Don't be a Crypto Gambler; Invest
There appears to be two sets of persons in the cryptocurrency and blockchain business. We have the gamblers and we have traders/ investors. This I have come to know and see in my several years in the space. The question that then lies before us is, "which are you among the two"? Are you an investor or you are a gambler?
In answering, I'd say that it is better to be an investor/trader than being just a gambler merely wishing to be lucky. We all know what gambling entails. Briefly, we will be looking at some of the differences between a crypto gambler and trader.
Risk Management
This is a very important piece in this puzzle. The level of risk management is one thing that differentiates a person who is just gambling and one who is investing in the financial technology. A crypto gambler tends to always take a high risk while looking for high returns. Whereas an investor takes/ follows strict risk management techniques.
An investor will never take a high and uncalculated risk in a quest to make quick and high gains. Every decision of an investor is calculated and risk level is always kept at the barest minimum but the reverse is the case for those who are gamblers. Crypto gamblers pay little or no attention to risk management and in most cases, they get rekt.
Trading Strategy
It is important that one has his own strategy when it comes to Crypto trading. You can't just depend on people's strategies to be successful in the business of trading cryptocurrency. This is so because we all have different personalities, perspective and motives. Hence, we should go with a strategy that works for us because what goes well for A might not work for B.
In that case, we see that crypto investors tend to have a clear trading strategy whereas gamblers do not have any strategic plan for trading. They tend to trade careless and haphazardly. Some tend to copy others which in most cases doesn't end well. A strategy could be trading retests, trading breakouts, use of S and R etc.
When you have have a strategy, you discover that you will be firm in your decisions, emotions won't control you because you know what you are doing. In turn, you will record gains instead of losses.
Consistent Profits
If there's anything I have come to discover and learn, it is the power of compounding or consistent profits. Crypto gamblers don't know this and neither do they obey this principle. In contrast, they often take high risk with the intention of getting higher returns in a very uncoordinated and unplanned manner.
Investors decide on a particular and achievable profit range either on a daily basis or monthly basis and then stay consistent in making these profits margin. They can either go for $1 or $10 daily and then stay disciplined. That way, unnecessary risk, pressure and fear is being eliminated.
There are still more characteristics that differentiates a trader from a gambler. However, the message and lesson is that we press towards being a disciplined and principled investor rather than merely gambling. Think long-term and don't only focus on quick gratification.
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