Cryptocurrency continues to provide life-changing opportunities to different people in the world, especially those who are early adopters (which is why we preach WUN tokens in its early stages). But we cannot look away from the dark side. At Wunbit, we would like to live in an era of new adopters of cryptocurrency who have complete knowledge of the opportunities and risks attached.
Recently, BTC dipped as the price went from $10,000 to $8000 in a few hours. Needless to say, many people who are new to cryptocurrency have lost a lot of money. But to people who have been acquainted with it, it is a normal phenomenon as they have seen worse: 2017 fall, BTC attained an all-time high of $18,000 and in the next few months (Q1 2018) it dipped to $3000. This is why we are interested in bringing important tips which can guide any Crypto enthusiast and investors. These tips have been tested with times, trusted and used by many crypto people like Wunbit’s CEO, Carlos Oporto.
Hodl on and listen to a sad story
But before we dive in, we’d like to relate the story of @steemkarma4u who lost $100,000 in just a week when crypto markets dipped. In his sad story, he related how he got BTC in 2013 for $25 and used it to play online poker games which earned him hundreds of BTC. He lost close to 100BTC due to greediness and cashing out the rest into trading when the market began to boom. It was during trading that he lost $100,000 in a week when the market went south. You can read more about his story via the link on his steemit handle above.
@steemkarma4u related some of the lessons he learned from his sad experiences, some of which we are going to cover in this article.
Learn from the experienced
Carlos Oporto also did justice on this topic in a post he shared on Bitcointalk about “Things I learned through the years of Buying and Trading Bitcoin”. He mentioned some of the greatest lessons a crypto trader should learn, else they’ll run into financial and emotional troubles.
Hodling your Crypto asset?- What to do
The points we are going to share below are aggregated from life experiences from crypto people like @steemkarma4u and Carlos Oporto (Wunbit’s CEO). We have covered tips on security in one of our previous posts.
- Have a solid crypto plan: @steemkarma4u and Carlos Oporto advise that you should have a plan for all your cryptocurrency holdings. You should separate the ones you wish to hodl (hold) for a long period of time from the ones you hold temporarily for trading or a quick exit. We have also made a post on how to decide which cryptocurrency to hold for a long period of time. Following this kind of plan will help you minimize your trading risks.
- Do not trade what you cannot afford to lose: On Cryptocurrency, you frequently face the risk of losing all when you trade as the prices fluctuate and are not stable. Some people advise that you should not trade money than 1/10 of funds meant for trading per time.
- Always be patient when the market dips: One major characteristic of the BTC market is that for every dip in price there is always an imminent surge. Most times, when the prices of cryptocurrencies go very low, (even though it lasts for days) they recover afterwards.
- Though the recovery may not be as to break-even yet, losses are minimized. Do not make hasty conclusions on selling the portfolio you are hodling.
- Do not keep your crypto holdings on Crypto Exchanges except for those you are trading: Leaving cryptos you wish to hold for a long term is not advisable as exchanges are prone to hacking or even closing down when laws of the land where they are established change negatively concerning cryptos. If you are into trading, you may leave trading funds on exchanges but make sure your profits are withdrawn.
- Diversify your Holdings: It is good to buy and hold BTC for a long term but it is always better when you diversify your holdings. Have holdings in major coins like BTC, ETH, XRP, BNB, etc. And don’t forget to be an early adopter of new solutions like Wunbit. This strategy will ensure to minimize your risks.
- Do away with trading if it causes emotional stress for you: When trading causes you sleeplessness or emotional stress, it is better to stop. Why not be an investor instead of being a trader?
Keep calm and HODL!
Participating in cryptocurrency is worthwhile when you are patient. Do not make hasty decisions in trading or investing, make sure you do thorough due diligence before jumping to conclusions. When you are convinced of the future of a crypto project, HODL on to it.
Wunbit is not a Cryptocurrency or financial advisory firm, neither is it licensed to do so. This post presents some basic lessons from the experiences of people who have been into cryptocurrency for a long time. It is meant to be taken for information and education purposes. Always visit your licensed financial advisor for any financial advice. And always conduct thorough due diligence before trading or investing in any cryptocurrency.