Hello Steemit,

This is my first post on this platform, in addition I am not especially great at writing but i'll give it a go since it is a good method of reinforcing knowledge in your own brain and it's a part of my new years resolution to write more. This is just going to be a brief post on some general rules to apply to your own investments that is based on my observations of my friends that are new to this space and people in general that are commenting on forums. Please leave constructive criticism I am open to any suggestions on how to improve my posts, thank you.

Why you shouldn't invest in a panic

Just because there is a cryptocurrency that is getting pumped 100% in a day, don't make the rash decision of jumping into buy it due to FOMO (Fear Of Missing Out), this is because people likewise to yourself will see the huge price increase and want to get involved, this in turn will produce an overvalued currency since people are buying it without actually looking into the coin and what it does which in turn will inevitably go through a correction to a lower price within due time. The same is true for the opposite situation, if there is a coin that is plummeting in price that you happen to own, do not panic and sell at a loss, the cryptocurrency market overall is extremely undervalued and is almost guaranteed to grow, unless mass governments try to shut it down, which I don't believe will be the case. This means in general most things are undervalued based on their potential so in time they will grow exponentially as the market grows (as long as you have invested in a good product and not a ponzi scheme) cough bitconnect cough.

A real life example of how this rule has applied with my investments was back in the end of August I decided to put some money into Ethereum since I had been watching it for some time and was waiting for a dip to invest. Over the month of August it went from around $200, all the way up to $389 where it peaked on August the 31st, but before it reached it's peak I got anxious and said "Fuck it, i'm not going to miss out for any longer" and bought in at the price of $360 a few days prior to it's peak. Long story short Ethereum started correcting since it had such a long bull run and eventually settled around $230-$250 and if I had panicked and sold I would've lost $110-130 per unit that I had bought and I had bought mpre than 1, so it would have added up. Thankfully now Ethereum is sitting at over $1000 per unit which goes to show that not panic selling is vital if you want to make money in this space.

As a beginner I know it can be daunting seeing swings of 30 up to even 50% or higher, but you must know that if you're reading this you're one of the few that are in at the very early stages of this extremely promising and exciting space. So my advice to you is relax, and hold on for dear life and make sure you have your space suits ready for when we moon!

Happy Investing :)