3 Tips to Make Sure You Don't End up on the Bottom.
Alright, one of the biggest risks in investing in cryptocurrency is the inherent risk that the cryptocurrency might fail and never recover, resulting in losses. Here I have outlined a few tips on how to make sure you don't end up on the bottom.
One good idea for not losing your money, or at least minimizing your losses is to place a stop loss order on your exchange. These orders are designed to, you guessed it, stop your losses. Let's say you invest $100 into a crypto valued at $1 each. A good idea is to put a stop loss in at a $0.85 valuation so that in the even that the market goes down, you would only lose 15% of your money, or in this case, $15.
Watch the market over the course of a few weeks to a few months to really get a feel of how the crypto typically performs. All cryptos have their ups and downs but usually you can see if a cryptocurrency is upward trending or downards trending. For instance, if a crypto has been hovering around $1 to $1.20 consistently for the past 3 months. You can always buy some on the lower end and then make a quick profit when it hits a little peak. Then just buy more back when it hits it's trough again.
Don't jump into the hype. If you hear about a coin on any kind of social media and if you feel like the people posting are trying to sell you on it, trust your gut. They are usually just planning a pump and dump scheme and you will end up on the bottom.
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This is not professional financial advice. These are just my personal opinions