15 useful crypto tips for new investors

In this short article I will offer 15 useful crypto tips for new investors that I have learned having been investing in crypto for the past 5 years.

1. Investments vs Trades

When you invest, you are buying and holding an asset for the long term you believe will appreciate in value. When you trade, you are buying and selling to increase your amount of coins over time, sticking to a trading plan. Know the difference and unless you have a lot of experience, don't add any leverage if you choose to trade the cryptocurrency markets.

2. It Can Always Get Better

One day you can be down 15%, only to be up 15% a few days later. Things can turn on a dime in crypto, and you need to prepare your emotions for these big swings in price.

3. It Can Always Get Worse

One day you may be up 20%, only to find yourself down 20% a few days later. Because the crypto market moves extremely fast and operates 24 hours a day 365 days of the year, you must be able to handle the crashes that happen every so often. Have a clear plan in place for all scenarios before you invest and above all don't panic.

4. Beware Of Get-Rich-Quick Marketers

Every so often new accounts pop up and say one of two things: - "Subscribe to my trading channel and make $1k a day crypto trading!" - "Buy this low market cap coin and it will 1000x next week!" Trust your instincts, Use caution and definitely Do You Own Research (DYOR).

5. Things Move Fast

The crypto markets move up and down quicker than the stock market. This has the effect of:

  • Scaring off those who are more risk adverse

  • Attracting those who are more risk tolerant

Which in turns makes everything move at an even quicker pace.

6. You Cannot Control The Market

The only things you control:

  • What cryptocurrencies you buy

  • How much you spend to buy them

  • How long you hold them for

Remember, everything else is out of your control

7. Be Careful Who You Listen To

99% of the crypto information you get is wrong or heavily biased. Make sure that you scrutinize who you get your information from. Check to make sure they have a good track record and that they are trustworthy. Trust = Everything.

8. You Will Make Mistakes

You will be wrong. More than once. You will have to accept that as part of the learning process. Learn from your mistakes and understand what you did wrong. Do not make the same ones ever again. This will make you a better and stronger investor than before

9. FOMO Is Real

One of the greatest lessons I learned was that FOMO (Fear Of Missing Out) is the strongest force in the world. FOMO is watching a coin you don't have go up, and the feeling that you are missing out on all the fun and gains. Be prepared to feel its pull, but more important learn to resist.

10. Many People In Crypto Are New

It's important to remember that many people have only been involved in the crypto space for less than a year. The extreme volatility has a stronger emotional effect on them, compared to someone who has gone through this for 5 years.

11. Don't Invest Screen Staring Money

Constantly checking your investments, questioning your decisions, and always looking at the market means one thing. You invested money you need to use soon. You invested money you need for bills. You invested too much.

12. Protect Your Home Run Stack

Don't turn 50k -> 1 million -> 50k. I've seen it done and it's not nice. When you hit a home run, you must try to protect that stack at all times. Do NOT gamble away your home run stack. You can never count on good fortune striking twice.

13. Have Fun

At the end of the day you are learning and growing as a person. You will gain new skills, learn valuable lessons, and meet great people along the way. Learn to enjoy the process and have fun with it. Not enough people smile in this world.

14. You Meet People Along The Way

You meet some of the smartest and most creative people in the crypto space. You will also meet people you prefer not to interact with. Either way, spend enough time here and you'll find like minded people who share your interests towards building wealth and a better future for themselves.

15. There's Always More To Learn

You will eventually think you have it all figured out. Only to find an account that has a bunch of great information, and suddenly you are learning a ton of new things again. Always keep learning as you always want to grow.

If you have any tips or advice yourself I'd love to hear from you, so please feel free to leave a comment below.

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I'm Paul

I am on a mission to help people start a journey to financial freedom. The key to long term success is education and understanding the incredible opportunity that exists right now.

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