don’t invest money I can’t afford to lose. Doing so can create panic and cause me to make emotional decisions.
don’t panic. Crypto can be highly volatile, portfolio swings of +30% are possible in a day, individual coins can go down 50% and up +100%. It takes time, but the longer I have traded crypto, the more comfortable I have become with this.
don’t short. I don’t have any fundamental issue with shorting; I think it is a good tool within all markets for driving accurate pricing, whether stocks, Forex or cryptocurrency. I just don’t do it within crypto for a couple of reasons. Firstly we are in a very long bull run, so I don’t want to trade against the momentum and secondly, I find coins have a greater % upswing potential than down.
never margin trade. Margin trading is where an exchange will give you a multiple against your investment. Say for example you are offer *10, then as a price moves up your gain is *10, but this also works when the market moves down. Margin trading for me is investing money you don’t have which is rule no.1.
don’t chase the market. I have, and I have been burned. When a coin is making a parabolic move, and you chase it you can easily be caught as it drops back.
don’t listen to the opinions of others. I will though use them as an opportunity to research something new but I won’t blindly buy. I use Reddit all the time to follow news and opinion, but I ignore the idiots who are claiming a coin is going to the moon, or something is undervalued. Most opinions are based on what people want to happen.