Ways to manage your finances when entering the cryptocurrency market

[A L I E N]

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.

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[zulkarnaen]

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

[Wale777]

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

[spike420211]

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.

[Caelanpelley]

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.

[Kristina3456]

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 .

[mikyadel]

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.

[Gaff]

 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.

[Icologies]

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.

[ocid]

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.

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.

[leonix007]

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.

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

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

[Stavri]

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.

[prikitiw]

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.

[Red-Apple]

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.

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

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

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.

[TravelMug]

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.

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.

[Rahees]

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.

[NewBet]

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.

[chandrarahmadewa]

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.

[Tanya12356]

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.

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

[ranman09]

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.