Rule 1 - Bitcoin is KingThere are several groups of crypto traders - Bitcoin maximalists, Altcoiners and Shitcoiners. Maximalists are staunch believers and they go all in on Bitcoin. Bitcoin’s purpose is to bank the unbanked and maximalists agree with this sentiment. They religiously buy and HODL Bitcoin hoping they will have enough money to buy a Lambo by next bull run. Rule 1 of investing is to understand Bitcoin’s market dominance and invest between 20-40% of your funds in Bitcoin. Before and during every bull run Bitcoin’s market dominance is over 60%. Bitcoin has an ROI of over 9500% in the past decade and has consistently outperformed all traditional investment instruments. With an increasing number of businesses accepting Bitcoin payments, the number of transactions have doubled in the past 2 years.
Rule 2 - Diversify and follow a strategyIt is easy to chart your progress and see which way your portfolio is moving. As traders follow their strategy, it is advisable to monitor Bitcoin price and its market capitalization. As Bitcoin’s price increases, its market capitalization increases and this often leads to a fall in altcoin prices. This means it's time to hold or exchange for Bitcoin. Every crypto trader has lost money and it isn’t always easy to book profits. It's important to remember that losing helps your learn, change your strategy and improve it for better results and profitability the next time.
There is never enough research for finding the right strategy and it doesn’t guarantee profits. It is advisable to apply a calm mindset, identify undervalued tokens, avoid jumping in on market hype. Leverage trading is for seasoned traders and it is not the go to trading style for beginners or relatively new traders. Avoid margin trading if you are new, because as your profits multiply, even your losses do. Past performance of a token is never a true indicator and there are several cryptocurrencies with more risks involved than others.