What do newbies need when investing in the crypto market?
(Source: Diamantzeiger – Beepple)
A new cow season has come again, maybe we were and are now in the middle of the cow season, this article should have appeared a few months earlier, I think it would be much more contemporary. When the tide rises, the water will overflow everywhere, bringing with it lots of fish and shrimp and of course attracting lots of new fishermen to take advantage of this opportunity.
The market goes down and up, up and down, and the next rally is usually higher than the previous one. This is the rule for all markets, a natural development, just like the crypto market. Born in 2009 with the appearance of Bitcoin and so far more than 8 thousand other coins / tokens have appeared, diversifying the choice for investors. 2013, 2017 and 2021 these are the years we call the bull run, after the bull year there are five bears, and so on, no one is sure whether or not the bitcoin bull cycle will be associated with the halving of miners every 4 years not, but that’s still true so far. In the future it is possible that the reward per block will be lower and the market capitalization bigger, so the cycle can be as long as other markets, let’s wait and see.
But now is a very hot period, no matter how hot, you can see BTC at this price, it’s only been 3 months since late 2020 and BTC is up 230%, if you can’t pull it, who can pull? it right? no guys!
(in the past 100 days, BTC has increased 230%)
Nothing attracts the media more than when the price of Bitcoin skyrocketed, which not only attracted media but also attracted investors new and old to return to the market and focus 100% of their energies on it.
If we look at the market sentiment chart, we can also see that people are currently in the “belief phase” and are actively watching the price situation of the market day and night, not only that. We encourage our friends to invest in this market as well.
When participating in the crypto market, start with the question What is Bitcoin? and go to google to read all the articles about bitcoin right? I am just like you and most people are.
After reading many documents, do you really understand the value of what you are spending money on?
Understand what you are investing
There is a lot to be prepared for when you’re new, but understanding what you’re investing in and why it’s worth it is important.
You can put money into something you’ve only heard of can go 2x 5x 10x while a little voice in your head says it may or may not go to zero, or is this a scam and why am I still? vague and don’t really understand.
Sleep well while investing, panic if the price of the coin you just bought goes down 10%, 20% or even 50% on any given morning and of course such cases are endless keep people saying that the crypto market is like a roller coaster ride, the press just wrote today that bitcoin has crashed 10%, bitcoin ink is not yet depleted to recover and increase again by 20%. Then how can you safely invest and overcome these volatile price waves, there is only one way, that is, you really have to “understand” what you are investing money for.
This understanding lets you see its value, see its potential, and understand why Bitcoin is rising, rather than the mindset that initially sees it as gambling.
If something cannot understand its worth, no matter how much it increases, you should not touch it. Because as soon as the price collapses a bit, you panic and sell immediately because you have nothing to “hang” on to survive this price drop, why do some people only hold Bitcoin for a few months, others hold Bitcoin? a couple of years, and some last for more than a decade, so where do their beliefs differ and what do some people understand and what do not? They have something to “hang onto” if Bitcoin goes into a bear market and the price plummets 70-90% in a few years. That’s understandable folks, they know what they’re stocking and investing.
To explain why the price of bitcoin is rising, I wrote the article Bitcoin – Store of Value to talk about why the price of bitcoin is rising and will rise sharply in the decades to come and soon become a new asset class for humanity that they can keep with them property.
Security means protecting your assets
In the crypto market, due to the decentralized nature of the blockchain network, you have the least amount of control, less control, so there is little protection and support when problems related to money loss or theft arise.
I see many of you often ignore this problem because you think you are only investing a small amount of money so it’s probably okay, small or big doesn’t matter because it’s all your money and your duty is Protect it with the right mindset from the start so that when a lot of money comes to you, it doesn’t go away anytime soon.
For those of you new to the market, learning more about security will leave you feeling a little confused and complicated and not really understand why we need to do such actions, but with a few steps above phone, I think They are already pretty safe in the market, detailed guide on security in cryptocurrencies.
The time for this letter is towards the end of March 2021 when we entered the bull market and have come a long way, at this point where you have just gotten to grips with the market and are deciding if you want to invest. The best time to buy, In all markets there are only these four actions, buy, sell, hold and stay out. The best buying period is when people want to sell, that is 2018, 2019, 2020, those years that we call bear season, in which the price plummets sharply from the peak of 2017 and slowly recovers and rises again to this day. If you are looking to buy, these years are the best opportunity to get the coins you need at a very affordable retail price.
But unfortunately this is also the time when most people get depressed, desperate and leave the market until Bitcoin gets back on the runway and flies back to the moon, the majority will go back to Fomo and buy ????
If you are currently preparing to invest money in the market, the general mentality when looking at the price of BTC and ETH is going to be scared and run away, then go deep down and pick some cheap coins in the future frankly it is not a good choice.
You need to understand the intrinsic worth of the coins, the value and the price, in the short term it’s hard to know because people keep pumping wildly, every coin will pull out the pump to disorient you, but ask if it is everybody Coin that has been growing steadily for a long time is rising rapidly and many, just Bitcoin, of course, Bitcoin was born first, so the time on the market was more than a decade, shorter is possible. Ether, born in 2014 through the form of ICO funding and has grown significantly since its inception to date, is said to be the first asset class to reach a market cap of 1 trillion the fastest in the world because it only takes 12 years .
And maybe Ether will break that record this bull season if it only takes 7 years to reach a capitalization of $ 1 trillion ????
In my opinion, if you are a newbie with little capital and your market experience is not good, you should only stop at the top 3 coins or the top 1 coin always gets an easy head. The top coin I’m talking about here is top to bottom. For example Top 1 -> Bitcoin.
I really don’t think you have enough time to research and invest a few dozen coins at a time, the crypto market is a little different from other markets where Bitcoin is king when BTC goes up, other coins go up when Bitcoin goes down , The trend of other coins is declining even more so often all trends, analysis and attentions are focused on Bitcoin, leaving many of you wondering if the market is thousands of dongs. Each coin has a different technology and function, so the price of this coin will not be too related to other coins I believe, but not now when the market is very small and Bitcoin is dominating the market trend. So if your portfolio doesn’t have bitcoin, then something is wrong and is pretty much at high risk.
If up to now, after more than 3 years, you have been buying together at the peak price of 2017, how many dong have returned to the old peak value and increased a few times from the old peak value, it is a little bit why your portfolio needs through Large Cap coins protected.
You should allocate your money based on a percentage of the coin’s market capitalization. For example, you invest 10 million for 2 or 3 dong.
If you look at the table above, you can see that Bitcoin accounts for 58% and ETH for 11% of the market capitalization.
If you only invest 2 coins, you can invest 70% in BTC and 30% in ETH. If you want to add money to your portfolio, you can assign that percentage based on that.
If you invest 3 coins, you wager 60% in BTC, 25% in ETH and 15% in BNB.
If you want to be simple and easy, you can use All in 1 time in BTC.
Regardless of whether you have a small or large amount, you should follow the principle above, allocating large% to large coins and gradually reducing% to coins with a smaller cap.
If you have a lot of dong, for example 5-10 dong, there will be some small coins that will rise sharply, causing this percentage of dong to rise sharply. Then you need to rebalance your portfolio by selling these coins for larger coins to reduce the risk of the account.
When investing in Crypto you have to target the profits by times, 1 time is 100% of that profit. You accepted …