Cryptocurrency is about to pop again and go on a monstrous bull run. Of course this is just speculation, but with the halving just weeks away, history shows us it’s almost inevitable. Please crypto newbies don’t get rekt.
Rekt is a crypto term that means you held your bag of coins/tokens too long and they lost all their value. Crypto is full of these terms, here is a list of others you will hear constantly.
All Time High
The cryptocurrency market is very exciting, in addition to that the technology will blow your mind. There are so many projects that you’ll want to get into but beware, going all in or listening to the wrong “guru” can get you into a lot of trouble.
A massive amount of new investors flooded the crypto market in 2017. Everyone was taking about it including your grandma over Thanking dinner, as Bitcoin seemed unstoppable.
Early January 2018 we saw the peak of the massive bull run. From there the price of crypto fell like a rock. If you were listening to the wrong crypto YouTuber you probably thought the price was going to rise again and make sick gains forever.
We Were All Newbies at One Point
A few things about cryptocurrency. You will never go wrong investing in Bitcoin over the long term. The whole crypto market follows Bitcoins lead. This means that if the price of Bitcoin goes up, alt-coins will follow. When Bitcoin goes down, your favorite altcoin’s price might fall like a rock.
I was a newbie too at one point and was in your shoes. I’ll admit, Bitcoin is kind of boring, but it should make up a good portion of your portfolio.
I’m all about hodl’ing to the end but you need to practice RIGHT NOW how to sell your positions. You have to have an exit strategy on some of these altcoins if you plan to make any money from the market. Don’t be naive and think the market will rise forever.
Selling & Cutting Losses
I bought a very popular altcoin for $100 per share in 2018. Just a month prior it was pushing $200 per share. I thought wow, this coin is half off! Today that same coin is worth $8! It may reach all time highs in the next bull run but don’t count on it.
It’s hard to cut your losses when you buy at all time highs. That is why a strategy is important. Know when you want to get out of a position. The thing is you will almost never time the market perfectly.
The crypto market and the stock market have similarities but are very different. With stocks the price is typically a steady gain or decline over a long period of time. Cryptocurrency is VERY volatile and can take violent swings in price movements. Think of the crypto market more like penny stocks, which is a gamble.
Take Away
If you take anything away from this article; buy Bitcoin, don’t become attached to your positions and have an exit strategy when the market tanks. Remember, what goes up must come down. Most importantly, please crypto newbies don’t get rekt.
If you are looking to buy Bitcoin or other cryptocurrencies Coinbase or Binance.us are great places to start. Not all Exchanges accept fiat currency, however both of these do.
If you liked this article check out The Bitcoin Halving and Sick Gains To Follow.
This article includes affiliate links. The blog earns a small commission at no extra cost to you. By using our links you help to keep the blog running. Furthermore, this article is not financial advice. I am not a financial advisor and words herein are for entertainment purposes only.
