Buying cryptocurrencies and selling them tend to have a high emotional tension. First, trading is easy. Secondly, in a lot of different types of deals and orders, you can easily get confused.
Some seek to make money from market fluctuations in the short term by opening and closing positions during the day. Some tend to keep long-term assets and hope that their purchased cryptocurrencies will increase in price.
All this makes the crypto-trading industry extremely lucrative. But there’s also the danger of falling victim to FOMO (fear of missing out) and FUD (fear, uncertainty and doubt) and beginning to make emotional rather than rational decisions.
It is necessary to keep your emotions under control, to reduce the risk and not to lose money. This guide will help you raising the effect emotions have on your decisions. Here are 3 tips to keep your emotions according to Guru Trade.
1. Make a Plan
It is important to have a clear understanding of the goals before starting trade. Before you buy any cryptocurrencies, you need to ask 4 questions to yourself:
- How does it fit into the overall financial strategy to buy a crypto-currency? Got any other savings? If not, is crypto worth the right way to start making investments? Would not you need to invest in a safer asset?
- Can you afford to risk everything you’ve spent in the cryptocurrency?
- Are you aware of the Cryptocurrency markets risks and volatility?
- What would you do: long buy or swap cryptocurrencies?
2. Do Some Research
Further analysis of the cryptographic currency (and the technologies that underlie it) chosen for purchasing is extremely important. Be sure to read the proposal in the White Paper.
Offer preference with innovative innovations and a vibrant culture to cryptocurrencies. Although all of these variables will not guarantee success, they can help you better understand what you are purchasing.
3. Set Limit
You need to decide how much money you’re able to invest and stick to the cap in advance. The investment size depends on the program (see point 1).
Investing in cryptocurrencies carries a lot of risks, so you should invest only money that you might lose. Stick to that when you set a limit! Do not become a FOMO Slave. This might lead to disaster.
