Over time, a lot of people come into the cryptocurrencies space, buy the top, sell the bottom, rinse and repeat until they lose it all and then blame the markets for their failures. However, with a proper Strategy, Millionaires are constantly being made from the space, and you too can succeed when you apply the right Strategy.
To get burnt by the markets simply means to lose all or a huge amount of your capital with no plan on what to do. In this article, I will share with you 3 ways to avoid getting burnt by the market.
1. Invest in trustworthy crypto for long term
Bitcoin recovered from every crash it has suffered throughout history, although no one can guarantee the future, the information available proves that BITCOIN will always recover from every crash because it's a trustworthy cryptocurrency.
However not every cryptocurrency is like BTC. Some cryptocurrencies may fall and never rise again. One example of Cryptocurrencies that fell and never rose again is Bitconnect. This coin made a lot of investors suffer heavy losses after it fell and for obvious reasons of being a scam project, will certainly never rise again. There are numerous examples of such and time will fail me to mention all of them
Talking about Trustworthy cryptocurrencies to invest. While we won't give you any financial advice, there are 2 coins which we believe will always be here as long as cryptocurrencies exist. These are BTC and BNB. While BTC will remain relevant because it's the King of the market, Binance has established herself as the Amazon of Crypto and BNB which is her native cryptocurrencies will always be relevant, as it powers the Binance Ecosystem. We created content that explains why BNB will be the most useful token of the decade, kindly check it out.
2. Apply proper risk Management to all your trades
While a portion of your cryptocurrencies portfolio should go fully into long term holding. Another portion of it should go into trading so you can profit from the market's fluctuations and earn more profit. However, there are still too many who get burnt by their wrong trading decisions. One undeniable solution to this problem is proper risk management.
Irrespective of whatever Technical Analysis and Fundamental Analysis tells you about the market, without proper risk management, it will be a disaster.
Whatever percentage of your investment capital you put into trading, always keep a stop-loss and never use all of your trading capital on a single trade. So that in the event a trade doesn't go in your expectations, you will only lose a fraction of your account and still have enough to trade another day. As stated in the arts of war, a wounded soldier is better than a dead soldier, if you keep a stop loss with proper risk management, although you will be hurt if your stop-loss is hit but you will still have enough capital to trade another day rather than having your account liquidated.
3. Avoid Fake Cryptocurrencies Exchange and Marchants
A very common scam over the years has been when people try to purchase crypto from self-acclaimed crypto Marchants instead of buying from reputable exchanges like Binance. As much as possible, irrespective of how juicy the offer may be, except you know this Marchant personally, I would recommend you avoid such deals. It never ends well, especially over Telegram and other online sources.
Additionally, it's worth stating that the security of your funds when trading is something you should take seriously and with exchanges like Binance, the security is robust. However, that is not the case with some other exchanges.
Conclusively, if you aim to have a smooth crypto journey, be sure to take seriously all the points mentioned above, always do your research before investing your money in anything, use a reputable cryptocurrency exchange like Binance for all your trading activities and join a community of active traders by following this link; https://t.me/CryptoAfricaCommunity
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.