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Author: Admin | 2025-04-28
For a Long Position: If you’re taking a long position, then consider dollar cost averaging. Dollar cost averaging helps you avoid the risks of a poorly-timed trade. Instead of investing $10,000 in bitcoin today at the current price, you invest $1,000 in bitcoin every month over a 10 month period. Whether the price of bitcoin goes up or down, you’ve averaged the cost of bitcoin over the course of a year.Keep Cash in your Account: You can’t buy the dips if you don’t have cash in your account. When the market is high, consider selling off a bit of your gains (or adding more money to your account) to be prepared if the market dips.Diversify: We’ll talk more about diversification later on. Suffice to say, diversification is as important in the crypto world as it is in the ordinary investment world.Realize that a Diversified Investment Portfolio Means Lower Losses as Well As Lower Gains: So you’ve diversified your investment portfolio. Instead of having $10,000 in bitcoin, you have $3,000 in bitcoin and $7,000 in altcoins. Now, when the price of bitcoin doubles in a month, you don’t have $20,000 – you have $6,000. Diversifying your portfolio means minimizing your losses, but it also means reduced exposure to gains.Stick with your Strategy: Crypto investing requires strong nerves. You need to be able to hold when the market drops, and you need to keep a cool head when the market is hot. There are people who have held bitcoin since 2010 and 2011 and have never sold. When you look at the rises and falls in the crypto industry since the early days, you’ll understand how impressive that strategy is.Pump and Dump Schemes Are More Common in the Crypto World: Pump and dump schemes will send the price of a coin skyrocketing – only to have it plummet back down a short time later. Today, there are entire communities (including Telegram groups) dedicated to launching pump and dump schemes. Suddenly, forums like Reddit and social networks like Twitter and Facebook will be flooded with “buy” signals from people. These people have bought the currency at a low price, and are now pumping the value of the currency online. Once the price rises, they sell with a tidy profit. Pump and dump schemes are as old as the investing world, but they’re more common in the crypto community.Never Invest More than You Can
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