First bitcoin halving was in 2013, after then, bitcoin moved from $12 to $643. That's 53×, so any money you had put then will be times 53.
The next halving was in 2020, which took bitcoin from over $8,000 to over $40,000.
April 4th, 2024 was the last halving....currently, bitcoin is over $60k, by the end of this year and by next year, it should get to $100,000.
You are still early...very early, infact this is the right time and the amazing thing is that as BITCOIN IS INCREASING, all the other coins will be increasing, bitcoin controls them
Although it is also a good way of making money in crypto currency but it is very dangerous because you will need guidance on which coin to keep for the future and also one thing you must note that when investing you must not invest in only one coin but you can just invest in different type of coin for risk management
Let's now to move to exchanges/ wallet in crypto currency and how it works
Exchanges/wallet are just an app or platform we can buy or sell our coin or also keep. Note that I told U that crypto is a digital currency and the only way you can keep it is by using all this wallet
let's just say wallet is like bank
There are many wallets and it is not compulsory to all on your phone but I will just be talking about the major ones that are safe and secured
TRUST WALLET
BINANCE
BYBIT
KRAKEN
KUCOIN
MEXC
PHANTOM
YOU CAN JUST DOWNLOAD THIS FOUR COS THOSE ARE WHAT YOU WILL BE ADOPTING
TRUSTWALLET
PHANTOM WALLET
BYBIT
MEXC
Based on previous antecedent of Bitcoin, it was just 14 years ago. Now in $100k which means pioneers made a poor decision some years ago and now now that decision would have changed a lot of financial life
This is the mistake a lot of people make made some years ago that's making them to still regret till now but let me tell you that just buying a little portion of crypto can change your financial life in just 3 years to come
BnB was $0.017 in 2017 but now $700+ which means if you use $1 which is just N300 then to buy BnB 8 years ago, your money will now be over 60 Million Naira without doing any work
Don't be surprised that's the power of crypto and is the best investment you can engage in this generation for yourself and your children
Let's delve a little bit into other areas
Today's topic
1- Risk management in crypto
2- Trading Plan
3- Categories of trading
Before talking about ways of managing our risk in crypto when trading, let's firstly talk about some terminologies(short words) and their meaning in trading
BREAKEVEN; Breakeven is the point at which a trading position was triggered with no draw downs or losses. In this position trade neither profit nor loss incurred. It indicates a point of entrance in trade position
MOONING; Extreme price increase, when the price of a particular coin is going up rapidly
DUMPING; It's the opposite of mooning, when prices are going down
HODL; The spelling is correct, it's not HOLD, but HODL, which stands for HOLD ON FOR DEAR LIFE, it's mean don't sell your cryptocoins, hold and keep them
WHALE: A trader with a lot of money, especially in millions of dollars
FIAT; This is your local currency, the normal naira, dollar, pounds e.t.c
ROI; Return of investment
P2P: (Peer to Peer) Two individuals involving in exchange of cryptocurrency directly without intermediary in the presence of mutual understanding between the two parties in question. (It could be on an app or crypto exchange)
DYOR: Do Your Own Research; this means that any investor should make findings on their own and vigorous research on a project before putting anything or investing in it
Entry and exit points: These are the ranges or points analysed by an investor to make decision on whether to buy or sell a particular asset, coin or token
Spot: This is the easiest way to trade and exchange cryptocurrency. It involves exchange your stablecoin or any other assets you hold for the token of preference regarding your analysis. You can hold it in your spot wallet till you’re ready to sell - no pressure, we will discuss this going forward
FUD: Fear, Uncertainty and Doubt
There are many, but this are the most common, try to get familiar with them.
Let's move to ways of detecting scam in crypto currency
Please let's take this aspect seriously because a lot of you have been scammed in various ways in crypto currency thinking you are doing the right thing
Before taking investment in any token be careful and make underground checks as tokens can easily be released and advertised by anyone. Scammers only have to build a website and ask you to invest.
• Remain curious.
• Always do your own research before making any financial transactions.
The truth is the main reason why most people are scammed in the crypto space is because of Greed…
Greed makes people lose their sense of caution and throw away everything they have learnt to the wind usually because of the promise of some quick and massive returns…
It may not be easy but you have to fight greed if you want to record success in the cryptocurrency space and avoid all forms of scams…
Let's now move on to Risk management
Key principles of Risk management
1- Diversification: Spread your investments across different cryptocurrencies, asset classes, and investment strategies to reduce the impact of any single asset's performance on your overall portfolio.
2- Asset Allocation: Determine the percentage of your portfolio allocated to cryptocurrencies based on your risk tolerance, investment goals, and time horizon. Consider balancing high-risk, high-reward assets with more stable investments.
3- Stop-Loss Orders: Set stop-loss orders to automatically sell your cryptocurrency holdings if prices fall below a predetermined level. This helps to minimise and mask potential losses during retracement or long diversion in the market structure dynamics.
4- Position Sizing: Determine the appropriate size of each investment position based on your risk tolerance and the amount of capital you're willing to risk on each trade or investment.
5- Risk Assessment: Conduct thorough research and analysis before investing in any cryptocurrency. Evaluate factors such as the project's technology, team, market potential, competition, and regulatory environment to assess its risk profile.
6- Stay Informed: Keep up-to-date with news, market trends, and developments inthe cryptocurrency space. Stay informed about regulatory changes, security threats, and other factors that could impact your investments.
8- Risk Appetite: Understand your risk appetite and invest accordingly. Avoid investing more than you can afford to lose, and be prepared for the possibility of significant price fluctuations and losses.
10- Regular Review: Regularly review your investment portfolio, risk management strategies, and financial goals. Adjust your approach as needed based on changes in market conditions and your personal circumstances.
That's all as regards the market circumstances and happy blogging and social interactions
Happy Blogging and Reading 💥💥💥💥
Video from coin bureau YouTuber