Risk Management:
5. **Research and analysis**:
Conduct comprehensive research and analysis before investing in any digital currency.
It helps in making informed investment decisions based on data and technical and fundamental analysis, rather than relying on rumors or market sentiment.
6. **Trading using lossable capital only**:
Invest only money that you can afford to lose without significantly impacting your personal financial situation.
It reduces psychological stress and makes investors more willing to tolerate market fluctuations.
7. **Using technical and fundamental analysis**:
Use technical analysis (such as charts and indicators) and fundamental analysis (such as news and economic events) to make trading decisions.
It provides a structured framework for making informed decisions based on data rather than emotions.
8. **Stay away from high leverage**:
Avoid using high leverage in trading
Reducing the risks resulting from sharp price fluctuations that can lead to large losses when using leverage.