Never invest in Cryptocurrency unless you don’t know these 4 key elements.

According to Bank of International Settlements 70–80% of new investors lost their money in cryptocurrency.


I have seen so many people buying cryptocurrencies, and after some time their account was wiped out with nothing left, not even initial balance.

As we invest in financial Instruments (forex, commodities, indices, stocks, crypto and so many more) in order to make profit. It is done by buying/selling the instrument. And the person who does that is known as trader.

Crypto is also one the instruments that got very popular in no time and people started to invest in it prior any knowledge about the market and how it works.

Before buying/Investing in crypto you must know the following:

1. Type of trader:

1st thing before buying any crypto, you have to decide what kind of trader you want to be.

· Are you buying crypto for long run?

this can be done on higher timeframes, less money should be used, as the position will be open for months/year.)

· Do you want to Buy crypto for short term? (this kind of trader is known is day trader or scalper)

This kind of trading is done in daily/ hourly timeframes depending on the chart pattern and market. Usually, more money can be used and the trade lasts for day or hours.

2. Choosing what to buy.

2nd thing is choosing the coin you want to buy. The most important point is before buying any coin, thorough research should be done (market cap, all time high & low, supply etc.)

So that it can be checked if the coin has potential to grow over the time.

Choosing a coin that is at its highest price is the worst thing, as it retraces before continuing its trend.

3. Your strategy.

After choosing the coin, you have to pick a strategy as we can’t buy whenever we want.

We must have a plan when to buy e.g. price must retrace till support/demand then I will buy, if this area/resistance broken I will buy, when price will retrace down till discounted region I will buy etc. And where should I exit the trade (take my TP)

I have seen people buying coins out of FOMO when the coin was already at its highest price, then the price retraced and moved against their position, as a result their account was wiped down. And then they call it scam.

Never buy when price is already high. The best time to buy is when price has retraced down and is in discounted region. BUT as a human being we are afraid to buy at low price. We tend to do what others do.

4. Psychology:

Psychology is main part, as we must have proper plan, when to Buy and when to sell. must control our emotion (biggest enemy of trader)

I have witnessed people growing their account by making profits, then giving back the profit to the market and run in drawdown losing all their capital.

if you at least know about these all you should be good to go.