Prepare for the worst on the crypto-market!
Such an attitude will help you save your money. Too many people come to the crypto-market without having a plan "B", with the hope of "eternal growth." Instead, they lose, get upset, etc.
When our expectations don’t coincide with reality, we usually experiences stress. And the bigger this gap between reality and expectations, the more painful it is for us.
That’s why it’s better to always have a plan “B” and not to rely only on your expectations. It means that when you invest a certain amount of money, you’d better think of two different scenarios:
As an example:
I have invested $10 000.
- Made х2. What to do next?
- Lost 90% of this sum. What to do next?
Are you ready for the both scenarios?
If not, then think further before you invest.
- What can I do in order not to lose 90%?
- How much money can I afford to invest so that to be ready to lose these 90%?
Etc.
And to keep your plan “B” ready, of course, too!
Compare two options:
a) I’ve lost $10 000.
It’s alright; anyway I have a current job with a monthly income of $10 000 plus some savings.
b) I’ve lost $10 000.
Oh shit! I gave up my job for the sake of the crypto, how am I supposed to provide for my family now???
It sounds ridiculous, but, believe it or not, there are really extreme cases over there!
As for the Buffett’s portfolio. The Ethereum exchange rate today shows that we have already approached and even crossed the lower level of the course from February 6. Then, one could observe the very bottom of that drawdown. The Ethereum exchange rate went down to $570. But on February 10, it cost already over $900.
Let’s see what happens this time. Where will be the bottom and when will we go up again? Today, we have purchased the Ethereum, though.
Purchased today: Ethereum (ETH)
Course ~ $ 570.30
Exchange: BINANCE
On which exchanges ETH trades