When someone looks at the crypto market for the first time, the first reaction you will get is that it is too volatile. That's true. The crypto market moves up and down pretty fast, you cannot deny that. So is it safe to invest in cryptocurrency in spite of seeing this level of volatility?
You talk to other people about what blockchain and cryptocurrency offer and how they can invest in it. They ignore it because it is too risky and highly volatile. Whether they will get a return from their investment, that's their biggest concern.
Mainstream media picks up every single negative thing and propagate it to their best level so that whenever people hear about crypto, they get scared. The recent LUNA and UST crashes are big news. Yes, many people lost their savings, and some people did extreme things because they cannot take it anymore.
This is terrible! In a couple of days, one of the top ten cryptos in the market cap went to zero. The first thing is, when you invest in crypto, do not invest more that you cannot afford to lose. I'm sure that we hear about this. But do we follow this when we put our money in crypto?
You hear stories like how people take borrowed money from others and loans from banks, then invest that in crypto. Later, they lost their money. They are in big trouble financially. They lose their home and literally become homeless.
If someone sticks to the first rule,
Never invest money that you can't afford to lose.
no one has to see this terrible situation. If you are an investor and know how to invest, manage your risk, where to take an entry, and when to take profit and exit from the market, you can follow your strategy to invest in the crypto market.
If you have no experience or you are new to crypto, no worries. You don't need to think about quick market movements. You can just do Dollar-Cost Averaging(DCA) and accumulate crypto over a period of time. In spite of the aggressive price movement, Bitcoin price goes up over a period of time. So if you invest and HODL, you can do better in the long run.
One thing that can hurt you most is, investing in something out of FOMO. Don't get into FOMO and put your hard-earned money somewhere to make fortune in a short period of time. Most of the time, the opposite will happen and you will not like the outcome.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
I'm sharing my opinion. This is not financial/legal advice. Do your own research and analysis. Then make the decision that is good for you. I will not be liable for your action.
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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.
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The truth is that many social media have put too much emphasis on the fall of LUNA and UST, which is understandable given the importance of that crypto and its project and environment. And it is certainly true that many people lost all their money by having it invested in said project; but we must know that all cryptocurrencies (although investing in any crypto has its risks) are not the equal to LUNA, and that what LUNA and UST has happened to them, does not mean that it will necessarily happen to others (although nothing can ever be ruled out in this area).
It is also true, as you said, that when investing (and specially when we talk about cryptocurrencies investments), we must put money on the table that we can afford to lose; and this is something that, due to greed or inexperience, many times people forget.
Finally, excellent post. Greetings.
Sometimes we learn lesson in a hard way. Losing money does not make anyone feel good. But if we learn from it and don't make the same mistake again, the payoff can be amazing!
Thank you @piensocrates for taking the time to read my post and sharing your thoughts!
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Very true! Greetings!
Everything has its own risk and I don't think anyone entering crypto doesn't know that it's full of volatility. In a way, it's similar to buying penny stocks in the stock market due to the wild swings. Just do your research and make sure you are up to date with the people shilling the project and hating the project. It's better to know both sides before making a decision.
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Yes, when people buy penny stock, they expect a big move. They think it would be easier to make money quickly investing there. I like the way your draw similarity between penney stock and cryptos especially initial thoughts that comes to newbies mind.
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im waiting for a dip before I invest cause after a dip market usually reverses and you might make a profit
It depends. Most things will rebound but investing in a dead project probably won't lead anywhere. So it's best to make sure that the crypto you buy is something you don't mind holding.
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agreed its best buy crypto with an active project and community
It is difficult to tell what support will work and the market starts bouncing back. The bear market is the best time to accumulate cryptos. And you will not feel like you missed the train when the market is on the uptrend in a bull market. :)
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agree but we need to be careful when investing as you see luna went to 0
I think HIVE is a bit different, given it is part of a connected ecosystem, value is retained - and, ultimately, most people's HIVE stacks have been earned from blogging. It's a bit different to working the 9-5, and losing investment. I see my HIVE pile as part of my investment mix, but if it went to 0, loss is largely time.
Hive gives an opportunity to anyone to get involved in crypto without putting your money out of your pocket, no matter where they live. You invest your time and effort here on Hive and accumulate HIVE in different ways.
Again you can diversify your portfolio and reduce the risk. I think it is a blessing what Hive offers and how you can grow and explore.
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agree
hive doesn't have that much of a risk as we see the hive going from 0.4 to 1$ pretty often and a lot of have stake in it also hbd is not like ust
That's why selecting the assets is one of the most important things. Otherwise, no matter what strategy you take will not work. People who did DCA or bought the dip when LUNA crashed lost their all money, DCA cannot save you if you make mistakes selecting the assets.
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agree how much you lost I didn't buy lots of luna but was planning to but I did have around 5 luna staked
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