Do’s and Don’ts of Crypto Trading

Crypto invest is when someone buys a crypto, waits for its fiat value to rise, then sells it. But learning how to invest effectively and learning the do’s and don’ts of crypto investing cannot be learned in just a minute.
When you invest in crypto, you should know the reasons why this certain token is the best crypto to buy, when to buy, and what your target price will be when you sell it.
Trading crypto is risky because the market is volatile—and you can lose your investments in just a blink of an eye if you are not lucky or careful.

When we talk about cryptocurrencies, others treat them as an opportunity to earn by enjoying the volatility of the market.

Though Bitcoin, the very first crypto to exist in this space, was created as a digital currency that is free from the control of a central authority, the fact that its fiat value, and other crypto, changes very fast from time to time shows that it gives a chance for investors to yield profit by just trading.

Crypto investing is when someone buys a crypto, waits for its fiat value to rise, then sells it. But learning how to trade effectively and earn successfully cannot be learned in just a minute. It is not an overnight success.

In this article, what are the do’s and don’ts of crypto investing? What are the efficient ways to ‌think about? What are the common mistakes that should be avoided?

Before everything else, some disclaimer:

BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.

Do’s and Don’ts of Crypto Investing

Do’s in Investing in Crypto

Plan before investing

Crypto trading is not a get-rich-quick scheme: you have to have strategies about it. When you trade crypto, you should know the reasons why this certain token is the best crypto to buy, when to buy, and what your target price will be when you sell it.

Research the crypto

When selecting the crypto you want to buy, you should check the coin’s features, advantages, use cases, and relationship with regulators. Take note that some of the factors that predict the price of a coin include its supply and demand, hype, regulator’s decisions, and even its partnerships with non-web3 firms. So, being updated with the news around the industry is a plus.

Plan your exit strategy

Bear in mind also that not every day is Christmas day, there could be red days, bad days, and sometimes, the market contradicts your predictions. Thus, plan your exit strategy, and learn how to set a stop-loss order. Your preparation matters most about how much you will earn or lose.

Learn from bad experiences

This is where your determination will be measured. As long as you can, stay in the game. Crypto trading is sometimes stressful and frustrating—because it involves money. As you face losses, mistakes, and challenges, learn from these bad experiences so you will not repeat them. When you win and earn, take down the strategies you made so you will repeat them on your next trading activity, or you can modify them to be better.

Don’ts in Investing in Crypto

Do not be greedy

When you start to earn, it is hard not to become eager. But sometimes, eagerness leads to greediness. Do not be greedy. Not all shitcoins will be famous. Not all new coins will be launched—some will be rugged.

Do not invest money you cannot afford to lose

So just invest your extra income, never invest the money intended for your daily needs. Trading crypto is risky because the market is volatile—and you can lose your investments in just a blink of an eye if you are not lucky or careful.

Do not follow the crowd blindly

During the recent BitPinas Webcast with Jay Villarante, the Moneybees CEO stressed that during the bull run, many crypto natives jump into whatever project exists just to earn—and sometimes, they get scammed.

Just do not follow the crowd blindly. As what Villarante implicitly hinted, when they go with the flow, go against it. The crypto industry is not a popularity contest, it is neither a herd tradition. Just because everyone is biting into it does not mean that you should also.

Do not FOMO or be fudded

Do not let FOMO or FUD cloud your judgment and make you trade impulsively. Do your own research and analyze the market first before finalizing your decision.

Closing Thoughts: Do’s and Don’ts of Crypto Trading

Indeed, crypto trading is not that easy to do. It requires patience, discipline, and strategy. With the list of do’s and don’ts in this article, there is more reason to be careful when making decisions.

To end, let me end with this question: Since crypto trading is a combination of skill and luck, ARE CRYPTO TRADERS BORN OR RAISED?

This article is published on BitPinas: Do’s and Don’ts of Crypto Trading

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Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.

Do’s and Don’ts of Crypto Investing

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Do’s and Don’ts of Crypto Investing