Don't Throw Money Into The Crypto Market At Some Tweets
People who are most interested in cryptocurrency, most of them are active on Twitter. You can get different news and updates. But do you throw your money into the crypto market at some tweets?
When you see your crypto portfolio going down consistently, you don't want to look at it anymore. You try to find support from where the price will go up. It feels good when you notice green in the price. It gives you hope that the crypto market will bounce back.
You see tweets that BTC hits its bottom, so the BTC price may not drop further. And from this support level, the market will turn around. You regret buying crypto at the top. Now you invest what you have in crypto since other people say that's the bottom.
What happens next? The BTC price breaks the support and starts falling again. Don't throw your money into the crypto market at some tweets or some people's advice. Even though the BTC price starts rising a little bit, it is still on a downtrend. The trend of the market did not reverse.
No one can tell how low the crypto price could go in a bear market. Likewise, no one knows how high the crypto price would go in a bull market. You need to have a plan for how you are going to invest in crypto.
A bear market is a great time to accumulate cryptocurrency and grow your crypto portfolio. You may follow different strategies. You can do [Dollar Cost Averaging DCA. Don't invest your money all at once in crypto. Make a plan to invest in cryptocurrency consistently. Every time you buy, you use a small portfolio of your capital.
You do your research and analysis before making investments in particular cryptos. You don't look at some random tweets or advice. You consider the risk and do due diligence. When you think long term, you don't stress out seeing the daily price fluctuations.
If you cannot sleep well at night and worry about the investment in cryptocurrency, maybe there is something you did not do right. Maybe you overinvested. One rule of thumb can solve this. That is, don't invest more than you can afford to lose.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. Please subscribe if you like my post. I'll be back with another post.
Taking social media advice isn't alway it as some of these people aren't really experts. Be prepared to DYOR. To some of us though, many of them use the word "might" meaning they are not sure themselves, but we still go ahead and do silly things anyway.