How to manage your money when participating in the cryptocurrency market

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When reading the articles in the section Talk of Blogtienao, I realize that there are quite a lot of people who have not carefully equipped themselves with personal financial knowledge when participating in the cryptocurrency market, today I will share with you my personal experiences ( This is only an incomplete personal experience, if there is any mistake, please don't throw bricks).

Before talking about my personal financial knowledge, I want you to know the principle Bitcoin investment của tôi

Principle # 1: Invest when you understand them

I did not listen to a lot of stories, very funny and funny stories of some investors, for example: there was uncle B who worked as a farmer, did not know anything about virtual money, but heard about bitcoin investment. With super profits, he despite his investment but does not know what Bitcoin is like. Another example: When Ms. T heard briefly that investing in a miner will bring a huge profit of 1% within 100 months, so she throws a lot of money to ask a friend or entrust someone else to the company. sell machines to buy regardless of the price, while I don't know what ETH, BTC are, what a miner is and how it works. Those who are lucky enough to make a profit will not say, but lose everything ... called black. That's wrong, it's only black when you don't know anything and just invest. So I summarize: at least you should understand what they are before investing.

Principle # 2: Don't Authorize Others To Invest

Recently, when I was wandering on Facebook, I saw a lot of investment trusts that earn huge interest rates, and then the margin fire cases were sued for fraud. The reason leading to this problem is: Party A entrusted Party B to invest, Party B invested in loss and pleaded for Party A's trick, so Party A lost all socks and went to sue. The trick of this problem is, Party B plays margin or trade coin, this bet wins, he shows it to everyone, whichever loser he hides, so the viewer will see what Party B wants to see, That is the contract. There are many other cases, giving money to others to invest is a wrong decision, because too eager to make a lot of money, because too eager to get rich easily forget this basic principle

Principle 3: Don't invest in promises of 200%, 240%, 300% Interest 1 Year

If he earns 300% a year, what does he do to mobilize capital? He borrowed from the bank interest rate of 1% / year and invested 12% to eat, need to raise capital. So 300% of these cases are multi-level scams, you should stay away

Principle 4: Do Not Follow the Crowd

Uncle Buffett once said, "Be greedy when others are afraid, and be afraid when others are greedy." The value investor is only interested in the real value of the stock. Instead of judging the psychology of the crowd, they strive to understand the business performance, leadership, and future prospects of the business. This experience is very confusing, a lot of emotions apply.

Principle # 5: Be Patient, Be Cautious, And Be Assertive

When the opportunity comes, be assertive and grab it (it's easy to say but hard to do). Sometimes the wave is over, and again, the opportunity comes and goes again, you can skip many opportunities in the long run, but that's okay, there will be other opportunities and you just need to be patient. Respectful and decisive when the opportunity comes.

Okay, after these 5 investment principles, I will share how personal finance management I learned. When you participate in cryptocurrency investment, the current trend is to follow the contract, which is quite good and useful, but doing so will follow a path, it will be very time-consuming to track, so lose food. sleep to find the contract, check the contract, ... And many of you even pour all the money thrown into the trade, the result when sml is sad, depressed ... 50/20/30 rule

Looking at the picture, maybe you will understand, but let me explain it easily. For example, you receive 10 million monthly salary.

  • 50%: You should spend 5 million for the food, accommodation, travel, bills, if it exceeds 5 million, you should save back to moderate, it is less than 5 million, you will save a little more.
  • 30%: about 3 million VND, this payment will help you relax and feel comfortable when buying items, entertainment, or travel, and thus will improve you physically and mentally
  • 20%: about 2 million is an deduction to repay debt, save, provision, invest, ... And this is the key when you invest. With crypto, you should only deduct 1/10, even 1/20, which means about 200k a month to invest in crypto. If you win, you will get an extra amount to save, if you lose, you will treat it as a lost investment to learn from experience, at least you will not be depressed, sad, stressed and let go. the job is providing main income. (If you invest 1 billion as the other guy confided and lose 1 billion, you will definitely want to live, the most rotten bridges in the cities will wait for you)

So what if your salary is over 10 million, about 20-30 million: when the salary is high, the responsibility will be high, social relations will be high, leading to the bill, travel, accommodation, shopping also increases, Should still apply the above principle. The other is that the 20% savings will be 6 million when you get 30 million / month salary.

I have a few customers, they are very disciplined in spending and investing, I tell you, when the xrp was $ 0.2, the up and down continuously did not reach 0.2 but even dropped, but every 1 twice a month, she bought 2-500k to buy xrp, accumulated for 800-6 months continuously. And suddenly, maybe due to luck, intense wave, peak up to $ 7, she closed at $ 3 to earn 2.2-600 million. compared to that little investment every month.

Epilogue

For amateurs, always do a good job of earning your main income, and if you like crypto, you can use the same investment style as the xrp investor I mentioned. above, but at least you have to understand the basics like what xrp is, how to use xrp wallet, ... and remember only 1/10 of 20% of the monthly savings. For professional investors: I do not dare to advise @. + When you fully apply the above principles and rules, I think it will be very difficult for you to lose, and more easily to win (although winning is not much ). Thank you for reading my confession.

Blogtienao launched the section on Mind, which will tell real-life stories from the real experiences of brothers and sisters investing in the crypto field in particular and blockchain in general, which brothers have any stories to share, Please email Blogtienao at email: Blogtienao@gmail.com or inbox to Blogtienao's fanpage: https://www.facebook.com/blogtienao/ 

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