Although there is no guarantee that anyone will earn money when he invests in a silly memes like Shiba Inu (Salogner -23.38%))There are a few things you can do to maximize your chances of leaving with money and minimizing the risk of a total erasure of your investment.
Follow these four wisely and constant rules, and you could potentially transform a total investment of $ 1,500 into a profit of $ 5,000. Here is the drop.
1. Assist larger financial priorities first
The first rule to follow to maximize your opportunity with coins is to invest them only when your financial life is solid and entirely in order.
You owe Diversify your wallet With other investments first, including more secure shares, bonds and cryptocurrencies that are not based on the same. In addition, you should have an emergency fund, enough money in your checks to cover your basic necessities and luxury, and a strategy to repay high interest debt.
It is much easier to see this risk until a favorable result if you are not afraid that you should liquidate your assets to reimburse your credit card loan at the end of the month.
2. Do not commit all your capital both in the coins
Today, Shiba Inu market capitalization is nearly $ 8.2 billion. Less than a year ago, in March 2024, it was worth $ 21.1 billion. It has therefore lost more than 50% of its value since then.
Now imagine that you were completely excited during this period when the price of the meme play increased, and, fear of missing a massive gainYou threw a few thousand dollars in the cryptocurrency. To date, you would feel attached enough, assuming that you have kept your Shiba Inu investment.
Hence the second rule: do not lower a significant lump sum of your investment capital in parts even. Average cost in dollars (DCA) In your position until this is the size you want.
The average cost in dollars means that you will probably miss the purchase of the token when the prices are at the top or bottom. However, this strategy also guarantees that you add to your investment at regular intervals and at different prices on average, regardless of the direction of the price movement. This helps to distribute your purchases so that you are in the investment of extreme volatility by canceling extreme prices.
3. Buy more when it seems the worst to do it
As mentioned in the previous point, the purchase of Shiba Inu gradually over time will help reduce a part of the impact of the volatility of the medal to your cost as well as your yields. But there is another way of juice of your feedback to be a little better.
The third rule consists in making additional purchases in addition to your purchases regularly scheduled during the periods when the price of the token is really low, or when it drops sharply every week.
It will be terrible to buy a room which has recently lost a lot of value, one or which seems to lose even more of its value. In simple terms, market interest in this part of memes decreases. This is why no one else will buy it. And that is also why if you force yourself to buy it, you will prepare for a better return on the road.
If the price is finally recovered – and with a fairly durable piece of memes like Shiba Inu, it will probably be – your capital will probably develop considerably as a reward to master your emotions.
4. Check the price once a week or less
It is fun to invest in coins due to the frequency at which the price changes. The same day, it could swing up to 10% or more.
But looking at the price does not change it. And, if you are of the type that is stressed that their investments are underwater, even for a second, watching the price too frequently is a stress recipe.
If you choose to make a speculative bet on this token, you must engage in this bet for at least a year or more. In this period of time, there is not much to win by checking the price more than once a week, so don’t worry.
Good financial practices help generate confidence and give you the breathing space to have some conviction in your choice of token.
At the end of the day, the objective behind the purchase of coins, like Shiba Inu, is to give you an exposure to a potentially important reward without being necessarily exposed to a debilitating loss. These four principles should greatly help you sleep well at night while putting you in place to harvest the awards.