Did you wake up today, checked Blockfolio and wondered if THIS IS THE END?!
Are you constantly wondering if you should put more into crypto, cash out some, sell some coins, buy other coins, put it into ICOs or maybe btc or....
Can you sleep well at night?
All these are important questions which helps me diagnose you "failure to manage your risk". Some are in the last stages of despair and some have just caught it. We all have it to some degree, because Crypto markets are crazy and it's easy to get sweeped by all the madness. Before you know, you sold your car for a BAG of STEEM/BTC/ETH/SHIT.
Then the market goes down hard.
Now what?
Last day on the market!
Now what indeed.
I can only give you my very unprofessional take on this subject. I have asked a few smart people how this works for them and generally they all say the same things. Let's look at the top 3 things you can do:
Don't invest more than you can afford to lose
This is the golden rule. Don't lose your head and take a credit or shatter your savings to get into crypto and "not miss the boat". Yes, the opportunity might be immense. Yes, the profits might be huge and rapidly dwindling if you wait too much. Yes, it's the revolution and we are early.
but.
Yes, all this could go to hell tomorrow.
Look, I am a believer and very "bullish" on crypto as a whole. I never sell crypto basically because I believe in this and I feel like a traitor to move to fiat ( though maybe I SHOULD do that, see next point ) but this does not mean I am not a realist as well. Crypto is a very profitable market right now BECAUSE it's super volatile and uncertain. This is what most new people seem to forget. Especially if you joined recently on the craze, please take a step back and realize there are so many possible threats to crypto looming out there:
Government interference
Bugs in code we are yet to discover
Quantum computers ( yes, we are working on this but...)
AI
Failure to go mainstream and loss of momentum
Many unexpected things like a new better technology and/or who knows what?!
Look, all these have various probabilities attached to it. That's what risk-management mean: estimate your risk and then act on the estimation! If you think there's 10% chance that Trump will announce banning all the crypto by end of the year, you should do smething different than fi you think there's a 90% chance of this happening. Makes sense?
Most people don't take all this in consideration and eventually, when something happens, they ask themselves?
What were the odds?!
Well, what were?
As a poker player, please let me tell you, smart people make money off of your ass because you don't know the odds.