With the meteoric rise of Bitcoin, the cryptocurrency market is finally hitting the mainstream…

However, it’s still a highly volatile, risky investment – and that’s exactly why you need some solid principles to guide your decisions.

So in this guide, I’m going to cover 8 of my golden rules for investing in cryptocurrency – designed to help improve your success as a trader.

1. Only Ever Invest in Coins You Believe In

So I’d recommend only ever investing in the coins you believe in because that will make you a more confident investor – and if the market dips, you will still have a solid portfolio of investments.

I’ve actually listed 5 of the cryptocurrencies I truly believe in and the reasons why – but it’s really important to do your own research too.

2. Never Invest More Than You’re Willing to Lose

Whether it’s the cryptocurrency market, stocks or even Forex, you should never invest more than you’re willing to lose. It’s the classic golden rule of any investment…

But when it comes to cryptocurrency, this is easier said than done!

When the market is booming, it’s seductively easy to over invest. Make sure you stay disciplined and stick to your budget.

3. Diversify Your Portfolio

Never put all your eggs in one basket! Diversifying helps you spread your portfolio across several different markets, therefore reducing your overall risk.

This means that if one market dips, your overall portfolio won’t crash completely.

Here’s a few ways to diversify with cryptocurrency:

Industry: You could spread your portfolio across several high growth industries. Privacy coins, payment platforms and utility coins are some of the main industries to diversify across.

Coin market cap: Some cryptocurrency traders mix their investments across high market cap coins (like Bitcoin) and low market caps to average out their overall risk. You can find a list of market cap rankings here.
Long-term & short-term: You could invest part of your portfolio in swing trading, whilst holding a pot of long-term cryptocurrencies too.

4. Stay up to Date

In terms of price fluctuations, a few weeks in the crypto market is like a year on Wall Street!

You see, cryptocurrency exchanges run globally 24/7 and that means the market is constantly fluctuating. In fact, the market moves so quickly that if you don’t stay up to date, you can easily miss vital information…

So here’s a few places you can stay up to date:

Steemit: this is a great crypto community, funded with it’s own cryptocurrency! Everyday, thousands of articles are posted about the latest crypto updates.

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