This post is based strictly on my experience of the last 9 months, since I started the wonderful adventure in the crypto world.
I want that today's post to be special and I will talk about how not to lose by investing in crypto-currencies. I want to get into the subject very quickly, because I don't want to bore you with many words without substance and meaning.
I know I've already published a post with a similar topic, Newbie advice: How to invest in crypto?, but this time is more practical. The previous one was more like an advice from the point of view of the technical stuff that we have to keep in mind when investing. Now, it is more like a sum up of all the experience that I have already encountered in the crypto-world.
First of all, my first advice is not to invest money that you do not own. I talked to a lot of people who talked about the idea of ??borrowing money, selling things, doing all sorts of things to make money. I do not recommend borrowing money or making investments with money you do not already own.
Secondly, do not impulsively invest. Do not buy something if you don't understand and do not know anything about it. When the crypto market is growing, people would sell their house to buy Bitcoin or other crypto-currencies, ignoring market signals, buying chaotically. Most of the time, many people decide to buy at the wrong moment, exactly when they do not have to buy, after advising with friends, neighbors, reading an article on Facebook, watching a click on YouTube and believing that all the data that gathered is enough.
You have to keep in mind that the market is extremely manipulated. A lot of money is made at the expense of people who do not know anything about crypto and just pour their money (or not even theirs) into the market. This type of people are usually those that do not know how to pay the bills, the ones that pay for expensive cars, luxury vacations and all sorts of similar things.
The best investment in the first phase that you can make is to learn at least something about the crypto-currencies you want to invest in. Analyze the history, see how they performed, look at how many coins there are on the market, find out who made them, for how long they are on the market, what results that specific project had and has. Think of it as if you were investing in a neighbor's shop. You have to know some data, you cannot throw money out the window, because every time the market goes through the bull market phase, (bull market is the stage in which the market grows and grows and grows and everyone prospers, but the reality is that not everyone thrives, but many lose money) there is also volatility, there are rapid declines and mistakes cost a lot to your pockets.
The best thing you can do is educate yourself. Or if you do not have time to educate, call someone who knows, consult a broker, an advisor, an expert. It is not good to throw your head forward. Do not risk all the savings you have, believing that you will get rich.
The number of people who get rich overnight is very small. The number of people earning dizzying amounts of crypto is very small. In general, money is made with experience, knowing what you do with capital. Bitcoin is the most fashionable investment nowadays. There are people who bought now when the price was $38k-$39k-$40k-$41k, hoping that they will sell immediately at 50k. The higher the value of BTC, the greater the risks. The price differences for BTC will be dizzying during the day, maybe even for hours. You will encounter differences of $10k, $15k, $20k, maybe even more, as a fluctuation.
BTC will increase, that's for sure. But do not risk it. Most of all, I see young people as having no patience (I am also one of them). I, like them, always feel the need to do something, to trade. This type of activity, trading, is done by professionals, by brokers, and they do not do it impulsively, they do it knowing the market, understanding the mechanisms, assuming the related risks.
The moment you have a loss in your portfolio, the instinct tells you to risk harder to recover and then the chances of losing are much higher. I recommend patience, be patient. For example, if you bought BTC at $40k and it reaches $20k, don't panic, don't sell, be patient, even if 6 months or 1 year passes, you will recover.
Do not buy all kinds of crypto-coins you've heard about online or from friends that it is said will make 20x, 50x. The chances that you will be the one who buys the ideal currency at the ideal time are very, very small. Also, beware of the many on the Internet that offer return earnings for money deposited at 0.5%, 1%, 2% per day. If someone had the recipe to make money, they wouldn't need your money.
There are many cases of people losing money online. Secure your data, protect your wallets. If you don't know, ask, ask for help. There are a lot of people who make wrong transactions. They send money by mistake using other types of blockchain, there are people who forget their passwords etc.
Don't play with the security of your money. It is very important. Be careful who you talk to about what crypto you have. There are many people who could steal your money easily. Protect yourself! There are many risks in the online market.
It is true that there are many moments of joy also. There are a lot of people who have made money. But I think you can earn money patiently. I think the recipe is simple: do not bet on coins that are not in the top 10 CoinMarketCap, so the most important 10 coins in the world.
Make sure you do not buy when the market is at its peak. It is best to buy when the market has big declines: -20%, -30% and so on. Once you have bought, be patient. Create a strategy, to know what you want and what you want to achieve.
I wish you all the best, success and big gains.
My successful faucets!
PipeFlare & Hive ZCash - ZEC with tier 4 referral program
FreeCryptos: (DASH), (TRX), (ETH), (Cardano), (BNB), (LINK), (NEO), (LTC) & (BTC)
Free-Litecoin
Get Maiar for free! The future of money: powered by Elrond!
Stakecube (over 20 single click faucets per day)
Join DeFi and get $30 of DFI. Join CakeDeFi now!!
