The Inevitable Bearish Run

in BDCommunitylast month (edited)

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Loss in cryptocurrency is inevitable because it is a highly volatile space. Most people find it hard to come to terms with it because they believed it would never happen to them, well welcome once again to cryptocurrency. Your dollars could become cents in hours or even minutes before you realize and even if you decide to sell you would still incure losses no matter how minimal. Irrespective of your mistakes and how sure you were that the coins would pump , dwelling on it could hurt you even more or perhaps make you abandon cryptocurrency all together but then without losses cryptocurrency would not be cryptocurrency. It is important that you make as much research as you can into any coin before you out your money into it.

When you realize you have made losses it is important that you take a break to calm your nerves. You would feel frustrated and cheated and making any decision at that time could be even more fatal. Perhaps close your laptops, drop your phone and take some fresh air. Spend time with people around you, your friends and family. It would help take your mind off it and also reduce your agitations. Dwelling on your loss could make you so bitter especially if you are new but then it is part of what makes the crypto space fun and interesting. You just have to wait and be patient because in cryptocurrency one doesn't really loose because if left for a while it would pump even higher than you expect.

Next thing to do is to learn from your mistakes. Retrace your steps and try to figure out what you did wrong. While you can't control the market, there could be some steps you took that were in the wrong direction like trading against the market or perhaps you ignored certain signals on the chart. By retracing your steps you would understand what went wrong , learn from it and not repeating the same mistakes again. For some they probably made the mistake of following the crowd, that why I emphasize that you make your own research before you buy any coin or go into any trade. Make sure you are satisfied with what you see before you put your money into it.

Every winner has been a loser at one point in time and it's important that one's understands that. Cryptocurrency isn't a scam and that's why it is normal that sometimes you hit rock and sometimes you hit gold. Trials and errors until you master the market even though one can't really master the market entirely. It is important that when you lose you don't sit and wallow in it but you dust yourself up and keep trying. Practice more and be patient as well.
You really should avoid buying cheap coins with the mindset of it becoming the next bitcoin one day. The probability of that happening is really low and so to avoid more losses it is important that your buy coins that have proven their worth over time. Don't buy shitcoins because everyone is buying or because the value is so low, it could only go two ways and the probability of you loosing is double the probability of you making profit. Even if you buy cheap coins, make sure to buy little, that way you would be minimizing your loss to a level you could endure.

Avoid putting all your eggs in one basket as well. That way even if one happens to dip the other may rise and make you feel better. Take advantage of stop loss as well, while it can't prevent loss it can minimize the amount you loose to the bearish run. Whatever you do, don't invest an amount you can't part with or totally forget.

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Cryptocurrency loss is very devastating. It is difficult to come to terms with it.
Everyone wants a pump but are never ready for a dip.
Like you advised, it's wrong to put all your eggs in one basket .

Patience is one of the most important virtues in crypto, also diversification as you’ve mentioned also play a nice role in cushioning the effect of the volatile nature of cryptos...you’ve raised interesting points, it seems you’re an OG yourself

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People fail to understand most of this. This space is a gamble, by testing the waters you could either ride the wave proper or drown in it.

Investing should always be done with care, putting in what you can't afford to lose is an act of greed, because you'd be looking at too high figures while if it goes wrong, your financial status could be at risk.

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an insightful read especially for the newbies who have just discovered the initial high of crypto-trading, thanks for sharing this! 😁
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https://d.buzz

This is not content for the hivelist tag. It is welcomed on HiveHustlers but hivelist is a purpose built platform to be a marketplace and classifieds platform. Not a random blog tag to leach rewards.

@tipu curate 2