There is no doubt that the crypto-currency space has been blowing up in the last 10 months. It’s responsible for creating many young millionaires and the boom of the ICO market.

As an options trader for several years I have learned that in any financial market, risk management is your biggest edge to becoming a successful investor. You can use all the indicators in the world and still be completely wrong.

Here are a few tips:

Never hesitate to take incremental profits when up.

You are mitigating risk when you use this technique. Don’t be the guy bag holding a massive position all the way up to 300% gain and then all the way back to neutral or even negative. I’ve seen it happen to many people and greed is never a good thing. You never know when the bubble will pop! When something grows too rapidly, the guy who got in before you is getting ready to sell his entire stake. Do your due diligence on every ICO.

Even when we “Verify” an ICO on our website, that doesn’t mean you are guaranteed a profit. A legitimate ICO can be setup poorly as well (take the KIN token for example). Our criteria currently helps investors stay clear from obvious scams but doesn’t protect against poor management or internal structure issues. There are behind the scene mechanics which we don’t have access to as this industry is unregulated. We can usually tell if something is off and can post red flags about them but ultimately its up to you to make a judgement call on how much you want to put into the project based on the overall analysis. Never go “all-in”.

Don’t risk more than you’re willing to lose. Time and time again I’ve told this to many people and hardly anybody listens. If you invest too much, you get emotional and sometimes will pull out too early or too late. If you invested the right amount where you can sleep at night, you’re likely to be more rational when it comes to taking losses or gains too quickly. Keep in mind this industry is very volatile, which can be a day traders dream but a nightmare to newbie investors. Don’t even look back and tell yourself “I should of held”.

You can never see into the future and should never complain about profits. A successful trader or investor will learn from mistakes but won’t look back and regret profit taking on the up-rise. Always remember hindsight is 20/20! Diversify your portfolio a bit.

If you are able to pick a few good projects to contribute to, you greater your odds of success as opposed to putting it into one. This is a common investment tactic that many successful long term investors and fund managers use including Warren Buffet himself. Unless there is a bubble in the market, you’ll be safe.

Happy investing and don’t forget to subscribe to the blog, mailing list and visit the Verified ICOs website for frequent unbiased ICO analysis.