How To Lose Money Trading Crypto :/
At this point in time, any investor of cryptocurrencies have at least one story about a loss in the cryptocurrency market. You can obviously make a lot of money in this space, but you should know that losing huge amounts of money can also happen.
I have found 3 reasons that made me miss out on some gains in 2017!
Not Selling After a Pump
There are some coins I bought that were pumped very high for a few days before losing 50% of their value. This taught me to be selective with my hodling! You should only hodl high caps or some selected few coins that actually have a one of a kind project. Never be afraid to take some profits out!
Not having the confidence to take a risk
I often found interesting low caps coins when they were very low and did not invest on until i saw them moon. I am very conservative with my money and so far that has got me to high places. However, having the confindence to invest on the early days of bitcoin is what made a lot of people millions of dollars. What you should do is always invest a small amount of money that would not hurt you if you lost it in any coin you have a small doubt on!
Underestimating bitcoin
I remember when btc was about 4000-5000$. I believed it was too late to make profits with bitcoin and started investing in altcoins such IOTA, NEO, LITECOIN, etc. While those investments did well, I believe that not putting more fiat money into btc was definetly a mistake on my part. Now, I always have a set ration of crypto. I always have 40% of my portfolio in bitcoin, 40% in high caps and 20% in mid to low cap!
There is a ton of other ways you could lose money in cryptocurrencies! For me, those 3 are just what affected me the most.
Thanks for the read and good luck in your trading :)
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OMG! This is SUCH an AMAZING post! Thank you for sharing! I gave you a vote!!
Thanks you! Comments like yours is why I love the steemit community!
3)How was underestimating BTC a mistake if you should have made more by investing in those 3? You must have got in at the wrong time (well vs BTC), which is everything in crypto. I bought IOTA and NEO and if i had chosen BTC i would be no where near where i am now. My entire portfolio (over 20 coins) is doing better vs BTC
Of course you could make more money by trading altcoins than by holding bitcoin, but it sure is a risky way to go. I believe that everyone should hold a couple bitcoin to minimize that risk!
Thanks for the comment! :)
Oh i agree, i think people should hold some of either BTC or ETH since i think they will be the backbone of the crypto space for the next little while. The major coins are also the safer bets and that is the majority of my portoflio (top 20 coins). If your willing to put in the time to research i think its a good gamble to throw some fiat to the smaller market coins - but mostly just to take the profit to add to the bigger coins.
If you don't have the time then for sure stay with the big boys.
Best of luck
Very good read! I do not invest in bitcoin only because I do not have the capital to make it worth paying the fees along with it. I have made the mistake of not selling during a pump and have kicked myself for it but I still believe that the coins that were pumped are not done with their growth and will attain that price naturally after a while. Cheers!
im 50% in BTC, 10% in LTC 10% in BCH, and 30% in small caps... Very small caps.. maybe im to conservertive..
thats a lot of BTC
That's a nice portfolio! I hope you the best!