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Whether one considers themselves a big fan of cryptocurrency or a skeptic of the crypto phenomenon, there’s one thing that can’t be denied: crypto is driven by a lot of hype. When a powerful tech influencer endorses a coin or when markets are significantly bullish, the crypto hype can sometimes reach mythical proportions. It’s important to note, however, that those who buy into the hype of an asset—and who don’t consider much else aside from the hype—will eventually pay the price. If you want to make the best out of your investment in a cryptocurrency like Monero (XMR) in a Monero wallet, you have to be just as careful about your financial decision-making as you would with other assets.

What are the best ways to temper the hype and to resist making impulsive decisions to buy or sell crypto? Here are some tips that will benefit any trader who’s entered the exciting but volatile world of cryptocurrency.

Ascertain Your Personal Risk Threshold Against Your Risk Appetite

The golden rule of investing in any type of asset is to never pledge more than what you’re willing to lose. Though it seems like a fairly simple principle to follow, many traders tend to forget this in light of crypto hype. In the hope of securing the fortunes that’s speculated by social media chatter and other forms of hype, these traders often make riskier financial decisions that are hard to recover from.

To avoid being put in the same situation, always go into a new trading journey with a defined risk threshold and risk appetite. In short, set quantifiable standards for how much money it is possible for you to risk and how much money you actually want to put on the line. Don’t let hype shake these standards and drive you to make a trading decision that you’ll eventually regret.

Give Yourself Time Before Every Trading Decision

One of the most interesting things about the crypto market is that it moves really fast. Prices can soar and fall within mere hours, and a bullish market can quickly turn into a bearish one. Such movements can often stoke brief but intense periods of hype, as well as traders’ fear of missing out or FOMO.

Sometimes good things come out of seizing the moment, but as far as crypto trading is concerned, the best strategy is often to wait it out and to resist giving into FOMO. Rather than choosing to buy and sell according to the speed of the market and the ensuing hype, base your decisions on evidence of stability, liquidity, and long-term market participation. After all, the focus shouldn’t be on quick decision-making based on hype, but on sound decision-making based on logic instead. Don’t worry if it takes you a little more time to arrive at the latter.

Do Extensive Research on Any Crypto Asset You Intend to Trade In

Now that we live in the digital era, it’s quite easy to find information on the internet about how to trade in any type of asset, including cryptocurrency. But especially as far as crypto is concerned, a lot of reference materials that are available online consist of buzz and not much else. If you don’t do enough substantive research on your crypto coin and you aren’t able to tell the difference between a reliable source and a hype-driven one, you could be in danger of making a costly trading mistake.

It’s all the more urgent to do extensive research about any crypto coin you want to trade in, as well as to find out where to get reliable news on industry trends. Having firm foundational knowledge about the cryptocurrency itself, as well as concepts like financial risk and market trends, will temper the hype and guide you towards the most beneficial decisions.

Only Sign Up to Trade at Reliable Crypto Exchange Platforms

Part of the mythical hype that surrounds the crypto coin you want to trade in might be traceable to its platform. While it’s good to tune into the crypto community and to look for a cryptocurrency exchange platform based on word of mouth, be wary of websites and apps that don’t seem to have strong organic engagement behind them while being pushed too hard by their proponents.

Don’t buy into aggressive hype or hard-sell tactics for potentially shady platforms, and instead, look for exchanges that are backed by good user reviews, healthy and organic user activity, and regular updates. A rational decision about where to trade could spell the difference between a successful experience with crypto and a totally disastrous one.

Be a Realist Amid Major Developments to Your Crypto Coin

Finally, when it comes to major developments on any crypto coin you want to invest in, make it your default stance to watch any key event through the eyes of a realist. When a trend suddenly pops up, meet it with a healthy dose of skepticism. If a new coin suddenly explodes on the market, watch for red flags like a wide entrance but a narrow exit for traders as well as engagement that only seems driven by short-term rewards.

The crypto market may be mesmerizing to watch, but no trader should be excited out of their wits by it. If you feel the impulse to change what is otherwise a sound trading strategy due to situational hype, take a step back and recalibrate. The realist in you will eventually kick in and help you survey the trends from a better vantage point.

Final Words

Crypto may currently be one of the hottest trends in the world of finance. But your crypto trading journey should be characterized by the same levelheadedness and rationality that you’d afford any other asset. Free yourself from the clutches of hype and trade your crypto coins in a way that will actually help you reach your financial goals.

Kratika is Global Crypto's Admin Assistant. She has extensive experience working for top tech firms from around the world, and has a wealth of knowledge in the FinTech industry.