We've been told to buy when the price is low and sell when the price is high. This is pretty much the thumb rule in trading.
But that is not without conditions. It isn't absolute. It doesn't always guarantee profit.
Let us not forget the RISK. And risk correlates with volatility. High volatility means high risk. And since the crypto market is a volatile market, the risk is higher here than in the stock or FX market.
So, the "buy=low, sell=high" strategy only works when you successfully manage the risk.
You can do that by:
1. Investing less than 5% of your total portfolio in crypto
2. Prioritizing other aspects of your finances ahead of investing in crypto
- emergency fund
- retirement savings
- high-interest debt payment
In other words, invest only what you can afford to lose.
To sum it up--"Buy when the price is low and sell when the price is high, BUT invest only what you can afford to lose."
It may not guarantee a profit but it can help cut down loss when the bear attacks.
Giving percentages without knowing a situation doesn't work. I mean someone who can literally hemmage 90% of their money and still be rich might want to put more than 5% in crypto. Or someone who is rail thin with margins in their budget might not want to even invest in crypto. Either way the real risk management lies in WHAT crypto you have in your crypto portfolio. Putting 5 % of your portfolio in shibaElonDaddyInu coin or whatever makes no sense. So it's the crypto which needs to be monitored.