Entering the world of altcoins, you think you can handle the volatility. You've heard stories of incredible gains 🚀, but no one warns you that your portfolio can drop by 50% overnight 📉.
Why is this difficult?
Imagine: you bought a promising altcoin. In the morning, you wake up, check the app, and see a 70% increase 🤑. Your adrenaline spikes. You decide to wait a little longer to earn more. But by evening, it drops by 40% 😱. You can no longer sell.
You put down your phone, comforting yourself that the market will return. But the following days only get worse: down 20%, then another 10% 💔. Now you panic sell to 'save something.' A week later, the price rises again, and you start to hate yourself for that decision 🤦♂️.
Why does this happen?
• Greed. Instead of taking profits, people continue to hold the asset, dreaming of the 'moon' 🌕.
• Fear. In moments of decline, it seems that you will lose everything.
• Manipulations. 'Whales' 🐳 deliberately pump the market to shake out weak hands.
A bit of statistics:
• In 2021, altcoins like SOL and ADA grew by more than 1200% in 6 months, but then fell by 50% within a week.
• Meme coins, including DOGE and SHIB, have shown increases in the tens of thousands of percent, but after peaking in May 2021, they lost up to 80% of their value.
• According to Glassnode, 68% of all altcoins have not recovered to their previous all-time highs in the last 3 years.
How to avoid falling into this trap?
• Set the rules of the game. Before buying, determine at which point you will sell. Even if everything screams 'hold' 🗣️, stick to your plan.
• Keep a cool head. Light meditation 🧘♂️ or a pause before making a decision will save you from impulsive actions.
• Ignore chat hype. Often, advice in Telegram groups is just noise 📢.
How it happens:
You bought $500 worth of the FLOKI token at $0.00001. Three days later, it grew by 150% 🚀. You think: 'Just a little more, and I can buy a car!' 🚗 But by the next morning, the token crashes by 60% 💣. You panic. Instead of securing $750, you lose everything.
Another case: you invested $1000 in the PEPE token at the peak of its popularity 🐸. A week later, it fell by 40% 📉. You decided to hold, hoping for a 'comeback.' However, a month later, it fell another 20%... and when you finally sold, it rose by 50% two days later! 🤯
If you had decided in advance to sell at a 20% increase or partially secured profits, you would have avoided such losses.
The volatility of altcoins is a game 🎲 where the patient and cool-headed win. Every time you look at your portfolio 📊, remind yourself: these are just numbers on a screen until you hit 'sell.'
In cryptocurrency, it's not the boldest who win, but the smartest. Be among them! 💡