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How To Lose Money In Crypto (The Right Way)

Now what you’re probably thinking is ‘why on earth would I want to learn how to lose money?’ but the truth is

You are in the money-losing business.

Think about it for a second, there’s not one person that can tell you they’ve not lost money in crypto before.

It could be a failed investment or trade, excess gas fees, rug pull, FOMO at the top, theft, etc.

You and I can agree that you can make $100,000+ with crypto, but could also lose it all.

You are often taught how to make money without being taught how to lose money right.

Unfortunately, you can’t do one without the other happening. Not all your coins will pump and not all your NFTs will sell.

Since you know losing money is part of the business, the questions to ask are how could you lose money right? How do you avoid massive losses? How do you lose without losing it all? These are exactly what I will share with you, read on.

Just like making money, losing money is a skill.

If you know how to lose money right, you will never go down completely. Your ability to lose money right is what will make you stand out in both a bull and bear market.

Here are the right ways to lose money in crypto

1 Put your money only where you’re convinced. Don’t ever put your dime in a trade or investment you’re not convinced about.

No matter the influencer or ‘expert’ that shilled it to you, look at the fundamentals. Yes, it is easy to make money in a bull market, everyone is GMI, right?

But the thing here is, a bear or sideways market is not the time for you to be jumping into shitcoins. With conviction, even if you lose, you won’t dwell on it because it was a convinced decision you made.

2 Make FOMO (Fear Of Missing Out) your worst enemy. If you see a project pumping and trending on social media, you are already late. It’s never worth it.

FOMO doesn’t allow you have a clear mind, you get carried away in euphoria about how massive the gains will be. Sadly those unrealistic gains may never come.

3 Critically choose your NFTs. NFTs are illiquid. When you buy an NFT, there are high chances you may never be able to sell it.

If you’re trading NFTs, be critical, because buying an NFT that’s not in demand will leave you with a useless profile picture in your wallet.

4 Always move on. You see those times where you’ve made a 5,10 or even 20X, you’d be thinking ‘Oh It could still go higher’, the feeling is an indicator to sell and here’s why

Think about this, when you start a project and oversee it to the end, whether it was a success or not, are you going to move on to the next? Of course. Why? Because it’s temporary. You were never meant to be in it forever.

When you’ve made your desired profit, move on. If you’ve not made your profit within the desired time, move on. Move on and DON’T LOOK BACK.

But why? What If it’s a strong project? Well, strong projects don’t pay the bills, money does.

5 Use Burner Wallets. Keeping all your assets in one wallet is a dangerous game. All it takes for you to lose all your money is to click on a malicious link.

You can protect yourself by creating multiple wallets for different purposes e.g. airdrops, savings, DEX swaps. IDOs etc. With multiple wallets, you risk losing less.

In Conclusion

Losing money right is part of what winners do. You don’t have to be a loser, just be a good loser!