Hold on tight on the roller coaster and enjoy the ride!

^Source

How is a real roller coaster, made of cars, iron bars, wheels and tracks, to you? Is it

• fun?
• exciting?
• scaring?
• all of the above?
• not for you?

Yes, the roller coaster can be fun, exciting and scaring at the same time. It can very well not be for you, for example, if you are scared of heights.

The roller coaster is a lot about adrenaline and conquering fear. But it is not recommended to some people for medical reasons. Others want to stay away because they don't like to experience the emotional overwhelm or the perceived risk associated with being on a roller coaster.

When you open a trading account or even a different type of investment account, one of the questions that is asked to you is to define the category of risk you are comfortable with: usually high, medium or low risk.

High risk means you admit that you enjoy the thrill of a roller coaster, figuratively. Or sky diving. Or climbing mountains. And even more, you are attracted to them. You got the picture.

Low risk means that you'd rather take a walk in the park than do any of the above, and even more, that you won't do them.

Medium risk means that you'd do a little bit of all and would like to keep a balance between them, if possible.

Now, when you joined the crypto world probably nobody asked you what is your risk profile. But let me tell you: it's high. You love roller coasters! You don't? Hmm... Then what are you doing in crypto? Or in stocks? I won't even mention leveraged instruments...

So, why do people choose the roller coaster in investment, including crypto?

Because of the rule: with high risks come high rewards. You should read this as with high risks MAY come high rewards, because there is no guarantee.

And why do people choose the "walk in the park investment" instead?

For safety. To preserve value of their investment over time.

Now crypto is on a roller coaster. Every once in a while takes breathing breaks and unlike the real roller coasters, it allows for new passengers to get on or off board, because the crypto roller coaster never stops, there is no finish/start line to embark/disembark. Do you jump in, get out or prefer to watch? Or maybe go for a walk in the park?

This crypto roller coaster has been on the downward slope for a long time. If we were to keep our comparison to roller coasters, it will soon be time to go on a upwards slope, to rebuild its momentum.