 920 thousand followers on Twitter, and at one time he openly "pumped" tokens. Advertising of cryptocurrency projects was not indicated in any way, although the price list for posts on the McAfee social network is in the public domain. The price of the coins he wrote about grew several times in a matter of moments, and then fell painfully. It hurt those who bought it at the peak, because there, she most likely will never return.

The developer even had a special section called “cryptocurrency of the day”. It was possible to get there by paying $ 100 thousand, but the amount was not widely advertised, so many perceived the advertising tweets at face value. McAfee finally destroyed his reputation when he started promoting the Pink Taxi ICO, which completely copied the design and white paper from another project - A2B Taxi Token. The apology did not help, and the US Securities and Exchange Commission (SEC) reminded that celebrities who promote dubious startups could be held accountable for it.

6. Invest in ICOs without a minimum viable product

Now the ICO sphere has faded into the background, now projects attract funding through IEO, but not everyone can take part in them. Specialized platforms of large exchanges now have special rules for participants, but even full compliance with them does not guarantee that you will be able to purchase new tokens and make money on it. For example, in the last IEO on Binance, which was conducted by Elrond, only 11% of the tickets were winning, so it is possible that investors in search of easy money may turn to ICO again.

One of the main red flags for ICOs is just an idea, without a minimum viable product. Most ICOs are unprofitable and fraudulent; they do not bring any profit to investors even if the team does not seek to deceive anyone. Therefore, here you should not lose sight of the rule number 2.

7. Continuously monitor the chart of cryptocurrencies, sell or buy at any slightest fluctuations

Apple co-founder Steve Wozniak said he sold all of his Bitcoins when the price was close to a record high of $ 20,000. He explained his action not by miracles of intuition or trading abilities, but much simpler. Wozniak got rid of the coin so as not to worry about constant fluctuations in its exchange rate.

This is one of the important tips for digital money investors - you need to be cool and not look at the chart all day. During the day, the price of an asset can decrease by 10%, after which it can instantly win back the fall, and then still remain in positive territory.

Volatility at this stage is an integral part of the life of cryptocurrencies, so you need to be confident in your actions. You should not buy and sell assets based only on a short-term change in their value.

 

8. Buy cryptocurrency just for fear of missing out on the opportunity to earn money

This rule is partially based on the previous one - many people who come to the digital money market seek to make quick money on the growth of the exchange rate, they buy assets as quickly as possible and practically do not analyze the situation. It describes the acronym FOMO (Fear of missing out) or Lost Profit Syndrome.

Simply put, every time you want to buy an asset that is actively appreciating, remember the story of XRP investors who bought it for $ 3.4 in early 2018. Now the price of a coin is almost 10 times lower, and we have a vivid example of how not to do it.

9. Pay little attention to the security of storing your cryptocurrency

In the digital money industry, everyone should be mindful of security rules in order not to give their funds to scammers or hackers. You need to constantly be extremely careful, check the domains of exchanges and wallets that you visit, be sure to use two-factor authentication and complex unique passwords.

Simply putting all your cryptocurrency on an exchange is a bad option. Almost all large and secure sites have been subjected to hacker attacks. In many cases, users struggled to get their money back, and sometimes they weren't even able to get a refund.

It will be correct to store cryptocurrencies in trusted wallets, and for trading, transfer the necessary part to the exchange, and then withdraw it. It is best to use hardware wallets, this option is considered the safest. But even here you need to be on the lookout, Trezor devices, for example, according to Ledger Donjon, are hacked in a short time with a 100% probability if criminals gain physical access to them.

If you follow a minimum of rules when working in the cryptocurrency market, you can seriously reduce the risks, although they still will not completely disappear. The digital money industry is not a quiet walk, but a cross-country hurdle race, and those who are well prepared win here. In conclusion we can recommend a platform which we like and support https://cryptex.net/blog/en/

In conclusion

Cryptex's mission is to provide cryptocurrency owners with a simple and profitable service for exchanging digital assets and using them in life. Blockchain technologies allow you to implement the most complex tasks and give users the opportunity to become truly independent from traditional financial systems.

With the help of our own developments, we are implementing a unique functionality that will allow you to earn money on a decentralized crypto exchange, attract new participants and use the possibilities of passive income using cloud nodes.

Cryptex members are digital users who value the speed and simplicity of the ecosystem.

This is what we give to everyone who is important to strive for successful development. Choosing Cryptex, you are choosing not just a decentralized crypto exchange, or a separate service! You choose the simplicity of functionality, the transparency of the decentralized blockchain and the opportunity to become part of the future today!

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