Its because people are stupidly buying cryptocurrencies based on hype with little to no research. Dogecoin?? Really? Downvote me for all i care but dogecoin is a shit coin, it is years behind the majorly developed coins like ethereum. I can name you 10 other coins whos value is shit. So if you made money on it, good for you. But if you want to last in the cryptocurrency investment sphere, you need get the fuck out of that position. Look at every bullrun we had the past 7 years, and check the highest market cap coins during those bullruns. 80% of them failed.
Remember, emotions are you enemy in any investment sphere. If the coin you hold have little to no development and no good institutional backing. GTFO of that position. Dont hold it cause you think it will "moon" for no apperent reason.
Take tenx for example, the company ditched everyone and closed shop, yet their coins rose during the bullrun we had the past months. Does that make any sense? A company which does not exist anymore had its tokens rise double their already worthless value?
Sure, buy some shit coins, just remember that its a gamble. With odds close to winning a lottery. Do you really want to YOLO a majority of your savings on a lottery?
Why not invest in Crypto market in a way that reduces your risk, increases your return and help reduce the amount of shit coins that keeps killing every novice crypto investor?
To make it clear, when you invest, you want to create a diversified protfolio with the highest RISK adjusted return. Does that make sense??
= So, to all the would be crypto investors. You need to follow the fundamental investing strategies, to help protect your capital while you grow it. If that is not your goal, you should just hit the casino. Some games have better odds than investing in shit coins.
1) build a diversified portfolio. Diversified means the lowest correlated assets possible.
2) choose your portfolio allocation based on your acceptable risk. I personally would not accept to lose more than 40% of my portfolio, even if i stand to gain more than a 100%. Because if i lose my capital, then am out of the whole investment game in the first place.
Example: 25% crypto with high development rate and high partnership acquisition rate, 25% stable coins generating 8%~, 25% real estate or reits with low mortgage securities generating 4%~, and 25% in dividend aristicrats generating 2%~. Such a portfolio would cap your drawdawn (expected maximum unrealised loss) risk at 30% or 40%. But will theoretically have unlimited maximum gain.
3) choose your assets based on real world data. Financials, risk metrics, management team, history, development rate, partnership rate, community engagement, etc etc. Not on hype.
I can go on and write a huge post explaining how to really invest. Not gamble. And i still wont scratch the surface. BUT, If you dont learn how to invest money, EVEN IF YOU MAKE 10 MILLION, you will lose it as fast as you make it. I need you to understand that.
So start by investing coins and assets that carry high intrinsic value (read, not dogecoin), as mentioned in point 3, start by doing those. And make sure you apply point 1 if you dont want to lose 70% of your portfolio value by sticking to cryptocurrencies only.
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