How many here have lived through the last bull or maybe two? Like many who entered the crypto markets way before it gained some mainstream recognition I've seen the rise and fall but this meme tonight hit home.
I had to share this after talking to an acquaintance recently who believed random coins will do 10000% gains again like they did in 2017. I mean, it's alright to dream but let's not get ahead ourselves, become delusional and somehow gamble our money away. Hence, this post!
Is there anything more painful than entering the altcoin market in their absolute lows and riding the wave and HODLing all the way down? Not many things would be as painful I reckon as much as seeing your portfolio grow 10-20x and then be in the dumpster–down 98% and still hodling for what seems like an eternity.
We've all been through this, well atleast some out there. I've experienced the painful destruction in token value with a handful of projects in this space including Steem from ATH levels.
That's not to say HODLing is bad. If you know what you are doing it can be extremely profitable to build positions into assets over months and years. But if you are a trader then it is not a strategy especially if you end up catching knives into a bottomless pit.
Even long term investors are essentially traders, their timeframes are greatly stretched but risk and money management remains important throughout.
Remember to take profits if you are in profit and if you are staked up, remember to keep some portion of your funds liquid so you can take advantage of the volatility in the markets.
Diversification is good, atleast it worked for me and I am able to continue to be completely in crypto even after these years when many people I know in this space are out of it for good after the previous bull/bear market.
Everyone burns their fingers at some point. After all, everyone in crypto wants to make some money. But if you are 100% staked up you will lose out on the best times when they come around. So risk only what you are willing to lose.
Altcoins have seen a rise and fall this year and many good projects have done 300-500% in recent times. Greed can make us hodl without exercising logic but the markets continue to move on with or without us. Just a friendly reminder if you are new to this space.
There's no dearth of projects and coins that outperform every single traditional asset many times over in this space so remember to protect your capital while you enjoy the ride.
This post is not financial advise
