Dos and Don’ts in Cryptocurrency: What to Know Before Starting

✅ DOs (Things You Should Do)

1. Do Your Own Research (DYOR)

   • Understand the project, team, use case, and technology behind any crypto before investing.
   • Read whitepapers and follow market trends.

2. Start Small

   • Invest an amount you can afford to lose.
   • Avoid going all-in on one asset.

3. Use Secure Wallets

   • Store your crypto in a hardware wallet (Ledger, Trezor) for maximum security.
   • Use trusted software wallets (Metamask, Trust Wallet) for daily transactions.

4. Diversify Your Portfolio

   • Invest in multiple cryptocurrencies instead of relying on just one.
   • Include stablecoins (like USDT, USDC) for stability.

5. Enable Two-Factor Authentication (2FA)

   • Add extra security to your exchange and wallet accounts.
   • Avoid using SMS for 2FA; use apps like Google Authenticator.

6. Understand Market Trends & Cycles

   • Crypto markets are highly volatile—know about bull & bear cycles.
   • Be patient and don’t panic sell.

7. Stay Updated on Regulations

   • Crypto laws vary by country—understand tax implications and legal requirements.
   • Follow trusted news sources (CoinDesk, CoinTelegraph).

8. Be Cautious with Leverage Trading

   • Trading with borrowed money (margin trading) is risky.
   • Only use leverage if you fully understand the risks.

9. Learn About DeFi & Passive Income

   • Explore staking, yield farming, and lending to earn passive income.
   • Use only trusted DeFi platforms (Aave, Uniswap, Compound).

10. Keep Private Keys Safe

• Your private key = Your crypto (never share it).
• Write it down and store it securely offline.

❌ DON’Ts (Mistakes to Avoid)

1. Don’t Fall for Scams

   • Avoid "too good to be true" investment schemes.
   • Never trust random giveaways or unsolicited DMs promising free crypto.

2. Don’t Leave Crypto on Exchanges for Long

   • Exchanges can be hacked (like FTX, Mt. Gox).
   • Withdraw your assets to a secure wallet.

3. Don’t Trade Based on Hype Alone

   • Avoid FOMO (fear of missing out) investments.
   • Just because a coin is trending doesn’t mean it's a good investment.

4. Don’t Use Public Wi-Fi for Transactions

   • Hackers can steal your information.
   • Always use a VPN if accessing your wallet on public networks.

5. Don’t Ignore Transaction Fees & Gas Fees

   • Some networks (Ethereum) have high transaction fees—plan accordingly.
   • Consider using alternatives like Solana, Binance Smart Chain (BSC).

6. Don’t Panic Sell in Market Dips

   • Crypto is volatile—expect price swings.
   • Stick to your long-term investment plan.

7. Don’t Trust Every New Coin or Token

   • Many new projects are pump-and-dump schemes.
   • Check liquidity, team background, and real-world utility before investing.

8. Don’t Borrow Money to Invest

   • Crypto is risky—never take loans to invest.
   • Use only disposable income.

9. Don’t Forget to Keep Track of Your Investments

   • Use portfolio tracking apps like CoinMarketCap, CoinGecko, or Delta.
   • Monitor profits, losses, and market trends.

10. Don’t Ignore Security Updates & Backups

• Regularly update your wallet software.
• Keep backup copies of your wallet recovery phrase.

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