Hello lovely people of Hive community. Hopefully you will be enjoying your life with good health and spirit. Years 2022, proved tough for investors. Crypto market which was about to touch $3000 Billion fell below $800 Billion. Billion of dollar wiped out from the market.
First Terra Luna collapse and then FTX exchange debacle badly effected the market. Beside all the losses, one good outcome is that it teach us a lesson to avoid few mistakes during 2023.
1 Keep your asset intact: Yes, it is important to keep your asset intact. Give preference to software wallet, digital wallet and hard wallet instead of centralized exchange. Hardware wallet will keep your asset safe. Remember, FTX user deprived from their asset by placing in to centralized exchange.
2 Don't predict the top and bottom of crypto coin. It is difficult to find the exact top or bottom. Anything is possible in crypto world. One thing you need to remember, sell your asset when greed number is high and buy asset when fear rises.
3 Don't blindly follow any crypto influence or project blindly. Try your own research. It may not only increase your knowledge and skill but also help you to save from scam.
4 Any project can fail any time. Just check out the Luna, there was a time when the coin was in top 10 in coinmarketcap list but it observed a massive dip of more than 99% of its worth. I hope better regulation, proof of reserves will lehp to sort out this issue.
5 Always book your profit. It may help to build your portfolio. Getting profit is useless unless you extract it. Crypto market is one of the most volatile market and it may turn your profit into big loss any time.
6 Keep liquidity in your wallet. Investors common problem during dip in market is that they have no liquidity left behind buy during dip. It is important to not invest your all investment, no matter how small or big your investment. Better to save it for the next dip. In short words buy coins with each massive dip in installment. It may help to build your portfolio.
7 Diversify portfolio in various coins instead of one or two coins. It will help to build your portfolio.
In the end I would like to wish all community members a very happy, healthy and prosperous life ahead. Have a nice time.