5 habits to take you closer to being a crypto millionaire

3개월 전

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Diversify your portfolio

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Never keep all your eggs in one basket.
If you keep all your eggs in one basket and the basket drops on the ground then what could happen to all your eggs?
They could all break.

The same is true with crypto or your investment in any asset class.
Try to hold a diversified crypto portfolio.

A diversified portfolio would have a fair representation of some of the top rated coins like BTC and Ethereum.

Along with emerging projects in the altcoin space.
It would be good to put your money in some of the top rated crypto projects.

For example you could look at the to ten or twenty crypto coins in terms of marketcap and see what these coins are doing.

A diversified approach is a good way to spreads your risk.
A diversified portfolio helps to perform a portfolio churn.

Looking at historical data it may be noted that not all crypto coins boom at the same time.
As some go up in terms of price, market cap and trading volume other go down.

Some regular traders practice the buy on rumour sell on news rule to make money and some like to HODL for a long term in a project they believe in.

One can choose a strategy based on knowledge, risk appetite and time horizon.

Never store crypto on an exchange

Exchanges are for trading do not use them as safe deposits. The reason being the exchanges give you a deposit address for you to deposit the crypro currency.

They do not offer the private key(most exchanges do not)
So at best they hold your crypto for you.

Think what would happen if tomorrow the exchange got hacked, closed their business over night and pulled down their site?

You would simply lose all your crypto and this is the last thing you want.

Never store crypto on an exchange

Exchanges are for trading do not use them as safe deposits. The reason being the exchanges give you a deposit address for you to deposit the crypro currency.

They do not offer the private key(most exchanges do not)
So at best they hold your crypto for you.

Think what would happen if tomorrow the exchange got hacked, closed their business over night and pulled down their site?

You would simply lose all your crypto and this is the last thing you want.

Store crypto in a Hardware wallet

The best place to keep your crypto secure is your own hardware wallet.
Since it gives you the option of keeping your offline disconnected from the internet so it cannot be hacked into
The hardware wallets are protected by a password.

If you are looking to secure your crypto by storing it in a hardware wallet then you could look at the Ledger X and Ledger S wallet here.
They offer to secure a large number of crypto currencies.

Learn to do your own research

The difference between making money and losing money in the crypto land can be knowledge.
It is important for a person to understand what a crypto coin and project are doing before putting in your money.

If you read its whitepaper and road map you get a fair idea about the project.

Following it on social media like twitter, telegram, facebook etc helps you to understand the progress of the project.

This helps you understand about its success, being on path of its roadmap or facing road blocks.

If it has an active community on telegram or a forum you can find out how the project is performing and what does its community feels about the project.

An active community is very important for the success of any crypto project.

If there is no such active community then consider it as a red flag.

Avoid FOMO

FOMO or fear of missing out is one of the biggest pitfall for any investor.
It happens to almost everyone at some point or the other.
This should be avoided as far as possible.

A lot of times it is the retail investor who succumbs to this.
A typical case is when a crypto is at all time high like bitcoin price hitting 20000 USD per coin.

This led to a lot of media exposure and a lot of trending on social media.

The result was that a number of retail audience saw this as a gold mine and entered it at the top level either at 20,000 or close to it.

So when the smart money moved out it led the BTC price to crash and trapping the retail and last minute entry investor.

They are the people who take loans to but BTC or put their entire savings into BTC hoping to double their money in a couple of days, week or month.
Ask them what is BTC and they are clueless.

Let us sum it up

To sum it up be safe with your money while storing it and even more care before you put it in a project as investment.

  • Before you put your money it is better to put your time to understand the project and its potential.

  • Try to avoid entering a coin a token when it has increased in price multiple X in a very short period of time.

  • Before investing write down the pro's and Con's of the project you are planning to enter at that point of time.

  • If possible you can seek professional advice.

  • Always remember the crypto space is always budding with opportunities so keep reading and researching to unearth an investment gem.

  • Stay safe and keep you crypto safe.

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  • As a long term supporter of project hope I am sharing 25% of the earning of this post with @ph-fund that helps sustain the community economy

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thanks for your support @jamjamfood

Hello friend, very good advice, I really like the first one, we must learn to diversify our capital and profits. Today I am going through a loss and I think we should be less ambitious sometimes, growing little by little is the best and your advice can help us a lot. Greetings!

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Thanks for sharing your views @franyeligonzalez
Hope your loss turns into profit. With crypto you never know when the tide changes
good luck