If You Want to Invest in Crypto, You Need a Plan
How to survive cryptocurrency’s volatile market without losing the plot
Many people, myself included, enter cryptocurrency as an experiment. We hear about Bitcoin as “the new gold”, and read tweets about how the price will “go to the moon”.
We get an intense feeling of FOMO, so our next step is to sign up for a crypto exchange and buy some currency. The price goes up and we get a small rush from the money made, so we buy a bit more. It goes up again, so we buy even more. It’s possible to make 20% profit in a few days. It feels great.
Then the price goes down.
You’re now breaking even on your initial investment. You’ve heard the phrase “buy the dip” so you purchase even more crypto. But if the price doesn’t go up, it goes down again…! You’re now at a 20% loss. You start getting stressed out. What do you do?
In a recent article Jessica Wildfire describes how she started putting her phone on a nightstand so she could check Bitcoin prices in the night, because it made her so anxious. I’ve personally never been that anxious, but I can relate to the “high” and “low” feelings of watching prices rise and fall.
What I’ve learned from my initial experiments as a novice investor, is that to survive…
