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Beginners frequently run into these problems, because they lack the techniques to know whether to buy, sell, or hodl a coin.
Before investing, some beginner cryptocurrency investors did not take the time to thoroughly research the cryptocurrency market, how it functions, and the risk involved. Some people believe that it depends on having sufficient funds to make large investments and thereby make huge profits.
In 2016, my friend introduced me to cryptocurrency trading. At the time, I knew nothing about cryptocurrency. I was merely following my friend's directions.
He often instructed me on when to start and stop trading.
But, I stopped trading for a while since it needs complete focus, and I have to be online constantly to monitor market value.
My friend then advised me to invest in long-term cryptocurrency holdings.
He explained and I love the idea.
I started with Ethereum and LTC, at that time ETH was $10, and I bought $50 ETH. I Hodl till a bull market run in the year 2017 when ETH pumped to $100 for 1 ETH.
That was how I gained massively on ETH.
Also in 2016, I bought LTC at a rate of $3 for 1 LTC, and the price of LTC pumped to $53 around March 2017. I wanted to sell, but my mentor said I should wait a little bit because the price might be doubled at the end of the year.
And fortunately for me, the price increased massively to $85 at the end of September.
I gained a lot, this is the power of Holding coins.
The Mistakes I made On Holdling's Plan
The first mistake I made was that I sold all my coins, after the bull market run. The profit was much then, so I used all the money made to set up an offline business.
I should have sold the profit I made and kept the remaining over there. That would have been a wise decision.
The second error I committed was waiting until the offline business was struggling before investing again in cryptocurrency. I choose to invest in LTC once more, but this time, just LTC.
I invested $3000 in LTC in April 2018, that time 1 LTC was $150. I was told by my mentor, by December it might increase again like the previous year.
But it was a wrong prediction, by December 2018, LTC dropped to 30 dollars. I lost a huge amount of money.
I didn't sell it till I needed urgent money that requires a lot of money on the 20th of Feb 2019.
I decided to sell everything again because I was scared it might drop below $30. That was how I lost the LTC money totally because I sold my coin at a massive loss.
Tips For Preventing Mistakes
• When there is a bull market, avoid selling all of your coins at once, you can sell a certain percentage. Then you can reinvest a portion of the profits into a new promising project.
• Don't put your entire savings into one coin. If the asset decreases, you can experience severe losses.
• Whenever a coin's value increases suddenly. Avoid purchasing that coin at that specific moment.
Because it could fall quickly and take a while to return to the price at which you bought the coin.
• Do not fall for FOMO ( fear of missing out ) on any coin. Whenever there is a new coin, influencers and marketers will hype it so that investors can invest a lot of money in it. Within a short period, this coin may crash.
• Do not be greedy, take some profits off when there is at least a 30% increase in your coins. Do not wait until a 50-100 % increase. This has cost a lot of losses to some investors.
Some investors will wait til they have 100% profit, and this might cost them in the long run. The price might reduce drastically again and the bear market might reign for a long time.
• Stay strong during the bear market, and do not sell your coins, especially at a massive loss.
In conclusion, have a plan for your investments, and understand how to make both short-term and long-term investments. Recognize the one that works for you and keep in mind the volatility of cryptocurrencies. Don't be greedy with your investments; instead, be wise.
Note: This is not financial advice, DYOR on any cryptocurrency investment. This article is just my opinion.
Thank You All For Reading
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You sure did make a lot of money, hmmm.
Thanks for sharing your opinion. Someone would definitely learn from this
Yes massive gain Indeed, but later went down the radar.
That's a crypto downside.
Thank you for stopping by sis