by Let’s be honest — the crypto and forex world can feel like the Wild West. Large quick gains, quick losses, noise and hype — typical things that you’ll come across. But over the years, I’ve learnt that one rule has kept me from myself — emotionally and financially. And now, of course, I want to share it with you.
📌 My Golden Rule: Never Invest in Anything I Don’t Understand
Sounds easy, right? But you’d be surprised how many people invest in coins, tokens, or currency pairs without knowing what they’re investing in.
So before I even touch any asset — be it Bitcoin, Ethereum, a new altcoin, or a currency pair like EUR/USD — I always ask myself one very important question:
- “Do I fully understand what this asset is, how it works, and what moves its price?”
- If I don’t, then I won’t invest. Simple as that.
- Why This Rule Is Important
Both crypto and forex (foreign exchange) trading have price movements that can be very volatile. Without an understanding of the fundamentals, you are not investing; you’re gambling.
Understanding looks like this:
- Crypto: What problem does this coin/token resolve? Who created it? Is there real use, or is it just FOMO hype?
- Forex: What is moving these currencies? Is it a matter of political stability, central bank action, or economic releases?
When I do the research and truly understand the asset, I can make educated decisions. I am investing, not under duress of fear or FOMO.
- Herd Mentality
We see the “next big thing” emerging every week. You hear phrases like:
- “This coin is going to be a 100x.”
- “Don’t miss out.”
- “Everybody is getting it.”
That is when I want to stop and remind myself of the rule. If I can’t explain why something has value – in plain, simple terms – I walk away.
Bottom line
Knowing what you don’t do in investing is as important as knowing what you can do. By following one simple rule – only invest in what you understand – you keep yourself away from FOMO and emotional decisions, scams, and poor decisions.
So next time you are tempted to jump into a trending asset, step back a minute. Ask yourself,