At this point in time, any investor of cryptocurrencies have at least one story about a loss in the cryptocurrency market. You can obviously make a lot of money in this space, but you should know that losing huge amounts of money can also happen.
I have found 3 reasons that made me miss out on some gains in 2017!
Not Selling After a Pump
There are some coins I bought that were pumped very high for a few days before losing 50% of their value. This taught me to be selective with my hodling! You should only hodl high caps or some selected few coins that actually have a one of a kind project. Never be afraid to take some profits out!
Not having the confidence to take a risk
I often found interesting low caps coins when they were very low and did not invest on until i saw them moon. I am very conservative with my money and so far that has got me to high places. However, having the confindence to invest on the early days of bitcoin is what made a lot of people millions of dollars. What you should do is always invest a small amount of money that would not hurt you if you lost it in any coin you have a small doubt on!
Underestimating bitcoin
I remember when btc was about 4000-5000$. I believed it was too late to make profits with bitcoin and started investing in altcoins such IOTA, NEO, LITECOIN, etc. While those investments did well, I believe that not putting more fiat money into btc was definetly a mistake on my part. Now, I always have a set ration of crypto. I always have 40% of my portfolio in bitcoin, 40% in high caps and 20% in mid to low cap!
There is a ton of other ways you could lose money in cryptocurrencies! For me, those 3 are just what affected me the most.
Thanks for the read and good luck in your trading :)
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OMG! This is SUCH an AMAZING post! Thank you for sharing! I gave you a vote!!
Thanks you! Comments like yours is why I love the steemit community!
Very good read! I do not invest in bitcoin only because I do not have the capital to make it worth paying the fees along with it. I have made the mistake of not selling during a pump and have kicked myself for it but I still believe that the coins that were pumped are not done with their growth and will attain that price naturally after a while. Cheers!
im 50% in BTC, 10% in LTC 10% in BCH, and 30% in small caps... Very small caps.. maybe im to conservertive..
That's a nice portfolio! I hope you the best!
Of course you could make more money by trading altcoins than by holding bitcoin, but it sure is a risky way to go. I believe that everyone should hold a couple bitcoin to minimize that risk!
Thanks for the comment! :)