April 26, 2022
2021 has been a fruitful year for me and I was expecting this year would be the same or even better. But these past few months, it seems like things are not falling into place, and my crypto management is not effective anymore. Volatility is inevitable and that alone can cause a loss of investments, along with scams and rug pulls. But even some tokens that were profitable in the beginning, ended up falling to the bottom as well.
Since the start of this year, I can not see huge growth in my portfolio, but rather a downtrend. Many tokens are still in red, and only a few are holding onto their support level, trying not to go below their starting price. While some ended up hitting the red line at the bottom and became stagnant and worthless.
We would dive when a new DEX opened and would take advantage of the high APRs. However, those who are slow in taking their investments and profits back just ended up losing their hard-earned crypto. Playing NFT Games is an easy way to get a quick buck while having fun. But not profitable anymore as days go by and when greedy whales start to take their profits and investments back, leaving small investors regretting everything for not taking any action too soon. The ROI (Return On Investment) would turn into Regret Of Investment.
There are really a lot of factors that could cause loss of investments, especially when decisions are taken abruptly without knowing the risks and consequences that might follow. Emotions are also one that should be managed well before taking any action. Oftentimes, we would go with the hype and allow ourselves to be influenced by others. Yet, we have the utmost control of our decisions, not driven by hype and emotions.
With this, I'm resetting my crypto management to mitigate the losses, and hopefully, this would give me a higher return on investments.
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- Stick to Buy Low, Sell High Strategy. Take the profit and investment back. Just use the initial investment to buy back the token and keep the profit.
It is understandable to buy low and sell high. However, I am often hesitant to sell my tokens with the hope of getting more profit in the future. These questions are always in my mind every time the bull and bear market comes, "what if it goes higher, I'll sell later." "What if it dumps more? I'd rather not buy it yet."
It seems like I'm always waiting for more pumps to sell, and more dumps to buy, but not doing anything at all. The result? Regrets for not taking any action.
So this month onward, I would rather buy tokens at a low price, then sell them right away once they skyrocketed, regardless of whether they would go higher afterward. And if the token has the potential to grow more in the future, I'll wait for the right time to buy it back using the initial investment only, and keep the profit for future purposes. A bear market is inevitable anyway and always follows after the bull.
- Choose quality over quantity. Do not stack more.
This goal to accumulate more tokens is somewhat not effective at times, especially when chosen tokens are not for a long-term hold. Quality should be taken into account rather than quantity. There's no point in holding more tokens if you can't manage them all well.
Sell the losers, retain the winners. I would rather stack more stablecoins than unprofitable cryptocurrencies, so that when the right time comes, a market crash, for instance, I'll have a chance to buy more profitable cryptocurrencies at very affordable prices.
- Say No to NFT Game, Yes to its token.
My recent experience with Pegaxy brought me to a realization about NFT Games. DeFi Games are probably the most trending ones in Metaverse nowadays and many got a huge bag of money through playing. Some even became multi-millionaires in a short period. They are truly inspiring. However, not all games are worth playing, and some won't last for a long period.
Undeniably, they are profitable in the beginning to hook more investors to hop in. But following updates would make their tokenomics worthless and would end up killing the game. And if you mismanage it, your investments will turn into ashes. And only devs, whales, and early adopters would benefit more.
The best way to take advantage of DeFi Games is to buy tokens of those with good Tokenomics, then sell them once the prices reach their ATH. It's better to take investment back too early than to regret it later.
Don't stay longer on new DEX's Yield Farms. Take profit right away.
Truly, it is amazing to see enormous APRs in a newly launched DEX and we would, of course, take advantage of it. However, some DEXs don't even last a day and eventually fall their tokens' prices due to some greedy investors. And we small investors? Would lose our small investments.
There are DEXs though that are still performing well even after the launch. However, it is always common that DEXS tokens' prices would drop once the APRs drop as well. So we better put our money in a safe wallet before things go to South, and might be difficult for us to take our investment back.
I am certain that many of us experience the same thing on new DEXs. And most likely, some until now, have not yet recovered their investments.
There are a lot of ways to earn in the Cryptoverse, but a lot of ways to lose investments as well. Some main reasons are mismanagement and ineffective strategy. And a busy one like me who does not have much time to monitor all assets should only focus on a few and choose the profitable ones to keep long-term and put others in short-term trading.
Thanks for reading.
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