Bubble is coming ? Here 5 Rules how to prepare
Every one is asking when the bubble is going to burst?
I will try to make it short.
If you look at the normal stock market every 10 years the market crash, in Crypto the story is different, the market is new, there is less record and less data to learn from and base the predictions on.
People who are joining the Crypto market have no idea what they are doing, they watch videos, search a bit and decide to buy, they dont know how to store the coins safely and sometimes they have no idea what's the difference between Address and Private key.
I dont blame them, everyone wants to join the party and make some profits, the problem most of the people dont have the right education or knowledge, non of us was taught in school what is money and how to make money, how to pay taxes and etc. I would only blame the governments that there purpose it to make the Rich richer and the poor more poor.
I have just posted the following on my LinkedIn profile:
Countries are Businesses, The Prime minister is the CEO, Congress members/knesset members are the Board of directors, Citizens are the employees, Taxes are the profits.
Some rules that if you follow you will be ready to the bubble:
Dont invest in things you dont understand, education you self first.
Invest only what you can afford to lose, what does it mean?
If you invest 1K$ and lose it will you be able to survive?Dont trade, invest for the long term, look for projects that might survive for 5-10 years and have some impact on our future.
If you dont sell, you will never lose.
Let's assume tomorrow you woke up and all your holdings are in RED, 200% down. If you sell you are done, if you keep holding for long term the market wil recover, markets always recovers. Same happened in the stock market in 2008-2009.Want to make more profits? when the market crash buy more. yes you heard me good, buy more. why ?
Let's assume you bought 100XRP for the price of 0.3$, total holdings = 30$
The price went down to 0.1USD, total holdings= 10USD
You inject to your portfolio 100USD and buy 1000XRP, now your total holdings= 1000XRP+100XRP=1100XRP= 110$
You bought 1100XRP for average price = 0.11$
XRP go back to 0.2$, total holdings= 220$
Congrats. uh ! wait what if XRP go down to 0.05$ ?
Read rule number 2, if the answer yes then do the same as Rule number 5.
If you liked this post, let me know by up-voting and commenting on my blog, I promise to share more strategist ;)
Cheers
Sure but taking some profit along the way is not that bad ....
sometimes people try to take profits and find themselfs buy on high ;)
I like to daytrade, I have been studying the cryptomarket and sometimes its hard to keep up to it but I have found its volatility to be very profitable if card played the right way. I am not saying its easy but it can be done. you just have to read a lot and make a strong investment plan.
of course one should not use all your money to day trade, only 40 or 30% the rest just buy and hold
I agree, trading is fun, that's why you should split as you wrote 30% for trading the rest long term. or however each person sees it
very true !
What bubble?
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