Going from a failed trade to hodling is a good strategy?

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I was coming in crypto world in late of 2018 and my first steps were very shy, because I had to learn how to buy coins, how to make a crypto address (of course, my first one was for BTC) and how to transfer Bitcoin and other coins between addresses.

Signing up on different exchanges and stuff like this was not difficult, because is not so different like making an account any other else, but paying attention to seed phrases and secret keys is a fundamental difference vs other situations.

So, this is what is the most important here: never lose or disclose your secret keys or seed!

For this, is not enough to keep it safe from the ones around you, but mostly be careful to the eyes that looks over the internet. Try to avoid surfing on non secure websites or using apps with flaws (even ZOOM was in this category).

Enable your 2FA to be sure you had all you could do for protecting your accounts and note your passwords, secret keys, seeds - in at least 2 agendas, not email, not computer of phone!

Well, this is the most important thing.

Along with the second one: never lose your money!

How can this could happening: by 2 ways - being stolen or your portfolio decreasing in value.

The second option is maybe hard to avoid, and sometimes is happening to all of us. I am not an exception, so I was in the situation to take a decision - what to do: sell and lose 10%, 30% or 90% from the initial value in USD or wait?

In the middle of 2019 I bought some DENT, after a short research about what are they going to do in the next period of time. Of course, my mind was about 2-3 months.

My buying price was 22 sats and my first selling target, for 25% from my total bag - 29 sats. The next one - 32, 35 and 38.

My first target was achieved in less than 7 days, so everything should be according with the plan.

But in the next days, the price kept going down for a while, but not so bad like the market, so my price was still around 23 sats while the market went down with more than 30%.

I was happy and I thought what a solid investment I made. But after the market was stabilized, my dear DENT started to decrease. Week by week, I was looking at my price going to 18 sats, than 20, than 17, than 15 and I was stop looking at 3 sats.

Indeed, my solid investment, despite all the news and hype and tens of thousands of users, was sinking.

This is the trend I "caught" in the summer of 2019. A long winter of frozen investment, hoping at every step to regain the previous position. It wasn't happening, so I decided to keep that bag until something will change the status of 90% loss at that moment.

And I wait, and I wait and I almost forgot about them until last weeks, when, suddenly, the project gained some traction again and the price recovered very abrupt the losses from the last 2 years!

Of course, there is also one more thing you should consider: how are you measuring your portfolio? In US dollars? In bitcoin? Both? I know, everybody likes to see his portfolio growing also in BTC and in USD, but sometimes this is not happening simultaneously. And what do you choose then? The real world money valuation? The still incipient world of crypto?

If you paid attention to the risk management statements and not invested all your money and life in crypto, I'll suggest you to measure your portfolio in BTC. FIAT money are everywhere, but crypto, only here. So try to multiply your BTC value.

So, if I will measure my portfolio in USD, I recovered it quicker than the BTC valuation, because BTC raise more than 5 times since summer of 2019. But now I have also the same price in BTC now (around 20 sats), so I have in USD 5x now vs 2019!

What can I say? Should I sold it in 2019 and try to make another investments? I think a 5X in 2 years is a fine return.

I had the same situation with NPXS. A long time of flat low price and now...

It is amazing!

So, what can I say, I will rather prefer to see a coin dying than selling it at 90% loss.

But first, don't get into projects without some research, to be sure they could have something to say in crypto. If you do this, you have the chance to be a winner on a long term interval.

Cheers!

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Comments

I already stilled my self to lose the money. It's all or nothing wahahaha

$ 0.00
3 years ago