Ever since I have been on the crypto journey, I have literally come across more weird terms than I could imagine. But at the same time, it’s expected as almost every field of life has its own jargon too. Just to name a few, the below words are the examples of crypto terms;

• Pos- proof of stake.
• Pow - Proof of work.
• TA — technical analysis.
• Fomo -Fear of missing out.
• HODL - hold on for dear life.
• FUD -Fear, uncertainty, and doubt.
• Halving - Rewards mining bitcoins is cut in half.
• Satoshi Nakamoto — the anonymous creator of Bitcoin.
• Node - A single computer with a copy of Blockchain data.
• Hard Fork - A radical change to the protocols of a blockchain network.

Another interesting one I came across today is the Scared money. This one is not a widely known term as it got coined among a few friends and one of them shared more light on it via Twitter.

What Is A Scared Money?

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This is money that should have been used to pay bills in needed life expenses

Seth Adams

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As the term is read, Scared money. I see it as an amount of money set aside that shouldn't be tampered with. You should always be scared to touch it.

Why Even Touch A Scared Money?

If you've actually heard of the crypto market, you'd probably also heard of how volatile it is. Unlike the traditional or stock market, a crypto coin could immensely increase in a short period of time and vice versa. Due to this fact, jumping in & out of the market with any urgently needed funds could be dangerous. Even though I am not a financial expert, these are the kind of advice I dish out to anyone who comes to me for one.

Last week, a very old friend chatted me up on WhatsApp that he would love to get into crypto. I asked him a few financial questions which he passed but I still went ahead to remained him of these points.

• Never invest money you urgently need.
• Never loan money to invest in crypto.
• Never expect a return in a short period of time.
• Always prepare for the worst case.

I would have simplified the discussion by just saying Don't Ever Touch Your Scared Money. But since I now know of this slang and I have just made this post, I will always refer to this post to any future folk that needs similar info from me.

Is it even Easy Not To Touch It?

To honestly answer the question, No!. At least from my experience, not wanting to buy the dip with funds I might need soon is difficult for me. Now you see why I said I am not a finical expert?

Imagine after charting on a pair of coins and it suddenly hits your proposed entry point and you don't have any stable coin to purchase it. The next option that comes to my mind is to convert fiat to crypto. In most cases, my fiats are my sacred money.
I prevent myself from spending my Scared-Money by randomly saving some amount of fiat and then deleting the app from my phone to prevent easy access.

Although I have a few times risked it placing my hope on the tools provided by the exchanges to manage our investment. The likes of

• Stop loss
• Take profit
• limit order

But a few times, these techniques failed me. Hahaha, Now you might wonder how? Yes... it failed me because I literally gave no gap between the trigger price & actual stop price. And other times, when the coin plunges with speed, it escapes my SL.

Conclision

To be on the safer side, try not to ever touch your scared money as no one is a master of the market. It will always do what it wants regardless of your market idea. Stay safe.

Posted Using LeoFinance ^Beta