6 Steps to Avoid Losing Your Money In Crypto

HEht...Y33V

20 Jan 2024

Making crypto investments is certainly for profit, but the reality is not that easy. A lot of beginners experience losses due to mistakes or special conditions. in this article, we’re giving you 6 Steps to Avoid Losing Your Money In Crypto.
6 Steps to Avoid Losing Your Money In Crypto
To get an in Crypto should indeed learn a lot first, especially for those of you who are beginners. Because buying and selling Crypto has considerable risk. If you don’t do it right, it will lead to losing your money.

6 Steps to Avoid Losing Your Money In Crypto

This time, we will share some tips and tricks for making crypto investments with everyone. Especially to overcome crypto friends who may be in a state of floating minus.

1. Review the Original Purpose of Buying Crypto

You can remember and review the original purpose of buying Crypto. Whether for the long term, short term, or speculative purposes. You will find it easier to help decide what steps to take.
This should have been thought of first when buying Crypto. Do not let you not have a definite purpose. Is the target you used to set still realistic for the current conditions?
Or don’t you misstep when you start buying Crypto? Try asking some of these things to get the causes and lessons for you to make the next crypto investment.
Please don’t give up because the loss we get will teach us a valuable lesson. Correcting our mistakes will make us better in the future. And it will probably make you a great investor.

2. Stay Calm And Do Some Research

The next step is to stay calm, don’t be careless in making decisions. Because by being transparent, you can think clearly.
Then you can analyze the crypto assets you buy. You can do fundamental and technical analysis.
You can check again whether the crypto project is still running or not. Is there any news about the Crypto you buy? Technical analysis of cryptocurrency price movements is also included in the analysis.
Do not obey the opinions of others, but make considerations only. You must be independent in assessing the investment assets you buy.
Do your research and believe what you decide. Right and wrong about the outcome will be a precious lesson.

3. Averaging Down / Averaging Buy

Another step that can be taken when Crypto is grabbed is averaging down or averaging buy. Here you buy back at a lower price because the market goes down.
It is essential for you not to all in or spend money on one purchase. The point is to make a buyback when the price drops.
Averaging buy is also very risky. So it would be best if you first matured in making the previous point in researching the crypto assets you buy.

4. Hold, Wait And See When Crypto loses

Holding crypto assets that are being held is also one option. You can still let it go for some time in the future while looking at the development of crypto assets.
If from the beginning you have done your research correctly. And believe the asset will continue to grow in the long run. Then the price drops are not a problem. While waiting, you can continue to monitor the development of the project and news about the asset.
You also need to remember if making crypto investments do not for wealthy purposes in a fast time. Everything needs a process. The project of Crypto also runs like a company development. Everything takes time and patience.

5. Cut losses Partially Or completely

Another solution to overcome the losses of Crypto is to make a cut loss. This can be done if the crypto coin fails to develop. This can be seen from the project that is not running, a lot of bad news, and other wrong facts.
Making these cut losses can save the remaining balance of crypto assets you have. But again, you have to do your best research so as not to become regrets.
Whatever decision you make, that’s the result. You do not need to regret if you lose, but make valuable learning to re-enter the market in the future.

6. Move To Other Assets When Crypto loses

If there is a stock switch in Crypto, it can also be. While you do your research, it turns out to find other more convincing assets. And you can move the remaining balance to buy other crypto assets.
Using fiat money to purchase crypto assets has become increasingly important. hard cash that even you are willing to lose. That way, it will be easier to make decisions.
The following are some things you can do to avoid getting scammed.

Must do your research well before buying, do it objectively
Don’t FOMO or don’t rush to buy crypto assets
Avoid buying when the price has risen significantly from the previous price. Waiting for a correction will be much better
Use good money management, prepare risk rewards

Wrapping Up

Making crypto investments can be profitable, but it also comes with significant risk. To avoid losing your money, it is essential to review the original purpose of buying crypto, stay calm and do thorough research, average down or buy, hold and wait when crypto loses, cut losses partially or completely, and move to other assets when crypto loses.
Good money management and objective research are crucial to avoid getting scammed. Patience and a long-term outlook are key to success in the world of crypto investments.

NFT, Bitcoin, Web3.0, DeFi, and Cryptocurrency for beginners
Master the basics of the web3.0 world with CryptoZoom FREE Beginner Crypto Guides, where we take an in-depth look at some of the top NFT, Crypto, and Metaverse projects in the space so you can be informed before you invest.

600

4

Crypto
Cryptocurrency
Crypto Scam
Crypto Frauds
Cryptocurrency Investment

600

4

Follow

Written by CryptoZoom

1.8K Followers
Founder of CryptoZoom. Trading and crypto enthusiast. Focused on educating investors. Crypto, NFT, Web 3.0, Blockchain, Metaverse, DeFi, FineTech, and Finance.