Rules are there to keep us safe and provide clarity in the heat of excitement.
Below are some of the golden rules of crypto you should live by to avoid losing your money and maximising your profitability.
When you take profit from your short to medium term investments, dump the realized profits into blue-chip coins like BTC and ETH. Then stake, or lend them for passive income.
If you have no emergency need for cash, you have no business selling your crypto assets. And even then, selling your crypto assets should be the last resort. The reason is that your crypto is more than just money in your savings account, it's a yield-bearing asset. You don't just sell your land or house just because the price has increased or you feel itchy to hold cash, do you?
DCA in when buying, DCA out when selling. That's the best way to buy and sell any coin.
Double-check everything. When sending money from one wallet to another, ensure to double-check the wallet address (if possible, send a test transaction first). Also, remember to enter the Memo tag where it's required, and make sure you're sending the right coin to the right place. Verify everything twice before clicking that SEND button, because if you made a mistake, the transaction can't be reversed and your money could be lost forever.
Except you're a professional trader, you have no business with trading.
Avoid using the Ethereum mainchain, except you have a significant amount of capital to work with. Use layer 2 solutions like Polygon and Arbitrum or alternative chains like Solana, Avalanche, etc, with lower fees instead.
Don't take financial advice from strangers on the internet. Everything you hear and read online is for information purposes only. You're to digest it and use it to make informed decisions.
When doing your own research (DYOR), use multiple sources. A single source is never enough to give you a clear picture.
Have your own personal crypto investing plans and strategies and stick to them. Investing without a plan is identical to gambling, even if you're investing in the said solid projects. You need to know exactly what you're doing and why you're doing it. It will give you a clear head at all times.
Always keep 10% to 25% of your portfolio in a stablecoin and be ready to buy the imminent dips.
Never sell any of your crypto assets at a loss, except you have determined that you mistakenly invested in a scam and have to cut your losses.
What other crypto investing rules do you follow that's been working for you?
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