Is Investing In Cryptocurrencies Painful?
Not too long ago I was surfing through my newsfeed on Facebook and came across a story in a crypto fb group where the admin was talking about someone who approached him for advice on how to recover from some of the losses from investing during the FOMO rally of December-Jan.
In this case it seemed as though the person had not only invested their life savings but also mortgaged their house and was in a debt of over $28,500 equivalent in INR. Suffice to say that's a lot of money, not only in India but elsewhere! Seeing as they are invested neck deep in red, and 80% losses the person was close to giving up on everything.
I'm not sure what happened after that as there wasn't any further update. Consider we're anything but close to the ATH of January, it's unlikely that person will recover from the losses anytime to get back their initial investment.
Hindsight is 20/20.
This situation has resulted due to many reasons and it's easy to guess why. Greed, FOMO, Lure of crazy overnight profits and peer pressure pushed several people into investing in Bitcoin. Many others were scammed with Bitconnect, Gatbitcoin and other ponzi scams but that's another story altogether.
It's important we exercise caution before investing in any kind of speculative asset. Any asset whose price is subject to a constant change or extreme volatility needs to be considered very carefully.
Jumping on the bandwagon is a surefire way of burning a lot more than your fingers. It's important we understand how this market works. Most of it is purely hype. We're far from judging cryptos based on actual fundamentals.
The unregulated state of the market and low liquidity compared to Fiat currencies means that we're likely to see big movements in values of these digital assets on a regular basis. However, there's a lot that can be done correctly to avoid losses. Some basic money management and investing principles can help avoid losing most of your investment.
Value of any speculative asset never remains constant, it always moves up or down. However, as small players in the market, we are not the market movers. Hence, we need to be doubly careful when trading in cryptocurrencies or any speculative asset subject to high volatility.
How has your experience been investing in cryptocurrencies. Have you had any major losses. Would you consider speculating in cryptocurrencies even if you faced a loss as a first time investor?
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I have felt the sharp cuts of this red market and found it was painful to bear these losses. I was new and put all my savings in crypto..... suffice to say that it was trial by fire. But apart from the pain I discovered two essential thing about myself.
First thing was that I have capacity to take that pain. Second one is even more important because it is that even in this madness, I can focus my mind and gradually learn.
During the rally in last December-January people take Bitcoin as overnight billionaire scheme and they thought Bitcoin will make them billionaire within days that's why most of the people invested there all his/her hard earned money as well as some loan/credit money in Bitcoin.
But there dreams gone to loss after market crash and now everyone is crying for their losses.
And at that time people invested without any past-future research about Bitcoin..
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thing is no one knows the top no one knows the bottom...
so yes its painful cause you can get fucked both ways. Easiest way is hodl long term.
Every investment is a risk and cryptos are even more unpredictable.. I honestly do not recommend investments of life savings on any crypto currency, the risk is too much to take.. I haven't had a great loss before anyways and I really don't plan on going down that lane.
I don't know what is wrong with all countries and big enthusiasts about their mindset with crypto. I feel blockchain is a very good technology and it should be promoted rather demoting it . I invested few. Got profit of 50% and took exit at that time as India was not in favor of crypto so i decided not to take any chance.
i don't know why indian gov behaving like this with crypto currnecey maybe lack of their thinkng
I was just about to take exit when government broke the news, the prices got halved , I could have earned 4 times the amount of my investment but barely got my invested money. In our the government can't see people making money easily
our government doesn't take good action it's action is like hindu muslim my money is still on my crypto account
For me it was never,
good story to know .. as far as crypto very risky do not invest more than you can lose.
good advice
i am new sir please help me
Hi @firepower! We are @steem-ua, a new Steem dApp, computing UserAuthority for all accounts on Steem. We are currently in test modus upvoting quality contributions with a high UA value! Nice work!
I think this time cryptocurrency going down but after some time it will get it's lost reputation. So have patience about that. Relax and keep earning on steemit
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ragazzi, ma forse è il caso di comprare ora che i bit coin hanno un prezzo basso.....chissà che si ha la fortuna di acquistare come nel 2009 che è poi salito tantissimo....un mio amico con soli 5 euro dopo qualche anno è diventato milionario
Sorry, because I don't understand your language. Can you write in english due to which I can clearly understand.
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ci provo....ma non so se riesco
bitcoin buy now because the price is low, and hope that in goes back so what do you say???
I say that this is the great opportunity to buy bitcoin at low price. After sometime it goes higher as higher.
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thank you...