Every business owner really wants to make a huge profit but that’s not the way it functions because loss must also be put into consideration. Whether you like it or not despite how much money you have been making as a business owner, one day you must expect a loss.
I could remember my first experience in cryptocurrency where I thought that the moment you start little investment in buying and trading any coin that will be the day you’ll start making a profit but bet me as I lost over $200 as a beginner then. I told myself that I’ll never engage in anything that has to do with online investment to an extent that I have to delete the person that introduced me to the world of cryptocurrency contact from my phone. After some months with testimonies and experiences shared by different crypto whales through research, I engaged again in cryptocurrency investment but before I’ll consider buying any coin, I make sure to understand whether the coin is under long or short target following their AMA and many others. This was how I started making it again as an investor.
Let me make a small explanation of loss:
In the crypto world, a loss can simply mean a situation whereby an investor fails to wait for the market to return to the price at which he/she purchases a specific cryptocurrency asset and then sell at a lower price. This situation is mostly encountered by new investors because they do have not much knowledge of how the cryptocurrency market operates. Sometimes, people are faced with challenges that could also make them sell their crypto assets at a lower price at which they purchase.
Some reasons why an investor may lose their investment:
Quick profit-making: some investors want to make a huge amount of profit in one day not knowing that in every business one must be patient. Most investors are not patient enough thereby making them engage in a daily trading method that could make one lose his investment in one day.
Fear of the bear market: some investors do not really understand how the crypto market operates sometimes the market may be red while in another way round may be green but it takes time to be green like red which occurs frequently. Whenever the market is red, some investors are always afraid of losing their entire investment because they may think that the market will not rise again and leading them to sell at a lower price at which they purchased their crypto asset. This will turn into a big loss for them because when the market will gain huge momentum after they have sold will be unknown to them.
Personal issues: most investors may decide to sell off their crypto assets due to one issue they may be facing not considering whether the market is red or not they just want to sell to have some physical cash to resolve their problem but this is not common with long term investors.
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Few things to do to avoid loss as an investor:
Always try to understand the market cycle and global events.
Always invest what you will not like to lose: at least this will make you comfortable by the time you invest a little of what you’ll not like to lose because you’ll not be pushed to sell during the bear market but to always wait for the bull.
Always make research about a coin before buying: Before you buy any coin, make sure to understand the structure of that coin because not every coin will rise, some are just there to make a profit, and after they dump the project which will make investors lose. In this case, I always encourage my friends and family members who have an interest to invest in cryptocurrency to always consider investing in Hive and Leofinance because the future of the two giant coins is greater.
Be patient always: if you really want to make huge money as an investor, you really must be patient with the cryptocurrency market, especially during the bear market. Most investors today who have made a huge profit in cryptocurrency invested and waited for years before making such profit they are enjoying today.
Posted Using LeoFinance Beta