One of the common mistake new investor do is to invest on those projects which appreciates its worth as a result they face the massive loss in their investment. Never invest on project which achieve huge worth as the coin my drop down any time. Just imagine people who bought BTC around $68,000 with a hope to earn decent profit suffer 60% shrinkage due to dip in BTC price. This reveals the importance of never investing on those projects which have already achieved huge profit. Gauge of checking crypto market is greed and fear index.
Better strategy is to take exit when greed factor is getting higher and buy back when the fear factor number increase. This is an easy way to adopt as an enter/exit strategy. It will not only help you to earn decent reward but also save you from loss. Always invest on those coins which have good use case. Never, invest your hard earned money on coin which have no use case like Meme coins.
Golden rule of investment is to diversify your investment in multiple projects. So, if one project fail to perform other may compensate the loss.
Another important thing to do is never buy coins in single step. Better idea is to buy in multiple parts as it will help you to apply Dollar Cost average which will eventually make your average buying cost lower.
There is misconception that crypto market require long term strategy. You can make short term strategy which is equally successful like long term strategy. Your basic objective in crypto market is to withdraw your initial investment. Such situation necessitate the importance of booking profit when the price of the coin goes higher. Crypto market moves in both ways. Pump doesn't mean coin will maintain its worth. We often see huge dump after pump so the better strategy is to take out your profit before getting late.
Another good strategy is to apply stop loss on trading. It will save you from big loss. Beside booking profit you also understand the importance of Booking loss. Booking loss will help to control the damage of free fall dip of coins.
Remember, there is no single formula of achieving huge success in crypto market. Best thing you can do is to continue improving your knowledge and skill and invest according to your mind by doing own research. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.