💼 Risk management is the most important skill in the world of #crypto. If someone does not manage their risks, the market will manage them for them.
🤕 The market will profit from your mistakes if you are not prepared💡
I will summarize it for you in 15 important points ‼️ You, as a trader in the financial markets, must understand them
1️⃣ Speed of action:
⚡️Events, developments and sentiment in the#cryptocurrencymarket change rapidly. New protocols could outperform major projects within weeks.
👀 Always follow the market. Get in early, get out early.
🎙 As I always say, don't marry any currency.
2️⃣ Market timing:
📊 When you win, you may feel like you know more than everyone else and that you will take all the profits at the top and buy the bottom. But this is very difficult and no one knows 100% the timing of the top and bottom, and the wrong timing may turn your profits into losses.
💡 Always remember: Don't be greedy.
🚶♂️Leave early even if it means missing the summit by 20%
3️⃣ Limit losses early
🤔 I'll make it easy for you. Everyone makes mistakes. You have to accept that you're going to make bad decisions, but there's a difference between someone who sells at -15% and someone who "holds" until they reach -80% before they #sell.
🗺 Have an exit plan and a base before you enter a #deal. Capital can be reallocated to better projects.
4️⃣Profit making psychology
😢 Sometimes you are afraid to make profits because you think: what if the currency multiplies 100 times and you lose the opportunity of a huge fortune?
💵 Even if you sell early and the currency doubles later, you will still make a profit. But the difference is that you protected yourself from the risks if this does not happen.
5️⃣ Take profits
💭 It's all just numbers on the screen until you take your winnings.
🥇 When you get your first investment back, the rest is free to grow.
💡 Always remember to take profits
6️⃣ Patience
🧏 Remember, it is not necessary to trade every day.
🙅♂️ Don't enter into a trade just because you're bored or need a dopamine hit.
⏳ Wait for liquidity to come in. Don't chase the trades. Let the trades come to you.
7️⃣ Create a balanced portfolio
💼 Create a long-term investment portfolio consisting mainly (50%+) of#Bitcoin(the safest and least risky asset).
💰 Always keep stablecoins in your wallet for buying (10-20%).
Having these safer assets in my portfolio allows me to take greater#riskswith ease.
⚡️Distribute your remaining investments across projects in proportions according to risk.
8️⃣ Selecting projects
🙁 Many people lose a lot of money because they pursue high risk investment opportunities like memecoin.
💭 It is true that you can earn large percentages from meme coins, but remember that we are in a dangerous field and most coins will fail, and the meme is the most dangerous thing in an already dangerous field.
💪 So I advise you to focus on strong projects, because they recover better and have better chances of success.
📖 Study the project well yourself and do not use any single source.
9️⃣ Don't change your goal
💭 In my first course I turned $10,000 into over $200,000 and then lost it all due to greed and changing goals.
🎯 Set your goals before the rise begins and do not change them because greed will affect your decision and cause you great losses.
👌 Learn when "enough" is enough (I repeat this idea a lot because it is important. Don't be greedy, no one can catch the top or the bottom)
🔟 Don't lock your assets in "Fixed Time Staking"
🔐 Many people lock their coins to get returns or points from programs, then a breach, manipulation, fraud occurs... and they find themselves losing.
🔓 Don't lock your coins in so they remain available if the market changes quickly. (Especially if you are new to the field)
1️⃣1️⃣ Diversification
📱Use multiple centralized platforms to enter the market in case one of them is locked.
💼 Distribute your coins across multiple wallets.
💵 Distribute your stablecoins between #USDC, #USDT, #Dai... Don't enter small stablecoins
2️⃣1️⃣ Converting profits to other currencies is a smart move, but it is not considered taking real profits.
🏆 Taking profits means achieving a tangible benefit from the profits, and can include:
✅ Deposit profits in stablecoins: This helps you protect your value from market fluctuations.
✅ Investing in long-term assets: such as gold or real estate...
✅ Cash Out: This means that you are guaranteed to actually make profits by withdrawing the money.
💭 All these options help you secure your profits and plan for a more stable financial future.
1️⃣3️⃣ Do not put more than 10% in unreliable or unstable investments.
The world of#cryptocurrenciesis full of surprises, and there are no guarantees. Everything is at risk.
• Projects like Terra and FTX failed, showing the importance of caution in decision making.
• Project teams may abandon the project.
• Hackers are always looking for loopholes to hack and steal your money.
The risks are endless🤷♂️
😷 Protect yourself from these risks, so you don't start from scratch again.
1️⃣4️⃣Develop your skills
🔍 Choose 2-3 areas you want to focus on. If you spend 10 hours a week studying one of these areas, you will be in the top 1% in your field.
🤕 A lot of risk comes from investing in things you don't know, just because you're afraid of missing out.
1️⃣5️⃣ Rebalancing the portfolio
🎯 Set a clear goal for your portfolio, such as increasing the amount of Bitcoin you own.
💥 Goals change depending on the market situation. When prices rise, your portfolio may become unbalanced due to your investments in high-risk currencies.
💭 Make rebalancing a habit.
These are the most important points that I see as very important ‼️ for every trader to understand, realize and apply to himself
Greetings to all and may you be in good health and wellness
