Do your homework
Before buying a coin, do a check on it. How long has it been on the market? How did its value change over the years? Generally, you should be careful with coins that have little history but do sudden peaks without obvious reasons.
Read on the company behind the coin. Does it have a decent background? What does it specialize in? Is it likely that the current situation in the industry and the world will make it strive? For example, recent Bitcoin’s peak has caused some miner manufacturer’s tokens to go up in value too, so now might be a good time to invest in those.
Follow the investment plan
Another thing experienced investors do is stick to a plan. So before you invest, decide on your goals. Let’s say, you want to double your money and sell the asset should you be down 40%. Great! Setting a clear goal like this will let you know when to quit – especially if you get a quick profit and start to feel a bit greedy 🙂
Invest what you can afford to lose
No investor is immune to sudden market crashes or making a mistake. Investing is always a risk, but, at the same time, taking a risk is the only way to make a big profit. So putting in only what you can afford to lose will let you play more daringly, gain more – and recover easily, should you ever face a loss.
Keep your cool
And lastly, don’t be swayed by major price movements, be they positive or negative. Asset prices can be sensitive to big investors buying or selling their stocks, government announcements, global events, and other factors. For some coins, it’s normal to have a 30% drop, and, after some time, a sharp rise. This is also why it’s better not to check your stock every day: it will save you a lot of nerve cells.