Investing in cryptocurrency can yield high returns, but it also comes with high risks. After achieving my desired profit in crypto, I have outlined 5 core investment rules that any investor should consider.
1. Never Go 'All-In'
Never put all the money you have into a single initial purchase. First, determine the total capital you want to invest, but only use a small portion of it to buy the cryptocurrency you have thoroughly researched. Always keep some cash on hand for opportunities to buy when prices drop. This strategy helps minimize risk, and you won't lose everything if the market doesn't go as expected.
2. Protect Your Hardware Wallet and Security Keys
Keep your cryptocurrency in a hardware wallet and securely store your private keys and recovery phrases. Don't leave your money on exchanges, as they can be hacked or go bankrupt. When that happens, you will lose all your assets and won't be able to recover them.
3. Don't Panic Sell When Prices Drop
When prices drop significantly, unless you have achieved your desired profit and want to exit, don't panic sell. Often, 'whales' - large investors - use this strategy to buy in at low prices. Don't fall into this trap. Also, negative news such as an exchange going bankrupt, or a country banning the use of cryptocurrencies can cause prices to drop sharply. However, in the past, prices usually recover after some time.
4. Determine Your Risk-Return Ratio
It's essential to understand your risk-return ratio. A coin priced at $1 has a higher chance of rising to $2 compared to a coin priced at $1,000 rising to $2,000, even though the percentage increase is still 100%. If you have achieved your desired profit, you should not continue holding just to hope the price will go higher. The cryptocurrency market is volatile and unpredictable.
5. Diversify Your Investment Portfolio
Don't put 'all your eggs in one basket.' To minimize risk, invest in large-cap coins with practical applications. Additionally, consider investing in other asset types such as stocks and gold to protect your wealth.
So Which Coin Should You Invest In?
Currently, with Bitcoin reaching its highest price in history, many people ask me which coin to invest in. In my opinion, you might consider the following coins:
$ADA (Cardano): Currently at $0.36, this is a reasonable price for a coin with many practical applications.
$PEPE: This is an interesting investment with great potential if Mr. Trump wins the upcoming election.
$SUI: Currently, the price is quite high, but this is a safe investment as this coin has stability and has been proven.
Always remember that the crypto market is very volatile and no investment is entirely safe. But by adhering to the above rules, you will minimize risks and increase your chances of success in your crypto investment journey.
