Hello, Squad team. Today we are going to talk about two key concepts that every beginner should understand to avoid panicking when they see their money "disappear" from the screen. Has it ever happened to you that you bought XRP and suddenly the red number scares you? Calm down! This is more normal than you think.
Let's use our real example so you understand once and for all.
🔥 Scenario 1: The "unrealized loss" (the one that just scares you)
Imagine that, like a pro, you bought XRP with 10 USDT when the price was 3.1155. Great move! 🎉
At this moment, your 10 USDT have been converted into 3.2099 XRP. Now, your money is not in USDT, it's in XRP!
Suddenly, the price of XRP drops to 3.0900. 📉
If you look at your balance, you'll see that your 3.2099 XRP are now worth 9.912 USDT. Oh no, you lost 0.088 USDT! The screen will show you that dreaded red color. 😥
What is this? It is an unrealized loss. It's like having a t-shirt you bought for 10 dollars, and today the store next door sells it for 9.9. You haven't lost anything until you sell it. You still have your t-shirt. The price can go up tomorrow and be worth 10, 11, or more. Don't sell out of panic! 🧘♂️
💔 Scenario 2: The "realized loss" (the one that really hurts)
Now, let's assume the price drops to 3.0900 and you panic. You decide you don't want any more XRP and click the "Sell" button. 😫
At that precise moment, your 3.2099 XRP are converted back to USDT, but this time you only receive 9.912 USDT. Congratulations, you sold your shirt at 9.9 and realized your loss! Your original capital of 10 USDT is now 9.912 USDT. 😭
What's the moral? There is no loss until you close the trade. The cryptocurrency market is a roller coaster, and prices go up and down. Your job as a novice is to endure the drops and enjoy the rises.
💡 Conclusion
Don't let the red numbers scare you. Trust your strategy, keep calm, and learn to differentiate between a loss that is only on your screen and one that is definitive.
Always remember: Your capital is not lost until you sell it. 😎
⚠️ Note: This is not an investment recommendation. It is just support and an example for beginners to understand the difference between unrealized loss and realized loss. The "no stop-loss" strategy increases risk, so patience is your best ally. Go for it, Squad! 🚀
"FOMO" is an acronym that stands for Fear Of Missing Out.
