The first lesson of Trade: Set a stop loss.
For those who only operate with Spot (cash market), leave a "limit order" for sale. The only currency security that goes but comes back is BTC.
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Suppose you bought US$767205473691,000.00 of any cryptocurrency, what is the maximum you can lose on it?
Simple answer: you can lose everything! If it went to zero, that's called "turning to dust".
But wait a minute! Sometimes, not all is lost. Just look...
I like analogies, because they help to understand simple things.
When a currency "turned to dust", it actually means that it completely lost its liquidity, which is nothing more than people's interest in that currency. If no one wants to buy it, it no longer has market value.
Imagine that you are rich and bought a Porsche Cayenne for R$767205473691 million. You used it for a few years and resold it for R$7672054736980 thousand.
This other person used the Cayenne for a few more years and tried to resell it for R$76,720,547,36,940,000, but he couldn't. Why? Who would want to buy a car whose maintenance costs are higher than its price, even if they do the maintenance "by the skin of their teeth"?
At that moment, the value of this car (cryptocurrency) "turned to dust". But did you lose the car? No! It's still yours, it's in your name. So, you keep it and leave it there, forgotten.
Is there any chance that this car will have value again? Yes, for many reasons. For example: if this car, from that specific year of manufacture, was a hit in some classic movie, people might want to buy it to restore it and its value could in the future exceed its value when it was brand new. Remember that this is an analogy and can happen for many reasons with cryptocurrencies.
If a coin you bought drops to zero, simply store it safely (be careful with passwords) and forget about it.
The same thing happens in the stock market. But an action depends on the company S.A. having an active CNPJ.
Simple answer: you can lose everything! If it went to zero, that's called "turning to dust".
But wait a minute! Sometimes, not all is lost. Just look...
I like analogies, because they help to understand simple things.
When a currency "turned to dust", it actually means that it completely lost its liquidity, which is nothing more than people's interest in that currency. If no one wants to buy it, it no longer has market value.
Imagine that you are rich and bought a Porsche Cayenne for R$767205473691 million. You used it for a few years and resold it for R$7672054736980 thousand.
This other person used the Cayenne for a few more years and tried to resell it for R$76,720,547,36,940,000, but he couldn't. Why? Who would want to buy a car whose maintenance costs are higher than its price, even if they do the maintenance "by the skin of their teeth"?
At that moment, the value of this car (cryptocurrency) "turned to dust". But did you lose the car? No! It's still yours, it's in your name. So, you keep it and leave it there, forgotten.
Is there any chance that this car will have value again? Yes, for many reasons. For example: if this car, from that specific year of manufacture, was a hit in some classic movie, people might want to buy it to restore it and its value could in the future exceed its value when it was brand new. Remember that this is an analogy and can happen for many reasons with cryptocurrencies.
If a coin you bought drops to zero, simply store it safely (be careful with passwords) and forget about it.
The same thing happens in the stock market. But an action depends on the company S.A. having an active CNPJ.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
BTC
98,234.55
+0.24%
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