I think one of the most important key to investing in cryptocurrency is to never use "scared money." What this means is never invest monies that you can't afford to lose. You have to be responsible with your money. Number one priority is to be able to pay your bills and obligations. Don't risk your financial situation to chase profits. Your family and your financial obligations must be taken care of first. Never endanger yourself or your family's well being by risking monies you can't afford to lose. You've got to be a responsible investor.
Don't get greedy and try to chase profits. As people get into cryptos they hear other people are getting phenomenal returns and want to join the party. They feel it is a chance for them to get rich. They get excited and put their monies on a "hot tip" from a You Tube personality or what their friends or family member say is a good crypto. They don't do their homework and research the crypto they are investing in. Their only goal is to put their monies in and be in the game. "FOMO" sets in and they don't want to miss out. It's all over the news and they feel they are getting into something good where there money is going to grow.
They have no idea what they are getting into. Cryptos are so volatile and if you are not educated properly and understand this, you will more than likely lose money. Panic sell usually happens and positions are liquidated for a loss. They have no strategies or trading parameters. They are like sheep ready to be slaughtered.
I see this as a trend and a problem that's only going to get bigger. A lot of newcomers with no experience or understanding of cryptos. With this , people are using funds that they really need and can't really afford to lose. They are risking their financial well being. I hear stories of people using their life savings to see if they can get the big returns and get "rich." Thinking they can quit their jobs and replace their income at the job.
I tell everyone I know that cryptos are very risky and that you must educate and do research before investing. That if you are not willing to do your homework and just follow and listen to people indiscriminately, you will lose a lot and be sorry for it. You have to learn to use the volatility to make it your opportunity. This takes time and some expertise.
Warning: Cryptos are volatile and risky. Enter with caution and only use monies you can afford to lose!
Disclaimer : Never invest funds more than what you can afford to lose. This post is my own personal opinion/speculations/ insights . Please do your own research before making any investment decisions. I am not a financial adviser, nor am I giving any financial advice. If you make any trades after reading this post, you accept accountability and responsibility for any lose that you may incur. By reading this post you acknowledge and accept that.
