Bitcoin Forum

According to finbold, Apple, Microsoft, Amazon, Tesla and Alphabet companies have lost a combined total of $3.4 trillion this year alone. These stats are only relevant to this post because I just want to use it to show that losses cannot be eliminated entirely.

While losses cannot be totally eliminated, it can be controlled and as well avoided to an extent. As a crypto trader one thing you should not do is leave your funds in exchanges. This cannot be emphasized enough. The least you can do is keep your coins in a decentralized wallet. The best is making use of an offline wallet.

There are common guidelines that are mostly overlooked but can be very beneficial if you adhere to them

Only invest what you can afford to lose
This saying is very common among gamblers. While investing and gambling have differences they also have similarities and this is one of them. It's too risky and even foolish to take your whole fortune into an investment when you know fully well you have nothing to fall back on.

Invest in Cryptocurrencies with long term potential.
Carry out thorough research of the project you are about to invest in. Do the work yourself too, don't just rely on speculations of other people because at the end of the day everybody will say what they think is right.

Try to have emergency funds
Emergency funds are funds kept somewhere else so you can fall back to them in case everything else fails.  Like i said earlier, losses cannot be 100% eliminated so having an emergency fund is like having an insurance and it should be able to take care of you for like 3-6 months till you get back on your feet

Diversify your investment
I know some crypto enthusiasts will say most of your money and investment should be in crypto because crypto is the future ( well I believe crypto is not just the future but the present) but I am not of that school of thought. There are other things that are what investing it aside crypto. Among all the investments available today, crypto is on the list of the most volatile. While this can lead to heavy profit, it can also lead to heavy losses.

Do not use Leverages (Especially for those new to trading)
Leverage are borrowed money which you would payback with a fee after investing with it. This is one major reason a lot of traders go under and are drowning in debt. Despite the relatively huge profit that can come from it, I don't think it is worth the risk.
Read more about leverage here.
https://b2broker.com/news/what-is-leverage-trading-in-crypto/#:~:text=in%20an%20example.-,What%20Is%20Leverage%20In%20Crypto%20Trading%3F,100%20times%20their%20account%20balance.



Trading in the crypto market when everything is flourishing and the charts keep going up is easy. The trouble comes when the market takes a downturn, that's when it gets frustrating. It gets worse if the market keeps going down for a prolonged period. There are a couple of things a trader can do in a bear market to try and get some good out of a bad situation (afterall, if life gives you lemon, make it lemonade)

Buy the dip
A bear market is the best time to buy the dip. It is when you can buy different coins at relatively lower prices. This doesn't mean you can buy any coin available. No, don't do that. Like it's been said earlier, invest in cryptocurrencies with long term potential and also coins that have potentials of going up again.

Now you should use the “dollar-cost average” (DCA) strategy to invest. DCA is initially investing a certain amount of money in a predefined asset and at predefined intervals. Instead of taking your money and investing in a project one time, you divide it into smaller sums that can be invested at different intervals.

For example, If you have $5000 dollars to invest in a particular coin, you can divide it into five and invest $1000 periodically or divide it into ten and invest $500 intermittently.
You can read more on dollar-cost averaging here
https://cointelegraph.com/news/what-is-dollar-cost-averaging-dca-and-how-does-it-work


Your investment should go to different crypto assets.
We talked about diversity in your investment previously. Now the part of your investment on crypto should also be diversified. Don't just stick to one coin.

Do not panic
Keep a cool head (this is easier said than done). It may sound simple but its one of the most difficult things to do in a bear market. When you panic in these situations, you make poor decisions and make more losses. The crypto space of social media are with FUD so be mindful of what you take in.


https://www.cryptotradingbook.com/how-to-avoid-losing-money-in-crypto/

https://bitpay.com/blog/crypto-bear-market-strategies/

All your points don't seem new anymore. These are some points that have been very commonly discussed but many seem to fail to do well. You may know that not all traders are able to control themselves not to be greedy, they will panic when there is a big correction and that's not just once.

After all, self-control and emotions also have to be good points to profit in this very volatile market. You must have good management which will help you in the end. Analysis is also needed, it will be complex.

Although all points have been discussed on the forum before but nonetheless thanks for the reminder.
For emergency fund I always advice new investors to have some savings in fiat, even if we detest it, we can't do away with it just yet.
Concerning diversifing into other coins I stick to bitcoin because to me other coins just follow its trend both in bearish and bullish period. Although there are other coins I might consider worth investing but they are too centralised for my liken (most especially the top 2 altcoins;ETH and  Bnb

Mining is the only way to avoid future loses.
When buying there is always thew risk, that is true for most assets.

In crypto, this is not diversification.

All cryptocurrencies basically just follow bitcoin price with more volatility.

Just take  a look at this old post of mine:



A true diversified portfolio has many different classes of assets, such as ETF, Bonds, stocks, REITS, Bitcoin, Metals etc, in different geographic locations if possible (ETF from US and Europe, for example)

The simplest way to avoid future losses in crypto - stop doing it.  ;D
Just kidding here  :P
Just don't look at crypto as your next way to 'get rich overnight' because that will not happen now, those days will not be back easily. However, there are still some multi-X coins that can give you 10 or 100 or 500x, but not like btc that gave its early investors over 600,000x profits.
Diversification is also good, but times are tough and you can only let your money work when there are opportunities for your money to increase in value after investing it in different ways. Do not solely depend on crypto only, that was the worst mistake I did once and did not do any IRL job for few years, though I lost too much including my time (lost a lot of time searching for opportunities in crypto while I'd have utilised it to do a job or bring up a startup) and opportunities in crypto (if I'd have saved money for these times when crypto is down, that money would be useful in investing in tough times, because we all know that all these coins will increase in value today or tomorrow).

This advice goes against the topic of your thread as all this type of so called "diversification" will ensure future losses. Stick to bitcoin.


There's no much sense it what you wrote. You do realize that mining equipment costs money, and so do the electricity needed to run mining machines?

I don't like this kind of writing, it seems to me forced with the reason to collect some merit. also, what is the purpose of just copying from other pages?
For example, which cryptocurrencies have long-term potential (except Bitcoin)? therefore, controversial advice for beginners, which they may not even understand.


just a few lines later, you advise investing in several different assets, without seeing a meaningful explanation of what quality long-term options are and how to recognize them


??
how the hell can a newbie who came to the help section know when it's a dip market, even the most experienced users cannot claim that with certainty.

I honestly do not understand why there are too many newbies lecturing and posting advice about bitcoin, crypto, investing, and trading. We have plenty of it already. I think you guys can earn better merits if you stay true to yourself. Some newbies are even given merits by asking questions, especially on the technical side which is actually cool and more informative to other newbies since good standing and experienced people here will be the ones giving answers.

Yes sure there is mining equipment, All investments cost money and a total loss is not 100% excluded. You can buy BTC or any other coin when they dip still there is a risk that those dip even more. In mining you get your money over time, at least so it goes since BTC started.


A 60 year old trader in its 1rst post has less credibility, the biggest issue in any given forum are its members, many still live around 1800.

You are so wrong about this, when it comes to making money the risk of losing money will always be present, I used to be a Eth miner before the merge months back, I have lose money a few times through dead components, either Graphic cards or Motherboard, they just stopped working.

If you are buying Bitcoin, you are buying a baseline performance of the whole crypto market, because altcoins always follow big Bitcoin movements. Nothing bad is going to happen if you only stick to Bitcoin, because the chances of any other coin overtaking it as the leader are slim.

But if you're buying any altcoin, you need to be ready to accept the loss, because altcoins constantly die. You never know for how long they will last, they could live for years or just a few months or weeks. But the end tends to be always the same.

I don't agree if you say mining is the only way not to lose.
Even in mining there will be a risk of loss if you can't calculate it properly.
In mining we also have to have good equipment and it's not cheap.
Not to mention the consumption of electricity that we will spend on mining.
As well as many other variables that must be considered in mining.
Every way to earn in crypto certainly has its own risks, friends.

How did you know this? If you know what miners are going through you might run away from crypto mining.

They make reasonable profits only in a bull market, the mining equipment can spoil at anytime even if they are well ventilated, and it takes years to make back your return of investment from mining, some miners are mining at lose hoping that one day the coins they make will surge in price..

Can you do all this? They go through a lot, some miners have to hold for more than two years before they can sell, you have no idea bro.

Yes stop doing it, which means stop losing. Great advice, I need to write this one up in my notebook of golden thoughts :D


Diversification sucks in crypto because you're still in riding the same train just moving from the first car into the second or third. The ones that are closer to the end can detach but the train will keep going. Bitcoin is the locomotive, it can't detach, but all the rest can get left behind. I hope you understood the analogy. Stay with the locomotive guys!

This is very important point in cryptocurrency industry, always invest what you can afford to lose due to some risk that cryptocurrency involve. So don't be blind by aim of becoming richest and invested all life savings.
As for me long term crypto investment is the best strategy   due to halving block period that do occur very four according to history of Bitcoin,and I also found it as stress reduce in crypto compare to the short term trading which involves some analysis.but the only thing long term investment need is patient.

If seriously you want to enjoy crypto investment you need get some savings apart from what you have invested to no course any distraction to your investments, especially like selling some of your coins when you are in need of money and is period of bear market, that action will make loss and start panicking which may lead someone to any action.

In some countries electricity is dirt cheap and life is much cheaper as in developed countries.

Personal experiences cannot be translated into all people.

Don’t put yourself under much pressure to get merits. Keep it simple and concise and the merits will come. There are those who reward lengthy posts with merits, I however do not like these wall of text with no new information. All these are repetitions of what has been discussed here countless times. I’m surprised there are more than three url links to different articles. Well it’s better to add the sources than pass it off as your own. I wonder how much of this wall of text was your own opinion.

Mining is totally different feild in Cryptocurrency which need huge investment to install, which is seem like not affordable for any small invester. Mostly big companies afford it and they install mining plant on big scale.
While trading is affordable for any small invester, so in order to avoid loses use proper buying streategy with DCA. While other best option is to buy bitcoin and hold it for a long term which will avoid your loses too but give you profit also.

If we are to check and explain deeply the losses in cryptocurrency investment are not actually caused by cryptocurrency because the main foundation is caused by a lack of knowledge, and impatience because if choose the right investment ^BTC the loss is only temporary. Meanwhile, in another word, I don't consider it to be lost since the market always makes a comeback.

Actually if you are talking about diversification in your portfolio in crypto market then I would disagree with you on this point because investing in shitcoins just to diversify your portfolio is not at all good option here.Moreover if you are saying assets then as @bitmover said above it should be of different markets like stocks, bonds,crypto but here what other long potential coins you have in mind else then bitcoin?

These threads try to educate newbies with all those points copied from other sources and then converted into long wall of text with highlighting points but fail to make the exact point.This section is more of providing some useful information for members and think this thread is more suitable in trading discussion if you are giving such advice not here.

But for me bitcoin is the only potential coin here with long term holding benefits as you state but suppose I put my money of $1000 into 5 different coins and then a crash comes you know the invested amount in 4 coins other then bitcoin will be gone and the evidence can be found that top -10 on CMC have always shifted but BTC remain the king so why spread your eggs in different basket when you can have them all in one without being broken? You just need to understand bitcoin and true means of decentralisation and you will never come up with these points.

Some of your points are not completely correct, others are not well portrayed.

If you are speaking about avoiding losses in crypto and you fail to add the aspect of personal security, the job is not complete. Avoiding losses of your crypto, also entails developing a consciousness that as you can face losses online, you can also face losses from offline elements. You must try to identify and avoid anything that can lead to loss of your crypto physically. Be careful with people you tell about your crypto investments, and be careful with the device that you store your crypto in.

Obviously, all investments in cryptocurrency on a bearish trend eventually lead to a meaningless hold of coins in your wallet for many years. Wait for it to finish and make purchases when the bull run has already become confirmed. In this case, your investments will bring you profit faster.

Some people believe that crypto currency such as bitcoin is bubbled in the market and it can drop anytime where other people thinks that it depends on user for price's upward and downward. Share your thoughts. I am learning!!

Everything that OP has discussed has been a consistent reminder every now and then, but seems everything is still too difficult to make it happen. And without patience and resilience, I guess everything significant we made at first will never be worthy anymore. But one sure thing with crypto, it can bring out the best profits and change your life, but it can also be a source of worst regrets if you don’t have the skills to make it work.

This is a good strategy but not all diversifications are good. People are taking it literally when you tell them to diversify and many are doing it wrongly. They diversify based on what they've just thought of without properly doing research so, they ended up buying all of those shitcoins even if they haven't done DYOR on it. On your case about diversifying in other investments, it's actually a good one but you really have to know first where you're investing.

Invest only what you want afford to loose!
Well, that's one way to go about it but, we must realise that, this what we can't afford to lose at an initial stage often accumulates to what we can't afford to loose. That's the reality of it although, it remains a good strategy towards investing as a whole.

The best strategy towards avoiding loses is to ensure you buy bitcoin or invest in a better/verified crypto project after DYOR, use proper wallet in saving your coins other than using exchanges as a few beginners do. The FTX situation is a good enough lesson for everyone.  Arm yourself with these investing tips and be safe about your investments.

These reminders aren't new anymore, OP but still thank you for posting. This should/might be a reminder for you too since you did post it or done your research.

Well, that prediction/beliefs was already happening a long time ago and it does still exist to so many people out there who I think has a close mind about how cryptocurrency or Bitcoin works. They did not make their research they just follow what the others been saying it's like voting for what the majority are doing despite of not enough knowledge.

But I think it made sense to them this time after Bitcoin reached the ATH 2 times every halving. That just made them to invest and practice on how to hodl despite of the market condition but we still can't avoid that there are still weak-hands out there who can't hodl their investment firmly.

That is a very good point mate. When I was introduced newly to Bitcoin my greatest fear was when I was told that if your bitcoin lost no one will be accountable for it. It is your personal duty to protect your coin. Even when they told me the about of bitcoin that has lost forever and cannot be recovered, I was afraid.
I was also told to be careful when making transactions so that I will not send to a wrong account that no one will refund me. But this days people are not very conscious about these rules.

I agree, and the best recommendation right now is bitcoin.
The most viable reason for bitcoin is that it has a real use case as a currency. Bitcoin was designed to be a currency, but you can take advantage of its price fluctuations in the long term. Ignore more altcoin even if they are popular, bitcoin is better even though you can diversify assets.

I'm sure someone who owns bitcoin in the long term will have no regrets. I mean in terms of good potential, increased adoption is to be expected and we can expect a 4 year cycle to provide investors with decent returns.

With my first time reading this one, I thought this should not be included. But I realized that it's a preventive measure to avoid future loses in terms of losing money that is important to you - with this the value of the money becomes greater (...a $100 that you cannot afford to lose has more value (for you) than a the time when you can afford to lose a $100).

Not new but anyway thanks for keeping us reminded OP. Well, with trading comes with losses too and that will always be inevitable no matter how brilliant and smart our strategies are. However, with self-control and patience in all aspects, and not being greedy even when situation requires it, and having faith with the coins we trade,i think that will also help us prevent some future losses.

This is debatable because we don't exactly know what potential projects that will actually survive and bright inn the future. Sometimes, some projects claim that they are potential and promising projects, but in fact, they are failed only in some periods before listing. Or although they are top coins, it also doesn't guarantee that they will always survive. For me, if this is for long term, Bitcoin is only the best one to hold for long term investment.

It is a must. In fact, before we invest in cryptocurrencies, we must first have reserve funds and savings for something that is unexpectedly going to happen. So, our position is safe to invest. For this reason, always use free money on an amount basis that we can afford to loose. Because, crypto investment will not guarantee 100% that we will always be profitable.

Dude, we cannot totally avoid the chance of future losses. We only can prevent or minimize them by applying some strategies. So, all your tips won't guarantee us to avoid future losses, it only minimizes the chance of losses. That's why always use extra money (money that affords to lose)!!

Don't you know that mining requires a lot of fees?
There are many people who stop mining because they can't get enough money from mining. Too much spending on electricity and equipment, while BTC price is too cheap now.

In what country electricity is cheap?
Tell me, please!!  ???

How can you trade, then? How can you create orders and wait for them to get filled?

Anyway, if you really want to avoid future losses in crypto, avoid trading altogether. When you trade, you should be aware that you are risking your funds. You could profit, but you could also lose. Not to mention that by merely depositing your funds in a centralized platform to do the trading, that is already enough exposure for a possible loss. Even if you're making gains from your trades, your platform could collapse anytime, it could get hacked, somebody from the inside could steal your funds, your account could get blocked or frozen, and so on.

Somehow I really want to laugh at this question, but I can think of something.
The scenario is to make a deposit - buy - withdraw funds to the wallet - wait for the desired price to be reached - make another deposit - sell them - withdraw funds again. And so on. ;D

Basically the recommendation not to keep funds on the exchange is for those who do not trade with their assets. I mean they are investors or long term holders who still rely on a centralized exchange as a repository of assets. If they are traders, then to some extent they can keep their assets on the exchange at their own risk.

What's so funny about it? Anyway, what you're talking about is not the kind of trading I'm referring to. Although somebody who buys and sells is still technically a trader, like when somebody sold at $60,000 and bought back at $20,000 and plans to sell at 100,000, I'm referring to day traders, those who are actively trading day in and day out, those who have tens or hundreds of orders in a day in different pairs. Your scenario simply isn't possible. 

My point is that if you're really a trader, you have no choice but to risk leaving your funds in an exchange.

All your points are not new anymore but its still need to be learned. Are you a crypto trader?

If you are trading is high risk job your analytic can 100% always true but if you good at it you can still make decent profit, if you are futures trading loss is inevitable so I don't do recommended that. Trade spot only is way better and keep your emotion stable since this is one greatest of enemy when it comes to trade

Avoid investing with borrowed funds and nothing like having total knowledge of the project you are going into

Becoming a long term holder, before you buy your first crypto, ensure you set your mind to become a longer-term Holder
Lastly staying of exchnages will help this are the major ways people make losses in crypto.

Venezuela for once. A month is around 2$ And that is this year. From 2020 to 2022 you paid 2$ per Year.

You can have it also at no cost putting up windtubines and solarpanels. No need to apply for anything.
Downside is harrasment from Law enforcement, and of course the dark side of criminals.  

Losses are indications that one is trading the market at a degree of volatility. No matter how much a trader attempts to erase losses from his or her head, they will always happen. In order to succeed with cryptocurrency, you must be willing to take significant risks. The greater the risk, the greater the potential rewards. It's a straightforward tactic that has been used for almost ten years. Nonetheless, I made every effort to avoid being caught in the bear season when it arrived and took precautions to retain my cryptocurrencies and minimize my risks.

It's easy when people understand long-term investing, but if someone doesn't understand the journey of bitcoin, then when bear market conditions come they will panic and make bad decisions. Investing in bitcoin is quite simple, stay calm and don't panic because there is nothing to worry about, moreover bitcoin can be maintained in the long term until it reaches the next ATH, social media and FUD have developed negative things about bitcoin, but this has not affected the outcome either.

Investing in the long term of Cryptocurrency also does not have a clear understanding, because it is still general in nature and does not mention more specifically like bitcoin. I also disagree with the mention of investing in different crypto assets, because the only one that has proven to be the best asset is bitcoin.