SURVIVING CRYPTO VOLATILITY
It even happens in a few minutes or in a few hours that weve seen large push downs above 10 percent. So im just saying that if you can tolerate 10 percent, then larger drops would be even massively harder Music, hey guys so im making this video. Also from the context of i have some friends who have been investing in the cryptocurrency market, most of their investments are not crypto related its different when youre investing in the stock market, because, of course, when you invest in stocks, its not 24 7. When you invest in stocks, you can look at the businesses theres a level of speculation, but its not as speculative as cryptocurrencies, but theres still. Volatility. Ive had a lot of friends that are investing in more conservative assets from pakistans real estate. They have businesses, but the proceeds of their businesses theyre just leaving it as cash theyve, seen cryptocurrencies, also as something thats very interesting. They started to position, but a lot of them started off with large amounts of money already given the current market conditions, and a lot of them are asking about what are they supposed to do in terms of volatility, because please do notice that, even if you buy Bitcoin, even if you buy ethereum, which i believe are the best cryptos that we have not just in terms of market cap but bitcoin as apex digital property, a starter of value, digital gold and ethereum has one of the most useful pieces of digital technology that we Ever have they will still have volatility im sure you remember bitcoin, hitting 6 4 and dropping to 28 000 in just a few weeks im sure you remember seeing ethereum go from 44 000 to 1800, also in just a few weeks, if the largest, the biggest and The best cryptos have dropped massively, how much more for the others that are trying to buy and take out the top one and top two cryptos as well.
Im not saying that the other cryptos are not good because im a big fan of bnb im, a big fan of the by dance smart chain im also doing deep dives into cardano. Right now i love dexters, like pancake, swap i like what vet is actually doing. Theres so many tokens that are highly connected to nfts right now and gaming. That are very, very interesting as well. If the large cryptos have volatility any other one below bitcoin and ethereum would have more volatility, its so important that when you enter the crypto markets, you must realize what your volatility ratio would be, which is also predicated on the amount of money that you place in Your investments because of course, 1000 pesos 50 losing 500 either in paper or if you cut, loss its not as painful as putting in 10 million 20 million, 30 million, 40 million 50 million and then youre doing it for the first time. One way for you to be able to know if the volatility is something that you can tolerate is to ask yourself if you place a million pesos. If you place five hundred thousand pesos and it drops by ten percent, are you okay? Will you be able to sleep well at night? Is it something that you can tolerate, because if its not something that you can tolerate, the most prudent thing for you to do is to lessen your position just to lessen your exposure. A lot of people want to put a higher amount of money because when it does well, they get to ride the upside very, very well and they get to earn more, which is very, very true and thats.
What weve been talking about its all about volume? Its all about putting an amount of money based on something that you have high conviction on and just ride it and just hold it. However, please to remember this that theres also a point in time where you have to temper your conviction, your knowledge, your experience with also what you can take, because at the end of the day, if its not something that you can take, then its not worth it. Its not worth losing a sleep at night if, when you see your crypto drop nahirapankayu, so my suggestion is: do a test, whatever amount that you put, try to. Imagine it! What, if it drops by 10, are you, okay for sure the crypto market will drop more than ten percent and weve seen it? Some cryptos on a daily basis have even dropped more than ten percent. It even happens in a few minutes or in a few hours that weve seen large push downs above 10. So im just saying that if you cant tolerate 10, then larger drops would be even massively harder or if you want to be even more aggressive. Ask yourself also what if it drops to 15 what if it drops to 20, but if you start at 10 thats a very, very good starting point already for you to be able to see if its something that will work for you or not. So you place 500 000. You place a hundred thousand.
You place the million you place, five million pesos, regardless of what amount that youre thinking and then its something that you cant tolerate. One thing that you could do is, for example, lower mo you cant. Take a million per trade then try it eight hundred thousand. Is it something that you can take or five hundred thousand you split it into two cryptos or your overall portfolio with eleven hindi mohammed already? That means that certain amount of money shouldnt be in the crypto markets thats. What im saying it also should be an amount of money that, when theres volatility you can huddle huddling is also a result of your knowledge. Huddling is also a result of how much you know, but you also have to realize this that part and parcel of protecting yourself is buying properly every time it goes up, and then you buy it at a lower price. Youll, ultimately make more. It will always be a function of knowing where to enter and its not wrong buying on breakouts, because when you buy breakouts, essentially youre buying it at a more expensive pricing. And you have to realize that when youre doing that, you need to know when to exit hindi wedding, i will just sell when it when this date will particularly hit or i will just sell when this actually happens. It has to be concrete. Are you selling when it tries to pump, fails to break a resistance and then youre actually selling and a question you need to ask yourself is: are you selling everything? Are you selling half what percentage of your portfolio? Are you actually selling and thats just one iteration two questions from one possible scenario that it fails to not break the next resistance? But what, if youre, looking at as your sell signal? Okay, im gon na sell when it goes above 50 im gon na sell when it goes above, 100 whats your narrative when you sell.
What are you gon na do? Are you gon na leave everything into usdp busd usdc theyre, just gon na remain into stable coins, or are you readily gon na transfer them to another crypto that you want to take opportunity from? So please remember when you also do that the risk is youve benetton, and this has happened to me so many times. I say this because this has happened so many times in the past for me that my mistakes also is. I took profits too early into something that if i held on to it um and i would have been able to ride that even more then i transferred it to another stock and, as i transferred it to another stock that other stock did not perform well magandapan. I held on to the one, so please also remember that if you will transfer it now, you add another layer of risk for yourself or you add another pressure that if you did not sell bahamas in performance every time you transfer it to usdc usdt busd its Already paid to the dollar, it doesnt give you any growth. The crypto market can go up but as it starts to go up, but you wont be able to uh take advantage of the opportunity as well im, not saying you dont, sell, but im saying that studies have shown it that, even if you huddle and thats, why. I admire a lot of those long term, bitcoin huddlers, because huddling also requires discipline when theres a lot of fear when theres a lot of uncertainty when theres a lot of doubt.
But you have diamond hands to also see through, because at the end of the day, profitability also will be sticking to your guns, even though youre so tempted also to sell thats one very, very important parameter when youre investing the ability also to log out or not To log in that, the only time you start to enter and log into your brokerage or to that exchange is that when youve realized that pokey its time for me to actually get out because ill say this over and over the more you monitor the more tempted You will be to transact and the money is not in how many times you monitor and its not in how many times you transact, but the money in any investment is how well you know it. What your strategy and your research is and what are your parameters and what are your conditions to exit once those parameters have surfaced, then its time to get out of that particular position and thats, where it becomes very, very interesting so there? How do you protect yourself against volatility, only expose an amount of money that you are okay with and to me, it doesnt matter if thats, 10, 000 pesos or 10 million pesos because were all different, different folks different strokes. What works for me wont work for you, but you have to follow what works for you. You have to follow what youve studied and it has to be at the point where youre not just taking my word for it.
But youve done your own due diligence, and you know what youre supposed to do in the world of investing youre not supposed to rush things say the fastest way to earn is to do it slow, the fastest way to be able to do. It is to also love the process. Why? Because, when you do it slow, when you love the process and you build the experience necessary, the amount that seems to be so scary right now would be something that you can tolerate an amount. That seems to be something that you cannot take it when it drops after time after having an opportunity to be able to build experience, skill and to be able to see it through the worst times. What used to be so bad before what used to be so scary before might not be so scary anymore, but it takes time to do that and you dont have to rush it. Please dont rush to get better dont rush to be able to build that particular skill, because, if youre so scared about the markets, pushing up and youll be left out, guess what there will be other opportunities, its not a once in a lifetime opportunity. Even when the market is bare, there will be opportunities for you to be able to stack. There will be opportunities for you to be able to trade. There will be opportunities for you to be able to ride markets when it goes up. So you dont have to follow what everyones timeline is say if a lot of them will be selling at the end of the year and its part of their plan, let them do it if its also part of your plan, then do it but dont do it.
Just because everyone else is doing it and ill end it with this. If you do what everyone else is doing, youll end up like everyone else, do you build a conviction, allocate accordingly and know that volatility is not a bad thing, its something that you can learn and build experience on to make you a better investor? So i hope you guys got a lot from this and i hope you stayed until then, and i hope that this is something thats beneficial for all of you. If you guys have questions put it in the comment section down below, and i hope that this is something that added tremendous value to you. This is marvin girmo.