Here’s a concise list of Do’s and Don’ts for investors in the cryptocurrency market:

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✅ Do’s

1. Do Your Own Research (DYOR)

Understand the project, its use case, team, tokenomics, and community before investing.

2. Diversify Your Portfolio

Don’t put all your funds into one coin. Spread risk across multiple assets and sectors.

3. Use Reputable Exchanges and Wallets

Stick to well-known platforms with strong security records. Use cold wallets for long-term holdings.

4. Set a Risk Management Strategy

Use stop-loss orders, only invest what you can afford to lose, and have a clear exit plan.

5. Keep Up with Regulations and News

Crypto laws vary by country and can change rapidly. Stay informed to avoid legal issues or market surprises.

6. Secure Your Accounts and Private Keys

Enable 2FA and never share your seed phrases. Store backups securely.

7. Take Profits Periodically

Don’t wait for the top. Secure gains incrementally to reduce emotional decision-making.

8. Understand Tax Implications

Crypto gains are often taxable. Know the rules in your jurisdiction and keep records.

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❌ Don’ts

1. Don’t Chase Hype or FOMO Buy

Jumping in during parabolic moves often leads to losses. Wait for rational entry points.

2. Don’t Ignore Red Flags

Projects without transparency, audits, or a clear use case are high risk.

3. Don’t Leave Large Funds on Exchanges

Exchanges can be hacked or freeze withdrawals. Withdraw to a wallet you control.

4. Don’t Overleverage

Using too much leverage can quickly wipe out your position in volatile markets.

5. Don’t Fall for Scams or Phishing

Double-check links, verify social media accounts, and never trust DMs offering guaranteed returns.

6. Don’t Assume Guaranteed Returns

Crypto is high-risk. Be skeptical of “too good to be true” promises.

7. Don’t Ignore Project Activity

Projects without updates or community engagement may be abandoned or dead.

8. Don’t Invest Emotionally

Avoid panic selling or euphoric buying. Stick to your strategy.