It all starts with bitcoin, most of the people hear stories about some people earning super huge amount of money just because they bought some bitcoins when it was super cheap and now they are selling it for huge sums of money.
You might be extremely lucky if you bought bitcoins when they were super cheap like few cents per bitcoin. If we somehow had the power to go back into the feature most of us would be buying bitcoins LOL.
The expectations of people to become super rich with small investment is extremely real and all because of bitcoin.
Source: Coinmarketcap.com
Most people think that they can still earn this amount of money with other coins too. Well, their expectations are justified to some extent but the reality is quite different. The ship has sailed long ago. But the point here is not to disheart people from the world of cryptocurrency but rather encourage them.
One thing is very clear, no other coin is going to be that successfull in the near future, partly because of the great trust of people in bitcoin. Plus the world of cryptocurrency needs to be understood and if you are a beginner it could be very challenging. There are so much details that need to be understood to make profit from this world unless you are super lucky :)
Coming to the main point that why people don't make money in the start
let me point out some of the major mistakes beginners make.
- Too little investment
- FOMO
- Investing in the wrong coin
- Eagerness to earn quick bucks
So let us go through each one of them in detail. You are not going to earn good profits if you don't invest sufficient amount of money. Sufficient here refers to how much amount you are willing to put at stake. If you invest mere 50 $ , it is more than likely that most of your money will be eaten by transaction and other fees even before you make a profit.
FOMO refers to fear of missing out. Suppose you have invested in an X coin at let say 2 $ /coin. After a day you notice that another coin Y is increasing more rapidly than you coin X. So, beginners start to switch their coins, selling and buying coins more often and even paying huge fees in that. You notice that when you shifted from X to Y and now you are holding Y, X start to increase and this happens way too often. This whole saga immediately causes you to loose your money.
some beginners start investing in coins that are too cheap. Like say coins that are one or two cents. I'm not saying that these coins are necessarily bad but more often than not, these coins are not going to help you earn profit. If you look closely most of these coins have a supply in billions and price of a coin increases when the demand is more than supply. This golden principle is the key to understand for making profit.
If you want to earn money, you have to be patient. You are not going to earn thousand dollars in just one day. Even for bitcoin it took some years to reach the current value so the key is to be patient and wait for the price to go up.
These are just my opinions and not a financial advice. I hope this helps. Tell me what you think about it in the comments .
Thanks.