Cryptocurrency is perhaps the epitome of a high-risk but also high-reward situation. Today we will be talking about some of the best ways to maximize your profits while minimizing risk during this massive crypto bull run. Under the right circumstances, even complete beginners can earn tens of thousands of dollars almost overnight due to the massive volatility that characterizes these markets . Beginners can also double their winnings by wagering with bitcoin on the high-paying games available in Justuk.club non GamStop casinos. But more often than not, these beginners will lose all their winnings again and even start losing money.
Below is a short and helpful guide to growing your crypto fortune and how to stick with it:
Make a Plan (And Stick to It)
You need a plan if you want to avoid getting confused and straying from the path.
- Determine your budget
- How much money are you going to invest?
- Are you going for a pot of money or for a fixed income?
- Are you sure you can afford to lose all this money (worst case scenario)?
With that information in mind, you can move on to the next step.
- Make a decision about investing vs trading
Trading generally offers the best opportunities in crypto compared to investing for a number of reasons:
- Long-term profit is not easy to realize in crypto. Many projects seem to fall apart after they launch and rivals can pop up out of nowhere with very similar code and use cases. The basics of most cryptos are really just a joke and you’re betting on a huge amount of uncertainty. Trading allows you to get in and out of popular projects without being tied to a bag of worthless coins when a project collapses.
- Volatility is more beneficial to good traders than good investors, as the frequent price swings provide an opportunity to profit from regularity rather than just waiting. Investors may miss multiple 100% swings before finally meeting their profit targets.
Know Your Own Weaknesses
Good traders can do better than good investors, but that idea comes with some caveats. It’s time to make sure you understand why so many people end up losing their money and how to avoid falling victim to the Crypto Wild West again.
You’re Human, That’s a Problem
As a human being you are astonishingly intelligent and at the same time a complete fool.
How so? Well, for example, many people are smart enough to come up with a good trading strategy, but too ‘dumb’ to stick to it!
The Reason for This Is EMOTIONS.
The prehistoric part of your brain, which subconsciously controls your thoughts and behavior, is constantly bombarded with information from horrific sources like mainstream news, Youtube ‘traders’, Twitter ‘influencers’ and all the other background noise designed to get you on the wrong track.
Trading includes a few things that people are scientifically bad at:
- Holding on to investments that are in the red – Normally you have to take a loss for a while before it turns green!
- Compound Loss – We don’t like to lose, so people like to turn small losses into bigger losses!
We could go on, but really you need to be aware of how vulnerable you are once you deviate from your original plan.
Plus, trading and investing can take over your life if you’re not willing to keep things under control.
Money is extremely good at playing with our emotions. That leads to stress, sleep deprivation, fear of missing out (FOMO) and the death of your social life and relationships if the habit of checking stock charts gets too extreme.
The Ultimate Solution: Act Like a Pro
You have to think like a PROFESSIONAL and eventually become one if you want to keep control of your trading and keep your emotions completely out of the game.
The path you choose is up to you.
The unnecessarily difficult way:
- Lose thousands of dollars making beginner mistakes
- Slowly realize that you are suffering emotionally
- Spend years developing and perfecting a resilient risk management and trading strategy
Start all over and then try…
The smart way:
- Let go of your pride and seek help
- Allocate a portion of your budget to education and resources that support your growth
- Use software to extract emotions from the picture
- Reach your goals in less time and with less stress
The only reason people don’t start smart is that they somehow feel that spending money to make money is a ridiculous idea. It’s an amateur view that you can find at the bottom of industries all over the world.
It’s the ‘have fun staying poor’ mentality that plagues the masses.
Professionals, on the other hand, invest without thinking in their own skills, their own equipment and their own peace of mind. They are able to see the future value of spending now and that comes from confidence in themselves and the products they use.