If you are stressing out, not getting what you wanted, or ready to cry, don't worry, you can learn from all this, and become a better investor or trader.
So next time, you'll be on top of this.
Many investors would rather just throw the towel at the first failure or market downturn, rather than learning. And many crypto investors have already done that. Hence why the price and volume went down.
If you are still around, and still willing to learn and improve, then you are ahead of the curve, and ahead of all those other investors.
The smart investors who are able to ride this out, likely started off by learning from their mistakes, and likely lost money at some point.
But they picked themselves up, evaluated what went wrong, and devised a better strategy based on everything they learned.
It's evolution 101. Survival of the fittest.
My experience:
I've been in crypto for 9 years. I made a lot of mistakes early on.
I remember when Bitcoin was dropping to $220, and I was waiting for a drop below $200, that never came.
I missed out on nearly the entire 2014-15 bear market.
I remember when I didn't have any strategy, and kept having regrets and "should haves".
The strategy:
A strategy starts with asking yourself what your goals are.
So it's not gonna be the same strategy for everybody. There's no one size fits all.
Some people are more on the trader side of the spectrum, while other are more long term investors.
This is not the right strategy for everybody, this is just what was good for my personal goals:
1- A multifaceted portfolio
I got specific coins and specific parts of my portfolio for long term holds, that I would hold no matter what happens along the way, and other coins and other portions for short term trading.
I don't want to have it all on HODL. You never know what can happen.
I want to take partial gains to cover at least my principal (what I initially put in).
I also don't go all in on just one coin. I got a portion on the blue chip stuff like BTC, ETH, and XMR. And then some upside bets on alt coins.
I also got different parts of my holdings for moonshots, for staking, and for spending (I do sometimes spend my crypto). And of course I got my moons which I hold mostly for governance. Since it didn't cost me anything, I'm not selling them unless it turns into a big moonshot.
2- It doesn't have to be all in or all out.
I did a bit of a hybrid of a DCA strategy, with periods of accumulation rather than a real dollar cost averaging. So instead of accumulating or selling every months, I accumulated more during bear periods, sold more during bullish cycles. The bull market is where I focus on re-claiming at a minimum my principal. And the longer it goes on, the more I carve out small bits of gains.
This last bull run caught me off by surprise. I really thought it would go higher. So I didn't rack up a very big chunk of extra gains, so I only had a very limited amount to buy this bear market. Definitely not as much as I would have wanted.
So lesson learned. My strategy still needs improvement.
3-What to do with profits?
This is something I rarely see asked.
There's always someone who says "don't forget to take profits", but nothing about what to do after.
Do I just sit on cash and let it bleed out?
This is where the "goals" part is very important, and needs to be laid out, so you know where profits go to.
My goal was to take profits partially in traditional market investments, and partially returning those profits into the next bear market. Rack up battered coins.
Have you laid out your plan yet?
Everyone is gonna have a different strategy.
And the longer you're in this market, the more you learn, and the more you can adapt and have your strategy evolve.
And the better your strategy, the more irrelevant downturns are, and the more beneficial volatility can become for you.
Even if you lost a lot of money, you still have something very valuable, your experience, and what you learned.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments