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I spent 8 years just researching personal finance management and applying it 100% to the crypto market.
Here are 7 financial rules that crypto investors should know:
See the 4 principles (part 1) here
5. Must-have and non-crypto emergency funds!
An emergency fund is a fund that contains enough money for you and your family to spend for 6-12 months. This fund can only be used in case of emergency (loss of job, loss of income, illness).
Never use this fund for crypto catch the bottom (even if you have a 99.9% chance of winning)
6. The 300 Retirement Rules – For Crypto Full-Time Trade
Take your monthly expenses and your current family, then multiply by 300.
The result of this multiplication is the amount you need to save (and invest) in order to be able to start retirement and continue trading crypto full-time
25 years is a long enough time, the return on the total cost of 25 years can help you reinvest in crypto for higher compound interest.
7. Diversification of non-Crypto assets
No matter how much you love crypto, there are people in the world who love gold more than crypto.
No matter how much you believe in crypto, most people trade more stocks than crypto.
No matter how much you love crypto, most people in this world still own more real estate than crypto.
No matter how much you believe in the future of crypto, you still need a certain amount of money for real life.
Diversifying your assets beyond crypto is the best way to manage risk.
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