If you started buying crypto during the fizzier months of 2021, recent volatility might have left you with whiplash. Wasn’t Bitcoin just at an all-time high in November? It can be hard to stay calm when markets start to shift, but it’s a lot easier to make smart moves if you have a plan.
Think ahead: Buying and holding isn’t right for every asset, but during a market downturn, consider your long-term goals. Did you buy with the intention of selling many years in the future? If so, it’s probably ok to stop refreshing that tab and take a deep breath.
Look into dollar-cost averaging:Dollar-cost averaging is a popular strategy for reducing the sting of volatility and taking emotions out of trading — it involves buying a smaller amount of crypto every week or month no matter what the market is doing.
Trade within your limits:Are you planning to “buy the dip?” Remember: No matter how confident you are about a particular asset, you should never put in more than you can afford to lose. (And when in doubt, speak to a trusted and certified financial advisor.)
I also agree that first of all you need be clear about what type of person you are in order to find the right investment and the right investment strategy for you. If you are more the relaxed type of guy that just wants to try his luck with crypto investements and don't want to spend hours every day to check for the latest trends and rumors around crypto to be able to react to them i would just buy a few projects that you are convinced of and then basically forget about it or just check about them at most once a day, otherwise you get crazy. Also the biggest advice for the crypto market in my opinion is still and will always be that you should only invest money that you can afford to lose.