How to avoid huge cryptocurrency disappointment

[NdaMk]

Reading and hearing of some cryptocurrency traders and investors wailing about the recent crash in the crypto market, some even leading to suicide. Here are my precautionary measures on how to avoid cryptocurrency disappointment.

As we all know cryptocurrency market is  very volatile as such crashes is common. So one has to be prepared for anything.

1. DON'T TAKE ALL YOUR LIFE INVESTMENT INTO CRYPTOCURRENCY; this would have been said numerous times but new crypto enthusiasts like myself can be gullible or naive to how some might invest $87k in cryptocurrency and generate $1M in space of just say 72 hours. As this looks promising so is the risk associated to it. Some of this big traders have risk assessment, they don't just throw all their money into cryptocurrency.

2. Do NOT BORROW/LEND MONEY TO INVEST OR TRADE; if you borrow money to buy a coin, once the market falls it might lead to you willing to sell at a lower price and end up not recovering your invested money which might lead to been in debt. Which is one serious issue crypto enthusiasts need to stay away from.

3. HAVE SEPARATE SOURCE OF LIVELIHOOD FOR EMERGENCY; some newbies actually take crypto Trading as the only means of survival, and when there is a market crash there is a lot of panic which might lead to suicide or people being homeless. As a cryptocurrency trader/investor one should have another means of making ends meet even if it small income. Atleast that could sustain any market crash which can also take some stress out of you.
You can start today by putting some funds out (can be monthly) to start up new business, if there's none currently.

4. KNOW THE TYPE OF COINS TO INVEST/TRADE IN; personally i don't encourage huge investment in unstable coins. Coins with long term potential are advisable. Smaller cryptocurrency actually bring huge gains in a short time frame but it's risk are huge than the stable coins. Although it is quite hard to dictate which coins can stay up for a very long time, the most common long term coin is the Bitcoin, which has the potential to recover after market crash. Some of the tips on how to identify a long term coin are;

A) the first thing is looking at the coin's management team and how reliable it is. Some experience traders suggest that any management team that is anonymous is a big no trading/investing coin.

B) what is the project purpose; one has to read through the project and see if the purpose of the project is worth investigating in and aslo check the road map as to how they are moving towards the ascribed purpose.

C) How active is the project community; any project that doesn't have a strong/active development community is a big red flag.

As it stands now we do not know when the market will come up again or maybe it is longtime down fall. But investors/traders need to find means of diversification to avoid disappointments that could be unbearable.

Looking forward to some advice from senior members of the forum on this thread

[Lucius]

Smaller cryptocurrency actually bring huge gains in a short time frame but it's risk are huge than the stable coins.

You may have missed this last altcoins/stablecoins shitshow, but don't be fooled that stablecoins are stable just because they're called that. As we have seen they can lose their value, and an even greater risk that comes with them is the fact that most can be frozen even if located in a non-custodial crypto wallet.

These small cryptocurrencies as you call them are nothing more than pump&dump schemes that operate on the principle of pre-mined coins that the owner dumps on the market after inflating the price of his coin - after making a profit, the whole thing repeats itself with another project.

Never compare Bitcoin to these other projects, because investing in Bitcoin is much more than making a profit (at least for those who understand why Bitcoin exists). Price is only a current reflection of the market, and I am not disappointed with the price, but with people whose negative actions negatively affect the price - in other words, why does someone consciously cut the branch on which he sits?

[KingsDen]

2. Do NOT BORROW/LEND MONEY TO INVEST OR TRADE;

To me this is not an ideal recommendation. I see nothing wrong if a professional trader borrows money to trade. This is even recommended. If people can borrow money for start ups, I don't see any problems borrowing money to buy or trade a coin. Just apply your working strategy, money management and remove greed, you will be successful in as much as you know what you are doing.

4. KNOW THE TYPE OF COINS TO INVEST/TRADE IN; personally i don't encourage huge investment in unstable coins.

Should buying of stable coins be called an investment? It may be called saving. Yea, keeping your coin in a less volatile/non volatile coin is likened to keeping your money in fiat. Though, fiat depreciates and yet, stable coins do as well
What you need to say about the type of coin is, invest in Bitcoin. If there is need for diversification, investment in known altcoins like Ethereum, BNB etc could be considered.

[tranthidung]

The most important thing for your journey in cryptocurrency market is

• Never spend more money than what you can't afford to lose.

Prepare for bad and worst things because your journey in cryptocurrency might not be smoothly and rosy. Lots of ups and downs, challenges, success and failure.

[jackg]

I think I saw a meme a while ago (it might have been a comment on a video) but it was something like "don't expect to become instantly rich if you're investing like a young person".

Putting your whole net worth into crypto at 18 is much different than putting it in at 40-60 - where you should already have value - and expecting to make high returns (not that I'd suggest putting that much in anyway at any age).

• Never spend more money than what you can't afford to lose.

Additionally, don't feel like you have to keep holding your investment once its in profit. Taking the same stance and not keeping too much in crypto is also a safer option (moving a certain amount of funds to things like stocks or even commodities might make you less nervous about your crypto investments).

[Darker45]

A bear market doesn't happen everyday. So while everybody must be aware that Bitcoin is volatile and one's Bitcoin portfolio could actually tank any time, a feeling of assurance is somehow developed while the price is doing good.

When Bitcoin is gaining more and more price value, people would somehow develop a feeling of complacency. Trust on Bitcoin's price grow higher. Many probably begin to think that everyday is a sunny day. People begin to be too optimistic that they begin to lose some ground and forget about the reality.

This is probably what happened when people began to look forward to $100,000 when Bitcoin made its ATH at $69,000. Nobody probably thought of $30,000 at that time. That was unimaginable. Volatility and unpredictability were forgotten. That was the beginning of an incoming disappointment. The expectation wasn't based on reality.

[Rruchi man]

Reading and hearing of some cryptocurrency traders and investors wailing about the recent crash in the crypto market, some even leading to suicide. Here are my precautionary measures on how to avoid cryptocurrency disappointment.

I would say in general to avoid disappointments, don't expect too much from the market or rather lower your expectations and keep a moderate expectation about crypto. Don't get me wrong, but having a very high expectation about something puts you on a path already for disappointment.

Some due to some pre-existing notion that crypto is a get rich quick scheme, go ahead to borrow money to invest and trade crypto, or invest all their money and disappointment slaps them in the face when they discover that what they had in mind is not exactly so. Have or develop a good understanding of what you are about getting into, in this case crypto to avoid getting disappointed.

[Upgrade00]

To me this is not an ideal recommendation. I see nothing wrong if a professional trader borrows money to trade. This is even recommended. If people can borrow money for start ups, I don't see any problems borrowing money to buy or trade a coin. Just apply your working strategy, money management and remove greed, you will be successful in as much as you know what you are doing.

Everyone has their opinion of course, but I do not consider that to be an apt comparison. In start ups, owners ask for investments mostly to scale up the business, in this instant they have already set something in motion at this time which investors can appraise after listening to their pitch.
There are also instances when one can take a loan to start a business, this should also be placed based upon a thriving enterprise or learning an in demand skill, these are very different from borrowing money you do not have, to trade where the outcome is majorly out of your control regardless of your skill and experience.

"Professional" traders should not need to borrow money in order to trade, they could rather leverage.

[Zilon]

I wonder why one will go as far as lending money for an investment that is highly volatile and the crazy part is how the use this funds to invest in shit coin. Crypto investment  is not a job it's an investment and investments is never a get rich quick scheme. For ever as far as crypto investment is concerned Bitcoin remains the safest despite the fall

[isaac_clarke22]

~

I won't even make a loan to make an investment in Bitcoin even if I am comfortable already for 5 years holding Bitcoin. What more if in these shitcoins even if they can be pumped easily through hypes and shitshows?
I do not want to bury myself in debt, so I'll pass on those.

[nurilham]

Point number 1-3 is more to the management of funds.
Yes, exactly management of the fund is very important in investment. However, many people may not pay more attention to this. Many people are more interested to put their money into cryptocurrency investment by only thinking of earning huge profits. Moreover, they sometimes have made money from crypto investments, they will continue investing again and again.
Dividing money in several ways is also important. As you said that we are better to divide the money not only for crypto investment but also for real-life investment like gold or property. or if it is too hard, we must have also savings.
Many people are disappointed and shocked by the suddenly crashed market because commonly they are also investing all in one coin. This is also not recommended to all in.
And there is also one important fact in investment, never invest in cyrpto if we are only ready for the profits but not ready for the risk of losing.

[sunsilk]

Diversify as they say.

Don't put all of that investment into a single project unless that's bitcoin. We've seen how some of the projects that have been trusted very well by its community and then they've just betrayed them.

The 4th advice should be like that and it's true about knowing the project you're investing in. But, you'll still feel not enough with that and always be alert whenever a huge dump has happened.

[KingsDen]

<snip>

Everyone has their opinion of course, but I do not consider that to be an apt comparison.

Well, as rightly said by you, everyone has their opinion. I was being very scared of borrowing money for investment until I read a book authored by the same man who wrote "The rich dad and the poor dad". After reading that book, I was moved to take the risk. There was actually a business opportunity that someone showed me, on doing my personal research, I saw that it was a workable business. I actually had the money to do the business, but to satisfy my curiosity, I borrowed to do the business. Well, if the business didn't do well I knew I could repay. But the business went well and I paid back what I borrowed with small interest and I was left with a huge profit. I was happy, I felt so smart at that point. It was then I decided that I would be doing investment with borrowed money. I am still working on myself before I will start.
Nothing is certain in trading, but a professional day trader who is sincere and not greedy will hardly blow his capital when there is a stop loss.

"Professional" traders should not need to borrow money in order to trade, they could rather leverage.

I believe there should be a different between trading with $10,000 with 1x leverage and trading with $100 with x100 leverage. The difference should be the volume of loss and the speed of loss.

[hatshepsut93]

4. KNOW THE TYPE OF COINS TO INVEST/TRADE IN; personally i don't encourage huge investment in unstable coins. Coins with long term potential are advisable. Smaller cryptocurrency actually bring huge gains in a short time frame but it's risk are huge than the stable coins. Although it is quite hard to dictate which coins can stay up for a very long time, the most common long term coin is the Bitcoin, which has the potential to recover after market crash. Some of the tips on how to identify a long term coin are;

On its surface, it looks like a solid advice, but the reality is different. Take the recent example, Terra Luna. It looked like a "good project" with a solid team, good potential, etc. etc. And yet it failed catastrophically. Why? Because altcoins in their core are unsustainable. They have zero real users. No one needs them in real world. 100% of their buyers are cryptobros who want to sell them at a higher price. This makes altcoins just a gambling device.

[Gosgosking]

You are right concerning what you said about all investment shouldn't be taking to cryptocurrency, not even that alone. It will be also important to understand that it can be frustrating to invest all the savings and not having a better source of income.

[Kasabus]

The most important thing for your journey in cryptocurrency market is

• Never spend more money than what you can't afford to lose.

Prepare for bad and worst things because your journey in cryptocurrency might not be smoothly and rosy. Lots of ups and downs, challenges, success and failure.

That's the most basic thing that an investor should always put in mind. If he can only invest on his extra money, then its less likely that he will get dommed in crypto or in any types of investments. And of course, if he starts to invest, make sure that you are not putting your money in the wrong coins, or the shitcoins. Invest in bitcoin first. That's more safer that any other coins to invest.

[Finestream]

I wonder why one will go as far as lending money for an investment that is highly volatile and the crazy part is how the use this funds to invest in shit coin. Crypto investment  is not a job it's an investment and investments is never a get rich quick scheme. For ever as far as crypto investment is concerned Bitcoin remains the safest despite the fall

Taking loans for a very volatile and risky investment, i guess that is putting yourself in misery in the future. Crypto does not guarantee profits, as its also don't make a single person instantly rich. So taking loans is never really a good advice in the first place. However with bitcoin you'll never be in huge loss, but still always have the mindset to invest only on the amount you can afford to lose.

[firmino10]

in every investment there will always be some disappointment though they are some avoidable ones if proper research are done. so one should be dispose for disappointment but know the ways to bounce back and continue with the information gain. don't be carried away by the hype, invest in bitcoin, ask for advice from trusted members who have been long in the crypto space, invest little in altcoin, know that market fall and rise

[GeorgeJohn]

Do not borrow for trading is old ideology and ancient concept of people  do make or emphasised in every occasion, borrowing is nice and same time bad in all ramifications, but i have seen someone who borrowed money to trade and make it, and after making huge profit and he returns the money, every time people capitalized in losing accept of trading but they don't emphasis on making profit.

[frankomighty]

How can one invest in cryptocurrency?
What common mistakes do people make when investing in cryptocurrency?
Cryptocurrency is a lucrative investment, no doubt. Prior to making any investment, it is highly recommended to assess the risks and any important information associated with it and invest only if you can handle the risks. For starters, Bitcoin isn’t the only cryptocurrency out there, educate yourself with the basics of cryptocurrency and the blockchain technology that powers it.

Identify your goals, whether you want to trade crypto for a short term or long term, this is dependent on the time you can invest and the knowledge that you’ve acquired. You cannot judge a cryptocurrency by its cover, attractive visuals, promising returns do not guarantee anything. This is popularly termed the “bling bling syndrome”, as always read between the lines, check if the background of the company is trustworthy and legit. Hype buying or panic selling is another common mistake by investors, who are usually just starting out, understand how the crypto market functions and pick the right time to invest in a cryptocurrency, hype does not define anything. Market movements and emotions are key factors that shape a crypto investor, the fear of failure results in not winning enough, make an objective or technical analysis instead. Set aside any form of greed, this will not only make your mind hazy, but will most likely lead to terrible and avoidable decisions.

Before signing up on any platform as an investor, compare the best available options, do not pay more than what you are required to pay. The last common mistake we would like to point out is that many end up pouring their savings into one cryptocurrency or one type of investment, this is a big NO, a diverse investment portfolio is a must, when you start this adventurous and hilly journey.

If you are hesitant to start a crypto investment, you can always find safer alternatives on Bitbns such as our Fixed Income Plan (FIP) that guarantees a fixed rate of interest on your investment.