The sentiment among cryptocurrency traders and investors is gradually shifting from fear of a market drop to hope for rapid growth in ...
The sentiment among cryptocurrency traders and investors is gradually shifting from fear of a market drop to hope for rapid growth in Bitcoin and other coins. A bullish trend, that is, a rapid rise in the price of an asset, is the best time to make money in the blockchain industry. However, even during a bull run, mistakes can be made. We will tell you what actions should be avoided.
The cryptocurrency niche is really on the cusp of a new growth stage. This is supported by periodic jumps of little-known projects by hundreds and sometimes thousands of percent during the day - and this is a bullrun sign. For example, Serum, after the news about the listing on the Binance exchange, flew 1.5 thousand percent in value in twelve hours.
Analysts agree that the role of fuel for the new flight is the niche of decentralized finance, which allows you to play with numerous tokens and earn on actions (as well as lose money). The volume of funds in the industry was equivalent to one billion dollars on June 1, and today the figure is at around 4.73 billion.
How not to lose money on the growth of cryptocurrencies?
Taylor Monahan, co-founder of MyCryptoWallet and MyEtherWallet, tweeted some helpful tips she acquired during her previous bull run in 2017. She noted the irrational nature of the bull market, which attracts people who make many mistakes. In the end, these mistakes can cost some investors a lot of money .
The increased activity of cryptocurrency scammers can play a large role in this matter. Here is a quote from Taylor from Cointelegraph .
The fact that nothing can slow down the bull run attracts scammers. They will make a lot of money from the losses of others, because the rise in price of cryptocurrencies, fear of lost profits, greed and hype are the most powerful things in this world.
Monahan is confident that the time for accumulating digital assets has passed, so she advises the majority to transfer from 90 to 95 percent of their capital to cold storage for a long time. In addition, investors should not “chase” every new and “promising” coin. Taylor continues.
Choose a few good coins for a long time, invest your money in them. Do market research. Do not invest only as directed by others. You will succeed if you learn to make a steady income [on investments], and not try to make money selling coins at their peak.
Another tip - invest in cryptocurrencies only the money that you are mentally prepared to lose . That is, you should not take out a loan or spend all important savings on investments. In the long term, this strategy will only lead to losses and debt.
It sounds like a joke now, but over the next 3-18 months, people will go into huge debt to get cryptocurrency. And they won't win. They will lose their home and savings for their children. Don't be one of these losers.
Cryptocurrency podcast host Anthony Pompliano has a list of his own tips. He published them in the form of the already legendary tweet, which managed to get more than 400 retweets and 1.8 thousand likes. In other words, the value in the information presented is really enormous .
An important message as Bitcoin moves into a new bull cycle:
- Bitcoin is very volatile;
- You can lose all your money;
- Invest only what you are willing to lose;
- Don't just invest with advice from Twitter;
- Do not buy Bitcoin on credit;
- Be patient while waiting for the profit;
- Research the market situation yourself.
Anthony also promised to be reminded of this publication almost every week.
Monthly? If I don't forget, I'll try to do it weekly. I think this is an important reminder - especially for beginners.
No one can say with certainty what the scope of the new bull cycle will be and to what level the price of Bitcoin will rise. The first priority for traders and investors is to preserve equity capital . Do not play with margin trading if you do not know its basic principles. Define a strategy for yourself in which even dozens of losing trades in trading will not make you bankrupt.
The key to success in the cryptocurrency market is the ability to cope with your emotions. It is they who interfere with getting rid of assets at the peak of their rates and force people to buy coins after they have overcome their maximum. In any situation, it is worth thinking twice, in addition, all reflections should be supported by your own research.
That is, if everyone in crypto twitter is shouting about the so-called $ YAM farming, you shouldn't throw all your savings there. First, you need to understand the meaning of the decentralized finance niche, and then move on to the essence of the process called "yield farming". Naturally, all this should be supported by an understanding of the tasks of the tokenized economy and the purpose of each specific project. So before investing money, you need to spend a lot of time on the theory.
