In this article, I summarized 7 points or rules which helped me in making profits.
1.Know the crypto regulations in your country. What kind of cryptocurrencies are you allowed to buy and hold in your country? What kind of documents do you need to provide when buying crypto? How does the crypto tax regulation work? When you want to sell, always contact your crypto broker/exchange in advance to ask for the cash-out procedure, contact your bank in advance to ask what you need to provide in case you have a large amount of money flow into your account. Remember, always research these things in advance, even if you do not plan to sell immediately because it probably takes a very long time for those institutions to check and verify everything.
2.Do not invest more than you can afford to lose. Do not use your emergency money because crypto prices are very volatile and you might not get your money back when you need it urgently. Invest an amount that will not put you in a difficult situation if you lose it.
3.Never go all-in. After you have decided the total amount, you want to invest, for your first-time investment only spend part of it to buy whichever cryptocurrency you have researched and think is promising. Always have some cash at the side to buy the dip. This also reduces your risk of losing all the money when your expectation does not work out.
4.Do not panic sell when the price is experiencing a fast drop unless you are already in significant profit and thinking about exiting. Normally whales use this strategy so that they can get cheap coins. Do not fall for that trick. Also, negative news affects the price of crypto, such as bankruptcy of exchange, some country bans the use and mine of crypto. In the past, prices tend to recover after some time.
5.Do not give up when the price reaches the bottom, it is normally when the accumulation starts.
6.Take initial investment out once you are in profit. This way, you get your money back, even if you lose, you are only losing the profit you have made.
7.Set a realistic profit target and exit strategy. Remember that you are not there to maximize profit, but to increase your fiat buying power. It is impossible to buy exactly at the bottom and sell at the very top, all we do is to buy low sell high, to make a profit during the uptrend development. Here are two good videos from DataDash and Ivan on Tech about exit strategy I would recommend.
I hope this is helpful.
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