“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” — John Bogle
Think about the fact that you invest $1000 in a certain project. 24 hours later, you wake up to see that it has lost 20% of its value. What would you feel? Are you filled with terror and fear? Would you imagine having trouble relaxing, and even feel worse as you try to eat breakfast on that day?
If losing 20% on stocks or crypto in 24 hours gives you a feeling of terror and fear, then you might want to play golf instead, or maybe just go for a walk... something that will calm you down. Do you know why?
Investing money is a risky business, it is addictive, and it is like a rollercoaster. You will experience ups and downs, and if you think of a 20% loss in the stock-market, then you can know that in the cryptocurrency world a 20% loss can happen 5 minutes after you purchased your tokens. It is super fast. Of course, it can go the other way as well, but we have no guarantee of that.
A few minutes ago I bought a token at a price of $120. Now the price is $115. That is already almost a 5% loss. Of course, this can change in a few more minutes, so it is impossible to predict. But, it just says a lot that the prices are fluctuating a lot, and investing is not for those with a faint heart or who are afraid of some ups and downs.
And one more important lesson - do not invest money that it would be a tragedy for you to lose. That is major! When you invest in crypto, consider the money lost until you have actually sold your crypto and see the money on your bank account again.
There are many risky projects out there in the cryptoworld, and there are lots of projects promising you gains that really is impossible to imagine... for example HectorDAO, a project currently running with a 300,000% APY.
So, if you fear or become stressed thinking about losing your money, go for a walk instead!