{"id":14042,"date":"2021-11-17T17:48:28","date_gmt":"2021-11-17T12:18:28","guid":{"rendered":"https:\/\/zebpay.com\/?p=14042"},"modified":"2021-11-17T17:48:28","modified_gmt":"2021-11-17T12:18:28","slug":"6-golden-rules-that-investors-follow","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow","title":{"rendered":"6 Golden Rules that Investors follow"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Create_a_strategy\" title=\"Create a strategy\">Create a strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Practice_smart_investing\" title=\"Practice smart investing\">Practice smart investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Diversify_your_portfolio\" title=\"Diversify your portfolio\">Diversify your portfolio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Consider_market_cap_instead_of_price\" title=\"Consider market cap instead of price\">Consider market cap instead of price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Protect_yourself\" title=\"Protect yourself\">Protect yourself<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/6-golden-rules-that-investors-follow\/#Stay_up_to_date\" title=\"Stay up to date\">Stay up to date<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Keeping up with the constantly shifting cryptocurrency market can be a challenge. If you\u2019re just starting out, the barrage of information available can just lead to more confusion. But it\u2019s easier than it looks! Just follow these few simple rules and you\u2019ll find yourself sailing through.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-create-a-strategy\"><span class=\"ez-toc-section\" id=\"Create_a_strategy\"><\/span>Create a strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p id=\"h-create-a-strategyorganization-and-planning-is-the-best-investment-of-the-lot-planning-ahead-means-you-ll-be-prepared-for-any-outcome-reducing-impulsive-decisions-and-increasing-chances-of-gains-a-well-thought-out-strategy-should-include-the-following-a-fixed-goals-and-a-predetermined-risk-level-b-a-particular-purpose-for-each-trade-you-enter-c-profit-targets-avoid-being-greedy-as-it-leads-to-irrational-decisions-and-high-risk-situations-d-stop-loss-orders-which-are-orders-to-sell-an-asset-once-its-price-has-fallen-below-a-specific-limit-protecting-you-from-unnecessary-losses-a-solid-game-plan-will-you-a-step-ahead-of-the-rest-and-what-better-way-to-be-organized-than-with-a-user-friendly-app-like-zebpay\">Organization and planning is the best investment of the lot. Planning ahead means you&#8217;ll be prepared for any outcome, reducing impulsive decisions and increasing chances of gains. A well thought out strategy should include the following:<\/p>\n\n\n\n<p id=\"h-create-a-strategyorganization-and-planning-is-the-best-investment-of-the-lot-planning-ahead-means-you-ll-be-prepared-for-any-outcome-reducing-impulsive-decisions-and-increasing-chances-of-gains-a-well-thought-out-strategy-should-include-the-following-a-fixed-goals-and-a-predetermined-risk-level-b-a-particular-purpose-for-each-trade-you-enter-c-profit-targets-avoid-being-greedy-as-it-leads-to-irrational-decisions-and-high-risk-situations-d-stop-loss-orders-which-are-orders-to-sell-an-asset-once-its-price-has-fallen-below-a-specific-limit-protecting-you-from-unnecessary-losses-a-solid-game-plan-will-you-a-step-ahead-of-the-rest-and-what-better-way-to-be-organized-than-with-a-user-friendly-app-like-zebpay\"><br>a. Fixed goals and a predetermined risk level.<br>b. A particular purpose for each trade you enter.<br>c. Profit targets. Avoid being greedy as it leads to irrational decisions and high-risk situations.<br>d. Stop loss orders, which are orders to sell an asset once its price has fallen below a specific limit, protecting you from unnecessary losses.<\/p>\n\n\n\n<p id=\"h-create-a-strategyorganization-and-planning-is-the-best-investment-of-the-lot-planning-ahead-means-you-ll-be-prepared-for-any-outcome-reducing-impulsive-decisions-and-increasing-chances-of-gains-a-well-thought-out-strategy-should-include-the-following-a-fixed-goals-and-a-predetermined-risk-level-b-a-particular-purpose-for-each-trade-you-enter-c-profit-targets-avoid-being-greedy-as-it-leads-to-irrational-decisions-and-high-risk-situations-d-stop-loss-orders-which-are-orders-to-sell-an-asset-once-its-price-has-fallen-below-a-specific-limit-protecting-you-from-unnecessary-losses-a-solid-game-plan-will-you-a-step-ahead-of-the-rest-and-what-better-way-to-be-organized-than-with-a-user-friendly-app-like-zebpay\"><br>A solid game plan will you a step ahead of the rest, and what better way to be organized than with a user-friendly app like <a href=\"https:\/\/zebpay.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay<\/a>?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practice_smart_investing\"><\/span>Practice smart investing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There\u2019s no doubt that there is a certain amount of risk associated with cryptocurrency trading, but with a few set boundaries, you can ensure doing it in a safe manner. Rather than thinking in terms of lump sums, think in terms of percentage. How much of your net worth are you willing to put at stake? It\u2019s crucial to not eat into necessary expenses; you don\u2019t want to wake up one day with no rent to pay. Once you\u2019ve decided the percentage, you can divide it further between the crypto assets you are focusing on. For example, a larger percentage for reliable currencies and a smaller one for the more volatile options. Such a strategy is suitable for beginners looking for steady returns. You may not experience windfall gains but you\u2019ll also be protected from sudden losses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Diversify_your_portfolio\"><\/span>Diversify your portfolio<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As the old saying goes, don\u2019t put all your eggs in one basket. While it might seem easy to stick to one currency, the uncertainty of the market puts your money at a higher risk. With a diverse portfolio, you lower that risk. The low transaction fees make diversification an easy and inexpensive process. A few ways to diversify your portfolio are:<\/p>\n\n\n\n<p><br>a. By asset type: There are various types of cryptocurrencies, from payment coins to non-fungible tokens.<br>b. By risk: A split between high, medium and low-risk investments ensures a balanced portfolio.<br>c. By industry: Investing in a variety of industries means that changes and events in one industry won\u2019t affect your other investments.<br>d. By geography: Different countries have different rules. By investing in different parts of the world, your portfolio is protected from sudden regulatory changes.<br>e. By timing: Spreading your investments over specific intervals of time reduces the effect of price volatility and the need to keep track of market cycles.<br>But remember, it\u2019s all about balance. Too much diversification can reduce your overall returns. Stick to a middle ground and you should be fine.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consider_market_cap_instead_of_price\"><\/span>Consider market cap instead of price<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At the first glance, checking the price of a coin might seem like enough information to make a decision. But just because its price is low doesn\u2019t mean it is worth investing in. What you really need to look at is the <a href=\"https:\/\/coinmarketcap.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">market cap<\/a>. Simply put:<\/p>\n\n\n\n<p><br><strong>Market cap = Price of the coin x Number of coins in circulation<\/strong><\/p>\n\n\n\n<p><br>It signifies the total value of the cryptocurrency. For example, if a coin is valued at Rs.1, a company with 500 coins in circulation will have a higher overall value than a company with only 100 coins in circulation. A higher market cap means the currency is more suitable for investment, particularly a long term one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Protect_yourself\"><\/span>Protect yourself<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Like any other business, you should take measures to protect yourself. Using a separate email address for your crypto related work is a must. A combination of cold and hot wallets will ensure the safety of your coins. With a secure app like ZebPay, keeping track of your assets becomes even easier. Keep all your bases covered by fact checking all of the information you receive, no matter who the source. And, of course, beware of those lucrative \u2018investment opportunities\u2019 that reach you by email or text.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stay_up_to_date\"><\/span>Stay up to date<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Last but not the least, research. Keep an eye on white papers and reports published by cryptocurrency platforms. This may sound tedious but it will allow you to understand the asset and its trajectory in the market. It is also beneficial to set alerts for crypto related news and global trends. A healthy interest in <a href=\"https:\/\/zebpay.com\/in\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">cryptocurrency<\/a> will help you stay ahead of the curve.<\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Keeping up with the constantly shifting cryptocurrency market can be a challenge. If you\u2019re just starting out, the barrage of information available can just lead to more confusion. But it\u2019s easier than it looks! Just follow these few simple rules and you\u2019ll find yourself sailing through. Create a strategy Organization and planning is the best [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14043,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/14042"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=14042"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/14042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/14043"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=14042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=14042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=14042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}