I got into crytpo investing on Dec. 1, 2017 and rapidly made $1,000 on about $100 investment. I was a high roller until the end of Jan. 2018 when my earnings dropped to -$317. Like any gambler, I put a few more coins in thinking it had to get better and of course, it didn't. So now I was down $500 or so and still losing money.
So I decided to educate myself on this particular market place. I discovered it is a world-wide market, it is not like the NYSE, and mostly resembles farming.
The world-wide market means an investor needs to look around further than their neighborhood or country. Regulations or actions by foreign governments can reduce a coin's value faster than dropping it on the ground. China and Korea come to mind especially for a few coins I invested in. If Korea decides there might be a problem and suspends trading, or hints at suspending trading, the bottom can fall out of the coin market. Two, a most importantly, world-wide investing customs rule the day and if you're unaware of these, i.e. Lunar New Year, you can set yourself up for a fall.
The NYSE is fairly regulated and follows patterns. Which is why all of the technical analysis guys love to talk about flag patterns, head-and-shoulders patterns, cups and handles, and all the other stuff that can be seen after it happens. I'm not really sure patterns work for crypto. Okay, maybe the next two hours, but the mindset of HODL, a two-hour pattern doesn't really do much for the guy with a few hundred dollars.
Finally, crypto is like farming. You plant your seeds, hopefully at the lowest coin cost, and you watch it grow. Hopefully, at the end of the growing season, you harvest a large bounty. In this analogy, plant your seeds in January and harvest sometime in December right before the Lunar New Year. In the past, good coins have grown between Feb. and November, and really bouncing up in December. Then everyone in China cashes out to buy gifts for the New Year. Honestly, avoid buying in December and the first of January. Wait until Feb. when the coin reaches a lower point.
And of course, who am I? I barely have two-months of trading behind my belt. I probably know less than the guy who got into this when Bitcoin was under $10. My advice isn't really worth two ripples rubbed together. Don't listen to me. (How's that for reminding everyone I'm not a financial expert and this is not to be taken as advice?)
In the end, we all just want to be happy. Find your happy coin and see if it grows like a marigold in your garden.