Stay strong even if you lose money in Crypto
Today I was saddened by the fact that 8 people did suicide because of the market crash due to Luna. I'm hearing about this coin only in the last two days. Especially after knowing that it was the reason for the recent market crash. I was initially thinking that the market is having a regular correction and apparently no big reason for the market to fall. But looks like Luna was the culprit and many people lost a huge amount of money.
I felt really bad after reading the above and wanted to clarify certain things for the investors. I feel very sorry for the people who lost their life. Greed is something that shouldn't be there for any investor or trader. I'm just saying this in general and not saying they would have been greedy. Invest only the money that you are ready to lose.
Invest only the money that you are ready to Burn
About a year back, one of my friends went fully on Polkadot. He sold his car, he mortgaged his house and he took a gold loan and literally came to the street and invested a huge amount of money on Polkadot. He firmly believed that Polkadot will be the next Ethereum and he was very confident. It also happened and the coin performed very well and almost reached 5X from his bought price and even more than that.
He silently booked his profits for the amount he took as liabilities and then had been holding the remaining since then. That made him earn a hell lot of money when the price of Polkadot touched 40 dollars straight from 3 dollars. But I strongly oppose this idea. Just because he was successful, it doesn't mean that this is a great idea. People taking a huge risk in real life for investing in crypto are definitely mad. I understand there are some reliable coins and we all know cryptocurrency is the future but this is definitely madness and anything can happen.
I would say, always invest only the money that you are ready to burn. Nobody should end up in a situation where they cannot make a living because they lost so much in crypto. They should have not invested that much in the first place. Always every investment should be seen as a big risk and only invest the money that you afford to lose. Taking risks at a young age is good but a calculated risk is very important.
Crypto markets are gambling if you don't know what you are doing
Sometimes the market can be very good and people can expect so much money in return from the crypto markets but that's not the case all the time. Always have a diversified income stream and don't be dependent on one source of income alone. Investing too much in something is also not good. Having a safe source of income in the real world is also another important thing.
The same applies to Hive and HBD as well. We all know the potential of Hive and how this can change the future of Web3 but at the same time, we have to be very careful with our investments too. What if Hive goes below 20 cents again and what if people lose big time. There is a high chance right. Definitely, suicide is not the solution. There are always better ways to live our life. If not this, there is always something else available.
The next important thing is never to take a loan to do investments. Do investments only with the money you have in your hand. Also only the money you are okay to gamble. Keep some amount safe for your day-to-day use and never touch that. Even if your coin is performing very well, never invest from your safe account. I'm sure the people who did suicide would have had big financial dependency and they might have got broken after seeing this. This is definitely wrong and we have to be wise enough and we cannot blame the situation of the market for our madness. There is a high chance that our portfolio can become Zero from 50k USD or 100k USD when we wake up in the morning. We need to have a strong heart to face that.
Note: My portfolio also had a serious hit in the market crash which is over 20k USD and I don't want to give the exact figure. But I still feel strong and I'm glad that crypto is not my only source of income.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
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Posted Using LeoFinance Beta
Thanks for sharing your thoughts. The market is volatile and one should never invest money one needs. And never blindly invest on anything. But its not fair to say that Luna is the culprit of the recent market crash. The market had been crashing way before Luna and Terra's issue and the crypto market isn't the only one crashing. But Luna's crash did create a lot of fear which made the market fall harder.