The strategy for handling a bad purchase will depend a lot on the type of cryptocurrency you have purchased, as memecoins, in-game tokens, and cryptocurrencies with solid whitepapers and fundamentals have very different characteristics and behaviors.
Here I share with you some of the differences:
If the purchase is of a memecoin
Features:
They generally have no real utility or solid foundations.
Its value depends on hype (publicity or popularity) and speculation.
Examples: Dogecoin, Shiba Inu, Pepe, or newer, lesser-known coins.
What to do if the price falls:
Evaluate the hype: See if the community is still active and if there is interest on social media or forums. Memecoins sometimes have sudden spikes that can allow you to exit with minimal losses, but they are no guarantee of anything.
Set a stop loss: If the project shows no signs of recovery and only falls, consider selling to minimize losses.
Don't expect fundamentals: These coins are pure speculation. If the hype disappears, it is difficult for them to recover.
* "Investing" in memecoins is like playing in a casino. Use them only if you are willing to lose that money, but above all, I do not recommend putting more money than you would not mind losing on the street, since there is not much chance that you can get recurring returns from them *
Tip: Take advantage of the fact that they give away large amounts of tokens to learn or practice disruptive ways to "understand" the market the hard way, for example, practice trading, improve your ability to tolerate market stress, and actively acquire basic knowledge without betting a lot of real funds.
If the purchase is for a blockchain game token
Features:
They are tied to the success of the game. If the game has active players, the token may be in demand.
Ejemplos: Axie Infinity (AXS), The Sandbox (SAND), Gala Games (GALA).
What to do if the price falls:
Check out the game ecosystem:
Does the game still have active users?
Are there any updates or improvements planned?
Check their economy: Some games have inflationary economies (they issue too many tokens), which depreciates the value. If this is the case, it might not recover easily.
Consider the long-term value: If the game has a good community and consistent development, it might be worth maintaining the investment.
* "Investing" in blockchain games involves understanding both the crypto and video game markets. If the game loses popularity, your investment could be trapped or even disappear, you must be well informed if you intend to make a great purchase and not fall into a bottomless pit *
If the purchase is of a cryptocurrency with a whitepaper and fundamentals
Features:
They are serious projects with technology behind them, such as Ethereum (ETH), Solana (SOL), etc.
They have a clear use case and specific goals.
They tend to be less volatile than memecoins, but can still experience significant drops.
What to do if the price falls:
Analyze the fundamentals:
Is the team still working on the project?
Is the overall market down? Many declines are the result of global trends.
Stay calm: If the project's fundamentals are solid, it's best to hold on to your investment and wait for a recovery.
Make progressive purchases (DCA): Take advantage of the fall to buy more at low prices, if you trust the project.
* This type of cryptocurrency is usually more suitable for long-term investments. But to differentiate a bad purchase from a good one, there is only the previous study that you do, DO NOT TRUST THE FIRST THING YOU READ OR WHAT THEY TELL YOU, CHECK IT AND DO YOUR WORK! *
Learn to be patient and don't get carried away by volatility.
* If you have any questions or need something more specific, do not hesitate to comment and I will write an article exclusively to help you :) *
