Advice on how best to protect your capital

[Ethan Sanders]

The best way to protect your capital is to diversify your investments. Not only Bitcoins, even not only cryptocurrencies. I dream to have at least one real estate asset in my portfolio.

[South Park]

Research before investing. I agree with the author, in crypto when you are a newbie is best to think that everyone is trying to steal your money. It'd make an individual more cautious and smart.

Read. Read. Read.

Read good books on money management, especially microeconomics. Don't follow follow people's opinions, follow your guts.

Very few people read books about money management despite the fact that if you used a random entry point you could still make profits if you had a solid money management strategy, it seems everyone is obsessed with the perfect moment to enter the market or how to select the right coin that is close to skyrocketing, so by far the best way to protect your capital is with money management, however I do not agree when you say that we must follow our gut, we must follow our strategy and if you still do not have one then spend the time needed to create one.

[Muffinmanlet]

Keep it in government debt. Safe and gives you a steady return that beats the yearly inflation

[shoreno]

The best way to protect your capital is to diversify your investments.

Diversifying your capital isnt protecting them from loosing because when you diversify , your only spreading your capital on different investment assets and the value of those assets can still go down   .  if we want to protect our capital the best way ,  we should only keep it on a safe place like on a vault or on a hardware wallet if its a crypto based but then again the value of our cryptos can still fluctuate so better if you will convert them to fiat first if you will not use them imediately  .

[iMark]

You missed to say that patience is the key to everything. Its not applicable only in trading but if you have patience, more opportunity awaits. If you notice for examole a project which opens with a good offer, you shouldnt fall on it at once. You should have patience to dig more information about it so that you can prevent losses from falling into scams or unproductive projects.

Agree, patience is not only applied in trading, but also many things that are included in crypto investment. patience will make you more calm in making choices. it will make your calculations and analysis more effective. than panic which will make everything that your analysis become useless

[Findingnemo]

For the people who cannot afford much money to lose for the new scam projects just stick with the exchanges no need to go with ICOs and their high risk.

99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.

[timerland]

Very well said advice. The biggest and best advice is about being diligent, and also being cautious about any new investments. We've seen how scammy and shady things could get a year or 2 back when the scene was littered with scam ICO projects. If you are unable to research these projects effectively and are still unsure about new investments into these projects, just say no. You should be going into investments with not a single ounce of doubt, and if you can't do that, I'd recommend you to avoid investing in that industry or investing altogether.

The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.

Also, one thing that people don't seem to understand is that leverage and margin trading is a double edged sword - you can flourish by it but a sudden move in the market while you're leveraged all the way up can leave you exposed.

[Kemarit]

The ironic thing is that as much as we really give good advise to those newbies around, they still fall for the old trick here. I thought that the market will really improved this year, but it was not the case. Scammers are still on the loose here in the ecosystem and many are still being victimized by them.

Good thing is that we won't stop giving them tips and good advise just like what the OP has share. And I do hope that beginners will take the time to read and educate themselves.

There are a lot of bad actors here, just one slip and your money all is gone, don't be another statistics. Used your common sense, and I'm sure if will save you time and your money in the long run.

[TheCoinGrabber]

Do your homework, yes but it also doesn't hurt to ask for opinions, especially from people who are more knowledgeable than you on the topic.

Another thing to watch out for is over-enthusiasm. If you notice yourself being too excited about some new prospective investment, sleep it out and make the decision the next day. You might find that it isn't really as great as you first saw it.

[Coyster]

The ironic thing is that as much as we really give good advise to those newbies around, they still fall for the old trick here

They fall for such tricks because of greed and impatience, as far as I am concerned, greed is the major causal factor of scams, paltry knowledge also is another factor too, when newbies refuse to read and learn from threads such as this, it leaves them open to scam.

99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.

It's still amazing how people still invest in icos/ieos, to me it's like a case of throwing your money into the ocean, hoping it does come back to you.

[MonsterV]

A pretty good suggestion for a beginner, despite all the scams that occurred last year, I think this year will be a good year for investors. But keep in mind that scammers will always find ways to scamming us.

Very well said advice. The biggest and best advice is about being diligent, and also being cautious about any new investments. We've seen how scammy and shady things could get a year or 2 back when the scene was littered with scam ICO projects. If you are unable to research these projects effectively and are still unsure about new investments into these projects, just say no. You should be going into investments with not a single ounce of doubt, and if you can't do that, I'd recommend you to avoid investing in that industry or investing altogether.

The best portfolio is one that is diverse. Not just in crypto, one should also have traditional investments outside of crypto so it covers all of their bases.

Most of them are doubtful but due to something like being supported by a well-known vendor or whatever, they have changed their minds. I strongly agree with you, not to invest if there are still doubts, even if it's a little, it's better to invest with confidence. The problem is that not everyone is able to be patient waiting for a good project, they prefer to invest quickly and profit quickly but ultimately sad.

[barbara44]

The best thing that we can do is always be careful when we want to invest in one or more project, only use the money you can afford, and don't use too big money if you are not sure, or you are sure that the project will be successful because you never know if that will happen or not. Always search for more information about the project so you can get additional information which will help you to decide. All in all, your tips will help people to choose, and they can know what they need to do before they invest.

There is no way to know the chance of a project surviving or not even when they look very good and done some hype about it. It all depends on the strength of the team and also depends on how far they are willing to go and never to get discourage about the project no matter the storm that they face through it. So the best way is to test them first by using the money that will not make us hypertensive, ten after we have tested the project, then we can gradually add more money to it.

When I first got to know about bitcoin, I just put some money in for and waited to monitor the development of the project, it was until I became sure of my capital being safe in bitcoin that I started putting more money into the market. So like you said, one of the best ways to protect the capital is just to ensure it is in the market of a strong crypto.

[reality18]

Protecting ones capital must start on how the individual handles the capital in the first place. Also, one must learn how to make the right decisions as to which coins to invest in order to earn profit. Diversifying ones portfolio reduces the risk of losing ones capital to a single project/coin.

[Ridwan Fauzi]

Seems like this thread should be move to beginner and help since the content mostly aimed to newbie who have intention to invest in cryptocurrencies.

I don't have any idea for those people especially who jump into cryptocurrency is caused by hype or rely on someone's else suggestion. They are willing to spend money which though they didn't know the place itself even they didn't know how to take a little risk for their investment. Only store their money and have an intention which store their money on the coin they will get a huge profit only for short term investment.

Whilst, the movement price of cryptocurrencies never up constantly, there is a time for the price meet a correction even if I see when the correction came the price will fall drastically. This is what I worried for some people who didn't know about cryptocurrency. They will sell their investment in lose situation and got panicked of it. Although I have confident if they choose bitcoin for the main of their investment they will not fall to get a huge lose if they keep hold it when the correction comes. I'll agree for some people above me who says learn more about investment and make an analyst by themselves if they intend to start investing because that is the most important thing to start.

[Janation]

99% you are going to lose your capital as ICO investor because IEO took the place of it and hyip still existing onto it.

It's still amazing how people still invest in icos/ieos, to me it's like a case of throwing your money into the ocean, hoping it does come back to you.

Greed of the people driving these kind of market even most of them turning into scams.Newbies also just lured by the promotions and the offers and think that they could be more expensive than bitcoin in no time.

That is just bad though.

It is true that you should be responsible with your money but these scammers are so smart, they are used to what they are doing which is fooling people out of their money. Not all projects are a scam since there is a lot of them getting profits, but that is shortlived. I think what ruined the ICOs are the hunters that immediately selling of their payment in a lower price resulting into more hunters selling it to more lower prices for their coins to be bought faster than the others.

[crwth]

~snip

Actually, actually I think things happening here are the opposite, so almost the majority of those who invest in Crypto don't even know what they are doing, they tend to imitate. Mimic how to get a profit they think is low risk, but it isn't. However we need to risk our capital but to make it lower, it's just another way also to get lower profit.

So it's the person's fault in not knowing what he or she is investing at, and if you are curious with it, better start learning first. I don't think mimicking is the problem, it's themselves. I don't understand what you are saying now, because how would you even have a profit if you don't risk something? How could they imitate correctly if they themselves don't understand it? I don't really care anymore on what others do, because they don't apply what they read. I'm not perfect but I won't risk my money in what I don't know.

[maydna]

Protecting ones capital must start on how the individual handles the capital in the first place. Also, one must learn how to make the right decisions as to which coins to invest in order to earn profit. Diversifying ones portfolio reduces the risk of losing ones capital to a single project/coin.

That will be done if that person can learn about how to protect the capital. And yes, diversifying can be a solution to reduces the risk of losing money, but we still need to choose the right investment or coins to buy. That will not be easy if we don't learn something that will help us to choose the right coins, and besides that, there are so many coins that we can select as the next investment. When you can find a good project, and you invest with them, then in the future, you will make a big profit too so you can protect the capital plus you got the profit.

[iMark]

Protecting ones capital must start on how the individual handles the capital in the first place. Also, one must learn how to make the right decisions as to which coins to invest in order to earn profit. Diversifying ones portfolio reduces the risk of losing ones capital to a single project/coin.

That will be done if that person can learn about how to protect the capital. And yes, diversifying can be a solution to reduces the risk of losing money, but we still need to choose the right investment or coins to buy. That will not be easy if we don't learn something that will help us to choose the right coins, and besides that, there are so many coins that we can select as the next investment. When you can find a good project, and you invest with them, then in the future, you will make a big profit too so you can protect the capital plus you got the profit.

To keep your capital safe is a difficult thing because investment will always meet with risk, what we can do is minimize the risk so that your capital does not decrease but increases due to profit. of course what we do is make a profit, in what way? of course by choosing the right coins, it's true what you say that clever in analysis is important in this case, there are lots of coins on the market but not all of them are profitable, choose the one that is really potential and good in the market

[deisik]

Protecting ones capital must start on how the individual handles the capital in the first place. Also, one must learn how to make the right decisions as to which coins to invest in order to earn profit. Diversifying ones portfolio reduces the risk of losing ones capital to a single project/coin.

That will be done if that person can learn about how to protect the capital. And yes, diversifying can be a solution to reduces the risk of losing money, but we still need to choose the right investment or coins to buy. That will not be easy if we don't learn something that will help us to choose the right coins, and besides that, there are so many coins that we can select as the next investment. When you can find a good project, and you invest with them, then in the future, you will make a big profit too so you can protect the capital plus you got the profit

Personally, I don't think that altcoins (which you implicitly refer to here) are a good diversification option

They may indeed be an invaluable tool for multiplying your wealth (read, for the purposes of speculation), especially if you enter a coin right before the pump (and exit before the dump), but recently most if not all altcoins have been performing worse than Bitcoin. So if you want to diversify your cryptocurrency investments, you should look elsewhere, not in the cryptocurrency market. On the other hand, if you want to protect you cryptoholdings from losing their dollar value, you can use shorts as a hedge (but then you expose yourself to the risks of using an exchange)

[fortunecrypto]

- Never fully rely on recommendations; always to your own diligent research on any prospect. Do not simply follow the ideas of "experts" or "influencers".
- There is no guarantee;  no investment is a hundred percent fool proof. Even Bitcoin which I would say is the safest cryptocurrency investment does not guarantee profits.
Always keep tabs on your portfolio.

I do not trust these so-called experts anymore, some of them are running ICO rating sites, and we all know they get a quick buck from giving a false rating and they don't care about their reputation, it's their cash cow.

There's no guarantee that Bitcoin will always bring you profit but it's the safest investment and profitable compare to the altcoins in the market, they all follow Bitcoin's performance in the market and that's a fact.