On a global level, we can see that financial literacy is on a pretty low level. There is proof for this claim, just take a look at how many people are in debt. Not to mention that making any sort of investment is still unreachable for many people. That’s why we believe that improving the level of financial literacy is one of the priorities to ensure a much safer future for every individual out there.
You will certainly agree that this is a large task that will take a couple of decades to complete. With that in mind, we want to contribute to this cause by talking about investing in cryptocurrencies, mainly Bitcoin. We are talking about the oldest and most valuable crypto out there. So, it’s not a surprise that so many people perceive it as a great investment, that can make them serious profit in a short time.
It is clear that we are talking about a much more different approach than a majority of people are used to. It is a whole new universe, after all. That’s why we would like to provide you with a couple of rules you should follow to ensure your success in the cryptocurrency market. Without further ado, let’s take a look at some of these.
1. Reliable Platform
The first rule you simply cannot do anything without is choosing a reliable trading platform. Those who understand the market will know that this is not nearly as easy as it may look. Since this is a large and profitable market, there are many platforms out there that pose as credible and reliable, but in truth, they’re not. Cheating traders have become regular, and it happens practically every day.
There are a couple of ways you can get an opinion about the platform’s reliability. First, the easiest thing would be to talk with someone who has significant experience in the market. Next, take a look at many online reviews and decide after studying a lot of them. It needs to be said that this sort of research can be quite lengthy. If you look for this sort of platform, make sure to visit this site.
2. Don’t Make Big Bets
Being reckless about the moves you make will not lead you anywhere. That’s why being as patient and careful as you can be is an absolute must. When we say reckless, we mainly think about making large bets at once. The market can be pretty unpredictable, and a move like this can lose you a lot of money. We know it’s tempting to resist when someone sees an opportunity, but we urge you to be careful.
We would recommend you implement a rule that many gamblers out there have. Don’t invest more than you can afford to lose. Having too big of an appetite can cause much more loss than benefits, especially when you are at the beginner level. There are many things you need to learn before you consider yourself competent enough to make these moves. At first, you should be patient.
3. Follow Newest Trends
As you can presume, many things affect the value of BTC and any other crypto out there. These are numerous, and grasping all of them at once is certainly challenging. Before you are ready to make a move, make sure you understand what are the factors that influence the value. By having this sort of insight, it would become possible to predict some massive changes that can help you reap many benefits.
Naturally, that doesn’t mean that you should take into consideration any information you come across. Instead, be selective, and follow only credible sites. Thankfully, finding these is not as hard as some may think. These sites are often marketed and there is no chance you haven’t seen them if you have spent some time participating in this market.
4. Check Regulation
The popularity of this concept has made a lot of governments think about how they should implement it in their financial system. The first move was made by Belarus, which made all of the legal and untaxable until 2023. Next, Uruguay has made similar moves. But, the finest example is a move made by El Salvador. This South American country has made them legal and it is used by official institutions and citizens.
Maybe your country is the next one that will make these moves, who knows? If there are similar stories in your native country, then the best thing you can do is start thinking about these regulations. Make sure you conduct thorough research about this topic. Only by doing that you will not be taken by surprise no matter what happens. But don’t feel intimidated by them, stay relaxed.
5. Expect Volatility
Finally, we want to talk about the most obvious rule you’ll have to follow. It is clear that we’re talking about the market’s volatility. It means that BTC value will constantly fluctuate, either up or down. There are examples of these changes being as high as 50% or 60%. You can see that these massive changes can be perceived both as blessings and curses.
If you’re not careful, there’s a possibility that you will lose a significant percentage of your funds. For some people, these massive changes are too much to handle. With that in mind, it is obvious that this is a stressful situation that many will not enjoy. Volatility is a crucial factor and not considering it would be a mistake. So, make sure you understand it properly before you even start.
The Bottom Line
As is the case with any other new market, it takes a lot of time before the majority of people will understand it properly. With the cryptocurrency market, this story becomes even more complex because a majority of its features didn’t exist in any other. In this article of ours, you can take a look at a couple of rules that will provide essential help with trading. We are certain you will find each of these rules useful on this journey.