So the crypto market just crashed and you are keen to apply the said-to-death BTFD and get your beloved altcoins at huge discounts. But how should you enter the market? Here’s my suggestion.
1) Determine whether the fundamentals of the altcoin are robust and rigorous. See if crypto firms are falling all over themselves to collaborate with the developers of your targetted altcoin. Take for instance Solana. Brave Browser just announced a partnership with Solana; Solana NFTs will be listed on OpenSea soon. All signs point to Solana gaining in prominence this year.
2) Check your analysis with fellow crypto enthusiasts. Experts recommend that we check out the white paper and official social media channels managed by the altcoin team, but I reckon that is not enough because you will only be receiving positive news. To receive a truly balanced and nuanced perspective, you will do well to hang out at platforms like Publish0x and observe the prevailing sentiment towards your targeted altcoin. Cryptocurrency channels on Discord and Reddit are another awesome way to gather first-hand insights and lived experiences.
3) After you DYOR and DYOD, you may think that it’s time to enter the market. Hold your horses just yet. You need to decide on your exit strategy so that your mind and heart don’t lead you down the forbidden route during times of market strategy. Let’s use the example of Solana again. I SOL is worth SGD$130 right now. So if I invest $130 to buy one SOL now, I could wait for its price to soar to $260 so that I could “recoup” my initial investment.
If I don’t have the patience to wait for SOL to double in price, I could choose to take profits at various price levels. Hence, if SOL increases in value to $168 (an auspicious number in Chinese culture), I could withdraw 0.25 SOL, thus leaving 0.75 SOL in the market. Then, if SOL surges to $188 (yet another lucky number), I could withdraw another 0.25 SOL. This is an overly simplistic illustration but I hope you understand how determining your strategy of taking profits will fortify you against market conditions because you have a Plan! Just do it!
4) Be disciplined to cut your losses. As with life, sometimes things just don’t work out, and despite your best-laid plans, shit just hits the fan. To use a current example, Wonderland’s $Time treasury officer, 0xSifu, was found guilty of crimes like operating an identity theft ring. This casts heavy doubt on the legitimacy of $TIME, so it might be wise to sell off your coins as soon as you can, in case its price plunges to the centre of the earth. That way, you won’t be caught dead bagholding some worthless assets. Never succumb to the sunken cost fallacy.
5) Once you have worked out in your mind how to take profits and cut losses, you are now ready to invest in crypto. Have fun and stay safe!
