After dedicating 8 years to researching personal financial management in the crypto market, here are seven crucial financial rules for crypto investors:
5. Emergency Fund Protection:
An emergency fund is essential and should be kept separate from crypto trading.
It should cover expenses for 6-12 months in case of unexpected events like job loss or illness.
It's important not to dip into this fund for crypto trading, even if you're confident in a trade.
Retirement Rule 300 for Full-time Crypto Trading:Determine your monthly expenses for yourself and your family, then multiply by 300.
This gives you the amount needed to save and invest for retirement while trading crypto full-time.
Over 25 years, the interest earned on this amount can be reinvested in crypto for greater compound interest.Diversification Beyond Crypto:
Despite crypto's potential, it's crucial to diversify your assets.
Assets like gold, stocks, real estate, and cash remain important in the financial world.
Diversifying beyond crypto is key to managing risk.
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