What Are Your Contingency Plans For A Possible Bubble Burst?
Wisecrypto last edited by joes
Here's a question that not a whole lot of people typically stop to think about, especially when they're investing in Cryptocurrencies.
What are your contingency plans for if, or when, Bitcoin and other cryptocurrencies burst and bottom out? This is something that I feel, as an investor, people need to plan on, because any investment CAN possibly default and you could potentially lost your money. I'm not trying to be a downer on this subject, but if you have all your money in coins it's something you need to think of.
Me? I only ever keep a few coins on hand, and always sell when they get +15% or more than what I pay for. Because a lot of places don't have expensive fee's for transfering and selling, I make a lot more overall than I would if I made money with other securities. If it ever bottoms out? I end up cutting my teeth on the losses, and sell off and move my liquid assets to other assets.
I've got a contingency plan for this sort of thing, and I wonder if anyone else has any plans.
For anyone that's interested. Please see this article. Might explain it better than I can.
CaliCrypto last edited by
For crypto the market is so risky and new that you should really never have any money invested in it that you are not prepared to lose. Your crypto portfolio should be only a small portion of your net worth. If you want to invest more in crypto the goal should be to become richer outside of crypto and then you can increase your stake without increasing your risk. One good thing about crypto is that we have seen small investments turn into huge rewards. There is also ways to become rich off crypto not through investing but through actual new technologies and business opportunities.
@calicrypto I 100% agree. No smart investor would put money into crypto that would hurt them financially if they lost. Crypto is very volatile. Not as much as before, but still risky.
However, people's brains turn to mush when they see crypto skyrocketing. That's when they start putting crypto on credit cards - an extremely dangerous path imo.
@joes Yeah that's like double dangerous. I mean tons of people got rich off crypto, but that time has passed. Chances are good that Bitcoin and Ethereum will at least double in value over the next 1-2 years, but there is also a chance that they could drop off drastically (anywhere from 20% to 80% depending on a lot of factors) if major governments start regulating them and crypto loses a little bit of its luster, so to speak.