Cryptocurrencies are still a relatively new investment, and as such, many things still need to be worked out. How will the government regulate them? What happens if they crash? These are all questions that remain unanswered, but as we move into 2022, there are a few crypto rules that you should follow. This blog post will discuss the top five cryptocurrency rules to follow in 2022.
Let’s take a look at these rules.
Do your research
This rule is less about cryptocurrencies and more about investing in general. It’s crucial to do your research before making any investment decision, no matter how small or inconsequential it may seem. Remember, you can lose all of your money even on a single trade if you buy the wrong thing at the wrong time. If you don’t have time to do your research, then invest in a fund that will do it for you.
You can find plenty of these on the internet, but sometimes they charge ridiculous fees because they take such a big cut (20% or more) of your total profits. Besides that, if you want to trade with minimal risks, you must choose Bitcoin Profit.
Don’t buy any crypto during its peak
While it may seem very appealing to cash in on the latest craze that is sweeping through society, there are just some things that you should never do. One of these things includes buying into a coin when everyone else is doing it, which will always lead to disappointment.
It is better to buy any crypto at its lowest point or not at all until people begin realizing how overvalued it has become and sell off their coins (which also results in them losing money). Never invest what you cannot afford to lose because your stock may be valueless tomorrow morning.
Beware of Scams
Since the crypto boom of 2017, there have been thousands of new cryptos created that represent a scam or fraud. Always do your due diligence before investing in any coin, and never take anyone’s word for it. Do not be fooled by the team’s pictures and credentials: they are likely either fake or paid to promote the product.
It is hard to tell if an ICO is legitimate at first glance, but there are usually some red flags that you can spot to help identify a scam. For instance, if the crypto does not have a working product and instead just has an idea or white paper, it is most likely a fraud.
The cryptocurrency market is developing quickly, and regulators are finally starting to crack down on scams. It’s a volatile marketplace with extreme volatility swings. You need a strong stomach if you’re going to invest in it.
The Bottom Line
The future of blockchain is bright, full of promises and opportunities. The world is moving towards decentralization, away from big corporations taking advantage of their customers. Blockchain technology makes it possible to implement the idea that power lies in the hands (or crypto wallets) of these very people who own pieces of this network.