If you are serious about making cryptocurrency trading a second career for the next few years, these 10 unbreakable rules are your survival guide. Read them, save them, and make them your secret weapon in the volatile world of cryptocurrencies.
1. The Mathematics of Losses
Doubling your 1 million to 2 million with a 100% gain feels great, but a 50% loss brings you back to 1 million. Wins are hard; losses are easy. Protect your capital.
2. Percentage Tricks that
A 10% gain followed by a 10% loss leaves you with less than you started with. Small, consistent gains outweigh big ups and downs any day.
3. Small Wins, Big Results
If you make just 1% profit each day, your 1 million could grow to 12 million in less than a year. Consistency wins the race.
4. Big Returns Are Rare
Sure, a 200% annual return over five years could turn $1 million into $243 million, but don't count on sustaining that. Keep expectations realistic.
5. Long-Term Growth Formula
To turn 1 million into 1 billion in 30 years, you need an annual return of 25.89%. It's not impossible, but it's a marathon, not a sprint.
6. Reducing your Cost
When prices go down, buy more to lower your average cost. But be careful: don't get carried away chasing the bottom line.
7. Smart Profit Taking
After a 10% profit, sell enough to leave your remaining tokens 'free' at no base cost. Ride the wave without pressure.
8. Market Crashes Put Cryptocurrencies to the Test
During a crash, strong cryptocurrencies fall less. If yours is holding up well, it's a sign that you can continue to hold it with confidence.
9. Diversify or Die
Don't bet everything on one currency. Diversify your investments and reduce your risk of catastrophic loss.
10. Patience Bears Fruit
The cryptocurrency market is volatile, but true rewards come to those who wait. Quick gains can lead to quick losses – play the long game.
Stick to these 10 rules, and you'll not only survive, but thrive in the ever-changing cryptocurrency landscape.
