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How Risky is Cryptocurrency Trading?

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@tomlee
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It is a well-known fact that cryptocurrencies are volatile in nature. One moment it is rising in value and the next, it is dipping massively. So, while you can earn from its bull run, you can equal lose when the market is bearing.

There's a whole of risk in cryptocurrencies trading and this is why one should comfortably know and understand the market before venturing into the market. Failure to understand the market before placing trades can only lead to recording loses.

I happen to know of two persons who had little or no knowledge about cryptocurrencies and its trading but decided to invest following an advice from someone. One invested about NGN 3,000,000 and the other NGN5,000,000 in BTC as at 2017. Worst still, they had someone else trade for them because they knew nothing of the market.

So, when that bear market erupted BTC in 2017, they lost almost all of the investments made. Assuming, the understood the market or did the trading themselves, they would have hodl their coins but they were only relying on what someone told them. Because this experience, both have refused to do anything relating to cryptocurrency. I understand their plights though.

In essence, you either lose and gain in cryptocurrencies trading hence, to avoid loses and reduce risks, you have to first and foremost learn and know the basics, you have to understand the market that is, when to buy and sell or when to hodl. Knowledge and patience is something I have come to discover is very key to making profits in cryptocurrencies trading.

Before o starting trading, I ensured that I knew what was important and vital for profit making. Don't just jump into it. Since, cryptocurrencies are volatile and comes eith a lot of risks, how then do you avoid loses?

  • Understand the Market: You need to have an in-depth knowledge before putting your money into trading. This is very important.

  • Don't trade with little capital

  • Don't be greedy

  • Be patient

  • Don't trade with money you can't afford to lose


So, while trading, do it with caution!


Thanks for your time!

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