1) Buy high (ATH)
Unfortunately, many investors fall into the trap of buying a crypto when it scores a new ATH. However, you should know that the higher the price, the more the likelihood of a reversal increases. Conversely, this also applies to discounts.
There is only one way to make money in any market: buy low, sell high. Doing the opposite will make you lose money!
To mitigate the risk, many savvy investors choose to use DCA method (average of the cost of the dollar). They acquire a certain amount of cryptocurrencies at regular intervals, investing the same amount each time. This has the advantage of spreading your investment over time and thus reducing your exposure to a sudden drop in markets.
Many cryptocurrency apps allow you to schedule recurring purchases on a weekly or monthly basis.
2) Don’t do your research (DYOR)
Surely you have already seen the term DYOR which means Do your research. It is important to conduct research on a cryptocurrency before buying it. In fact, even an experienced person can create a cryptocurrency in minutes with easy-to-use dedicated platforms.
So don’t believe the people who tell you this crypto will be next shiba inus. You need to know the development team, the community around the project, the various resources (white paper, website, products already launched, etc.).
Read also “Cryptocurrencies produce nothing” – Warren Buffett (91) still does not understand cryptocurrencies!
3) Don’t apply money management
It is essential to define in advance how much you will invest in cryptocurrencies based on your risk aversion and your financial means. It’s tempting to put all your savings into a cryptocurrency when its price rises rapidly in hopes of getting rich overnight. If anyone likes it Glauber Contessoto we know that thousands of investors have lost most of their savings trying it. And we don’t talk about it in the media.
Furthermore, it is important not to invest money, the loss of which would put you in a difficult financial situation.