7 Handy Hints for Beginning Investors
It is rather sad, but still a reality, that the general level of financial literacy among newbies leaves a lot to be desired. Getting to know the world of crypto can easily turn into a loss of capital. To avoid this, you must be ready for anything. Today, Equite has prepared some tips for novice investors. They will help you start making money on the market faster or automatically. So let’s get straight to business.
- It is easy to win during a bullish trend, when prices are rising or are about to rise. Real professionals are able to survive and even thrive in best-case, worst-case or likely-case scenarios. Life is a circle, everything repeats itself, and the market is no exception. Don't be afraid of market hits or collapses — they will help you earn more money. And don’t make a mountain out of a molehill. Don't turn a small, loss-making deal into a tragedy.
- Plan your actions. The goal should not be looked upon as an abstract phenomenon. It should have a specific date and time of implementation. Make up your mind what types of trading combinations or investments you will rely on, and ignore everything else.
- You should not blindly trust crypto signals. Avoid the financial advice from strangers or ”guru" on social media. As a rule of the thumb, they have nothing to do with reality. Remember that only the organizers themselves earn money on such signals. They don't care about you or your profits.
- Start with only small sums. Blowing all your savings or going into the red is a bad idea. Always invest the amount that you are ready to say goodbye to.
- Don't invest in an asset you don't know anything about. Now there are a slew of no-name projects. Many tokens are just copycats to date. Stay sharp, because there is a high probability of running into scammers.
- Diversification. It is vital to properly diversify your portfolio. This will help prevent and mitigate risks. Everyone knows the rule “Don't put all your eggs in one basket”, but not everyone follows it. Diversification reduces the risk of losing everything. Focus only on a few assets, not hundreds. Every day, a lot of new coins/tokens appear in the crypto space. Chasing after every one can have negative consequences for your portfolio.
- Just start investing. Theory makes sense, but you can get valuable experience just in practice. Sooner or later, you will make a mistake, do not be afraid of it. Just accept the facts, okay? Learn from your own mistakes and move forward. The worst thing that can happen to investors is to let mistakes to influence future prospects.