[Video Blog #49] - Emotional & Hype Cryptocurrency Trading
This entire cryptocurrency sector is a speculative and unregulated market and there is a lot of hype and excitement around it because many people have transformed their lives and made a lot of money and fast which has brought a wave of young and old into the sector looking for the same returns.
The issue is many are young and inexperienced and they have been investing money that they were not willing to lose based on the risk.
Trading and investment is about research and confidence in the company or project you are investing in.
This should be your first rule.
Know what you are getting yourself into.
If you are looking for fast money, make sure you know that speculation is rewarding and also devastating at the same time.
You have to accept that prices will fluctuate and there will always be uptrends and down trends through the life of a stock, crypto or any speculative asset.
This is the energy of economics.
It is alive.
Simple rules:
- Research
- Invest only what you are willing to lose or risk
- Buy low, stack on dips and hold long is normally a better strategy.
- Never trade emotionally.
- If the price drops considerably and you are still holding the best option is to consider improving your position by buying more and stacking it based on your confidence in your initial trade.
- Wealth is an accumulated store of value based on your choices, choose wisely and be patient.
- 2 to 7 year cycles of trade are generally a good idea especially with a new entity as it must have time to evolve and find true market value.
- Always realise some profit and be happy with what you get.
- Learn market cycles however beware that cryptos don't have any history apart from a massive bull market with huge speculative swings.
- Diversify your portfolio
- Buy early rather than after the news, laggers are always late and all good things come to an end.
- Seek to buy good techs at their youngest maturity so you can buy larger positions in a stock and hold long term to allow the best return and growth.
- Take responsibility for all your decisions.
Follow Sebastian - @sebastianjago
Have a great day!
~Sebastian
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Yo, Sebastian. You got the youngsters nailed right there. Any thoughts on decred and nem?
To be honest I have looked at NEM and it just looks like another currency based coin to me however I would need to learn more before as I don/t know enough. Same with Decred. It is funny everyone has their eyes on different coins and I am working my way around them all however my investment capacity is at its limit and I am happy with my returns and invested interests to date. This does not stop me from researching theses coins though. What do you know about them? Why do you like them?
Starting with NEM, I think you are wrong. They are working with services that are not yet released. I think its called catapult. I'm no expert, but those who are (or claim to be) are positive about it. And I can see why.
Decred on the other hand I just downloaded their app. And it is fucking killer. Since I'm on a mac, I'm used to see badly ported softeware that I just delete. This one was straight in your face good. Otherwise I have just read a little from unofficial sources. Apparently you get like 30% interest for staking.
Interesting. I would have to look into it more. 30% on staking is impressive. Is that a sustainable %?
That's kind of why I ask. You are more credible than the average joe. I might give it a try. For some reason POS makes me more interested than POW. There is something wrong with me ;-)
POS is great. I do it successfully with DOPE and REDDCOIN. I get daily rewards. Anything that adds to my position passively is worth it. Give it a go for sure. Nothing to lose at this stage of the game. Let me know if it pays well and the POS is smooth and consistent.
The only problem with NEM is that you need 10 000 to stake. So far I'm at 27x something. So it will take a while to get somewhere. But the decred could be a solid contender from just opening their software. I really liked it.
So approx. $3000 to get to a point of staking. That is doable however as the price rise that gets harder so early adoption sounds smart. Maybe they will change the rules in time.
Every market is speculative, not only crypto but others also