In today's post I will share about my experience and the lesson learned during my short crypto journey.
Never invest on projects without doing your own research. I have seen many people had suffered a huge loss due to no prior knowledge of market behavior. There is no need to justy blindly follow the influencer. Influencer may do paid content.
Disadvantages of influencer is that it will never help you to develop your own skill. You can get assistance from the influencer but at the end you have to decide yourself because at the end you are responsible for your act. Comprehensive research help you to build your confidence in crypto market.
Never invest those money which you don't afford to loose. Crypto investment involved huge risk. Crypto market has tendency of pump and dump which may suffer you big loss. On the other hand never invest in crypto by taking loan. It will become difficult for you to bear compound interest.
Never invest all your money in one project. No matter how much project is worthy. There is a chance of failure or bad performance exist in crypto world. Just imagine people who invested on BTc when it was around $68000. Now, their initial investment has shrinked to 42% of originial investment.
Diversification is best way to reduce the volatility risk. Invest in multiple project will make you investment relatively safe.
Never buy coin price coin when its worth is pumping. I still remember the day when I bought Cake at $20 worth. Now the worth of coins is almost $1.5. I suffered a huge loss due to my lack of experience. Same way never invest in coins when it is dumping. Always select those projects which have good used case.
Develop a habit of booking profit and loss. Profit is useless if you don't book in time. As crypto market moves in both ways. So, there is a huge chance that price may dip down further. Better is to take your profit in time. Same way develop a habit of booking your loss. Booking loss will help to save you from big loss in case of massive dump. Always apply stop loss in your investment.
Never invest all your equity at once. Just split your investment multiple time to take advantage in case market observe dip. Dollar cost average is a good formula. It will help to bring your buying cost lower.
Never invest in meme coins. Even if you want to invest in meme coins make a small investment so even if you observed huge loss you may easily bear this loss.
One bad event may dump and the market and the same way one good moment may pump the market. So, always remain in touch with crypto and business related news.
last but not least always learn from your mistake. Never repeat the same mistake again and again. Mistake is actually good for your growth. It increase you experience how to handle the situation next time.