Crypto world is unpredictable and nerve wrecking. I haven’t got enough time for an analysis. There is no certain APY and it’s too risky for me.
All these arguments can be pushed aside by one simple step.
Stick to your plan
Always before you are taking any kind of trade, you have to make a plan, which includes at least entry and exit prices, but I would recommend setting up stop loss as well. You should be prepared for realizing that you are not always right. This is for those who have the time and balls to use leverage, but if you are not entering margin trades, there’s almost no need of stop loss for you. (if you are trading coins with strong fundamental)
The power of long term trading
If you are not sure if crypto is a good investment, you should look back into the charts. For example into bitcoin chart, we can say that it is a bit bumpy and volatile road, but in macro view it keeps going up. Just for us who are investing and actually having our money in the projects, it is a bit unstable. Because of that, there are ones who are saying, that we should only invest a small portion of our assets, but I think, that we should invest more than we can afford to lose. Otherwise we will don’t care about our investment and our portfolio will be determined to destruction.
Even if you are dollar cost averaging you should have some limits for example now, when bitcoin price is 40k you should be buying more than on the peaks for 69k, where you should rather sell a bit of your holdings. But how to recognize that we are near the top? Almost everytime when we were high above the recent low and the sentiment was extremely bullish (above 90 fear and greed index) we were nearing the top and it was not a mistake to sell at least a part of your holdings.
In my opinion, this is one of the best strategy to make money without risking too much.
Have a great day and think about your buying zone!
Thank you for reading this, please consider tiping!
And if you still don’t have BINANCE account you can use my referral link to get lower fees.
https://accounts.binance.com/en/register?ref=79704010
