The issue with the crypto market isn’t the quick price increases; it’s about holding onto those gains. Often, coins surge in value but then drop rapidly, wiping out a lot of value and the recently high prices in just a few hours.
As the market experiences positive turns, we start focusing on positioning ourselves in the best way possible for the next bull run. When it happens, it comes without warning and moves aggressively. If you’ve positioned yourself well, you can make a significant profit from your investments. So, what’s the best way to do this?
What many don’t talk about is their losses. Everyone quickly showcases their profits and winning outcomes, even flaunting them on social media to display their success. However, the truth is nearly everyone, yes, everyone, who has ever been involved in financial market investments and trading has lost money at some point. What everyone forgets but should remember is that you’re not just trading against a computer; there are real people behind the screen. To make money, others need to buy your coins or tokens at a higher price than when you bought them. This means plans and rules are essential, but so is human psychology. To achieve results that others can’t, you need to do things that the majority won’t.
Much of this is about mindset. Control your emotions and follow a working strategy. This strategy has been written by people with experience in this market who have made mistakes. If you learn from these mistakes, you might avoid them. If you think you can’t and just blindly follow what others say on social media, you might not get the profit you should or even end up losing money.
Many people hope for a guru to tell them when to buy and when to sell and where to do it all. No one in the world can know such things, and if they claim they can, they’re just deceiving you. The truth is, it’s all about risk management and ensuring you take steps that expose the right amount of risk to the market to ensure you can maximize profit while experiencing minimal loss.
Now let’s collectively pay attention to the DOs and DON’Ts of investing in the crypto market. Let’s start with what you SHOULD NOT do.
- This means don’t invest more money than you can afford to lose. The market goes up and down. If you never sleep watching the chart or truly can’t meet basic living needs or pay bills if the market price drops, or even worse, if you end up in debt because of your investment… you’re too deep. Don’t overinvest; it will impact your emotions and your ability to think clearly in the market. Don’t overdo it.
- Leverage is the fastest way to ruin yourself. Believe us; we’ve been there. The market is volatile, and big exchanges can see how much leverage people use. They can easily dump the price with their massive crypto holdings, then buy low again after you’ve been liquidated. If you don’t understand, avoid leverage. Even if you’re an experienced investor, only do this with extreme caution.
Don’t Go All-In on One Coin:
- Especially if it’s a speculative altcoin or even a meme coin.
Don’t Try Day Trading:
- Day trading is really just gambling, even if you have many small profits. The chances are that all your gains will be wiped out in the next trade, and you’ll lose it all. There’s an old saying: “Time IN the market is better than TIMING the market.” It means being in the market at the right time is better than trying to guess market movements. Just buy and hold for a while, enjoy the daily price movements, and sell when you’re in profit.
Don’t FOMO When a Coin Rises:
- If a coin pumps and keeps rising for some time, don’t sell your existing positions to jump onto the hype coin because of FOMO (Fear of Missing Out). The rocket has already taken off. The coin you held (if it’s a good one) will likely have its time to rise. If you sell too early to buy the one that’s currently hyped, you might get dumped on, lose money, and miss the earlier coin you held. Chasing price pumps is not the right approach. The right way is to buy into good projects when the market is calm, and wait for them to pump when the time is right.
Now, what SHOULD you do to ensure your profits are maximized?
- Play the mid and long-term game for a few months or a few years. If your income comes from your job, it would take decades to earn the amount of money that can be gained in crypto in just 18 to 24 months, if you’re patient. This is a short period. If you can relax, chill, and stay calm like a ninja, you can transform your life and your family’s in a short time. Trying to get rich in a week will only make you poor.
- Don’t let anyone tell you what to do, and don’t get carried away by sensational hype. Do your own research and don’t take risks larger than what’s wise. DYOR!! Do your own research. You are responsible for your money. Don’t blame others if something goes wrong, so only risk what you feel comfortable with and don’t invest in something you don’t understand.
Have a Balanced Portfolio:
- Invest in yourself with in-depth knowledge of the crypto and blockchain market and industry.
Be a Lion, Not a Sheep:
- Often, when the market drops, everyone stops looking at charts, stops looking at crypto, and starts playing games or hanging out with friends, forgetting about crypto. Then, when they come back, the prices have risen again, and they regret not buying more when it was cheap. When the market is calm, it’s the time to pay close attention and start looking for good projects at a low price, while others forget about the potential of this crypto market. The sheep will start coming back when they hear the prices are pumping again, but you are a lion. A bear market is the time to watch the market and build your stack. If you can be disciplined and not just follow others like sheep and lose interest when the market becomes ‘boring,’ then you can be a true winner in crypto.
- You must take profits! The only right way to make money is by selling. Don’t be greedy. You’ll never be able to time the top, so discard the idea that you have to take profit at the maximum point. Again, don’t be greedy. When you’re in a profitable position, start selling a little bit at a time. Maybe a certain percentage each time you’re in profit. There are too many stories of people becoming incredibly rich but being greedy and unwilling to sell. They held onto the coins until they dropped significantly and ended up selling at a loss. It needs to be emphasized again, when in a profitable position, take profit!
To be able to maximize your profit, you need to be a professional. This is your money being talked about, and anyone has one of the greatest opportunities in the world to change their life and their family’s forever!
Take your time, and you’ll reap the rewards!