So lately, I have been seeing a lot of people diving into the crypto industry just because they feel the road is so rosy and somehow those who were not here in the bear market of 2017 claiming to be crypto experts just because the market is bullish.
I have been in the crypto space since 2016 and I have done for the most part most things crypto enthusiasts have indulged in. I have hodled, traded, staked and still writing for crypto up to date. I have traded both forex and the crypto market. So I guess I have a little experience in the financial markets.
The financial market be it crypto or forex is a risky market meaning you can lose a chunk of money within seconds and also gain a lot within seconds. I remember back in 2019, I made 50 dollars within a minute with a hundred dollar account. Within that same period, I made another 30 dollars with that same 100 dollar capital. Does that mean I am an expert trader? The answer to this question is No.
This brings me to the point of this post, the fact that trades have been going in your favour or has been going in someone's favour doesn't mean he is an expert in the fie;dr. In this post, I will be writing on some things you should consider when investing.
1. Know what you are going into
A lot of people invest in things without knowing what they are about to enter. For example, a lot of my people rush and buy coins like #DOGE because they see that it's rising however they don't know what the coin is about, the dynamics and the economics around the coin. The implication of this is that they dont know when to get out with profits or loss. This is the same reason why shit coins dump on a lot of people and you begin to hear things like crypto is a scam. The painful thing is you go on to hear things like bitcoin is a scam from people who know next to nothing about cryptocurrency.
Another consequence of not having enough knowledge is not knowing the risk and benefits of investing in the coin.
2. Allocate level of risk to whatever you are investing
A lot of people say forex, cryptos and options are high-risk business and so they prefer going to do fixed deposit where their money is insured. Others claim treasuries are the best buy. The truth is people determine their risk.
Every investor should be able to classify their risk and invest accordingly. I would prefer to classify my risk into high, intermediate and low risk. I put in very little for high-risk businesses and put a lot of money into the low-risk stable coins.
This is one reason why I decided to put most of my capital into dcity and #cub. That's also the reason why I provided liquidity for the cub-busd pair because I will have 50% of my money in a stable coin should cub fall which I know it won't.
3. Stick to your technique.
There is a lot of FOMO right now as regards whether to enter some coins or whether it's too high to buy. As an investor, you should have a strategy that you have put in place that will determine your ability to make profits. A lot of people out of greed go against their investing strategy and then get stuck in a dungeon of losses. In other words, make sure you take profit when you have the chance to and have a strategy that gives you profit most of the times.
Well, these are a few of the tips new investors should consider before investing their hard-earned cash.
Thank you for reading