CRYPTOCURRENCIES
No, Crypto Isn’t Dead!
But it would be best if you were more careful.
Last week was devastating for many in the cryptocurrency community. Both LUNA and UST are practically dead.
To watch a 99% fall in a few hours is shocking. And one of the things that we all need to remember is that there is a human tragedy behind this. Many people lost everything.
This isn’t the first or last time a cryptocurrency has failed. Cryptocurrencies are as volatile and contentious as they may appear, and they’re here to stay!
Don’t put all your eggs in one basket.
This old saying is relevant now more than ever. Diversify your investments, and don’t put all your money into one asset.
There are many different options to choose from when it comes to cryptocurrency. So, don’t put all your eggs in one basket. Instead, diversify your investments and don’t put all your money into one asset. This way, you’ll be less likely to lose everything if (or when) a particular cryptocurrency fails.
So, what does this mean for you? If you’re holding onto UST or LUNA, it might be time to cut your losses and move on. But that doesn’t mean that you should give up on cryptocurrency altogether.
Educate yourself.
One of the best things you can do is educate yourself about cryptocurrency. Learn about the different types of cryptocurrencies, how they work, and what factors influence their prices.
There are plenty of scams and Ponzi schemes, so it’s crucial to distinguish between a simple project and a fraudulent one.
Don’t invest more than you can afford to lose.
This is the most important rule of all. Never invest more money than you can afford to lose. Cryptocurrencies are volatile and risky, so it’s important only to invest what you’re comfortable losing.
If you’re not sure about something, don’t invest in it. And always remember that past performance is not an indication of future results.
Have a strategy and an exit plan.
When it comes to investing, it’s essential to have a strategy and an exit plan. This applies to cryptocurrency as well.
Your strategy will depend on your goals and objectives. Are you investing for the long term or the short term? What are your risk tolerance levels?
It’s also important to have an exit plan. This means knowing when to sell and how to cash out your profits.
Do not leave your coins in an exchange.
Never leave your coins in an exchange for longer than necessary.
Exchanges are hackable, and you’re at the mercy of the exchange to get your coins back. If you’re not comfortable with this, don’t leave your coins in an exchange.
Setting up a wallet is more complicated and time-consuming, but it is worth it for peace of mind and security. This goes along the education part of point 2.
The crypto world is ever-changing, and it can be challenging to keep up with the latest news and developments. However, it’s essential to stay informed and educated about the space. This way, you’ll be less likely to make mistakes and lose money.
Don’t day trade.
I know it’s attractive, and all the YouTube videos make it look so easy, but please don’t daytrade.
Day trading is extremely risky, and it’s very easy to lose money if you’re not careful. If you’re new to cryptocurrency, then stick to investing for the long term.
HODL.
In crypto, there is a saying: “HODL.” This stands for “hold on for dear life.”
It would be best to hold onto your coins even when the prices are crashing. This is because the prices will eventually recover (usually).
Of course, this isn’t always the case, but holding onto your coins usually pays off in the long run.
The bottom line is that crypto isn’t dead! It’s a volatile and risky investment. Still, there are plenty of opportunities for those willing to take the risk.
Remember to diversify your investments, educate yourself, and never invest more than you can afford to lose.
If you enjoy what you’ve read, consider supporting other thousands of writers and me by becoming a Medium member. Here is my referral link. I will receive a small commission without costing you extra money by subscribing to it.
Or, if you want to show your appreciation for me, purchase me a cup of coffee. It is greatly appreciated!
You might also enjoy reading this:
