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The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but also to suffer large losses. For this reason, investors should employ an effective trading strategy that includes both stop and limit orders to manage their positions.

Stop and limit orders in the forex market are essentially used the same way as investors use them in the stock market. A limit order allows an investor to set the minimum or maximum price at which they would like to buy or sell, while a stop order allows an investor to specify the particular price at which they would like to buy or sell.

An investor with a long position can set a limit order at a price above the current market price to take profit and a stop order below the current market price to attempt to cap the loss on the position. An investor with a short position will set a limit price below the current price as the initial target and also use a stop order above the current price to manage risk.

There Are No Set Rules

There are no rules that regulate how investors can use stop and limit orders to manage their positions. Deciding where to put these control orders is a personal decision because each investor has a different risk tolerance. Some investors may decide that they are willing to incur a or pip loss on their position, while other, more risk-averse investors may limit themselves to only a pip loss.

Although where an investor puts stop and limit orders is not regulated, investors should ensure that they are not too strict with their price limitations. If the price of the orders is too tight, they will be constantly filled due to market volatility. Stop orders should be placed at levels that allow for the price to rebound in a profitable direction while still providing protection from excessive loss. Conversely, limit or take-profit orders should not be placed so far from the current trading price that it represents an unrealistic move in the price of the currency pair.

Stop Order

A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. A buy-stop order is an instruction to buy a currency pair at the market price once the market reaches your specified price or higher; that buy price needs to be higher than the current market price. A sell stop order is an instruction to sell the currency pair at the market price once the market reaches your specified price or lower; that sell price needs to be lower than the current market price.

Stop orders are commonly used to enter a market when you trade breakouts. For example: suppose that USD/CHF is rallying toward a resistance level and, based on your analysis, you think that if it breaks above that resistance level, it will continue to move higher.

To trade this opinion, you can place a stop-buy order a few pips above the resistance level so that you can trade the potential upside breakout. If the price later reaches or surpasses your specified price, this will open your long position. An entry stop order can also be used if you want to trade a downside breakout. Place a stop-sell order a few pips below the support level so that when the price reaches your specified price or goes below it, your short position will be opened.

Stop orders are used to limit your losses. Everyone has losses from time to time, but what really affects the bottom line is the size of your losses and how you manage them. Before you even enter a trade, you should already have an idea of where you want to exit your position should the market turn against it. One of the most effective ways of limiting your losses is through a pre-determined stop order, which is commonly referred to as a stop-loss.

If you have a long position on, say the USD/CHF, you will want the pair to rise in value. In order to avoid the possibility of chalking up uncontrolled losses, you can place a stop-sell order at a certain price so that your position will automatically be closed out when that price is reached. A short position will have a stop-buy order instead.

Stop orders can be used to protect profits. Once your trade becomes profitable, you may shift your stop-loss order in the profitable direction to protect some of your profit. For a long position that has become very profitable, you may move your stop-sell order from the loss to the profit zone to safeguard against the chance of realizing a loss in case your trade does not reach your specified profit objective, and the market turns against your trade.

Similarly, for a short position that has become very profitable, you may move your stop-buy order from loss to the profit zone in order to protect your gain.

Limit Order

A limit order is placed when you are only willing to enter a new position or to exit a current position at a specific price or better. The order will only be filled if the market trades at that price or better. A limit-buy order is an instruction to buy the currency pair at the market price once the market reaches your specified price or lower; that price must be lower than the current market price. A limit-sell order is an instruction to sell the currency pair at the market price once the market reaches your specified price or higher; that price must be higher than the current market price.

Limit orders are commonly used to enter a market when you fade breakouts. You fade a breakout when you don't expect the currency price to break successfully past a resistance or a support level. In other words, you expect that the currency price will bounce off the resistance to go lower or bounce off the support to go higher.

For example: suppose that based on your analysis of the market, you think that USD/CHF's current rally move is unlikely to break past a resistance successfully. Therefore, you think that it would be a good opportunity to short when USD/CHF rallies up to near that resistance. To take advantage of this theory, you can place a limit-sell order a few pips below that resistance level so that your short order will be filled when the market moves up to that specified price or higher.

Besides using the limit order to go short near a resistance, you can also use this order to go long near a support level. For instance, if you think that there is a high probability that USD/CHF's current decline will pause and reverse near a particular support level, you may want to take the opportunity to go long when USD/CHF declines to a level near that support. In this case, you can place a limit-buy order a few pips above that support level so that your long order will be filled when the market moves down to that specified price or lower.

Limit orders are used to set your profit objective. Before placing your trade, you should already have an idea of where you want to take profits should the trade go your way. A limit order allows you to exit the market at your pre-set profit objective.

If you long a currency pair, you will use the limit-sell order to place your profit objective. If you go short, the limit-buy order should be used to place your profit objective. Note that these orders will only accept prices in the profitable zone.

Execute the Correct Orders

Having a firm understanding of the different types of orders will enable you to use the right tools to achieve your intentions—how you want to enter the market (trade or fade), and how you are going to exit the market (profit and loss). While there may be other types of orders—market, stop and limit orders are the most common. Be comfortable using them because improper execution of orders can cost you money.

Investopedia does not provide tax, investment, or financial services and advice. The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal.

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Forex, or foreign exchange, is the largest financial market in the world. It is a global decentralized market where currencies are traded 24 hours a day, 5 days a week. The market cap of forex, or the total value of all the currencies traded in the market, is difficult to calculate as it is constantly changing. However, it is estimated to be around $ trillion per day.

Market cap is a term used to describe the total value of a company or asset. In the case of forex, it is the total value of all the currencies traded in the market. This value is determined by the exchange rate of each currency pair. For example, if the exchange rate of the EUR/USD pair is , it means that one euro is equal to US dollars. The market cap of the EUR/USD pair would be the total value of all the euros and US dollars traded in the market at that exchange rate.

The forex market is unique in that it is a decentralized market. This means that there is no central exchange where all the trades are conducted. Instead, the market is made up of a network of banks, financial institutions, and individual traders who trade currencies electronically through a global network of computers. This decentralized nature of the market means that it is not possible to accurately measure the market cap of forex at any given point in time.

However, there are estimates of the daily trading volume in the forex market, which can give an indication of the market cap. According to the Bank for International Settlements (BIS), the average daily turnover in the forex market was $ trillion in April This represents a 30% increase from the previous survey in , indicating the growing popularity of forex trading.

The high trading volume in the forex market is due to several factors. Firstly, it is a global market that operates 24 hours a day, 5 days a week. This means that traders can participate in the market at any time, regardless of their location. Secondly, the forex market is highly liquid, meaning that there are always buyers and sellers available for any given currency pair. This makes it easy for traders to buy and sell currencies quickly and at competitive prices. Finally, the forex market is highly leveraged, which allows traders to trade with large amounts of capital using only a small amount of initial investment.

The high market cap of forex makes it a popular choice for investors and traders. It offers the potential for high returns, as well as the opportunity to diversify their investment portfolio. However, it is important to note that trading forex carries a high level of risk and should only be undertaken by experienced traders who understand the risks involved.

In conclusion, the market cap of forex is difficult to accurately measure due to the decentralized nature of the market. However, estimates of the daily trading volume indicate that the market is worth around $ trillion per day. The high trading volume, liquidity, and leverage of the forex market make it an attractive option for traders and investors, but it is important to understand the risks involved before trading.

Forex vs stocks vs crypto fall into the top three global trading markets; it’s hard to pick one market that can put the most money in your pocket. If you are a born risk-taker, you can invest in all three, but first, you should examine each market carefully. Doing your due diligence can make you a savvy investor. While the media and some people talk about Forex vs stocks vs crypto as a game, we assure you that taking one wrong step can put you in massive amounts of debt or worse. 

It’s no secret that the cryptocurrency market is hot right now, but that doesn’t mean it is your only investable option. Granted that the total market value of cryptos has risen above the $3 Trillion mark, but when it comes to choosing the best option between Forex vs stocks vs crypto, market value is just one of the factors you should consider. 

Let’s get into detective mode because investment decisions must not be made lightly. 

Forex vs. Stocks vs. Crypto: The Basics

There are many differences between Forex and stocks and crypto, but the obvious one is what you are trading in each market. 

What is Forex?

Forex stands for the Foreign Exchange Market, where you can invest in foreign currencies. With every change in currencies’ value, you have the chance to gain money, and you also run the risk of losing money. Making a profit in Forex depends on the continuous change in the global investments and your ability to predict which economies are prone to succeed and which are bound to fail. The demand for various currencies changes based on how governments, corporations, and individuals move money worldwide. Another thing you should understand is that each currency can affect the other, which means you need to improve your knowledge of all of them. If you don’t have analytical skills, Forex trading bots have analysis tools for predicting the changes in the prices of different currencies.

Forex does not run on one marketplace, and winning demands more than a keen sense of prediction. You need to be an analyst, a predictor, and a keen observer all at once if you want to make considerable profits in this market. 

Specific Terms in Forex Trading You Need to Know 

The Forex market is not the best option for beginner traders; however, learning these terms can be a good starting point. 

Spread

A Forex currency pair, such as GBP/USD, has a buy and sell price; the difference between these prices is called a spread. 

Position

In Forex, there is a long and a short position. If you open a long position, you are trading at the buy price; if you open a short position, you are trading at the selling price.  

Lots

Lots are specific amounts of currency you can trade on Forex. Forex lots have different sizes, including the standard size, mini, micro, and nano. 

• , units of currency: Standard size
• 10, units of currency: Mini size
• units of currency: Micro size
• units of currency: nano size

Leverage & Margin

You placed an initial deposit, known as margin in Forex, but need more to match the required investment amount. You then borrow the amount of money you need from a broker to complete your trade, called leverage. So, in a nutshell, leverage is like a loan. Note that margin is a ratio of the position’s total value. 

Pip

Pip stands for “Percentage in Point,” the smallest unit price that distinguishes the prices of currency pairs on Forex. Currency pair prices are usually written to four decimal points; the fourth decimal is a single pip. 

If you are a professional Forex trader or you want to become one, don’t miss out on our special offer at the end. 

What is the Stock Market?

Before diving into the details of the stock market, let’s go over the basics. 

Online Brokers

There are two types of brokers; full-service and discount. 

Full-service brokers provide traders advice about almost everything, including retirement, healthcare, investments, and basically all money-related matters. As you will be getting expert advice on these areas, full-service brokerage fees are quite substantial, from $25, and up.

Discount brokers only execute buy and sell orders and do not offer any guidance, analysis, or advice on investments. Discount brokers are a good option if you want to trade small capitals in the securities industry at lower fees. 

Bear Markets & Bull Markets

A bear market refers to economic regression, and a bull market refers to economic growth in the stock market. If you see increased IPO (Initial Public Offering) activity and positive demands in the stock market, it’s become a bull market. If you see prices falling drastically (20% or more ), it’s become a bear market. 

What is the Meaning of a Stock?

Stocks are usually referred to as shares or equity. A stock is a financial measurement of your assets and earnings. You may have seen or heard of “stock options” in job descriptions, which means if you own that company’s stock, you are a shareholder who owns a piece of that company. There are different types of stocks, including common shares and preferred shares. Common shares are known as equities that grant their owner voting rights —usually, one vote per share held— in corporate meetings and elections. In contrast, preferred shares only mean you are entitled to receive dividends in the event of a liquidation.

Investing in stocks can bring you considerable returns; however, that entirely depends on capital gains and dividends. The difference between these is that capital gains happen when you make a profit from selling your stock at a higher price than when you purchased it, and dividends refer to the shared company profit.

The Stock market is about two centuries old, but it still carries potential risks for beginner traders. The risk is high, and the profit is higher. 

Here are the top 5 Stock Exchanges by Market Capitalization in July

What is Crypto?

Cryptocurrency or crypto refers to virtual money or assets you can’t physically hold or see. The base unit of a cryptocurrency is called a token, and you can store your tokens in a digital account or wallet. Bitcoin is the pioneer in the world of cryptocurrencies, and by the end of , there will be over 18, cryptocurrencies in existence. 

The second popular cryptocurrency is Ether which is the native cryptocurrency of the Ethereum platform. The main difference between these two cryptocurrencies is their function; Bitcoin is like a pure financial asset, whereas Ethereum’s tokens are more of a funding supply. 

You can use cryptocurrency for payments and other transactions like you would with a U.S. dollar. However, this is just a theoretical concept, and it would take a lot of time and effort to make cryptocurrencies into fiat currencies. At this stage, traders utilize every tool at their disposal, like cryptocurrency trading bots, to buy and sell tokens at the best possible profit rate. While Bitcoins are not an official fiat currency, they sure are worth a considerable amount of dollars. 

Forex Vs Stocks Vs Crypto; Which Generates a Higher Profit?

The potential profit is the most important issue for traders in Forex vs stocks vs crypto. These markets have huge differences, which means there is no way to say which one will make you more profits with a definiteness. You need to study these markets before investing a penny. However, we have tips that can help you in this process.

Essential factors that play a huge role in making profits in trading markets are capital, level of risk, overall financial goals, and perseverance. No seed can grow without going through proper gestation. The trading market is no joke and is not a place for hasty people. 

With all that in mind, if you are looking for steady small profits and you have solid strategies, then Forex is a better fit than the stock market. The Forex market has high volatility, which can help beginner traders make less risky and easier profits. The stock market is for one who is practically a full-time trader and cares about safety measures. If you want to make large profits and you can be patient, then go into the Stock market. We should mention that the relevant financial industry regulatory authority oversees both Forex and the stock market.

You might think the crypto market is flooding with young traders, but that’s not true. Granted that crypto markets are relatively new, it doesn’t mean older generations can’t make nice profits in them. Anyone who can handle the risks of trading should check out crypto markets. There is one matter that could be a potential issue in this market: the continuously changing value of cryptocurrencies. 

In conclusion, the stock market and Forex are more stable for making profits, but if you want to try your luck in crypto markets, pay close attention to patterns and keep up with the latest crypto news. 

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Forex Vs Stocks Vs Crypto; Which is Beginner-friendly? 

If you are good at predicting the exchange rate of currencies and you are smart enough to come up with solid strategies, Forex is your best option. However, you need to know that Forex and the crypto market use specific trading terms, and to make huge profits, you must master these terms. The stock market has been around for a long time, and the good news is that many brokers welcome beginners to this market. There are also stock market tutorials on the internet. So you can learn the basics and even some solid tricks in a short time.

By now, you understand that each market can be beginner-friendly only if you take the time to pass through the learning curve. But if you are in a hurry to make money, which we advise against, the Forex market is a good choice. Also, we offer a solution for you to earn profits faster in the Forex market with minimal risks, so stay tuned until the end. 

Forex Vs Stocks Vs Crypto; Which is Prone to Market Manipulation? 

First, you need to know that although market manipulation is illegal, it does exist. When there’s talk about manipulation in the trading market, two entities come to mind: banks and hedge funds. They are big players and can put huge capital into the market, affecting trading prices. News is their secret weapon, and they can change prices based on current events without raising a lot of questions. 

According to the SEC, dramatic changes in stock prices are signs of market manipulation. When it comes to manipulation, no one plays in good faith; people start spreading false or misleading rumors about organizations and rig prices and transactions to create costly illusions. Market manipulators use several methods, including spoofing, wash trades, pump and dump, painting the tape, bear raids, and stop hunting. These names might sound funny, but they are extremely harmful to new investors.

If you see pending buy and sell orders, a spoofing manipulation might be in play. Traders use this tactic to place fake orders and cancel them before execution. The whole point of spoofing is to divert traders’ attention to one side of the market or the other so that manipulators can make their move. 

Wash trades are like phony trades that can mislead the market without actually acquiring or liquidating stock. Brokers, traders, or even a mix of both can place wash trades to make it look like there is activity on another market, but in reality, there’s not. 

The pump and dump tactic happens when one company suddenly receives overly optimistic comments in the trading market. Someone buys a considerable amount of stock at a low price, and after those comments take effect and the prices go up, he starts selling his stock at a much higher price, making huge profits in the process. Small stocks are easy targets for implementing this manipulation strategy. 

This is a two-person trading manipulation trick. One person creates an illusion of heavy activity on one side of the market, and the other places offsetting or closing trades on another side.

A bear raid works like the opposite of “Pump and Dump.” Someone buys a stock and then starts the stock bashing process. Nothing sends chills down every shareholder’s spine than damaging comments. They start dropping their short positions in a stock, allowing the bear raider to collect them at a lower price. 

Stop hunting happens when someone prematurely triggers stop-loss orders. Whales drop cryptocurrencies’ prices to levels that most people set their stop orders, volatility increases considerably, and the manipulator can make a nice profit by buying those cryptos at a lower price. 

Winning in Forex vs stocks vs crypto just became more complicated, right? Knowing what you’re up against is best rather than being blind-sided by these manipulation techniques. 

Forex Vs Stocks Vs Crypto; Differences & Similarities 

We want to examine the differences between Forex and stocks and crypto across seven areas: Liquidity, volatility, market hours, market value, regulations, and legal minimum capital requirement.

Let’s discuss each category.

Final Thoughts

Online trading is open to every investor and trader around the world. There’s no reason to be afraid of the trading market, but if you decide to make money from any kind of trading, it is % up to you to gather as much information as you can about your chosen market. We covered a lot of information regarding Forex vs stocks vs crypto, but you must stay up to date if you want to stay in the trading game and win. 

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In today’s tech world, where security breaches and threats come at us left and right, it’s essential to protect your data and assets. Also, the Forex trading market is unpredictable, and its high volatility can ruin your trading experience. But by using Forex VPS, you can execute trades as fast as lightning in the most secure way. 

In the trading market, delay and slippage can cost you millions. If you are a Forex trader, investing in a reliable Forex VPS is the smartest thing you need to do. Cloudzy risk-free VPS is an asset everyone can afford. Check out the best Forex VPS providers and start winning even while you’re asleep. 

Think about these questions, read this blog carefully, and then make your final decision. 

FAQ

Forex vs stocks vs crypto; What are their market hours?

Forex market: 24/5

Stock market: Monday through Friday, a.m. to p.m. Eastern time

Crypto market: 24/7 

Forex vs stocks vs crypto; Which is riskier? 

Investing in any market without acquiring the proper knowledge is risky. Traders are risk-takers; there’s no question about that. But there’s a difference between taking calculated risks and being reckless. That being said, the riskiest trading market for beginners is probably the Stock market. 

How can I spot market manipulation? 

Keep a look out for all the market manipulation techniques we covered in the “Forex Vs Stocks Vs Crypto; Which is Prone to Market Manipulation?” section; over time, you will be able to see the patterns. 

Forex vs stocks vs crypto; Which is the right market for me?

Trading is not for everybody. Check out these questions before stepping into trading markets:

• Are you prepared for trading risks? 
• Are you aware of market manipulation techniques? 
• Do you have a trading strategy?
• Are you in it to make easy money?

Leverage is the use of borrowed money (called capital) to invest in a currency, stock, or security. The concept of leverage is very common in forex trading. By borrowing money from a broker, investors can trade larger positions in a currency. As a result, leverage magnifies the returns from favorable movements in a currency's exchange rate. However, leverage is a double-edged sword, meaning it can also magnify losses. It's important that forex traders learn how to manage leverage and employ risk management strategies to mitigate forex losses.

Understanding Leverage in the Forex Market

The forex market is the largest in the world with more than $5 trillion worth of currency exchanges occurring eunic-brussels.eu trading involves buying and selling the exchange rates of currencies with the goal that the rate will move in the trader’s favor. Forex currency rates are quoted or shown as bid and ask prices with the broker. If an investor wants to go long or buy a currency, they would be quoted the ask price, and when they want to sell the currency, they would be quoted the bid price. 

For example, an investor might buy the euro versus the U.S. dollar (EUR/USD), with the hope that the exchange rate will rise. The trader would buy the EUR/USD at the ask price of $ Assuming the rate moved favorably, the trader would unwind the position a few hours later by selling the same amount of EUR/USD back to the broker using the bid price. The difference between the buy and sell exchange rates would represent the gain (or loss) on the trade.

Investors use leverage to enhance the profit from forex trading. The forex market offers one of the highest amounts of leverage available to investors. Leverage is essentially a loan that is provided to an investor from the broker. The trader's forex account is established to allow trading on margin or borrowed funds. Some brokers may limit the amount of leverage used initially with new traders. In most cases, traders can tailor the amount or size of the trade based on the leverage that they desire. However, the broker will require a percentage of the trade's notional amount to be held in the account as cash, which is called the initial margin.

Types of Leverage Ratios

The initial margin required by each broker can vary, depending on the size of the trade. If an investor buys $, worth of EUR/USD, they might be required to hold $1, in the account as margin. In other words, the margin requirement would be 1% or ($1, / $,).

The leverage ratio shows how much the trade size is magnified as a result of the margin held by the broker. Using the initial margin example above, the leverage ratio for the trade would equal ($, / $1,). In other words, for a $1, deposit, an investor can trade $, in a particular currency pair.

Below are examples of margin requirements and the corresponding leverage ratios.

As we can see from the table above, the lower the margin requirement, the greater amount of leverage can be used on each trade. However, a broker may require higher margin requirements, depending on the particular currency being traded. For example, the exchange rate for the British pound versus Japanese yen can be quite volatile, meaning it can fluctuate wildly leading to large swings in the rate. A broker may want more money held as collateral (i.e. 5%) for more volatile currencies and during volatile trading periods.

Forex Leverage and Trade Size

A broker can require different margin requirements for larger trades versus smaller trades. As outlined in the table above, a ratio means that the trader is required to have at least 1/ = 1% of the total value of the trade as collateral in the trading account.

Standard trading is done on , units of currency, so for a trade of this size, the leverage provided might be or A higher leverage ratio, such as , is usually used for positions of $50, or less. Many brokers allow investors to execute smaller trades, such as $10, to $50, in which the margin might be lower. However, a new account probably won't qualify for leverage.

It's fairly common for a broker to allow leverage for a $50, trade. A leverage ratio means that the minimum margin requirement for the trader is 1/50 = 2%. So, a $50, trade would require $1, as collateral. Please bear in mind that the margin requirement is going to fluctuate, depending on the leverage used for that currency and what the broker requires. Some brokers require a % margin requirement for emerging market currencies such as the Mexican peso. However, the leverage allowed might only be , despite the increased amount of collateral.

Leverage in the forex markets tends to be significantly larger than the leverage commonly provided on equities and the leverage provided in the futures market. Although leverage may seem extremely risky, the risk is significantly less when you consider that currency prices usually change by less than 1% during intraday trading (trading within one day). If currencies fluctuated as much as equities, brokers would not be able to provide as much leverage.

The Risks of Leverage

Although the ability to earn significant profits by using leverage is substantial, leverage can also work against investors. For example, if the currency underlying one of your trades moves in the opposite direction of what you believed would happen, leverage will greatly amplify the potential losses. To avoid a catastrophe, forex traders usually implement a strict trading style that includes the use of stop-loss orders to control potential losses. A stop-loss is a trade order with the broker to exit a position at a certain price level. In this way, a trader can cap the losses on a trade.

Low Cap altcoins are in vogue again.

But are we too early?

And have we learned from our past mistakes?

Defined

I don&#;t think there is a hard-core definition out there for what constitutes a low-cap altcoin like we have in Trad-Fi.

Let&#;s just say under $,, in market cap for now, or reasonably close to that.

Why So Popular?

Well, they&#;re not by definition, hence their low market caps.  At least not until they moon.

But the prospect of them is alluring to just about everyone not in that 1% wealth tier.

I admit, as much as I preach staying in higher cap plays, I will admit, there is an appeal for me here too.

An appeal I am resisting.

But I know some of you succumb to the siren song of degeneracy more than I do.

Just remember, like I reference often here, this isn&#;t 8-Mile.  You don&#;t just get one chance to make millions off of one token.

There are many, and there are cycles which come every couple of years or so in this market.

&#;&#;eunic-brussels.eu least for now before the law comes down on these things.

But that&#;s another topic for another time.

For now, you just want to play the asymmetry of the low caps, and you (at least think you) have the capacity to take profit at the right times, unlike most of the dumb little kids who play in this space.

I have some tips for you, and some general things to remember.

1 &#; Content Creators Matter

Especially this time.  Everyone is talking about gaming, and it&#;s because of Alex Becker.

By the way, Alex Becker is a national treasure.  Self-made, very high IQ, hilarious, and just gets it.  I&#;ve been following him since the orange Lambo days.  One of the best Twitter accounts on the planet.

But just know, if Alex puts his blessing on something, it&#;s likely to do well, or at least pump.

I think we are going to see a consolidation as far as crypto YouTubers mentioning low cap gems.  We&#;re about to become very top-heavy.

Sure, most of the crypto YouTubers will still make low-cap videos (because the rich take from the poor as usual), but this generation of degens has, believe it or not, learned a thing or two by getting destroyed over and over again.

I won&#;t put anyone on blast, but go to ANY video from a few years ago titled &#;x Altcoins to the Moon LOL&#; or whatever those dipshits used to title their videos.

They made money off of your pain.

Seriously though, go watch the video, and see if a few years later, you can still recognize any of the tokens they mention in the video.

You probably can&#;t.  They all tanked.

And now this time is going to be different?  You&#;re going to take these people seriously again?

It can be different this time, but only if you follow the top guys in the space.

Find out who they are, and follow nobody but them.

It&#;s going to be hard, because the YouTube algorithm is going to assume you&#;re a moron and show you everyone else&#;s dumb little altcoin video too.  But keep it real.

I really think we&#;re going to see a consolidation here, and the top guys will have ultimate power as far as being able to play kingmaker with these tokens.

But a lot of good that does unless you have prior knowledge of what they&#;re going to talk about, which you don&#;t.  So instead&#;

2 &#; Play the Sector

Gaming/Metaverse isn&#;t the only exciting low-cap sector out there.  A lot of new businesses are in the works on the blockchain, and they include new and existing sectors alike.  Check out&#;

Real World Assets (We will definitely be hitting this sometime in the future)

New DeFi

Storage

Launch Pads

New Layer 2s

New Layer Zeroes

AI

Decentralized Social Media

Yo Momma

Now this is going to take some real due diligence to see which tokens in the sector have a chance at becoming the leaders in their space, which is the real treasure for us investors.

But we&#;ve seen this movie before haven&#;t we?  When a sector gets hot, every token in it generally gets a boost.

So if you&#;re going to be lazy (and most degens are), I would take profit sooner than you normally would.

I would even go into how you should have a spreadsheet and have levels of multiples mapped out in terms of your take profit points, but you&#;re a degen, and you don&#;t want to do what successful people do, so I&#;ll skip this part.

3 &#; General is Better

Back to gaming for a moment.

I would take a gaming studio over an individual game any day.

Much MUCH higher chance of success, with similar gains I would imagine.

Yes, I invest in ILV, and I did a blog on Star Atlas, but these projects can and often will (and often have already) run out of money.

And even if they don&#;t, they&#;re likely going to be launching in an ocean of other Web3 games (Illuvium should be earlier, hence the investment), and the winners will be the ones where people can make the max amount of money first, then have fun second IMO.

Too much can go wrong, despite the hype.  At the end of the day, hype is just hype.

Don&#;t play the horse, play the entire race.

4 &#; Governance Over In-Game

If you absolutely insist on investing in individual games, remember this.

Some games have two tokens &#; The in-game token you will be earning, then a governance token.

The in-game token is going to be constantly sold for stablecoins every singe day.

The governance token will not be.

I know which one I&#;d rather have.

ILV is not an in-game token btw.

5 &#; We May Still Be (Too) Early

Almost none of these games are coming out anytime soon.

Are we really going to repeat the same mistake we made in ?

Alex Becker even said it himself.

Now there is a chance people will diamond hand some of these tokens, but waiting is probably the more high-percentage play.

Or at least go half in now, and average down later.

I know in low-cap world, people can often band together and degen these things into prosperity, but are you willing to risk this being true?

6 &#; Set Yourself Up Correctly

You will need a place to buy and store these tokens.  Most places don&#;t allow it.

I can&#;t help you here since this isn&#;t my circus, but fumbling with new software here is something I&#;m sure you want to avoid.

Regardless of when you purchase, get yourself set up now and get used to trading and sending with your new degen-monkey set-up.

Conclusion

I&#;ve said it before, this is like a father talking to his dopey teenage kid.

We know you&#;re going to go out and do dumb things.

Just keep the car in between the ditches when you do, won&#;t you please?

&#; VP