The lessons I’ve learned since getting involved with cryptocurrencies
Well, to tell you the truth, I don’t really have those amazing stories that you see in the headlines. I didn’t quite become a crypto millionaire or so by trading cryptocurrencies (although I made impressive gains) and I didn’t really get financially independent as many of us strive to be by entering this field of technology/finances.
However my journey into the crypto universe happened to be quite thought-provoking considering the many obstacles and morally imposed questions, I came across in this short amount of time (I’ve been trading cryptos for 8–9 months now).
First Lesson: Don’t try to convince others
First, I had to realize that despite the fact that cryptocurrencies got into mainstream media in 2017, it didn’t quite bother the majority of the people. I met few people that have heard about cryptocurrencies outside the headlines of “Bitcoin breaking all time high…”.Most of the people I’ve met and the topic of cryptocurrencies came up, I realized that I could put them in three main categories:
-People who outright call cryptocurrencies a joke/scam/lie (even though they recognize the whole industry as the “Bitcoin stuff”)
-People who are interested and find it thought-provoking but they have personal issues like: “I don’t know, it sounds like gambling a bit”, “I don’t really have enough money to put in”, “I’m afraid of the volatility orthe probability of a sudden bubble burst”
-People who are enthusiastic about cryptocurrencies and want to trade even despite the fact that they don’t know much about it but they are willing to learn.
To my disappointment, I mainly met people who fell into the first category. Then, I made my first mistake, I tried to convince them of the positive effects of cryptocurrencies and how it could be a game changer in the world of finances or in the global economy (usage of blockchain technology). Sadly, my reasoning usually met with harsh despise or boredom, even when I showcased the profits I’ve made, there were no positive responses. I often found myself in situations when I got ridiculed of my beliefs and it didn’t feel good. As the time went by, these people started to find me by themselves to ask how they could get in and what is this all about. I’ve learnt that you shouldn’t try to vehemently convince others, but let it get into their minds and get them think about it, eventually those who are interested will start to ask you more questions or they will start trading/mining by themselves.
Second Lesson: Do your own research and HODL
When I got involved with cryptocurrencies, I was really confused by all the charts depicting the various price movements of the cryptocurrencies. I had no background in TA (Technical Analysis) and that scared me when the time came that I felt, I am ready to get in this crypto universe. I learned different patterns but the whole thing got more and more confusing, eventually I abandoned this project of mine and started to look for ICOs (Initial Coin Offering) and coins/tokens that have recently launched and had great promise.
At the beginning, I based my opinion on others (Youtubers, Facebook groups) to find the hidden gems (undervalued cryptos) that would take me to the moon or get me a lambo. This project also failed because when the rumours get out and the hype kicks in, you are already too late to get in, most of the time. So you ask, what did I do then ? I simply got at my laptop and browsed Coinmarketcap, Coinmarketcal and more of the objective sources that I could find to do my own research. When I got to a cryptocurrency that appealed to me, I bought in and just simply HODL-ed (Hold On to your Dear Life) the way until I thought it is time to sell (this depends on your goals). By this way, I usually got in before the hype kicked in, I wasn’t forced to check constantly the price movements and it is a pretty simple and easy way of getting good gains compared to daytrading.
Third Lesson: Be disciplined
The third and most valuable lesson, I’ve learned when it gets to cryptocurrencies, is being disclipined. There are numerous coins that have made 100x or 1000x since their launch, therefore you get to think more often about your coins going to the moon as well. Often, when you have a plan you just say “I’m just waiting a bit longer” when the particular cryptocurrency reaches the price when you planned to get out. It’s really diffcult to say no, when you have the picture of a Lamborghini in front of yourself (or other dreams). FOMO (Fear Of Missing Out) is a typical phenomenon when it comes to cryptocurrencies, you just don’t want to miss that 100000x gain on that coin, thus you might buy when the given coin is at a high price. On the other hand when a bear market kicks in and the prices are falling you have to stay focused and don’t get fearful as you might sell your coins when you shouldn’t have to, only to later blame yourself when the prices go up again.
Being disclipined represents a huge chunk in your success when it comes to crypto.
Conclusion:
These three lessons are the ones that I wanted to share with you. Covering the human/trading/pchysological factors in this industry. Personally, I think that anyone who wants to get involved with cryptocurrencies should stick to their own beliefs and try to avoid being too dependent on others or news/articles/videos that try to influence you.
My article can be also found on Medium: https://medium.com/@rolandbudai/the-lessons-ive-learned-from-getting-involved-in-cryptocurrencies-438f18a5cf7c