@Marts 19 May 2021 more from that month

The Volatility of Crypto and Emotional Investing In a span of few months, investors and enthusiasts witnessed how market volatility works with cryptocurrency. The alleged culprit for the sudden changes are tweets from the billionaire and Tesla CEO Elon Musk. Here is a brief timeline of his influential tweets: *Elon Musk's series of BTC-related tweets* **Jan. 29** - Musk adds #bitcoin on his bio and tweeted "In retrospect, it was inevitable" https://twitter.com/elonmusk/status/1355068728128516101?lang=en **Feb 1** - Musk says he on social media app that he supports bitcoin **Mar 24** - Musk tweeted "You can now buy a Tesla with Bitcoin" https://twitter.com/elonmusk/status/1374617643446063105 **May 12** - Musk tweeted "Tesla would no longer accept bitcoin as a payment" https://twitter.com/elonmusk/status/1392602041025843203 Let's put it into a graph to appreciate the tweets' impact:

His crypto-related tweets however aren't BTC-centric. His express support to DOGE also affects its price movement, causing investors to invest in the said crypto.  This suggests that certain individuals like Elon Musk can propel price movement. While they are not the sole factor for the market price, they do have a significant influence.  No to emotional investing The last time I traded in Binance, I ended up losing more than the value I invested. In a desire to get on board with the latest crypto-fad, I rushed with my purchase decision and spent a lot on fees. I also made a trading blunder: instead of buying low and selling high, I did the opposite. I hate that day.  During periods of sudden market change, it is important to manage our behavioral impulses so we will not fall into emotional buying and selling. Whether stock market or cryptocurrency trading, it is not uncommon for impulsive investors to get influenced by media hype, FUD (Fear. Uncertainty. Doubt), and FOMO (Fear of Missing Out).  How to prevent emotional investing DYOR (Do Your Own Research) Making poor decisions can be prevented when we know what we are doing. Before you make an investment decision, be sure that you know everything about the project you are willing to invest in. Read the crypto's whitepaper. Read articles. Read forums. Analyze the project. Both fundamental and technical analysis can also be of big help.  Invest only what you can afford to lose In crypto, anything can happen. So unless you have tons of money to spare, only spend a portion of your hard-earned money. Don't stake your livelihood on it. Only invest what you can afford to lose because crypto can be a very risky investment where everything you have maybe gone in a moment.  Diversify your portfolio In order to minimize your potential losses, "don't put all your eggs in one basket". Diversify not just your crypto portfolio but also your investments in general. You can invest in stocks, bonds, real estate, and even traditional business if possible. In this case, when one investment fails, you still have other investments to rely on.  Dollar cost averaging I first heard this when I attended a seminar on Philippine Stock Exchange (our version: Peso Cost Averaging).  According to Investopedia: *"It is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase."*  From what I understand, it means investing on a regular, long-term basis to minimize the effects of the sudden bump and dump of the stock or crypto. But a word of caution: DYOR carefully even if you're going to use this method.  Conclusion: Just like many other crypto-enthusiasts giving out their thoughts, this is not financial advice. You should do your own research and invest only what you can afford to lose. Crypto investing should not be driven by emotions, fear, or greed. Always be wise and careful.  ***Sources:*** https://bitcoinexchangeguide.com/how-to-overcome-fud-fear-uncertainty-doubt-for-crypto-traders-and-bitcoin-investors/ https://www.investopedia.com/articles/basics/10/how-to-avoid-emotional-investing.asp https://www.vox.com/recode/2021/5/18/22441831/elon-musk-bitcoin-dogecoin-crypto-prices-tesla https://www.reuters.com/technology/elon-musk-crypto-mooooonnn-back-again-2021-05-13/ https://www.investopedia.com/terms/d/dollarcostaveraging.asp Image credits: https://www.vox.com/recode/2021/5/18/22441831/elon-musk-bitcoin-dogecoin-crypto-prices-tesla **Read my other BCH-related blogs:** **Spark Curiosity! Spread BCH Awareness Your Way** https://read.cash/@Marts/spark-curiosity-spread-bch-awareness-your-way-53e1b6e1 ****Pandemic, Politics, and my Hope for Bitcoin Cash**** https://read.cash/@Marts/pandemic-politics-and-my-hope-for-bitcoin-cash-bce5a6d4 ****Bitcoin Cash Changed not only my Routine but also my Perspective**** https://read.cash/@Marts/bitcoin-cash-changed-not-only-my-routine-but-also-my-perspective-0b748f72 ****How Does It Feel Like To Tip Crypto Bigwigs?**** https://read.cash/@Marts/how-does-it-feel-like-to-tip-crypto-bigwigs-3321d2b4 ****Installing BCH Payment Channel on my Blog (and eStore) A Success!**** https://read.cash/@Marts/installing-bch-payment-channel-on-my-blog-and-estore-a-success-7dd4efa8 ****Don't Be Just A Goal-Setter, Be a Goal-Getter!**** https://read.cash/@Marts/dont-be-just-a-goal-setter-be-a-goal-getter-a6da39b1 ****Bitcoin Cash Will Soon Be A Household Name**** https://read.cash/@Marts/bitcoin-cash-will-soon-be-a-household-name-7f21ced4 ****A BCH Funded Wedding? Why Not!**** https://read.cash/@Marts/a-bch-funded-wedding-why-not-6232f78d ****Believe It or Not, You Are Already Part of the BCH Movement**** https://read.cash/@Marts/believe-it-or-not-you-are-already-part-of-the-bch-movement-afdbbe31 ****Don't Just Ride the Wave. Participate.**** https://read.cash/@Marts/dont-just-ride-the-wave-participate-297eecb3 Hi, I am Marts! I am a writer, and aside from my stint here in read.cash, I also have my own blog - **martsvalenzuela.com**. I appreciate it if you pay me a visit! I plan on growing my readership as I learn to improve my craft and journey towards my passion to write and publish books that add value to people. https://read.cash/@Marts/a-walkable-city-is-a-healthy-city-465ac042#bad-link Let's rock!