Principles for Investing

Principles for Investing

  1. Start now
    • This investment vehicle is growing so rapidly that every day you are not on board is a day that you are potentially missing out on some good returns.
  2. Never invest in something you don't fully understand
    • If you cannot comfortably explain the basic features and functions of the coin or method you are going to invest in, you're not ready to start! If you are incapable of, or unwilling to do your own research, don't bother with this.
  3. Never invest more than you can afford to lose
    • Do not mortgage your house or put your life saving into this! Due to a small user error, you could easily lose everything entering one wrong character on a receiving address and all could be lost!
  4. Diversify
    • Do not put all your eggs in one basket, all your funds on 1 exchange, or all your value in 1 wallet. Coinbase is not a wallet, they can freeze or seize your funds like a bank!
  5. Track you investment
    • The best method for tracking your cryptocurrency investments is with a site/app like CoinTracking.
  6. Don't buy the hype
    • If it has already hit the news cycle, you are already too late. Do your own research and try to find the next big thing before it is a big thing!
  7. Dollar cost average
    • Invest a set amount steadily over time. Coinbase has a recurring buy feature I recommend taking advantage of. Using Bitwage you can convert a portion of your paycheck (or all of it) to BTC. You can find the long explanation of DCA here.
  8. Hold on to the winners and dump the losers
    • No matter how much you believe in a project or coin/token and its mission, don't go down with the ship.
  9. Compare your investment against an appropriate benchmark
    • You can compare the growth of your investment against the traditional stock market if you wish but I like to compare my trading against a buy and hold strategy.
  10. Learn from every dip or bear trend
    • Not much can be learned about the market when every coin is on a bull trend but when the market goes for a dip, the strong coins begin to stand out and you can find one or two that act as a good hedge against the dropping market.
  11. NEVER PANIC
    • Just don't! I highly recommend leaving your trading to automated bots. This space has more ups, downs, and loops than most roller coasters. Never trade or make decisions while emotional. Train yourself to be a robot!
  12. Listen to advice but think for yourself
    • This space is full of many new investors and everyone thinks they have the keys to success, there are also MANY SCAMS so DO YOUR RESEARCH before investing anything!