Categories
Categories
coinprice iq
by on November 19, 2020
132 views
Are you trying to make money in cryptocurrency but aren't able to get success? If you are new in business you must know why you are not making money in crypto. I'm going to be giving you five reasons that you are coming up short when trying to stack those gains. Fear Of Missing Out So, the first reason you are not making money in cryptocurrency is that you're FOMOing too much. FOMO stands for “fear of missing out”. It's actually a term used in other areas than just cryptocurrency. But in crypto, this means that you're watching giant green candles forming on a project's chart. With each subsequent green candle, you do the math on how much money you could have made if you had just invested in the coin. At some point, you start getting the feeling that you should just go ahead and invest in a pumping coin. And the moment you do is usually when the price dumps and you lose a ton of money. The thing people often miss when they FOMO into a pumping project is the upside potential versus the downside potential. If a project has jumped 40% already, how much higher to the upside can it really travel? Sure, during the most heated times of altcoin season, projects can 2X or 3X overnight, but we're talking about an occurrence only slightly less rare than a leap year. On an average day, when a project jumps even 15-20%, you should safely assume it won't run much more, and you should take profits. Meanwhile, if you jump into a project at the wrong moment and it retraces, you can incur massive losses. FUD( Fear, Uncertainty And Doubt) The next reason you're not making money in cryptocurrency is listening to FUD. This stands for fear, uncertainty, and doubt. Now, we use the words FUD and FOMO a lot and there's a reason for this. These are such common ways people lose money in crypto. This occurs when there is news or negative sentiment circling around a crypto project. Now, the story could be true or simply a false rumor. The fear, uncertainty, and doubt itself isn't the biggest deal in the world. In the world of finances and investing, these types of hypothetical Doomsday articles lead to people making bad investment decisions. Cryptocurrency is pretty much pure speculation at this point. One day, it will be much more, but for now, it is what it is. There isn't a huge link between the fundamentals surrounding a project including news and the price, so if a project gives bad news, you should be slower to react. Those who often jump out in panic end up regretting that decision. Hopium (Hope With Opium) The third reason you are not making money in cryptocurrency is because of hopium, some made-up cryptocurrency term that combines hope with opium. That's because hopium is-- to borrow words from the late great Rick James-- a hell of a drug. It's a powerful combination when you start talking about hopes and dreams. And that's what cryptocurrency does for many people. It allows them to step outside of their cubicle and dream big about what could happen in the future. Now, listen. Bitcoin could go to a million dollars. Heck, it could go to $10 million! But I could also win the lottery. It's ultimately probably not going to happen. But you have to stop focusing on the best possible scenario for your crypto and living in hopium. Like, yes, XRP Army, we get it. The price per XRP in a perfect world could balloon to $589. But it probably won't. So you shouldn't be going all-in on one project because of one possible scenario that could make you extremely rich. Hopium tends to lead to people being stuck in one project for too long when they have gone way past their peaks. Can’t Able To Sell Coin You are getting married to one coin. Marrying your bags is probably the way I've seen some of my closest friends even lose out the most on big gains. They get stuck in one community or coin and can't ever seem to leave even when they see the price of their coin dropping like a rock. You have to think of it like this. Not only are people putting their hard-earned money into cryptocurrency, but they're also putting their time in, and they want returns on all their investments. I mean, we all do or we wouldn't even be doing this, right? It's about making money. But when you get stuck in one coin past its prime, it can be extremely painful. You sacrifice investing in other projects because of your deep conviction to whatever coin you're connected at the hip to. But there are some other things that can make it difficult to sell a coin you know isn't going anywhere. You may have gotten hugely involved in the cult-- I mean the community of a certain coin. You know people personally and you feel like you would be a sellout if you dump your bags. You come up with every justification and rationalization in the book as to why you can't sell. It's a never-ending cycle where you think about selling but never do it. This is called the sunken cost fallacy. This is where people feel like they put too many resources into something to pull out. It's an internal struggle and bias that defies logic. It's simple. When an investment is hurting you, it's time to pull out no matter what your history with that investment is. Don't know how to manage a portfolio Lastly, one of the main reasons you're not making money in cryptocurrency is because you just flat out don't know how to manage a portfolio. If you just blow through one cryptocurrency after another, playing a game of hot potato with coins, then you aren't going to make money. I would highly suggest sitting down and mapping out a plan for how you want to diversify your portfolio and stick to that plan. You need to have more solid projects, the top cryptocurrencies in market cap, making up the bulk of your portfolio. Many people overload their portfolios with highly speculative assets and have smaller allocations to the top projects. You also need to have a number in mind of how many projects you want. One or two cryptos doesn't give you enough exposure, while 50 different coins give you too much exposure. If you only had $1,000 to invest in crypto, don't put it in 100 different coins. If one moon, you only had 10 bucks in it, so how much could you really make? With a $1,000 portfolio, I would be looking at somewhere between 4 to 6 coins max. It's all about finding a balance. The important thing to making money in crypto is to create a plan, stick with it, and stay objective. When the euphoria or the depression of the market sets in, you have to learn how to stay on an even keel to make the best financial decisions.
Posted in: news, Business
Be the first person to like this.
Anna Lima
This site https://duckdice.io brings me profit every day. It is very convenient for me to travel the world and make money remotely, not think a lot about work, do what I love. Until you yourself try to play dice for bitcoins, I think that until this moment you will not believe that it is real! But n... View More
Like November 25, 2020