[Guide] Read this if you plan to invest or trade

[Synchronice]

It's really terrifying to see what happened around the Terra Luna, the recent slump pushed it out of the top 10 cryptocurrencies by market capitalization. A lot of people lost unbelievable fortune and the results of this loss are shocking.
With this guide, I want to help you minimize the loss and show you the other sides of investment & trade to improve your critical thinking and make you more attentive.

Investment
Probably this phrase isn't new to you: "Never invest money that you can't afford to lose". But the problem is that if you aren't rich, the tiny amount that you invest is not significant to improve your wealth.
So, you may invest more but the N1 rule is: Never take a loan for investments, never ever! This is the problem that I see nowadays, people take loans backed by land, house, truck, car, etc and they are unable to pay it out of their pocket monthly, they make hopes on investment gains that are 50/50. This is a huge mistake! If you decide to take a loan and make an investment (risky), make sure that you have a stable job with a stable or increasing salary and very good health/auto insurance plans. This way, if anything bad happens to you in life, your insurance will take care of the costs and if your investment fails, you'll be able to live affordably and pay the loan.

Terra Luna should be an example for you to understand that risks exist, even if the coin is in the top 10 and widely used. People may advise: do not panic sell. But I think it's optimal to follow the crowd psychology and sell your assets as soon as possible to not be the loser. If the situation normalizes and stabilizes, you can always buy back and probably you'll explore a better deal.


Trading
1. Trade on centralized exchange carries risks. When you deposit your coins on exchanges, you no longer have access to them, from this moment you depend on exchange.
Exchanges can or can't but still do:
Ask you for KYC documents
Ask you for additional information
Ask you for the source of money
Freeze your account
Trace your

2. Other risks:
Exchanges can get hacked and you may lose money
Someone will hack your account via social engineering, spam emails, viruses, trojans and malware. Crypto exchanges aren't banks and you'll never be able to fix the mistakes. Once gone - gone forever.

3. Leverage & Margin
Trading with increased Leverage, Leveraged tokens & Futures is very risky, especially when the leverage increases.
Let's make it clear:
If you choose 2x leverage, this means that every time market moves by 1%, you either profit 2% or lose 2%
10x Leverage - every time the market moves by 1%, you either profit 10% or lose 10%
50x Leverage - every time the market moves by 1%, you either profit 50% or lose 50%

Leveraged tokens don't follow the actual market and instead of profit, they can sometimes bring significant loss. For example, check SushiUP and SushiDOWN on Binance.

The futures market doesn't always follow the actual market and differs from exchange to exchange. Sometimes there are sudden spikes that quickly stabilize but are enough to make you lose in seconds.

I'll improve the structure of this thread and add more significant advice and examples.

[CryptoHeadlineNews]

If you choose 2x leverage, this means that every time market moves by 1%, you either profit 2% or lose 2%
10x Leverage - every time the market moves by 1%, you either profit 10% or lose 10%
50x Leverage - every time the market moves by 1%, you either profit 50% or lose 50%

Wow! This is really informative, becaue not until now i never knew this is how this leveraging concept actually works. But thanks for throwing more light on this.
One mistake people make and will keep making is taking loan to buy a coin with the mindset that its value will rise then you sell to make profit. But is actually never works that way because of the volatility nature of cryptocurrencies

[Marvelman]

This is really good and useful guide to learn the basics and understand different types of trading. Even though there are more detailed guides available on various websites, but this one is really good for getting started. It's basically a brief version of the stock market basics and something that you should definitely read before opening your account and start trading.

[Apocollapse]

When you deposit your coins on exchanges, you no longer have access to them, from this moment you depend on exchange.
Exchanges can or can't but still do:

You have an access to centralized exchanges, but you're not have full 100% control over your coins.

Ask you for KYC documents
Ask you for additional information
Ask you for the source of money
Freeze your account
Trace your

This easy to solve by using P2P platform free KYC e.g. Bisq, hodl hodl, localcryptos.

Exchanges can get hacked and you may lose money

This is why you shouldn't hold your coins on centralized exchanges, just use to buy and sell your coins.

3. Leverage & Margin
Trading with increased Leverage, Leveraged tokens & Futures is very risky, especially when the leverage increases.

Honestly spot trading is the actual trading and futures/leverage you're trading with a contract and not the actual coins, I used to think futures/leverage trading is scam, change my mind.

[cryptoaddictchie]

Trading the current I think is a little risky. The reason I say this is because I am a trader.Luna is a good token so almost everyone trades with lunat but suddenly everyone eats a big loss.No one had any idea that Luna would be dumping.So you need to know about tokens well while trading.

Its being traded right now due to massive hype and its the talk of the town as of now. Of course something this cheap is kinda a dollar sign for some investors or traders who saw luna when it reaches 100$ and more. Of course thats enticing but they didnt know that there are some changes like the token supply and circulation which was also a basis for a good marketcap. They wanting it to reach at least $1 but with that huge supply, its quite impossible unless there is a fast burning mechanism for it maybe Im not sure on exchanges how does it affect.