It's easy when people understand long-term investing, but if someone doesn't understand the journey of bitcoin, then when bear market conditions come they will panic and make bad decisions. Investing in bitcoin is quite simple, stay calm and don't panic because there is nothing to worry about, moreover bitcoin can be maintained in the long term until it reaches the next ATH, social media and FUD have developed negative things about bitcoin, but this has not affected the outcome either.
Investing in the long term of Cryptocurrency also does not have a clear understanding, because it is still general in nature and does not mention more specifically like bitcoin. I also disagree with the mention of investing in different crypto assets, because the only one that has proven to be the best asset is bitcoin.
Topic: How to avoid future losses in crypto (Read 550 times)
Among all the investments available today, crypto is on the list of the most volatile. While this can lead to heavy profit, it can also lead to heavy losses.
If we are to check and explain deeply the losses in cryptocurrency investment are not actually caused by cryptocurrency because the main foundation is caused by a lack of knowledge, and impatience because if choose the right investment BTC the loss is only temporary. Meanwhile, in another word, I don't consider it to be lost since the market always makes a comeback.In what country electricity is cheap?
Tell me, please!!
Venezuela for once. A month is around 2$ And that is this year. From 2020 to 2022 you paid 2$ per Year.
You can have it also at no cost putting up windtubines and solarpanels. No need to apply for anything.
Downside is harrasment from Law enforcement, and of course the dark side of criminals.
Avoid investing with borrowed funds and nothing like having total knowledge of the project you are going into
Becoming a long term holder, before you buy your first crypto, ensure you set your mind to become a longer-term Holder
Lastly staying of exchnages will help this are the major ways people make losses in crypto.
Becoming a long term holder, before you buy your first crypto, ensure you set your mind to become a longer-term Holder
Lastly staying of exchnages will help this are the major ways people make losses in crypto.
All your points are not new anymore but its still need to be learned. Are you a crypto trader?
If you are trading is high risk job your analytic can 100% always true but if you good at it you can still make decent profit, if you are futures trading loss is inevitable so I don't do recommended that. Trade spot only is way better and keep your emotion stable since this is one greatest of enemy when it comes to trade
If you are trading is high risk job your analytic can 100% always true but if you good at it you can still make decent profit, if you are futures trading loss is inevitable so I don't do recommended that. Trade spot only is way better and keep your emotion stable since this is one greatest of enemy when it comes to trade
How can you trade, then? How can you create orders and wait for them to get filled?
Somehow I really want to laugh at this question, but I can think of something. The scenario is to make a deposit - buy - withdraw funds to the wallet - wait for the desired price to be reached - make another deposit - sell them - withdraw funds again. And so on.
What's so funny about it? Anyway, what you're talking about is not the kind of trading I'm referring to. Although somebody who buys and sells is still technically a trader, like when somebody sold at $60,000 and bought back at $20,000 and plans to sell at 100,000, I'm referring to day traders, those who are actively trading day in and day out, those who have tens or hundreds of orders in a day in different pairs. Your scenario simply isn't possible.
My point is that if you're really a trader, you have no choice but to risk leaving your funds in an exchange.
How can you trade, then? How can you create orders and wait for them to get filled?
Somehow I really want to laugh at this question, but I can think of something. The scenario is to make a deposit - buy - withdraw funds to the wallet - wait for the desired price to be reached - make another deposit - sell them - withdraw funds again. And so on.
Basically the recommendation not to keep funds on the exchange is for those who do not trade with their assets. I mean they are investors or long term holders who still rely on a centralized exchange as a repository of assets. If they are traders, then to some extent they can keep their assets on the exchange at their own risk.
As a crypto trader one thing you should not do is leave your funds in exchanges.
How can you trade, then? How can you create orders and wait for them to get filled?
Anyway, if you really want to avoid future losses in crypto, avoid trading altogether. When you trade, you should be aware that you are risking your funds. You could profit, but you could also lose. Not to mention that by merely depositing your funds in a centralized platform to do the trading, that is already enough exposure for a possible loss. Even if you're making gains from your trades, your platform could collapse anytime, it could get hacked, somebody from the inside could steal your funds, your account could get blocked or frozen, and so on.
Dude, we cannot totally avoid the chance of future losses. We only can prevent or minimize them by applying some strategies. So, all your tips won't guarantee us to avoid future losses, it only minimizes the chance of losses. That's why always use extra money (money that affords to lose)!!
There are many people who stop mining because they can't get enough money from mining. Too much spending on electricity and equipment, while BTC price is too cheap now.
Tell me, please!!
Mining is the only way to avoid future loses.
When buying there is always thew risk, that is true for most assets.
Don't you know that mining requires a lot of fees?When buying there is always thew risk, that is true for most assets.
There are many people who stop mining because they can't get enough money from mining. Too much spending on electricity and equipment, while BTC price is too cheap now.
In some countries electricity is dirt cheap and life is much cheaper as in developed countries.
In what country electricity is cheap?Tell me, please!!
Invest in Cryptocurrencies with long term potential.
Carry out thorough research of the project you are about to invest in. Do the work yourself too, don't just rely on speculations of other people because at the end of the day everybody will say what they think is right.
This is debatable because we don't exactly know what potential projects that will actually survive and bright inn the future. Sometimes, some projects claim that they are potential and promising projects, but in fact, they are failed only in some periods before listing. Or although they are top coins, it also doesn't guarantee that they will always survive. For me, if this is for long term, Bitcoin is only the best one to hold for long term investment. Carry out thorough research of the project you are about to invest in. Do the work yourself too, don't just rely on speculations of other people because at the end of the day everybody will say what they think is right.
Try to have emergency funds
Emergency funds are funds kept somewhere else so you can fall back to them in case everything else fails. Like i said earlier, losses cannot be 100% eliminated so having an emergency fund is like having an insurance and it should be able to take care of you for like 3-6 months till you get back on your feet
It is a must. In fact, before we invest in cryptocurrencies, we must first have reserve funds and savings for something that is unexpectedly going to happen. So, our position is safe to invest. For this reason, always use free money on an amount basis that we can afford to loose. Because, crypto investment will not guarantee 100% that we will always be profitable. Emergency funds are funds kept somewhere else so you can fall back to them in case everything else fails. Like i said earlier, losses cannot be 100% eliminated so having an emergency fund is like having an insurance and it should be able to take care of you for like 3-6 months till you get back on your feet
All your points don't seem new anymore. These are some points that have been very commonly discussed but many seem to fail to do well. You may know that not all traders are able to control themselves not to be greedy, they will panic when there is a big correction and that's not just once.
After all, self-control and emotions also have to be good points to profit in this very volatile market. You must have good management which will help you in the end. Analysis is also needed, it will be complex.
Not new but anyway thanks for keeping us reminded OP. Well, with trading comes with losses too and that will always be inevitable no matter how brilliant and smart our strategies are. However, with self-control and patience in all aspects, and not being greedy even when situation requires it, and having faith with the coins we trade,i think that will also help us prevent some future losses. After all, self-control and emotions also have to be good points to profit in this very volatile market. You must have good management which will help you in the end. Analysis is also needed, it will be complex.
Only invest what you can afford to lose
This saying is very common among gamblers. While investing and gambling have differences they also have similarities and this is one of them. It's too risky and even foolish to take your whole fortune into an investment when you know fully well you have nothing to fall back on.
Invest in Cryptocurrencies with long term potential.
Carry out thorough research of the project you are about to invest in. Do the work yourself too, don't just rely on speculations of other people because at the end of the day everybody will say what they think is right.
I agree, and the best recommendation right now is bitcoin.Carry out thorough research of the project you are about to invest in. Do the work yourself too, don't just rely on speculations of other people because at the end of the day everybody will say what they think is right.
The most viable reason for bitcoin is that it has a real use case as a currency. Bitcoin was designed to be a currency, but you can take advantage of its price fluctuations in the long term. Ignore more altcoin even if they are popular, bitcoin is better even though you can diversify assets.
I'm sure someone who owns bitcoin in the long term will have no regrets. I mean in terms of good potential, increased adoption is to be expected and we can expect a 4 year cycle to provide investors with decent returns.
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Some of your points are not completely correct, others are not well portrayed. If you are speaking about avoiding losses in crypto and you fail to add the aspect of personal security, the job is not complete. Avoiding losses of your crypto, also entails developing a consciousness that as you can face losses online, you can also face losses from offline elements. You must try to identify and avoid anything that can lead to loss of your crypto physically. Be careful with people you tell about your crypto investments, and be careful with the device that you store your crypto in.
I was also told to be careful when making transactions so that I will not send to a wrong account that no one will refund me. But this days people are not very conscious about these rules.
These reminders aren't new anymore, OP but still thank you for posting. This should/might be a reminder for you too since you did post it or done your research.
But I think it made sense to them this time after Bitcoin reached the ATH 2 times every halving. That just made them to invest and practice on how to hodl despite of the market condition but we still can't avoid that there are still weak-hands out there who can't hodl their investment firmly.
Some people believe that crypto currency such as bitcoin is bubbled in the market and it can drop anytime where other people thinks that it depends on user for price's upward and downward. Share your thoughts. I am learning!!
Well, that prediction/beliefs was already happening a long time ago and it does still exist to so many people out there who I think has a close mind about how cryptocurrency or Bitcoin works. They did not make their research they just follow what the others been saying it's like voting for what the majority are doing despite of not enough knowledge.But I think it made sense to them this time after Bitcoin reached the ATH 2 times every halving. That just made them to invest and practice on how to hodl despite of the market condition but we still can't avoid that there are still weak-hands out there who can't hodl their investment firmly.
Invest only what you want afford to loose!
Well, that's one way to go about it but, we must realise that, this what we can't afford to lose at an initial stage often accumulates to what we can't afford to loose. That's the reality of it although, it remains a good strategy towards investing as a whole.
The best strategy towards avoiding loses is to ensure you buy bitcoin or invest in a better/verified crypto project after DYOR, use proper wallet in saving your coins other than using exchanges as a few beginners do. The FTX situation is a good enough lesson for everyone. Arm yourself with these investing tips and be safe about your investments.
Well, that's one way to go about it but, we must realise that, this what we can't afford to lose at an initial stage often accumulates to what we can't afford to loose. That's the reality of it although, it remains a good strategy towards investing as a whole.
The best strategy towards avoiding loses is to ensure you buy bitcoin or invest in a better/verified crypto project after DYOR, use proper wallet in saving your coins other than using exchanges as a few beginners do. The FTX situation is a good enough lesson for everyone. Arm yourself with these investing tips and be safe about your investments.
Diversify your investment
I know some crypto enthusiasts will say most of your money and investment should be in crypto because crypto is the future ( well I believe crypto is not just the future but the present) but I am not of that school of thought. There are other things that are what investing it aside crypto. Among all the investments available today, crypto is on the list of the most volatile. While this can lead to heavy profit, it can also lead to heavy losses.
This is a good strategy but not all diversifications are good. People are taking it literally when you tell them to diversify and many are doing it wrongly. They diversify based on what they've just thought of without properly doing research so, they ended up buying all of those shitcoins even if they haven't done DYOR on it. On your case about diversifying in other investments, it's actually a good one but you really have to know first where you're investing. I know some crypto enthusiasts will say most of your money and investment should be in crypto because crypto is the future ( well I believe crypto is not just the future but the present) but I am not of that school of thought. There are other things that are what investing it aside crypto. Among all the investments available today, crypto is on the list of the most volatile. While this can lead to heavy profit, it can also lead to heavy losses.
All your points don't seem new anymore. These are some points that have been very commonly discussed but many seem to fail to do well. You may know that not all traders are able to control themselves not to be greedy, they will panic when there is a big correction and that's not just once.
After all, self-control and emotions also have to be good points to profit in this very volatile market. You must have good management which will help you in the end. Analysis is also needed, it will be complex.
Everything that OP has discussed has been a consistent reminder every now and then, but seems everything is still too difficult to make it happen. And without patience and resilience, I guess everything significant we made at first will never be worthy anymore. But one sure thing with crypto, it can bring out the best profits and change your life, but it can also be a source of worst regrets if you don’t have the skills to make it work. After all, self-control and emotions also have to be good points to profit in this very volatile market. You must have good management which will help you in the end. Analysis is also needed, it will be complex.
Some people believe that crypto currency such as bitcoin is bubbled in the market and it can drop anytime where other people thinks that it depends on user for price's upward and downward. Share your thoughts. I am learning!!
...I know some crypto enthusiasts will say most of your money and investment should be in crypto because crypto is the future ( well I believe crypto is not just the future but the present) but I am not of that school of thought. There are other things that are what investing it aside crypto. Among all the investments available today, crypto is on the list of the most volatile. While this can lead to heavy profit, it can also lead to heavy losses...
Obviously, all investments in cryptocurrency on a bearish trend eventually lead to a meaningless hold of coins in your wallet for many years. Wait for it to finish and make purchases when the bull run has already become confirmed. In this case, your investments will bring you profit faster.
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