Topic: How to avoid huge cryptocurrency disappointment (Read 524 times)

The most important thing for your journey in cryptocurrency market is

• Never spend more money than what you can't afford to lose.

Prepare for bad and worst things because your journey in cryptocurrency might not be smoothly and rosy. Lots of ups and downs, challenges, success and failure.

Reading and hearing of some cryptocurrency traders and investors wailing about the recent crash in the crypto market, some even leading to suicide. Here are my precautionary measures on how to avoid cryptocurrency disappointment.

As we all know cryptocurrency market is  very volatile as such crashes is common. So one has to be prepared for anything.

1. DON'T TAKE ALL YOUR LIFE INVESTMENT INTO CRYPTOCURRENCY; this would have been said numerous times but new crypto enthusiasts like myself can be gullible or naive to how some might invest $87k in cryptocurrency and generate $1M in space of just say 72 hours. As this looks promising so is the risk associated to it. Some of this big traders have risk assessment, they don't just throw all their money into cryptocurrency.

2. Do NOT BORROW/LEND MONEY TO INVEST OR TRADE; if you borrow money to buy a coin, once the market falls it might lead to you willing to sell at a lower price and end up not recovering your invested money which might lead to been in debt. Which is one serious issue crypto enthusiasts need to stay away from.

3. HAVE SEPARATE SOURCE OF LIVELIHOOD FOR EMERGENCY; some newbies actually take crypto Trading as the only means of survival, and when there is a market crash there is a lot of panic which might lead to suicide or people being homeless. As a cryptocurrency trader/investor one should have another means of making ends meet even if it small income. Atleast that could sustain any market crash which can also take some stress out of you.
You can start today by putting some funds out (can be monthly) to start up new business, if there's none currently.

4. KNOW THE TYPE OF COINS TO INVEST/TRADE IN; personally i don't encourage huge investment in unstable coins. Coins with long term potential are advisable. Smaller cryptocurrency actually bring huge gains in a short time frame but it's risk are huge than the stable coins. Although it is quite hard to dictate which coins can stay up for a very long time, the most common long term coin is the Bitcoin, which has the potential to recover after market crash. Some of the tips on how to identify a long term coin are;

A) the first thing is looking at the coin's management team and how reliable it is. Some experience traders suggest that any management team that is anonymous is a big no trading/investing coin.

B) what is the project purpose; one has to read through the project and see if the purpose of the project is worth investigating in and aslo check the road map as to how they are moving towards the ascribed purpose.

C) How active is the project community; any project that doesn't have a strong/active development community is a big red flag.

As it stands now we do not know when the market will come up again or maybe it is longtime down fall. But investors/traders need to find means of diversification to avoid disappointments that could be unbearable.

Looking forward to some advice from senior members of the forum on this thread

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The talk more about gaining profits for their own personal interest, words that are more profit attracts beginners to subscribe to their channels. Beginners going through video like that gets the mentality of seeing cryptocurrency as making profit while they have no idea about volatility and risk that is in cryptocurrency.

That is very common and these newcomers never think about the risk of losing but rather go straight about earning more. It was the fact that we need to inject into their mind and to going to believe easily what it spread online, on Youtube (especially trading), etc. We can't say it was a lying statement but we have to say that "there is no easy money in crypto", "quick profit", as even old-timers will even say it was hard, how much more for beginners that have no experience and market knowledge? This is the reason why many people got fooled and scam easily, and that was because the influence of these social media platforms.

That is very common and these newcomers never think about the risk of losing but rather go straight about earning more. It was the fact that we need to inject into their mind and to going to believe easily what it spread online, on Youtube (especially trading), etc. We can't say it was a lying statement but we have to say that "there is no easy money in crypto", "quick profit", as even old-timers will even say it was hard, how much more for beginners that have no experience and market knowledge? This is the reason why many people got fooled and scam easily, and that was because the influence of these social media platforms.

As it stands now we do not know when the market will come up again or maybe it is longtime down fall. But investors/traders need to find means of diversification to avoid disappointments that could be unbearable.

Looking forward to some advice from senior members of the forum on this thread

Unfortunately not everyone is new to understand what you wrote. Maybe even many people who have not read it outside this forum. They only focus on quick profits without paying attention and doing risk management to avoid losses.

The most important thing for your journey in cryptocurrency market is

• Never spend more money than what you can't afford to lose.

Prepare for bad and worst things because your journey in cryptocurrency might not be smoothly and rosy. Lots of ups and downs, challenges, success and failure.

1. DON'T TAKE ALL YOUR LIFE INVESTMENT INTO CRYPTOCURRENCY

3. HAVE SEPARATE SOURCE OF LIVELIHOOD FOR EMERGENCY

Taking loans for a very volatile and risky investment, i guess that is putting yourself in misery in the future. Crypto does not guarantee profits, as its also don't make a single person instantly rich. So taking loans is never really a good advice in the first place. However with bitcoin you'll never be in huge loss, but still always have the mindset to invest only on the amount you can afford to lose.

True. Relying all you have to crypto will be not be good for you when the market turn down. I ha e alsolearned this the hardway back in the first time I experinced bull market. I thought it would never end that my money will continue to grow while I sleep. Months pass I'm already lossing thousands which should have been profit if I just sell.

Glad that I didn't give up my freelance job or I'd be scrumbling to sell the coins I intend to hold for long term to fund myself.