Top 3 tips for better investing. Avoid losing money as much as you can in cryptocurrency.

Cryptocurrency are here to stay and you need to stay in the game until you reach its full potential in the future. The crypto market has gone through a lot of ups and downs, adoptions, FUDs (fear, uncertainties & doubts) and since its foundations from more than a decade that had passed, it is still here continuing to grow and reaching its main goal - decentralization.

The market has two sides - the bear and the bull. Most people take advantage from it and gaining profits from their investments no matter which is the situation. However, lots of people are also losing money because of lack of discipline to their selves and most people who experienced this were people who thought that they already mastered the market or simply newbie who thinks they learned enough. This article will be about how to invest the better way to avoid losses in a much possible way.

Always think for the long-term outcome.

This is a very simple yet a very hard recommendation to follow for everyone especially for every new people in the space that expect cryptocurrency investing will give them 100% return in just a day, weeks or months.

Many people can easily have a cold heart when the coin or token they bought dropped so much in value and they are having huge paper losses in their portfolio. When they saw a huge drop in their assets, uncertainties comes in their mind thinking that it will be the end and they need to pull it out to save their investments. This could work if you are only doing degen trading but not recommending if you are for the long term.

If you thought of a safest way for investing, then unfortunately there is no such thing in this space. But you can always lessen the risk of losing if you know what you are investing in to like picking up a coin that's on the top 100 coin in market cap. It is not an assurance that it will not lose it it's value but it has high probabilities that in the long run it will give you good returns.

Stop buying it all in one basket - diversify!

One mindset of people is that if they put all their money in one coin and it pumped so hard, they will gain huge returns in just one investments. This could be possible but a huge mistake if you don't know the risk.

Whenever you have put all of your money in one asset and that asset dropped in value, then you won't have other assets that could save your portfolio simply because you don't have other assets in your portfolio.

The importance of diversification is to avoid losing huge investment value in one asset where your other asset in your portfolio can save it if that other asset is performing well whatever the situation is in the market.

Example:

You put $1,000.00 in Bitcoin and also $1,000.00 in Ethereum. Bad time come and Bitcoin losses -20% of it's value and your investment in Bitcoin also losses -20%. Which mean you only now have $800 paper value in Bitcoin. However, amidst market condition, Ethereum was doing and performing well and was up by +30% since you bought it. And with that, your $1,000 investment in Ethereum is now at $1,300.00 which saved your investment in Bitcoin because you diversified your money.

Avoid degen, meme coin and obvious rugpull projects.

Investing in meme coin is not really that bad if you are lucky enough to spot a good meme projects. Like it's called, it is a meme project and it can't sustain or stay for a long time.

But if you thought that you are lucky with this kind of investments, then try a very small amount only and put it there, wait for sometime and see for yourself if you got the jackpot project. And if you ever got into it, then your small amount could go over 100x or even 1,000x -- if you are lucky.

But this kind of investing is not recommendable because losing money from it has higher chance of occuring than winning from it. Most of that projects could be a honey pot (you can't sell it), slow rug (devs minting tokens and sell it) or just a rugpull project (Liquidity removed).

Final say.

Investing is not that easy as you think especially if we are risking our own money that we thought could save our future. Whether you are a newbie in cryptocurrency or have been around in the space for quite a long time, you should always research what you are getting into. Learn about what's happening in the space, learn about the project and lastly manage the risk you are taking.

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