Crashing price chart in background, two Pink Wojak memes on sides, and text in center reading

Why most people are destroyed by coding and common mistakes to avoid

From giving in to FOMO (fear of missing out) to taking out mortgages on their homes to maximize their returns, most people quickly jump into Cryptocurrency and lose it all. Problems arise from a combination of poor timing, ignorance, greed, fear and impulsive trading behaviors that almost always leads to financial ruin. Fortunately, these self-destructive behaviors are easy to avoid.

The cryptocurrency has experienced three market bubbles over its 13-year history, with a fourth one expected around 2024-2025. Each bubble in the market follows the Bitcoin halving event, which occurs every four years and takes several months to two years before it reaches the “peak.” Once the market reaches the top, a crypto “bear market” begins, with most cryptocurrencies crashing by more than 90 percent, and most of them never coming back.

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Related Topics: How can you exchange Bitcoin or other cryptocurrencies?

as such CNBC And many other niches covered in 2018, many retail buyers invested everything they had during the Bitcoin bull run of 2017 and the subsequent ICO (initial coin offering) boom that followed. People took out loans and dumped their life savings into Bitcoin, Dogecoin and other cryptocurrencies, only to lose most of them during the bear market. Many of these errors stem from not understanding the irrationality of cryptocurrency, not having an exit strategy, and not knowing how to use DYOR (“Do your own research“) before throwing college kids money into a celebrity-touted crypto project. People new to the crypto space should familiarize themselves with the Pink Wojak meme before speculating on cryptocurrencies, as prices are almost certain to crash after purchase, pump after sale and go. Laterally when holding, a phenomenon he portrays with humor Bizonacci YouTube videos.

Never risk what cannot be lost, never limit the market

Cryptocurrencies are much more risky than other markets due to a combination of shallow order books, retail speculation, market manipulation, regulatory uncertainty, and a lack of real demand for the assets themselves. Most retail investors experience the same rollercoaster ride as everyone else: go all out during the hype, sell everything at the “top”, buy back when prices continue to rise, and claim to hang around for the long term when prices collapse below the entry price, Finally, everything is lost when the bull market capitulates to the bear market. The biggest mistake is never taking profits when they are at the table, because most people will hold on greedily, hoping to sell exactly the top, then miss it and sell at a loss later.

Retail investors need to understand their honest reasons for buying cryptocurrencies before making any decisions, whether jumping on the hype rocket to make a quick profit or because they want to invest in blockchain technology for the long-term future (or need to use crypto for some reason). For long-term investors, the cryptocurrency that everyone needs is the best asset for long-term accumulation, the best example being the gas token of Ethereum (ETH). Long-term investors use the Dollar Average Cost (DCA) strategy, which involves buying a fixed dollar amount of an asset at routine intervals regardless of price movement. It has been the most profitable investment strategy for several years. On the other hand, successful short-term traders prefer speculative altcoins and meme coins and pay close attention to price chart formations, news stories, market sentiment and pre-sale tokens, and have to actively manage their positions and take profits when they are. On the table.

Doing everything while in a hype is the easiest way to break down, and trying to time the top or bottom to maximize profits never works. Getting leverage by taking out loans or using life savings is not a good idea at all. The most effective strategy to avoid a crypto crash is not to buy cryptocurrency in the first place, but those who want to try may consider a long-term DCA strategy to accumulate high-interest tokens (especially tokens to pay for blockchain gas fees) or a cure Cryptocurrency Market like a casino and use only disposable income.

Sources: CNBCAnd the Queen GekkoAnd the CoinMarketCapAnd the Bizonacci (Youtube site)

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