The basic that many experienced investors apply is to buy low, sell high. This is something wise investors do using the bear markets. It's something they realizing that the token is on a sale.
Many other inexperienced investors go the opposite of that. They sell when the market goes down. It's the fear that makes them sell. This is called FUD in the crypto terms, Fear of Missing Out. They also jump into the market buying coins when the market shows positive sentiments and go high, in a hope that it will go higher.
Now, this doesn't mean that the market may not go higher but this way, they have risked more funds buying coins with a price hike. The term used for this is FOMO, Fear of Missing Out.
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This strategy is something that is not considered smart. It is more risky by buying coins with a high price. You never know if the prices could go down again leaving you in losses. And it may even get worst for some selling it on a low price in a fear of the market going down more or crash.
This is where it is important to have some knowledge about how the crypto markets work before taking an investment decision. Its important to do your due diligence in choosing which crypto to invest and what are the possible risks involved.
This is why its very important to invest the amount of money which you can afford to lose as the crypto market is very volatile and you have to be mentally prepared for any possible price crash, that may not let you drive by your emotions and sell on a loss.
Long term investment is considered to be a strategy that is deemed favorable while investing in a crypto. That may not let you upset with short term price fluctuations and also it could be of some profit in the longer term when the prices bounce back.
In the meantime, Dollar Cost Average Strategy (DCA) could also be applied making smaller, equal investments on an ongoing basis, instead of making large or irregular crypto buys.
The point is, if you really want to enter the crypto market, do it in the bears.
Well, I am not a crypto expert but this is simply what I believe. What are you thoughts about this?
Note: This is not a financial advice.
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