Hello everyone, I am an experienced investor in the crypto world and today I am sharing with you some lessons learned along my path, in the hope that you will avoid my pitfalls and maximize your profits.
1. "Not your keys, not your bitcoins": Remember that Bitcoin was born as a payment system between people, where each person has full control of their assets. However, many users entrust the custody of their cryptos to third parties (exchanges). Serious mistake!
In the past, we have seen how seemingly untouchable giants like FTX and Celsius Network collapsed, leaving thousands of users without access to their funds. Let me tell you my story: I bought BTC a long time ago and kept it on an exchange (at the time, the largest one). I was always cautious and transferred my assets to my own wallet. When this giant collapsed due to lack of funds, I didn't lose anything! Unfortunately, many of my students ignored my advice and lost everything. Learn from their misfortune: be the custodians of your own assets!
2. Always keep liquidity: No matter how much you have, keep some of it in liquidity. The crypto market is volatile and will make you buy high and sell low when fear or euphoria takes over. If you bought at a peak, liquidity will allow you to apply DCA (Dollar-Cost Averaging) and average your entry cost.
If you want to know more about how DCA can protect you from volatility, I invite you to read my article "DCA: Your Shield against Cryptocurrency Volatility" on my profile.
I learned this the hard way with RUNE. I bought it at $6 and within a week it dropped to $3.2. Without liquidity, I couldn't take advantage of that drop. (Don't worry, I'm still holding RUNE until $40.)
3. The basics are essential: Organize your personal finances. Identify your expenses and income to detect money leaks. Pay off your debts and plan your monthly investment. Rome was not built in a day.
4. DYOR (Do Your Own Research): Don't believe anyone, not even me. Do your own research and form your own conclusions. The crypto world is full of siren songs.
5. Find a reliable mentor: A good mentor will guide you along the way. Hopefully, he or she will be dedicated to spot trading and not futures. (If you are looking for one with experience and proven results, contact me! I offer personalized advice so that you can achieve success in the crypto world. More information in my profile).
6. Invest in Spot, forget futures: If you consider yourself an investor, stay away from futures. For God's sake, don't touch them!
My mentor warned me, but I was blinded by ambition. After turning $5,000 into $20,000, I put $1,000 into futures and⊠I lost it all! Maybe 5% of them succeed in futures, congratulations to them! But my advice to beginners is clear: stay away!
7. Trust yourself: We all have unique abilities. If after a thorough analysis, you think an investment is a good one, don't pass it up! Take the chance and trust your instinct.
I hope you find these tips useful. Share your experiences in the comments!
#cryptocurrencies#bitcoin#binance#trading#investments#blockchain#ethereum#defi#tips #financialeducation
$BTC $RUNE
