Sunday , October 2 2022
Cryptocurrency

Ways to Prevent Severe Cryptocurrency Disappointment

Reading and hearing about several cryptocurrency investors and traders crying out about the current cryptocurrency market fall, some of which even resulted in suicide. Here is my advice on how to stay away from cryptocurrency disappointment.

As we all know cryptocurrency market is very volatile as such crashes are 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 with it. Some of these big traders have risk assessments, 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 being 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 panics 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. At least 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 a 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 cryptocurrencies actually bring huge gains in a short time frame but their risk is huge than 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 Bitcoin, which has the potential to recover aftermarket crash. Some of the tips on how to identify a long-term coin are;

A) the first thing is to look at the coin’s management team and how reliable it is. Some experienced 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 a longtime downfall. But investors/traders need to find means of diversification to avoid disappointments that could be unbearable.

Additional Tips

Another vital way to prevent this disappointment is to avoid online investment that promises to double or triple your investment after a given period of time I know of a friend who got scammed of over $1000 meant for his traditional marriage, and this was how it all happened. He came across this Google ad advertising a website that promises to double investment in 48hours, and ignorantly he invested the whole money, of which 48hours passed and he got no refund to date. And that was how the traditional marriage never hold again, he attempted to commit suicide, but luckily he was rescued and survived.
So in general what am trying to say is don’t invest in a site that promises to double investment in 24 hours. They are scams.

Cryptocurrency Important Investment Tips for Beginners

Cryptocurrency is a lucrative investment, no doubt. Prior to making any investment, it is highly recommended to assess the risks and any important information associated with it and invest only if you can handle the risks. For starters, Bitcoin isn’t the only cryptocurrency out there, educate yourself with the basics of cryptocurrency and the blockchain technology that powers it.

Identify your goals, whether you want to trade crypto for a short term or long term, this is dependent on the time you can invest and the knowledge that you’ve acquired. You cannot judge a cryptocurrency by its cover, attractive visuals, and promising returns do not guarantee anything. This is popularly termed the “bling bling syndrome”, as always read between the lines, and check if the background of the company is trustworthy and legit.

Hype buying or panic selling is another common mistake by investors, who are usually just starting out, understand how the crypto market functions and pick the right time to invest in a cryptocurrency, hype does not define anything. Market movements and emotions are key factors that shape a crypto investor, the fear of failure results in not winning enough, and making an objective or technical analysis instead. Set aside any form of greed, this will not only make your mind hazy but will most likely lead to terrible and avoidable decisions.
Before signing up on any platform as an investor, compare the best available options, and do not pay more than what you are required to pay.

The last common mistake we would like to point out is that many end up pouring their savings into one cryptocurrency or one type of investment, this is a big NO, a diverse investment portfolio is a must when you start this adventurous and hilly journey.

If you are hesitant to start a crypto investment, you can always find safer alternatives on Bitbns such as our Fixed Income Plan (FIP) which guarantees a fixed rate of interest on your investment.

Credit to original article from: bitcointalk.org

About Info Wealth Geeks

“Persistence gives confidence and continued right mental attitude followed by consistent action will bring success. When you have that knowing inside of you, fear has vanished and the obstruction to a life of all good removed.”

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