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