Topic: Ways to manage your finances when entering the cryptocurrency market (Read 428 times)

It's essential to deep invest on investment.Without investing on a coin, if you made a investment. It's like a blind luck, the profit is based on the luck. If you have a bad luck, it's sure to lose the money. So it's essential to make a investment after a deep analysis about the project. You can also follow them on a social media, it's easy to get more update about that coin.

Among those rules then these two would be the best thing for you to focus first but other factors are mainly needed well but you should really mind that
much about this kind of behavior.Never ever trust others on making decisions for you when it comes to investment.Always based up on your own analysis and
dont intend for you to easily believe on what others been suggesting and claiming because you dont know on whats the motive and intention behind those calls.
Just mind that every investor or person into this market doesnt really know on where do prices go.

because there are a few rules that need to be followed. the main thing is not to invest credit funds.

Never invest more than you're willing to lose is the golden rule and if people should adhere to this rule, almost everyone will be fine. Should you invest in a project, ensure to follow at their communities and social media platforms for updates. Set a target for yourself and don't throw in money indefinitely.

The general rule here is not to put all money in the one project. Other rules are not so significant so I think you can do it how you like and be confident.

Said is much easier than done . You should know that there are so many investors and traders already knew all these rules but they still fell into trap of the whales and lost so much money ))). I only wanna say that don't join if you guys don't have enough knowledge, don't risk your money if you don't understand about what you're going to invest in.

the most important thing is the product or platform, see how far they can solve the problem and how much interest or response the user has to the product or platform, if everyone is enthusiastic then you can consider it.

Yep this is how it creates a bad impression on crypocurrencies be logical if you are investing some money research about the project and how it works and check their white papers then check their previous projects this will help to find out a right coin. Most of them are already spreading false rumours like it's a risky one. People's who took risk are millionaires today. Think about it.

It's thanks for the sharing, also i had some of my own rules :
* Never put all our wealth to invest on cryptocurrency, spare some as a backup when ever bad things happen.
* Never put investment in a single project, just in case the project isn't going well.

Many investors just want to earn a lot of money in a short time, so they just pick whatever they want to without understanding and without studying it.  Most investors who are like that are probably the ones who lost a lot. Some people who have lost a lot are probably spreding bad news and other stuff that would ruin the reputation of crypto.

Maybe I can suggest adding, check the companies financials. If the companies financials show that they can manage the funds carefully and put it on the right things. There is a big chance of the company at least surviving the market.

Yes, it is a sad experience of people who must accept both experience. And in the future, do not commit such mistakes.

a little extra
Use a cold budget, to reduce risk because it affects your psychological and emotional conditions in investing. If so, it is possible that people act rashly in deciding and ultimately lead to losses.

Yep that is the one rule I make sure to follow. Some people are coming into the market thinking that the coins are going to make them rich overnight, they bring all of their savings even loans to invest without doing any proper research. Then the market true to its form starts going downwards after that, you see them talking about losing money. As long as you are investing with money that you are willing to lose then you have nothing to worry about.

I suppose that the main rule here is not to put all money in the one project or coin even if it seems to be the most reliable and profitable for you, risk always takes place.

Obviously there's a lot of similarities, but the thing with crypto though is that it went crazy in the last 2 years or so and people started to jump on the bandwagon and thinks that its going to be a easy ride for them to make money here. They don't understand it, they quickly invested on scam ICO's and other stuff that makes them lose money in the market and blame it on crypto.

But upon closer look, you will notice one thing, they don't follow one of the OP's advise:
Rule #1: Invest when you understand it.
We can't really reiterate it. Everything in investment started on your understanding on how it works. If you are not ready then by all means, don't throw your money in the market.

it is always easier said than done.
the amount you invest depends on a lot of factors that will determine how much you can afford to lose. and it is not always a fixed number. it can go up and down depending on those factors.
for instance one factor is your financial situation. a rich guy can afford to invest a lot more than a poor person!or someone in his teens compared to a old guy investing his retiring funds!
then it is the market that will determine the amount. at times when market is performing well and is more predictable (it can be dumping and be predictable so you short) you can afford to invest more than when it is less predictable and more manipulated.

To manage finances in investing in cryptocurrency, I think it makes no difference from investing in fiat currency, that is, don't invest your money in just one investment, try dividing your money into several investments that have a good future, even though investing in your view is very convincing.

thank you for the post. it is very useful for everybody. and they are all 100 percent correct. we supposed to be sure about what to buy before deciding to invest. it should be decided in the beginning and if you dont you can start with a very wrong decision and loose so much.

Its a start up principle

basically the amount you afford to lose is not the amount you want to have in profits

invest what you can afford to lose until you have your confidence to aim higher

If you already gain confidence and skills, you shouldn't now worried to lose and start investing higher

I am quite interested in point 5, there you mention that being patient, careful, and assertive and that is true because in my opinion we must be careful in carrying out any activity in the crypto world, but on the other hand a true investor must have determination in making decisions, because if we are in a position of doubt then we will forever lose and will never get experience in the crypto field.

continuously analyzing and monitoring market price movements is a way of managing well rather than having to trust the words of people or from the news circulating. I prefer to monitor it myself.

 Investing in the crypto market is quite risky because of the unpredictable nature in crypto space, therefore invest wisely do almost what OP is stated, it is a good tip, one more thing, like everyone else, said, invest only on what you can afford to lose.

what you are saying is perfect in ideal world and on paper only , i saw a lot of people before entering trading and investing and say we will have patients and once they saw huge profits like 3x they doubled their investments right away to gain more profits it's simply human nature !
you have to lose money to learn no other way . people who keep reading and think yes i found the holy grail , once they get their hands dirty they will change the behavior.

Cryptocurrency like nothing else is very risky. Profit depends on many factors, as well as losses . So I try to be a risky person, but not afraid to lose what I invest. This is my main rule - do not regret anything .

I try my best not to lose money when I enter the electronic money market. I take the time, effort to make money if not successful I accept defeat. I do not invest large amounts of money at times when the market is down.

I think first you can write on paper or use applications such as Blockfolio and Trust. In general, you need to formulate your financial and trading strategy and follow it no matter what happens on the market.

This is a very vital post that is fundamental to everyone in the crypto world as to what to do and what not to do, certain orientation is needed to make you make wise decision in order not to get hurt by losing your fund, the post is very useful, don't invest blindly without knowing everything you ought to know

This is a good and a very useful sharing, I think everyone in this forum should read this. Those are some important knowledge for the people who want to enter this crypto world, many people are just entering this world without knowing any pieces of knowledge, so that's why there are many people who fail here. Hope everyone read your thread

Awesome list. I totally agree with all these rules. "Invest when you understand it" - this advice is just brilliant. Many people could avoid losses if they followed this rule.

Crypto is highly volatile and risky as well so managing risks and taking both the profits and losses is always a wise strategy and in the end you have to stay in profit overall to keep you moving.

For me . "Invest that u can afford to lose."

A great rule .From my experience, I understood one Golden rule : you should always understand what you are investing in. To learn as much as possible the idea and the product . Believe only your eyes and ears

One more addition from me, "Never put any money from any credit" never sell your house, or belongings to be a rich in one day. There are a lot of rumors about getting rich in few days bu believe me you need a big chance to have it. One need to lose if one wins that is the game.

Newbie, they often do not have much knowledge and trust in what others say. I was in this case and I lost the first money I used for the investment. One thing worth saying is, my money holder is not a stranger, but my best friend. Although before I give my money to them, they tell me that investing is always risky and I accept that.

 agree that the post is useful, you generally need to have a reference point before you enter into this world, if you lose, then Yes it is blagojovich, but try again.

Not trusting others is one of the advice that you should definitely take from OP, there are lots of scams here that even the pro are lure to send btc to them. Do not let anyone do that trading for you or you will not learn wit hit instead. While you are willing to send your money to someone else now knowing whether you will gain or not, then just do it your self because the experience of trading yourself counts.

how to manage finances in investing in crypto currencies i think is tantamount to investing in FIAT currency, that is dividing your money in several investments that have a good future, don't invest your money in only 1 investment even though the investment in your view is very convincing

This is in relation with financial literacy about investment. I do believe that these advises and tips given will make a different story to a successful investment here in bitcoin. There are really some good reason that one should read your thread. This thread is very helpful.

A necessary experience for us. The first thing I do is to find all the information about the project that I will invest in. I watch all that other people say about it. It may take some time, but this is really necessary.
thank you. good luck !

You are right, that is five mains key to success in the crypto world and  the importance key which i want to emphasize with you is Be patient! Your dream will come true!

everyone would already know that the market is full of surprises the crypto. Thus many crypto investment opposed by some countries, because of the absence of a binding regulation of crypto. investment with a lot of risks must dimbangi with the knowledge and research. If no one is doing that then he will lose his money.

normally I'd set, only a portion of the course that I will sell. Part I save as an investment. because we also do not know, how market conditions later whether it will be good or otherwise. so we still have deposits.

My experience is going to reference all the information, from the Telegram group, pages about cryptocurrency, reviews on youtube and posts. Then give your own comment on how to go in line with my investments. Thank you for the helpful posts for newcomers

Yes this is an helpful post. It's very important to be properly orientated before entering into cryptocurrency investment and trading or even any other type of investment because you will be using your hard earned money which can be lost if you are not careful.

This is proof that the number of losers is more than the number of successful people 

Of course, in my investment, I always take it seriously. invest idle money, accept losing it if bad happens. Thanks for your very helpful comments. This is something that newcomers should pay attention to

To be honest there is only one rule to be followed with every brain cell when making decisions around the crypto sphere. And the rule is - Only "play" with the money you are willing to lose.

And that's basically it, one easy rule.

I don't think people truly understand projects that they invest in, even many big players say they don't know what they are doing , that is not also done just by reading whitepaper.

I realize that there are quite a few people who are not well-equipped for personal financial knowledge when entering the cryptocurrency market, today I will share with you my personal experiences (This is just Personal experience is not complete, please ignore if something is not right).

Rule #1: Invest when you understand it
There are many people who easily believe in others' words. Even though they do not understand it, they are willing to spend a lot of money to invest in it, even though they do not know anything about it. This is probably the biggest mistake. So, before you decide to invest, you should find out what it is?

Rule #2: Do not Trust Others
There are a lot of trappings in this market. If you are a newbie, you usually have the habit of listening to news from others, or listening to advice from someone. They tell you to give them money and they will pay you a daily or monthly interest. this is not good. You better manage your money yourself. Do not give it to anyone.

Rule #3: Do not invest in promises
I was in this situation. These are the mlm projects. They draw a bright future prospect for their project. They promise you their coin will hit a certain price in the future. Be careful with such promises. The rise in the price of a penny depends on the market, not on the development team. Stay away from projects that have a target price. Maybe that's just a scam.

Rule #4: No Fomo
Be greedy when others are scared, and scared when others are greedy.  Investors only care about the true value of the project. Rather than judging crowd psychology, they try to understand the business, leadership, and prospects of the business in the future. This experience is very confusing, a lot of emotion when applied.

Rule #5: Be patient, careful and assertive
When the opportunity comes, you have to decide to take it (easy to say but hard to do). Sometimes the wave ends, and again, the opportunity comes and goes, you can ignore many opportunities in the long run, but do not worry, there will be another opportunity and you just need patience. and decide when the opportunity comes.

Epilogue
With newcomers, Do a good job of your day. That brings in regular income for you. If you want to spend some money to invest in crypto, look carefully. For professional investors, I dare not give advice to them.  
Thanks for reading !
Sorry because english is not my native language.