Bitcoin has already risen more than 100% from the bottom mark, with some altcoins shooting even higher. Many experts are talking about the start of a new bull cycle. In this regard, we have collected the top recommendations for beginners: how to earn the maximum on the growth of crypto.
Fix the profit, but not all of it
You never know where the bottom will be for a particular altcoin and the market as a whole, and you also don’t know where the peak will be. That is why it is important to gain a position in a ladder and get rid of it in the same ladder. Don’t hold the whole position with the aim to close at the peak and don’t dump all tokens after seeing x2-x3. The market can grow for a very long time, it can give tens and hundreds of X’s, so it is important to always have some stack of tokens to unload at the next update of the high.
Don’t catch FOMO
Can’t make all the money in the world anyway. Missed the rise of some shitcoin? Don’t buy after a strong rise or you will become exit liquidity for those who were gaining at the bottom. You never know when the growth will peak. There will be plenty of other opportunities to make money later on. Look for a promising asset that hasn’t given x’s yet.
Don’t break tokens for a long time
Some projects, like 1inch, offer to lock tokens in staking for a few years. They reward you with a generous premium for doing so, but in return you may miss the exit point and not sell out on the hai. There are stories of cryptans who had hundreds of thousands of dollars in some locked token at the peak, but couldn’t sell out – and today their position is worth a couple thousand.
Withdraw your profit in cash or bitcoin
After a bull market comes a bear market, and with it comes bankruptcies and crashes. Even a stablecoin from the top 3 by capitalization can go down (UST is an example). Even the largest exchange can go down (Mt Gox, FTX). Therefore, if you got a good profit, then withdraw it to real cache, buy real estate, car, stocks, go on vacation, make yourself and your family happy. Or keep the profit in bitcoin (you are a cryptan after all), but in this case be prepared for a drawdown of 70-80% of the high. And be sure to prepare a cache to buy back the market on the next day.
Take password and SEED management as responsibly as possible
Take care of the security of your assets. Don’t spare $150 for a hardware wallet, buy metal plates to record SEEDs and store them safely. Create a multi-signature wallet and distribute the keys to your loved ones.
Don’t create a cult of personality or project
Even the strongest personality in crypto, even CZ – everyone can make mistakes. Example – Do Kwon, Sam Bankman-Fried, Soo Joo and others. Even the strongest project will fly into the abyss in the next bear market. An example is SOL (-97%). There are only two fundamentally strong assets: bitcoin and ether. The former is decentralized money, the latter is a decentralized world computer. Everything else is just new technologies and developments. They can be mega-technological and revolutionary, but in the end it all comes down to people’s faith and actual use. No matter how slow and bad Ethereum is, it has the basic liquidity of DeFi, and bitcoin is the entry point to crypto and a contender to be the world’s money. Some projects may shoot up, some may not. And some may seem very promising, but then may shrink (like LUNA).
Stay out of futures
Futures are a great tool for hedging. If leverage is used correctly, it is a good way to earn more than on a spot. It is also an opportunity to earn on the funding rate. But for any beginner, it is a guaranteed money drain. Guaranteed. Don’t be under any illusions that you are special. You’re not. You will. You want to trade leveraged futures? First, spend at least a couple of years to study the market and thoroughly understand the principle of their work. After that you will realize that leverage x100 is money suicide, especially on crypto.