Top 10 Golden Rules of Cryptocurrency Investing

The cryptocurrency market is extremely volatile, which undoubtedly attracts investors with the possibility of quick earnings. Still, beginners in the crypto industry can suffer financial losses due to an improper investing strategy and a lack of knowledge. We have prepared the top 10 simple rules for novice crypto investors, which will help you protect your investments from significant losses. Let’s get started!

#1 Make a Conscious Decision

Make sure to choose the most efficient way to buy and store coins. The cryptocurrency market is a relatively young sector, and there are no generally accepted practices yet. Thus, you can make a lot of mistakes by following someone else’s experience. In any case, you will have to decide how to buy and where to store your coins. When it comes to investing money, security should always be the top factor to consider. Every step of the process must be secure from the minute you choose an investment asset to the moment you start exchanging. 

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#2 Think About Profit

Most crypto traders are usually wondering which crypto coin to invest in to get the maximum profit. It is important not just to determine which coin will rise in price but which one will increase the most. Thus, always do fundamental and technical analysis of cryptocurrencies before making any investment.

#3 Choose the Best Entry Point

Many people are hesitant to buy coins just because of market manipulation. Everyone knows that large companies can artificially increase and decrease the price until they get the desired profit. At the same time, ordinary traders constantly wait for a coin to become cheaper. This fear is natural, but you need to learn how to ignore it since it is almost impossible to predict market fluctuations caused by whale manipulation. If you see that a cryptocurrency is promising and cheaper than usual, you can buy it. Learn to analyze charts and use technical indicators to confirm your entry point.

#4 Manage Your Emotions

The trader’s main problem is not the volatile cryptocurrency market but their own emotions. Cryptocurrency trading is a constant roller coaster. Every time you check the value of your portfolio, something changes, and those changes make you nervous — and this is natural. However, if you want to succeed and make a profit, you need to learn to ignore emotions and focus solely on numbers. Don’t let fear bring you down since fear usually means opportunity. 

#5 Only Invest Money You Can Afford to Lose

One of the best tips you can give to a novice crypto investor is only to invest money you can afford to lose. No matter how promising the technology is or how professional the project team is, there is always a chance of losing all your investments. If you are not sure about a coin, do not buy it. The fear of missing out (FOMO) makes many take risks, although, in reality, there is no reason to rush since sooner or later, new coins will appear, and the existing ones will fall in price more than once.

#6 Evaluate a Crypto Coin

Pay attention to the potential number of coins in circulation. The law of supply and demand also works with cryptocurrencies. The more people buy a coin, the more expensive it is.

Read Next: Best Ways to Evaluate a Cryptocurrency Before Buying It

#7 Fix Your Profit

It’s great to see your assets rising in value, but that doesn’t mean anything. Cryptocurrencies are very volatile, so until you fix your profit, you don’t have it. You should be very careful until you exchange your funds for a more stable asset, such as fiat currency or stablecoins. Fix your profit and look for another investment goal!

#8 Diversify Your Portfolio

The principle of diversification is extremely simple. According to this principle, buying two different cryptocurrencies is better than buying a single one. Three or four is even better. Why so? Well, when one coin is falling, and another is rising in price, you can sell the one that increases and buy one that decreases at a lower price. Thus, by averaging the total cost, you will make a profit.

#9 Invest in Stablecoins

Hold 20% of your portfolio in stablecoins to buy coins during market corrections. This is also an important rule that not everyone should follow. It is very annoying when the entire market is bearish, and you are not able to buy coins at bargain prices. 

#10 Develop Your Own Strategy

When buying and selling an asset, you must have a carefully defined mechanism for further actions. In today’s stock exchange world, robots bring the most money since they strictly follow the rules and are not subject to psychological aspects. Psychology is an important factor that often interferes with earning. Thus, make sure to develop your own investing strategy and strictly follow it!


The main weapon of an investor is knowledge and information. The more information a trader has about an asset, the more successful their trading will be. Combine technical analysis with a fundamental one to get an idea of what is happening with an asset. Follow these rules for a beginner investor, and you’ll definitely succeed in crypto investing!

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