A friend recently told me, âIâm thinking of putting all my earnings into crypto!â While the profits can be tempting, this is one of the quickest ways to drain your savings. The crypto market is highly volatile, and going all-in without proper risk management could lead to devastating financial losses. Sure, crypto offers big opportunities, but it also comes with serious risks. đ€
Balance Is Key đ
Instead of throwing all your earnings into the market, allocate only a portion of your income. Many people have fallen into the trap of over-investing, buying at the top of hype and selling in a panic during crashes. Iâve seen folks lose 4 to 10 monthsâ worth of salary because of emotional, impulsive decisions.
The smart move? Keep a balanced portfolio, maintain enough cash to handle any market downturns, and focus on long-term gains instead of quick wins. Staying calm and not over-committing will save you from the emotional rollercoaster that destroys wealth.