Friendly Reminder: Now that we are back in the growth trajectory, DO NOT FOMO your entire life savings into Crypto!

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Friendly Reminder: Now that we are back in the growth trajectory, DO NOT FOMO your entire life savings into Crypto!

Seriously, this needs to be repeated: Just because we are seeing massive growth does not mean you should take an emotionally charged decision and YOLO into the Crypto market.

You should consider that there is a very real possibility of losing 30%-40% of your fund within just 1 month. For instance: In the recent May-2021 crypto market crash, till 19th May, BTC lost value by 50%, ETH by 45%, ADA by 50%, BNB by 50%, from their respective All-Time-Highs, and almost every major coin was down by double-digit percentages (source). So be mindful that you might have to HODL your coins for 3-4 years just to break even. Remember, Crypto is a cutting-edge solution to a lot of problems, but making a quick buck is not one of them. Therefore only invest funds that you won't be needing anytime soon.

  • Do not invest what you don't own. Borrowing money to invest in Crypto can literally financially destroy you. It doesn't matter how optimistic the market sentiment seems, or how confident you are that every statistical parameter seems bullish-do not overleverage.
  • In a bull market, it is easy to day-trade and think you can time the market to make a quick buck. It's not. Everyone's thinks he's a genius in a bull market. I'd suggest staying away from it.

This is not FUD, it's called Risk Management, and it should be taken very seriously before investing in any financial asset-more so in the case of Crypto, because we are still very early, and crypto still has a relatively small total market cap and has massive potential for growth in this decade.

Edit-1: Yes, this is a financial advice.

submitted by /u/AlphaHuman304
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