Since February 2018 the crypto markets have been on a deep dive, many got in early and never booked their profits, other got in late that is December last year 2017 and have to practice hodling since the markets did not move in their favor.
I have been in this sphere since 2016 and from experience I have learnt a lot having lost a lot.
There are very many ways you can make money in the cryptoworld and at the same time very many ways you can loose money in the cryptoworld. We are going to at how you can loose money in the cryptoworld and what to do not to loose money.
Blind Investments.
Always do your due diligence this is one very important rule that every investor or entrepreneur should never ignore, make sure that you do a lot of research on the subject topic. Make sure that you understand it in and out. Some of the blind investments people make are on.
Some of the websites you will come along have to do with
I.C.O
Some I.C.O's have rendered to be very profitable, the likes of
Airdrops
Most of the Airdrops are free. Dont get yourself twisted between Airdrops and bounties. If there is one way of accumulating coins that can make you very wealthy in years to come is through participating in Airdrops. An airdrop should cost you only your time which is taken to fill up forms / register and complete a couple of requests. I remember Xrp gave out 30,000 xrp for registering yourself an account withGatehub tokens back in 2013, the number of tokens to be distributed decreased over time.
"Everybody should participate in Airdrops , well nobody should pay a dime for it"
You will find a couple of bots or channels on telegram, discord, slack asking you to pay some btc or altcoins in exchange for coins. Well here is the thing, anyone can create tokens, name the tokens and distribute them to the community. There are very many Airdrops out there which are all free and have a very nice roadmap that is viable. Get the tokens , contribute nothing else but your time. You can check Airdrops sites such as [Airdropking}(Airdropking.io).
Cryptotrading.
Buy low sell high , repeat. Seems easy right?
Well it is not that easy, when it comes to cryptotrading there are very many things to factor in before adding a coin to your to trade list. Here are some elements you have to look out for when trading.
- Technical analysis. (T.A)
If you get in on a coin being driven by fear of missing out, trust you me that you are more likely to loose. F.O.M.O attracts losses. Your technical analysis should help you identify an entry and an exit point. At what price do you buy at which price do you sell. Below you will find a perfect example of a simple Technical Analysis with entry and exit points identified.
If you make no T.A on your trades then all you are doing is speculating which can be very bad. I would prefer if you tried something else like hodling. Well this is no financial advise.
- Fundamental Analysis.
Looking at Bitcoin which has suffered a lot of negative remarks from many traditional entrepreneurs Warren buffets, Jamie Dimon and at the same time has had a lot of positive remarks or news revolving around the financial instrument. This news are known as fundamentals, it is important to understand how certain news will affect the market, for instance Bitcoin cash hardfork catalyzed bitcoins price surge in 2017, you can check the article on
Hardfrork Profits
The thing is every fundamental has its own magnitude and will affect the markets in one way or another.
It is your core obligation to check out for fundamentals as a trader and trade wisely.
- Pumps and Dumps.
Yea I know, you probably joined a free channel that promises to grow your account and ask you to buy at a specific time. The owners of this groups benefit a lot since they buy early and sell when you guys are buying. You get used to make some guys money that is the owners of the channels and some guys in the paid channels.
99% of people who participate in Pump and Dumps end up loosing their money. This is what happens, you will find yourself buying in high , 3 minutes later the dump will happen,you will fear and sell low.
Buying high to sell low , that is how you make a loss in cryptotrading.
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