How to protect yourself from losing it in crypto !

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Avatar for clixmoney
2 years ago

A lot of us are so long in crypto, but we still sometimes panic when the market is crushing.

So, today I was thinking about the best way to protect ourselves from depression, or disappointments from our investment. Of course even this idea could be risky, but it's still better than just holding everything and seeing how our portfolio is bleeding.

The idea is to always trade what we have.


Of course keeping our money in exchanges is not that safe, but at least we can choose the most decentralized ones. For example, I trade in bisq.network recently. It's a p2p trading service. But still I hold some crypto, so I diversify that way.

Here is why trading could protect us from losing it :


Here we can take two scenarios for comparison :

  • The first is someone holding it.

  • The second is someone trading it.

Let's suppose someone holding 0.1 bitcoin. So, his/her portfolio may go from $4k to $3k because bitcoin lost $10k in value.

But in case someone always trades those 0.1 bitcoin, and doing well and turning that to 0.2 during the time. He/she will get $6k even if bitcoin price went down with $10k.

This is the reason why I don't like to trade crypto via USD or any other fiat.

I even had a friend who trusted me with some bitcoin and when I sent that to him after years, he was happy about my results. ☺

So, guys ! Don't worry that much about such dumps, because you'll mostly win if you have such strategy.


But after all, you can do it your way.


I'm not an investment advisor.

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Avatar for clixmoney
2 years ago

Comments

Im still holding mine, because it will go up again. Maybe not now but soon.

$ 0.00
2 years ago

Yeah, holding is also good.

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2 years ago