Just 3% of the Malaysian population are into the cryptocurrency investment. It is a long way to go in the cryptocurrency also don’t forget that we are the early adopters. We are lucky enough to know about these things as early as possible.
Bitcoin : 64%
S&P 500 : 17%
WTI Crude Oil : 54%
No matter what happens to the cryptocurrency market, in long run it i going to profit us. So there are few tips and tricks you can follow so you can be profitable investor. I will call this as the cryptocurrency investment rules.
1. Always Withdraw
Our people( The Malaysia ), they have this typical mindset where they don’t like to withdraw any interests. No matter if it is an ASB or a Fixed Deposit. They like compound again the interest so they get more interest in the next term.
In Cryptocurrency you can’t do the same. You need to change the mindset. Let’s say you have invested RM 5,000 in Ethereum, and the profit you got in 3 months period is 50% which makes your total investment worth RM 7,500. You should be withdrawing at least 50% of the profit. That’s what a responsible trader does.
Why I should withdraw if it can grow more?
Yes it can go more, but you need to understand that the cryptocurrency market is volatile. Whatever goes up, will come back. The way to the top is not clean always, before it reaches the top, it will dump/crash many times. Take profit there.
2. Dollar Cost Average
Do invest without checking the price. We call this as DCA or Dollar Cost Average. This technique is used by most of the professional traders and also retail investors.
This strategy involves of buying the same dollar/ringgit amount of coins every month/week regardless of the markets volatility and movement. For example you are investing RM 200 into Ethereum every month. This removes the pressure caused the by the constant need to decide whether to add a position.
Do not put all the money in your favorite coin in a very short time. DCA in it like for a year.
3. Getting out of a Trade
Sometimes human tend to make mistake and need to let down the ego. We might the read the market incorrectly while finding for the dips and different seasons. If you realized that market goes in the wrong way from what you have predicted, do not add in the portfolio. That is the first thing you don’t need to do.
Market is dynamic, can take a hard turn pretty fast. If it goes in loss, get out from the trade, stop your loss. Don’t wait for it to come back again. This avoid from big loss. The psychological impact of losses is a heavy burden and will negatively impact your capacity to think clearly. Try get some fresh air. Take a break for few days.True traders are not the one who master all the techniques, but those who can stay emotionally stable during all the trades. No matter if it is a profit or a loss.
These are some simple tips to being consistent into the cryptocurrency. Don’t be greedy in crypto market. We aren’t controlling the market.