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RE: Fooled by the Dips: The Role of Risk in Cryptocurrency Investing

in #cryptocurrency7 years ago (edited)
  1. Don't invest more than you can lose - this applies to every trade, too. Investing more than 5% in a single trade will give you anxiety and get you to make bad decisions
  2. Don't panic sell - prices go up and down. That means even if they go down, they will rebound back at some point, even if not at the point you purchased the coin at - just be patient.
  3. Don't chase hype. Greed or fear of missing out is a great way to lose on most of your trades, even if you get lucky every now and then.
  4. Anticipate price rises. Even if you can't read charts, at least follow the sentiment for a given coin. When everyone is negative about it, give it a little more time for things to stabilize, and then buy that coin. Because it's probable the coin has reached its bottom by then, which is a great opportunity to buy.
  5. Save some money in Tether/FIAT (20%-50% at all times), so you're always able to buy the dips.

I've written a whole guide on successful cryptocurrency trading for beginners, which contains more details, there. Feel free to check it out. - @jarexx