Cryptocurrencies stepped to the forefront of the fin-tech innovation in 2007 when Bitcoin experienced an incredible rise and reached a value of $20,000 per coin. It did go down after that, but had become a hot topic in the financial space. The end of 2020 saw Bitcoin climb once more to reach peak popularity and this has sparked renewed interest in cryptocurrencies. They are now being regarded as an alternative investment vehicle and it is not difficult to see why. There is a lot of excitement surrounding this market and it is easy to get started.

However, it is important to remember that because of its volatility, the cryptocurrency market can also result in losses for you. If you want to make profits from your crypto investment, you need to be aware of the dos and don'ts. Shay Benhamou has highlighted some of these below for your ease and convenience:

• Do budget before investing

Before you make an investment in any stock, commodity or share or the foreign currency market, what do you do? You work out your budget. How will you know what you can afford to invest without causing any problems for you? It is essential to have a budget in mind in order to ensure that you are not putting anything at risk. Consider your existing debts and ensure that if you suffer from losses through crypto investing, you will not be left in a difficult situation. You should only consider an amount for investment that doesn't weaken your financial position in case you lose it. According to Shay Benhamou, those who don't budget often end up regretting their decision to invest in the crypto space.

Investing more than what you can afford to lose can have disastrous consequences for people and unless you are willing to deal with them, it is best to be smart from the get go.

• Don't invest more than what you can afford to lose

This has been mentioned earlier, but you need to know why it is important. The simple fact is that investing in cryptocurrencies comes with a significant amount of risk. Even though it can be quite rewarding, you should never exceed your budget because you want to stay comfortable in the long run and not create a situation that spells financial disaster for you. If you have to invest in the crypto market, but you have a low-risk tolerance, then you should consider not directly investing in digital currencies.

Cryptocurrencies like Bitcoin, Litecoin and others are highly volatile and can lead to losses if things don't work in your favor. Instead of investing in them, you can invest in the technology behind these cryptocurrencies i.e. blockchain. As per Shay Benhamou, this would still allow you to capitalize on the expanding and growing crypto market and you will also be able to keep your risks under control.

• Do your research

If you prefer to make a direct investment in cryptocurrencies and don't want to invest in the technology, you should never do it without research. Don't you always do research when you have to buy something? You make this effort because you will be spending your hard-earned money and it is no different in the case of crypto investment. Rather than just following the trend and diving into the market, you should always be armed with knowledge. In addition, it is important to bear in mind that you need to research, not just before you enter the market, but also when you begin operating in these markets.

There is no doubt that Bitcoin was the pioneer cryptocurrency, but it is definitely not the only one that exists nowadays. As a matter of fact, there are thousands of these digital currencies that can be found and should research and find out which one can prove to be profitable. Shay Benhamou recommends that you explore your options rather than just sticking to Bitcoin, as the market has a lot of scope and numerous other cryptocurrencies can also prove to be quite profitable.

• Don't let emotions control you

Once you have entered the cryptocurrency market, you should remember that it is quite volatile and if you make emotionally-charged decisions, they will end up doing more harm than good. As long as you have done your research and believe in the project you have invested in, then you should follow your instincts. Sure, it is possible that there might be negative news surrounding a crypto, or there might be rumors. Likewise, people may also claim to offer tips and advice about what you should do.

However, Shay Benhamou recommends that you don't pay heed to anyone. Instead, you should always look at the facts and not panic. Dramatic spikes are the norm in the crypto market and you need to play the long game if you want to profit from it Panic selling is a common occurrence, but you need to steer clear of it. You need to have patience in order to trade successfully in the crypto market and not let your emotions get the better of you.

• Do look for a good wallet

When you are investing in cryptocurrencies, you would definitely want to do everything possible to protect your investment. This is where wallets come in, as these are especially designed to store these digital assets. A quick search will show you that there are hundreds of crypto wallets that exist in the market, but not all of them are created equal. Your priority should be to opt for a highly secure wallet that will not be compromised easily. There are hot and cold wallets and Shay Benhamou recommends that you go over the pros and cons of both options before you make a decision. As these will be responsible for protecting your investment, you don't want to make any mistakes.

Follow these dos and don'ts and you will be able to make the most of your crypto investment and enjoy the returns you are after.

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