Developing Diamond Hands

It is always fun to earn quick bucks in a matter of days which the crypto market seems to be promising but to be a true investor one needs to always fight for the long run. Thus by investing one's hard-earned money one feels agitated when the wave of FUD instilled by the big institutions shakes the foundation. It is important to remember that while ten thousand dollars worth of investment might seem like a huge deal to most retail investors like us, it is not even comparable to the billions of dollars that these institutions are investing in the same assets. What is then necessary for us to do to remain in the crypto market? It is more important to find the right strategy and understand how to diversify the portfolio so that when the market crashes like we experienced, we can still get stability in our portfolio. Here we are going to suggest one of hundred strategies one may adopt while investing in crypto.

Before we begin, it is important to know that I am not a financial advisor and thus what I am about to suggest should not be considered as financial advice.

I am also a new investor in cryptos and had no knowledge about blockchain, but I did hear about the famous “Bitcoin”. I jumped into the market in its upper curve and like most newbies, I felt that the market though is volatile but is promising. As the market started crashing, I, without even understanding the concept, started panic selling my cryptos. It was not until a month that I realised the concept of “diamond hands” and “paper hands” and why is it important for one to develop diamond hands when it comes to investing in cryptos such as Bitcoin.

An important phrase I learnt in this month-long journey was - “You don’t lose when you buy, you lose when you sell.” It felt like rhetoric at the moment. I had invested my money. I couldn't buy any more cryptos and increase my losses, I thought. I was so wrong. I was late to learn that the best time to buy is when the market starts to rise, and when the market starts to fall it is important to collect your profits and store them in some stable coin. Holding onto the bags, in these free falls is known as “diamond hands”. It is in moments like these when you are supposed to go back to your strategy and revise why you invested in cryptos first-hand. Did you believe in their concept? Did their prospect seem to be standing in the years to come? If so then a little shake in the support levels would not tumble down cryptocurrencies as a whole. 

Crypto-market is relatively new and practically runs on market sentiments. There would always be new investors like me with paper hands, selling frantically when the market seems to go down. It even makes sense as many works quite hard and are dreaming of "riding the Lambo" in a short period of time but let's just understand that making money through crypto should not be treated as an active source of income, rather a passive one, thus it is important to invest your money but not your time to such extent that you are buying and selling at every hour with the market going up and down. 

Cryptocurrency is volatile, which in simple words means high risk, high returns. If you are willing to earn more, you should be okay to lose more as well. Big investors spread FUD so that they can easily buy in the dip and collect more. It is people like you and me who in the long run would regret the holdings we had or could have had if we did not sell when in five to ten years these very coins in our bags reach their new ATH. That is all we need to remember when investing in cryptos. 

Five points to take from here:

1. Make a strategy and stick to it.

2. Diversify your portfolio.

3. Do not invest thinking of the short term but for the long term.

4. Crypto is a source of passive income and not active.

5. Crypto is volatile, not fragile.