I have been in crypto for 64+ years๐ซก.
In my first year I wasted money following influencers calls and chasing pump and dumps.
If youโre in your first year, please open this: ๐
1: Keep your assets liquid
I once locked $10,000 in a crypto token during a market upswing, and it ballooned to over $150,000.
But because it was locked, I couldn't cash outโby the time I could, it was only worth $1,900.
Remember, the ability to act when the market shifts is as crucial as the investment itself.
Keep your assets accessible so you're always in control.
2: Smart profit taking
The key to profit-taking? Balance.
I fully cashed out of an investment I had made after a 5x before it increased a further tenfold.
Here's a better strategy: take profits to secure your initial investment and let a portion ride to capture potential upswings.
3: Use official links
Ensure youโre using official websites for crypto transactions.
Bookmark these sites to avoid the risk of phishing by using search engines, which could lead to scams.
Protect yourself by sticking to known and trusted URLs which you can find on ๐ or coingecko.
4: Beware of the hype
Crypto markets can be volatile and emotional, especially when driven by charismatic influencers.
Take their advice with caution.
Always verify information through your own research before making decisions based on someone's enthusiastic claims.
5: Revoke, revoke, revoke
In crypto, it's essential to regularly check and revoke permissions youโve granted to apps and services.
This proactive step can shield you from losses, especially if a service youโve used is later compromised.
Tools like Revoke Cash (@RevokeCash) or the Rabby wallet (@Rabby_io) can help manage these permissions efficiently.
6: Catalysts
Stay ahead with catalysts in crypto.
Keep an eye on the horizon for events that might affect cryptocurrency values.
A good practice is to check the coin market calendar regularly for these potential catalysts, and stay active in community channels like protocol discords or telegrams.
Prioritise tokens with significant expected developments in the next 1-3 months.
> Why catalysts matter:
In the dynamic world of crypto, market-moving events can rapidly boost a cryptocurrency's value.
By identifying these catalysts early, you can position yourself ahead of the crowd, allowing for strategic investments that can yield substantial returns.
7: Decoding the market
Understanding how news affects market prices can give you an edge:
- Bad news leading to a price rise suggests a very bullish outlook.
- Stable prices despite bad news indicate resilience and a bullish potential.
- A price drop following bad news confirms bearish conditions.
- Good news followed by a drop reveals strong bearish forces at play.
- No price change on good news might signal bearish undertones.
- A rise after good news typically confirms a bullish trend.
8: Winners win
Focus on narratives that are leading the market and identify the strongest performers.
Steer clear of tokens that havenโt been keeping pace with market leaders.
The market tends to favor coins that have demonstrated strength and potential, and these 'winners' are likely to continue their performance trend.
In crypto, momentum is a key indicator of future performance.
Investing in tokens that are already showing promise can be safer than gambling on underperformers, which often fail to deliver.
