In recent years, cryptocurrencies have become an asset for trading for many avid traders, who are trying to profit mainly from their price fluctuations and the overall “bull” or “bear” trend that the digital currency market is currently following.
In addition to them, however, many ordinary people invest in cryptocurrencies, who take them as “fun”, but in many cases also as a real part of their savings. However, saving in cryptocurrencies is nothing new, and we have recently discussed how much a beginner should invest in cryptocurrencies. they also talked to trader Jakub Kraľovanský.
However, when you are already a beginner you create your own crypto-wallet, you create an account on the stock exchange and buy your first cryptocurrencies, it is often difficult to stop monitoring your portfolio of cryptocurrencies and not think about selling or buying them every time you fall or increase.
In this article, we have prepared some simple tips on what to do when the value of your cryptocurrencies begins to decline.
Measure the risk twice, buy once
Emotions sideways and stick to a predetermined plan. These basic rules for investing and trading in cryptocurrencies would be confirmed by perhaps every experienced trader, but when you invest shortly and your portfolio suddenly falls by 20 or 30%, which is nothing special in the world of cryptocurrencies, they are difficult to follow for a novice.
Therefore, before you buy cryptocurrencies, it is important to think about the level of risk you are willing to take.
If you actively trade in cryptocurrencies, the basis is to learn as much as possible as soon as possible and learn, for example, to use Risk/Reward Ratio (RRR), ie the ratio of risk and potential profit, and enter into trades only if your potential profit is at least the same as the profit.
If you plan to “evaluate” your cryptocurrencies, ie keep them for a long time, always first consider all aspects of the cryptocurrency or the project you intend to invest in, especially with regard to risk.
Don’t be afraid of overflows and avoid the crowd. Here are 5 tips on how to trade cryptocurrencies responsibly
Do you believe in the cryptocurrency so much that if its value dropped by 50 or 70%, you could still sleep peacefully? If so, invest calmly in it at your own discretion, of course with regard to maintaining security when buying cryptocurrencies or diversifying the portfolio, which we also dealt with in this article.
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- Why sticking to a chart is one of the biggest mistakes beginners make
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