I Made $1 Million in Cryptocurrency. These Are the 7 Rules I Learned.
In this article, I have summarized 7 points or rules that have helped me make profits.
1. Know the laws regarding cryptocurrencies in your country. What type of cryptocurrencies are you allowed to buy and hold in your country? What kind of documents do you need to provide when purchasing cryptocurrencies? How do cryptocurrency tax laws work? When you want to sell, always contact your crypto broker/exchange in advance to ask about withdrawal procedures, and contact your bank in advance to ask what you need to provide in case a large amount of money flows into your account. Remember, always research these things in advance, even if you are not planning to sell immediately because it can take a long time for those institutions to verify everything.
2. Don’t invest more than you can afford to lose. Don’t use your emergency funds because cryptocurrency prices are very volatile and you may not get your money back when you need it urgently. Invest an amount that won’t put you in a difficult position if you lose.
3. Don’t go all in on an investment. After you have decided on the total amount you want to invest, on your first investment, spend only a portion of it to buy whatever cryptocurrency you have researched and think is promising. Always keep some cash on the side to buy the dip. This also reduces the risk of losing all your money when your predictions don’t work out.
4. Don’t panic sell when the price is dropping rapidly unless you are already in a big profit and thinking about getting out. Whales usually use this strategy so they can get cheap coins. Don’t fall into this trap. Also, negative news affects the price of cryptocurrencies, such as the bankruptcy of an exchange, or some countries banning the use and mining of cryptocurrencies. In the past, prices tended to recover after a period of time.
5. Don't give up when the price hits bottom, this is usually the beginning of accumulation.
6. Withdraw your initial investment as soon as you make a profit. This way, you get your money back, even if you lose, you only lose the profit you made.
7. Set a realistic profit target and exit strategy. Remember, you are not here to maximize profits, but to increase your purchasing power with fiat money. It is impossible to buy exactly at the bottom and sell at the top, all we do is buy low and sell high, to profit during the uptrend. Here are two good videos from DataDash and Ivan on Tech on the exit strategy I recommend.
I hope this is helpful.
