Cryptocurrencies are known to bring astronomical gains to the investor. However, if the right steps are not taken, major losses can occur. Turkey’s burgeoning global stock market, Bitay, has examined 10 rules that are key to income for both those who have investments and those who plan to invest in cryptocurrencies such as Bitcoin and Ethereum.

Cryptocurrencies have broken all the rules in the financial markets in just 14 years. It has become a favorite of investors. It was accepted as a means of payment in many countries. They also act as financial instruments through which money can be transferred under the most favorable terms. As a natural consequence of the increasing interest in cryptocurrencies and the constant inflows and outflows of money, price volatility in these markets is high. For this reason, a high degree of profit can be achieved as well as undesirable results if not enough research is done and due care is not taken. As Turkey’s first and only crypto asset exchange to the global market, Bitay has explored the rules that should never be forgotten by anyone investing or planning to invest in cryptocurrencies. Here are 10 important rules:

1- Watch videos on how the market works: Understand the mechanism and workings of this market before investing in cryptocurrencies. Do a short research on basic but extremely critical transactions like buy, sell, change, transfer. It is a great advantage to watch the videos that explain this.

2- Keep calm: Psychology plays a very important role in the cryptocurrency market. The probability of success of the investor’s investment or transaction is very proportional to the current decision-making mechanisms and moods. It is one of the studies that individuals with a developed investment psychology make more logical and profitable trades.

3- Focus on the business cycle, not on the daily chance: It is more important to be a long term investor than daily gains. The investor group, which prefers to take advantage of the volatility of cryptocurrencies and enter many trades during the day, is usually the loser. Individuals who follow the general economy closely and make the right investment for a long time have a better chance of winning in this market.

4- Prefer the project that is beneficial to the ecosystem: Learn to do fundamental analysis. Occasionally selling projects with a good project, solid technical infrastructure and team is actually a buying opportunity. Investing in low-cost projects that benefit the ecosystem in the long run will be a real investment choice.

5- The feeling of missing the train should not cause panic: FOMO (Fear Of Missing Out), which is called “fear of missing the opportunity” in Turkish, is the emotion given to the fear of missing the opportunity when prices rise. Since there are so many altcoins in the cryptocurrency market, new opportunities appear almost every day. The most common mistake most investors make is getting caught up in FOMO. Even if FOMO-affected investors struggle to resist the urge to buy, they are more likely to win if they manage to do so. Don’t worry, opportunities will always come your way.

6- Take a little of that, a little of that: Don’t tie all your savings to one financial instrument. Diversify your portfolio. Because a diversified portfolio is the key to long-term profit. The more you reduce risk and use math, the better you can outperform your competitors’ strategy and unlock the value of your investments.

7- Do you have cut-off point: It is extremely important to open a STOP (stop loss) trade. 24 hours is a very long time for the cryptocurrency market and very volatile moves can happen even in 2 hours if you are not interested in the market. Using the stop loss level in the cryptocurrency market, where the rises can be hard and the falls can be quite hard, will benefit you.

8- Trade with strategy: Have a strategy. Investors without a trading plan

At times when tensions mount and decision making becomes difficult, they tend to lose money by making the wrong choice with the wrong psychology. When individuals with investment plans

They feel more comfortable making buying and selling decisions.

9- Learn technical analysis even at beginner level: The lines, shapes and terms that almost everyone who has entered the financial markets has seen may actually be much more useful than they appear. Because technical analysis allows investors to predict when to enter the trade and when to exit and avoid a possible loss.

10- Focus on not losing, not winning: The main rule is that what is called the market is not the place where prices are formed, but where proper prices are respected. Therefore, the most important thing in investing in the market is not to make money, but not to lose money.

Bitay CEO Niyazi Yilmaz Emphasizing the importance of investing with conscious and confident steps, he said: “We are continuing our efforts to increase crypto literacy in Turkey. That is why we attach great importance to the establishment of Bitay Academy, as well as to our global growth and activities. We welcome our users, those who want to learn about the world of cryptocurrency and those who want to adopt blockchain technology, to visit the Bitay Academy page. Bitay Academy You will find everything you wonder about the world of cryptocurrency, NFT and metaverse under one platform.” used his statements.

Source: (BYZHA) – Beyaz News Agency