The top dos and don'ts for beginner investors
Regarding dos and don'ts for beginner investors, we should mention that Cryptocurrencies are a newly established market. Some of the cryptocurrencies that are traded in this market are less than a year old
The market of cryptocurrencies or digital currencies has become one of the largest financial markets in the world in the last one or two years. As you know, the profit in the digital currency market is in the form of dollars, and this issue has encouraged most of our compatriots to work in this market; Of course, due to the collapse of the digital currency market in the past months, many people lost their profits or part of their capital in this risky market. Being aware of this issue, we decided to talk to you about the important dos and don'ts for beginner investors.
Dos and don'ts dos and don'ts for beginner investors that they should know
1-Control your feelings and emotions
Most of the traders who entered the digital currency market after 2018 have not seen the sharp decline of this market until today; Because of this, most of these people could not control and manage their feelings and emotions when faced with a downturn in the price of digital currencies and take a logical and correct action against the price drop. Sometimes even experienced traders get confused and cannot control their emotions. Of course, some traders control their emotions and check their transactions when the prices of cryptocurrencies fall. Don't forget that in such a situation, a smart and correct decision can prevent huge losses. A professional trader relies on his/her experience to manage his/her emotions, just as he/she controls his/her emotions in an upward market. For you to be able to reach such a state, you must pay attention to the fact that there is always an opportunity to make a profit in the cryptocurrency market. Losing a deal or exiting a position with a loss should not disappoint you. Sometimes the trader may even seek revenge on the market, but be aware that this will not have a good result. Even the most successful traders may lose, and this is inevitable in the financial markets.
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2- Be a holder (HODL)
Regarding dos and don'ts for beginner investors, we should mention that Cryptocurrencies are a newly established market. Some of the cryptocurrencies that are traded in this market are less than a year old. But with a long-term study of this market and paying attention to the price chart of Bitcoin digital currency (BTC), which is known as the main leader of this market, we understand the long-term trend of this market; In fact, the overall trend of most digital currencies has always been upward, despite the sharp drops they have had.
3- Buy at the dips
Most likely, you have heard the famous saying: "Buy when everyone is afraid and sell when everyone is greedy". It may seem very naive, but this method is the same method that made Warren Buffett a legendary investor and one of the world's richest people. This strategy can work for you too. For this reason, it is better to consider every drop in the digital currency market as an opportunity to buy cryptocurrencies. Of course, you should not forget that to use this strategy, it is necessary to identify the dips. We suggest that you wait to identify the dips and not rush to enter the market. Consider the inherent value of cryptocurrencies. One of the most important dos and don'ts for beginner investors is the inherent value of cryptocurrencies. Most people ignore the inherent value of digital currencies when the digital currency market downturns, while a Bitcoin always remains a Bitcoin and its value does not change despite the dips. People who have a long-term view of digital currencies and understand their true value are well aware of the inherent value of digital currencies and see every downturn as an opportunity to buy. If you reach such a point of view, you will no longer be afraid of falling prices and start buying when everyone is at the peak of despair.
One of the most important investment principles is capital management. It doesn't matter what market you are active in, from real estate to digital currencies, the only way to reduce the risk of losing your capital is through capital management. Remember that by no means you invest all your capital in one market. In the digital currency market, it is better to divide your money into smaller parts and dedicate each part to buying a digital currency.