These are the 10 commandments to invest in bitcoin 'and not lose everything'

At least, according to Michael Sincere, MarketWatch trader and columnist who, in his last article, sculpts in marble the 10 rules to keep in mind when investing in bitcoin:

1. Match by match. The first thing to keep in mind is that you have to invest little by little. For example, instead of putting 1,000 euros in bitcoin (or any other fashionable crypto), it is advisable to start with 200, and if things go well, double the bet until we reach those 1,000 euros proposed at first.

2. The art of buying and selling. From the creators of 'buy on the dips', comes this advice that consists of actually buying when such a volatile asset falls, and take the opportunity to sell, at least half of your position, when it has risen a lot. "There is no use being greedy with these types of assets because you risk losing everything or almost everything."

3. Cold mind. At first, aim for a modest profit before escalating your bets. "A lot of people have made millions with bitcoin but, like lottery winners, many others have lost a good part of their money."

4. Avoid 'margin calls'. Another tip to keep in mind when investing in bitcoin is never borrow money, that is, leverage, to do so. "It's a double-edged sword, and if you hit it, you can win a lot, but if you miss, you could end up owing more than you invested."

5. Be careful with stop-losses. Since some brokers do not even allow you to set so-called 'hard' stop losses since bitcoin is such a volatile asset, a good idea is to mark a series of mental stop losses and get in the habit of obeying them.

6. Don't hold on to your losses. If you go against the current, feel free to sell all or at least half of your position to avoid a small loss becoming a greater loss.

7. Have a plan. In line with point 6, it is important to have a plan in mind for the short, medium and long term that guides our actions. So, for example, we may decide to sell only a part of our position when they come out badly, in the hope that the trend will reverse, as happened to those who sold at $ 20,000 just before it shot up to $ 60,000.

8. Look at the technical analysis. This discipline offers you clues and signals to know when to enter or exit a security or asset, especially in one as complicated to deal with as bitcoin.

9. Diversify. Never put all your eggs in the same basket, and even less if that basket is an asset that can go up 20% as soon as it goes down 40%.

10. Practice before investing in the real world. If you have the opportunity, try to make a mock account that simulates the experience of investing before doing it with real money. If not, stick to rule number 3.

Translated by Caoimhe Toman