For those who are new and just starting to dabble into crypto, it can be intimidating with all the terms, graphs, and coins out there. How do you know which are valuable coins to add to your portfolio, how do you find out the best time to buy, do I have realistic expectations?
I put together a list of the things that I wish I knew before buying in to crypto. I encourage you all to post your tips for newbies below as I am sure that some of your realizations/tips may be different from mine and all perspectives are appreciated!
Here we go:
As I have mentioned before, the underlying technology has the power to change most industries in the future. Blockchain technology can and will solve a lot of outdated systems that need to be more efficient and secure. There is a legitimate value in what these cryptos bring to the table, but due to the infancy of the industry still, prices and corrections are often based off of people’s emotions, and even market manipulation. This is often induced by some form of “Fake News”, or someone’s emotion based opinion (in crypto land we call this FUD). Which leads us to our first, and maybe most important, takeaway…
Don’t believe everything that you read or everything that you hear others say.
Research, research, research. Hype, pump and dump, and scams are common. Research really is such a valuable & powerful thing to do in this industry as the mainstream media doesn’t always educate properly and staying up to date is very important in this market because things change very quickly. The good thing about them is the awareness that they provide to the public that at least there is something incredible happening that is set up to be one of the most disruptive (in a good way) technologies in the WORLD…they just may not always phrase it exactly like that. 😉 Also, you will hear others close to you giving their opinions and even they may not entirely understand everything there is to know about crypto even if it comes off that they do.
For me, I made a lot of mistakes in the beginning of crypto because I would believe everything others around me said because I was so new to the industry. This is what led me to this tip because if I would have just dug a little, I don’t know if I would have made the same mistake. I do think that with the crypto industry, mistakes lead to valuable lessons so it’s ok to make some along the way! Just find some great sources whose thinking you agree with & utilize their knowledge to guide you on your research journey! They may expose you to a coin you never had on your radar.
I think it’s great to spark conversations about crypto in any way you can to get others intrigued, I think it’s important to always encourage others to do some research once you see them actively engaging you in the topic. 😀
Don’t Panic Sell. Be Patient… or in other words HODL
Don’t panic when the price is down and sell the moment it is up. A lot of people when they are new to crypto make decisions on panic and fear. Holding a bag is one thing but selling at a loss has proven to be a big mistake and one that people generally regret in a short amount of time. How I recommend getting through the emotional roller coaster of crypto is:
1.) Take a deep breath and remind yourself that you don’t want to act out of fear
2.) Look at recent articles or reddit forums to see what others are thinking to at least give you a well-rounded picture. Look for the posts with long -term outlooks. (*this is tricky though as sometimes people want you to sell so that they can buy in at lower prices and profit off of others’ emotional distress, so be careful! Also, twitter is often flooded with FUD.)
3.) Then, make sure you are only ever invested in companies and coins that you believe in as it will help you be more emotionally resilient to market swings. Try to always see the larger picture with crypto otherwise it becomes very stressful. This point leads me to my next tip since it is related:
Invest in Cryptocurrency without the mentality of “Get Rich Quick”
While there are extremely skilled day traders (I am in awe of them), starting out in crypto by only looking at the money will only increase your chances of not enjoying your experience & selling out at bad times. Yes, a lot of people have made insane money, especially early bitcoin adopters. However, if you believe in a coin’s worth and the problem it aids to solve then you should HODL it until you learn when the time is right to let go.
Expect a crazy ride.
This is a very volatile market with a lot of uncertainties. Don’t expect a nice, easy ride to the moon. There are ways to read trends and somewhat predict a price drop/increase based on support lines & we can go into that on a later post as to be honest, I am still getting the hang of.
One thing that is certain in this space, is that no one actually knows EXACTLY what is going to happen on a day to day basis. So, sit back and enjoy the up and downs, loops, scares, and community behind crypto.
Be responsible with your crypto wealth.
Remember, it is not cash in your pocket until you have it in your bank. Until it is there, do not spend what you don’t have with the ideas that you are a millionaire because while you are in your car on your way to shop for your lambo, the market can crash. Also, never ever ever invest money that you aren’t willing to lose.
There’s more to cryptocurrency than Bitcoin.
Many Steemians are probably going “Duhhhh” but I still want to point it out. Bitcoin dominated the media in 2017 and still is, so that’s generally what most new users are familiar with. Additionally, Coinbase is one of the most user-friendly apps and people don’t always realize that there is much more to crypto beyond Coinbase.
In summary: You’re better off holding for mid to long-term gains, being patient, doing your own research on a coin you want to invest in, being cautious of media manipulation/hype, and careful not to panic when times are rough or as we say HODL (Hold on for Dear Life), my friends.
Again, others will have different tips but these are ones that I found valuable for me and I hope that this helps some of you just starting out!
Have fun with your crypto experience and find communities where you can go to chat about maybe something you found, or just want to share your excitement about a coin doubling. I do have to say that once you are in it, then you start to understand the crypto market more and you will probably gain a genuine interest in it all. It becomes addicting. Also, you will check your app to see how your money is doing 20 times a day, which I would tell you not to do to eliminate panic and potentially severe emotional distress during drops. But I can’t tell you not to do it because I do all too often. You may still make a few mistakes as you venture into crypto, but hopefully with my tips, you make a few less.