Seems like this thread should be move to beginner and help since the content mostly aimed to newbie who have intention to invest in cryptocurrencies.
I don't have any idea for those people especially who jump into cryptocurrency is caused by hype or rely on someone's else suggestion. They are willing to spend money which though they didn't know the place itself even they didn't know how to take a little risk for their investment. Only store their money and have an intention which store their money on the coin they will get a huge profit only for short term investment.
Whilst, the movement price of cryptocurrencies never up constantly, there is a time for the price meet a correction even if I see when the correction came the price will fall drastically. This is what I worried for some people who didn't know about cryptocurrency. They will sell their investment in lose situation and got panicked of it. Although I have confident if they choose bitcoin for the main of their investment they will not fall to get a huge lose if they keep hold it when the correction comes. I'll agree for some people above me who says learn more about investment and make an analyst by themselves if they intend to start investing because that is the most important thing to start.
Topic: Advice on how best to protect your capital - page 5. (Read 1167 times)
Protecting ones capital must start on how the individual handles the capital in the first place. Also, one must learn how to make the right decisions as to which coins to invest in order to earn profit. Diversifying ones portfolio reduces the risk of losing ones capital to a single project/coin.
The best thing that we can do is always be careful when we want to invest in one or more project, only use the money you can afford, and don't use too big money if you are not sure, or you are sure that the project will be successful because you never know if that will happen or not. Always search for more information about the project so you can get additional information which will help you to decide. All in all, your tips will help people to choose, and they can know what they need to do before they invest.
There is no way to know the chance of a project surviving or not even when they look very good and done some hype about it. It all depends on the strength of the team and also depends on how far they are willing to go and never to get discourage about the project no matter the storm that they face through it. So the best way is to test them first by using the money that will not make us hypertensive, ten after we have tested the project, then we can gradually add more money to it.When I first got to know about bitcoin, I just put some money in for and waited to monitor the development of the project, it was until I became sure of my capital being safe in bitcoin that I started putting more money into the market. So like you said, one of the best ways to protect the capital is just to ensure it is in the market of a strong crypto.
A pretty good suggestion for a beginner, despite all the scams that occurred last year, I think this year will be a good year for investors. But keep in mind that scammers will always find ways to scamming us.
Most of them are doubtful but due to something like being supported by a well-known vendor or whatever, they have changed their minds. I strongly agree with you, not to invest if there are still doubts, even if it's a little, it's better to invest with confidence. The problem is that not everyone is able to be patient waiting for a good project, they prefer to invest quickly and profit quickly but ultimately sad.
Very well said advice. The biggest and best advice is about being diligent, and also being cautious about any new investments. We've seen how scammy and shady things could get a year or 2 back when the scene was littered with scam ICO projects. If you are unable to research these projects effectively and are still unsure about new investments into these projects, just say no. You should be going into investments with not a single ounce of doubt, and if you can't do that, I'd recommend you to avoid investing in that industry or investing altogether.
The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.
The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.
Most of them are doubtful but due to something like being supported by a well-known vendor or whatever, they have changed their minds. I strongly agree with you, not to invest if there are still doubts, even if it's a little, it's better to invest with confidence. The problem is that not everyone is able to be patient waiting for a good project, they prefer to invest quickly and profit quickly but ultimately sad.
The ironic thing is that as much as we really give good advise to those newbies around, they still fall for the old trick here
They fall for such tricks because of greed and impatience, as far as I am concerned, greed is the major causal factor of scams, paltry knowledge also is another factor too, when newbies refuse to read and learn from threads such as this, it leaves them open to scam.99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.
It's still amazing how people still invest in icos/ieos, to me it's like a case of throwing your money into the ocean, hoping it does come back to you.
Do your homework, yes but it also doesn't hurt to ask for opinions, especially from people who are more knowledgeable than you on the topic.
Another thing to watch out for is over-enthusiasm. If you notice yourself being too excited about some new prospective investment, sleep it out and make the decision the next day. You might find that it isn't really as great as you first saw it.
Another thing to watch out for is over-enthusiasm. If you notice yourself being too excited about some new prospective investment, sleep it out and make the decision the next day. You might find that it isn't really as great as you first saw it.
The ironic thing is that as much as we really give good advise to those newbies around, they still fall for the old trick here. I thought that the market will really improved this year, but it was not the case. Scammers are still on the loose here in the ecosystem and many are still being victimized by them.
Good thing is that we won't stop giving them tips and good advise just like what the OP has share. And I do hope that beginners will take the time to read and educate themselves.
There are a lot of bad actors here, just one slip and your money all is gone, don't be another statistics. Used your common sense, and I'm sure if will save you time and your money in the long run.
Good thing is that we won't stop giving them tips and good advise just like what the OP has share. And I do hope that beginners will take the time to read and educate themselves.
There are a lot of bad actors here, just one slip and your money all is gone, don't be another statistics. Used your common sense, and I'm sure if will save you time and your money in the long run.
Very well said advice. The biggest and best advice is about being diligent, and also being cautious about any new investments. We've seen how scammy and shady things could get a year or 2 back when the scene was littered with scam ICO projects. If you are unable to research these projects effectively and are still unsure about new investments into these projects, just say no. You should be going into investments with not a single ounce of doubt, and if you can't do that, I'd recommend you to avoid investing in that industry or investing altogether.
The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.
Also, one thing that people don't seem to understand is that leverage and margin trading is a double edged sword - you can flourish by it but a sudden move in the market while you're leveraged all the way up can leave you exposed.
The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.
Also, one thing that people don't seem to understand is that leverage and margin trading is a double edged sword - you can flourish by it but a sudden move in the market while you're leveraged all the way up can leave you exposed.
For the people who cannot afford much money to lose for the new scam projects just stick with the exchanges no need to go with ICOs and their high risk.
99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.
99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.
You missed to say that patience is the key to everything. Its not applicable only in trading but if you have patience, more opportunity awaits. If you notice for examole a project which opens with a good offer, you shouldnt fall on it at once. You should have patience to dig more information about it so that you can prevent losses from falling into scams or unproductive projects.
Agree, patience is not only applied in trading, but also many things that are included in crypto investment. patience will make you more calm in making choices. it will make your calculations and analysis more effective. than panic which will make everything that your analysis become useless The best way to protect your capital is to diversify your investments.
Diversifying your capital isnt protecting them from loosing because when you diversify , your only spreading your capital on different investment assets and the value of those assets can still go down . if we want to protect our capital the best way , we should only keep it on a safe place like on a vault or on a hardware wallet if its a crypto based but then again the value of our cryptos can still fluctuate so better if you will convert them to fiat first if you will not use them imediately .
Keep it in government debt. Safe and gives you a steady return that beats the yearly inflation
Research before investing. I agree with the author, in crypto when you are a newbie is best to think that everyone is trying to steal your money. It'd make an individual more cautious and smart.
Read. Read. Read.
Read good books on money management, especially microeconomics. Don't follow follow people's opinions, follow your guts.
Very few people read books about money management despite the fact that if you used a random entry point you could still make profits if you had a solid money management strategy, it seems everyone is obsessed with the perfect moment to enter the market or how to select the right coin that is close to skyrocketing, so by far the best way to protect your capital is with money management, however I do not agree when you say that we must follow our gut, we must follow our strategy and if you still do not have one then spend the time needed to create one. Read. Read. Read.
Read good books on money management, especially microeconomics. Don't follow follow people's opinions, follow your guts.
The best way to protect your capital is to diversify your investments. Not only Bitcoins, even not only cryptocurrencies. I dream to have at least one real estate asset in my portfolio.
The best thing that we can do is always be careful when we want to invest in one or more project, only use the money you can afford, and don't use too big money if you are not sure, or you are sure that the project will be successful because you never know if that will happen or not. Always search for more information about the project so you can get additional information which will help you to decide. All in all, your tips will help people to choose, and they can know what they need to do before they invest.
Great tip and great advice there mate. Another way we can also protect our capital is not to be greedy and also to be patient. These two things are the greatest enemy of some people and it takes money away from them more than scammers. I have seen some of my friends out of greed do into trading and because trading normally is no longer enough for them, they feel that they could take more in margin trade, and if they had even leveraged low, it would have been okay, but they had to go all the way to leveraging high which most of them eventually lost their investment badly.
When it comes to patience, we have to really learn to persevere, some people have lost their capital just because they could not be patient for the market to pick up again, and then panic sell into the hands of these big whales.
When it comes to patience, we have to really learn to persevere, some people have lost their capital just because they could not be patient for the market to pick up again, and then panic sell into the hands of these big whales.
Though I agree mostly with what you have said and you already mentioned the key to avoid these scams and that is through the known strategy of DYOR.
Doing your research with due diligence will save from everything. You don't have to skeptical with everything, you just have to be knowledgeable and fully aware of the potential scam schemes and attempts that are existing today.
Doing your research with due diligence will save from everything. You don't have to skeptical with everything, you just have to be knowledgeable and fully aware of the potential scam schemes and attempts that are existing today.
I agree! Additionally we also need to diversify our portfolio with different digital assets to minimize risks and I think the OP has forgotten to discuss the importance of keeping our computer systems safe or in other words, don't let your system be compromised or be hacked, that I think is one of the important way to protect your capital instead of focusing on the integrity of projects alone. Imho.
Diversifying should be done by everyone and it's not just for crypto's which I reckon what TP has said. In this manner, you are starting to become responsible the way you are managing and on how you are spending your money on worthy things.
Over the past couple of months, cryptocurrency returned marginally back to the good times. This affects almost every sector of this space. Forum activity increases, as people get more interested, up starts try to take advantage of the surge to launch their projects, and scams also increases as Bitcoin ans cryptocurrency becomes a more frequent discussion across social medias, and the target is usually newbies.
If you are new to this, or joined because of the hype, one thing to note is that there are different levels of scams and it's not always easily detectable.
So view every prospect as a scam, until proven otherwise.
It's easy to avoid basic scam attempts like the use of fake accounts or ICO imitations. But, there can be scams hidden beneath legitimate projects.
- Always be skeptical; do not trust a project on first glance. Always look for a hidden threat, by assuming there is one, this makes you dig further into the fundamentals of that project.
- The fact that the project has been successful so far, does not mean it can not still be a hoax; never get too comfortable when you've out your money in an investment. Always be on the lookout for developments and stay close to the process involved.
- Never fully rely on recommendations; always to your own diligent research on any prospect. Do not simply follow the ideas of "experts" or "influencers".
- There is no guarantee; no investment is a hundred percent fool proof. Even Bitcoin which I would say is the safest cryptocurrency investment does not guarantee profits.
Always keep tabs on your portfolio.
If you are new to this, or joined because of the hype, one thing to note is that there are different levels of scams and it's not always easily detectable.
So view every prospect as a scam, until proven otherwise.
It's easy to avoid basic scam attempts like the use of fake accounts or ICO imitations. But, there can be scams hidden beneath legitimate projects.
- Always be skeptical; do not trust a project on first glance. Always look for a hidden threat, by assuming there is one, this makes you dig further into the fundamentals of that project.
- The fact that the project has been successful so far, does not mean it can not still be a hoax; never get too comfortable when you've out your money in an investment. Always be on the lookout for developments and stay close to the process involved.
- Never fully rely on recommendations; always to your own diligent research on any prospect. Do not simply follow the ideas of "experts" or "influencers".
- There is no guarantee; no investment is a hundred percent fool proof. Even Bitcoin which I would say is the safest cryptocurrency investment does not guarantee profits.
Always keep tabs on your portfolio.
This is an advice worth reading. With regards to our investment especially on ICO or IEO, it is always the best way to secure whether the project is legit or not before engaging and putting our money in it.
Projects = good projects, overhype projects, scam projects, sh*t projects; they are everywhere.
To fully stay out of risks of losing funds to any projects, even how good their future plans are, how constructive their whitepaper is, how important their use-case is, then just simply ignored putting money on them.
We are already at risk putting money on a much stronger bitcoin so don't play with another risk by testing the waters to those other projects. Focus instead on crypto that already built a good foundation since inception and successfully withstands most of the problems it encounters while on progress.
Scam ICOs are just at the tip of the iceberg when we are talking about ways on how newbies (and even vets) can lose money in the industry. There are other ways from HYIPs, fake cloudmining sites, scam exchanges, and phishing sites to things you literally have no control too like ransomware with the industry getting more and more attention you know the number of fraud will also increase because criminals are also setting their foot in it. That is why knowing how you'll protect your investment in all angles is necessary.
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