Crypto Investing Is Addictive: This Is Why You Need To Ask Yourself These Questions Before Investing

It takes one to know one, this is why its easy for me to write this article, because coming from a crypto investor, I Know how addictive it can be investing in crypto. This day you are buy just a few coins, may be one or two, the next day you are opening a browser tab with a crypto watchlist of potential coins you would like to invest in. Other days you are considering depriving yourself of some things, things that give you pleasure, because you rather buy those coins and watch them grow in value than buy some material things that won’t matter in a months time. Well except you are investing in a Shitcoins, then its better you buy those material things.

As a newbie who would like to invest in crypto, there are certain questions you need to ask yourself before embarking on the wonderful journey of financial freedom. One of the questions is Why? Why are you investing? Are you investing because you want to make money and that is your only goal? If that is your pure goal, think of the bear run? During the bear run when the money is not coming like it used to because of the decrease in value, what will you do? Will you be able to hold on for dear life? Are you investing because you believe in the technology, if you believe in the project it will help you hold on to it even though you are not really in profit.

Lots of people have been holding on to their crypto for more than three years, some are still in profit, some are still at loss, while some have broken even, it all depends on when they invested.

The next thing you should ask yourself is What Is your Risk Tolerance? Are you a risk taker? What level of risk are you willing to take? what is your risk management? Getting addicted to crypto investing means that you have to discipline yourself to make sure you only invest what you can afford to lose. This is because, investing is gambling, and it can be addictive because we as humans love to speculate a lot. We get excited and start imagining the wonderful things we can do with our investment, we can get carried away and start investing more than we can afford to lose.

You should also focus on the location you would buy and keep your crypto, are you going to be leaving your crypto in a centralised exchange or are you going to keep it in a decentralised wallet. Know the advantages and disadvantages of the different types of wallet, especially their security and know how to secure your crypto. We can see what happened to the slope wallet holders that got their wallets hacked. Crypto security is very important, because any mistake can have you lose all you have been working for. Choose the means you would love to secure your assets and secure them.

The next question is when are you going to take profit? Don’t get caught in the constant habit of holding for too long, sometimes, take profit and wait, if it dips, buy the dip, and keep your profit. For instance, if you bought a token with $200 and it pumps to $700 you can take $500, wait for a dip. Dip and bear season is inevitable, when that happens, buy the dip, buy and replace the quantity of the token you took profit out of and spend the rest, that can be your reward. Don’t take this as a financial advise. Sometimes I just write what comes to my head.

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