A Personal Experience; What I Wish I Had Known Before I Started Investing in Cryptocurrencies

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Hello, dear readers. Today, I want to share with you a personal story that changed my life and taught me valuable lessons about crypto investing. It is a story of how I lost a fortune to crypto and how it affected my life, the common pitfalls and challenges of crypto investing, and the lessons and opportunities I learned from my crypto ordeal. I hope that by sharing my experience, I can help you avoid the same mistakes I made and guide you toward a more successful and rewarding crypto journey.

How I Lost a Fortune to Crypto and How it Affected My Life

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I started investing in crypto in late 2021 when the market was booming and everyone was talking about it. I was fascinated by the idea of a decentralized, digital, and global currency that could potentially revolutionize the world. I wanted to be part of this exciting and innovative movement, and I also wanted to make some quick and easy money.

I did not have much experience or knowledge about crypto, but I thought it was not a big deal. I just followed the advice of some random people on the internet, who claimed to be experts and promised huge returns. I did not do any research, analysis, or verification of the projects I invested in. I just blindly bought whatever coin was trending, hyped, or recommended by someone.

I invested a large amount of money in crypto, more than I could afford to lose. I used my savings, borrowed from friends and family, and even took out loans. I was confident that I would make it big in no time. I was addicted to watching the prices go up and down, and I felt a rush of adrenaline every time I made a profit.

However, things started to go downhill in early 2022, when the crypto market crashed and entered a bearish phase. The prices of the coins I invested in plummeted, and I lost more than half of my initial investment. I panicked and sold everything at a loss, hoping to cut my losses and recover some of my money. But it was too late. I had already lost a fortune to crypto, and I was left with a huge debt and no income.

My crypto losses affected my life in many ways. I was depressed, stressed, and angry. I felt ashamed and guilty for being so foolish and reckless. I lost the trust and respect of my friends and family, who I had lied to and borrowed from. I had to sell some of my assets and belongings to pay off my debt. I had to work extra hours and take on multiple jobs to make ends meet. I had to sacrifice my dreams and goals and settle for a lower quality of life.

The Common Pitfalls and Challenges of Crypto Investing

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Looking back, I realized that I had fallen into many of the common pitfalls and challenges of crypto investing. Crypto investing is not as easy or simple as it may seem. It is a complex, risky, and volatile endeavor that requires a lot of knowledge, skill, and discipline. Here are some of the factors that make crypto investing challenging:

• Market manipulation: The crypto market is often influenced by the actions and intentions of powerful and influential players, such as whales, institutions, governments, hackers, and the media. These players can manipulate the market by creating artificial demand or supply, spreading false or misleading information, hacking or attacking platforms or projects, or imposing regulations or bans. These actions can cause sudden and drastic changes in the market, which can affect the prices and performance of the coins.
• Technical issues: The crypto market is based on technology, which is not perfect or flawless. Many technical issues can affect the market, such as bugs, glitches, errors, malfunctions, or failures. These issues can cause delays, disruptions, or losses in the market, such as network congestion, transaction errors, platform downtime, or security breaches. These issues can also affect the functionality and usability of the platforms or projects, such as scalability, interoperability, or compatibility.
• Legal barriers: The crypto market is still in its infancy, and there is a lack of clear and consistent legal frameworks and regulations around it. Many legal barriers can affect the market, such as uncertainty, ambiguity, inconsistency, or hostility. These barriers can create confusion, doubt, or fear in the market, such as legal status, taxation, compliance, or enforcement. These barriers can also limit or restrict the access and participation of the market, such as licensing, registration, or verification.
• Human errors: The crypto market is ultimately driven by human behavior, which is not rational or predictable. Many human errors can affect the market, such as emotions, biases, or mistakes. These errors can cause irrational or impulsive decisions in the market, such as greed, fear, FOMO, or FUD. These errors can also cause miscalculations or misjudgments in the market, such as overconfidence, underestimation, or negligence.

The Mistakes and Misconceptions that Many Crypto Investors Have

In addition to the external factors, I also realized that I had made many internal mistakes and had many misconceptions about crypto investing. These mistakes and misconceptions are common among many crypto investors, especially beginners, and they can lead to poor or disastrous outcomes. Here are some of the mistakes and misconceptions that many crypto investors have:

• Following the hype: Many crypto investors including me follow the hype and invest in coins that are popular, trendy, or viral, without doing any research or analysis. They believe that these coins will always go up and make them rich. However, this is a dangerous and naive strategy, as these coins are often overvalued, overhyped, or overbought, and they can crash or fade away as quickly as they rise. Following the hype can result in buying high and selling low, or holding worthless coins.
• Chasing the price: Many crypto investors chase the price and invest in coins that are already rising, without considering the fundamentals or potential. They hope to catch the wave and ride it to the moon. However, this is a risky and futile strategy, as these coins are often near their peak, or facing resistance or correction, and they can drop or reverse as soon as they reach it. Chasing the price can result in buying at the top and selling at the bottom, or missing the opportunity.
• Ignoring the fundamentals: Many crypto investors ignore the fundamentals and invest in coins that have no real value, utility, or innovation, without evaluating the quality or viability. They rely on hype, speculation, or luck to make profits. However, this is a foolish and unsustainable strategy, as these coins are often based on scams, shills, or fads, and they can collapse or disappear as soon as they are exposed or abandoned. Ignoring the fundamentals can result in holding useless or worthless coins, or losing everything.

The Need for Due Diligence, Critical Thinking, and Self-Control When Investing in Crypto

After learning from my mistakes and misconceptions, I realized that I needed to change my approach and attitude towards crypto investing. I understood that crypto investing is not a game or a gamble, but a serious and responsible activity that requires due diligence, critical thinking, and self-control. Here are some of the things that I learned to do when investing in crypto:

• Due diligence: I learned to do my research and analysis before investing in any coin. I checked the background, history, and reputation of the project, team, and community. I studied the whitepaper, roadmap, and vision of the project. I evaluated the market, competition, and demand of the project. I verified the sources, facts, and claims of the project. I did not rely on hearsay, rumors, or opinions, but on evidence, data, and logic.
• Critical thinking: I learned to think critically and independently when investing in any coin. I questioned the assumptions, motives, and intentions of the project, team, and community. I challenged the arguments, evidence, and conclusions of the project, team, and community. I compared the pros and cons, risks and rewards, and strengths and weaknesses of the project. I did not follow the crowd, the trend, or the hype, but my judgment, criteria, and goals.
• Self-control: I learned to control myself and my emotions when investing in any coin. I set a budget, a plan, and a strategy for my investment. I followed the rules, limits, and targets of my investment. I diversified, balanced, and hedged my portfolio. I took profits, cut losses, and adjusted my position. I did not let greed, fear, FOMO, or FUD influence my decisions, but reason, discipline, and patience.
  The lessons and opportunities I learned from my crypto ordeal
  Despite losing a fortune to crypto and suffering the consequences, I did not give up on crypto. I still believe in the potential and promise of crypto, and I still want to be part of it. I see my crypto ordeal as a learning opportunity, not a failure. I see my crypto losses as a tuition fee, not a waste. I see my crypto experience as a growth process, not a setback. Here are some of the lessons and opportunities I learned from my crypto ordeal:
• Financial discipline: I learned to be more careful with my money. I learned to save more, spend less, and invest wisely. I learned to manage my cash flow, debt, and assets. I learned to value my money, not as a means to an end, but as an end in itself. I learned to appreciate what I have, not what I want or could have.
• Risk awareness: I learned to be more aware and prepared for the risks and uncertainties of the market. I learned to assess and measure the risks and rewards of each investment.
• Resilience: I learned to be more resilient and adaptable to the changes and challenges of the market. I learned to cope and recover from my losses and setbacks. I learned to accept and learn from my mistakes and failures. I learned to improve and grow from my experience and feedback. I learned to persevere and pursue my vision and passion.
• Opportunity: I learned to see the opportunity and potential in the market, not the threat or risk. I learned to explore and discover new and innovative projects and technologies. I learned to experiment and diversify with different and emerging coins and platforms. I learned to invest in and support the projects and communities that align with my values and goals. I learned to create and contribute to the development and adoption of crypto.

Some Recommendations and Resources for Potential or Beginner Crypto Investors

Based on my experience and learnings, I want to share some recommendations and resources for potential or beginner crypto investors, who are interested in joining or starting their crypto journey. These are not financial advice, but personal suggestions that I hope can help you make better and smarter decisions. Here are some of them:

• Educate yourself: Before investing in any coin, educate yourself about the fundamentals of crypto. Learn about the history, philosophy, and principles of crypto. Learn about the different types of coins, platforms, and technologies. Learn about the advantages, disadvantages, and challenges of crypto. Learn about the best practices, tips, and strategies for crypto investing. There are many online courses, books, podcasts, videos, and articles that can help you learn about crypto. Some of the resources that I recommend are:
• CryptoZombies: A free, interactive, and fun online course that teaches you how to code smart contracts in Solidity, the programming language of Ethereum.
• The Bitcoin Standard: A book by Saifedean Ammous that explains the history, economics, and technology of Bitcoin, and why it is superior to fiat money and gold.
• Unchained: A podcast by Laura Shin that features interviews with the top leaders and innovators in the crypto space, covering topics such as blockchain, DeFi, NFTs, and more.
• CoinMarketCap: A website that provides data and information on thousands of coins, such as price, volume, market cap, supply, and more.
• CoinDesk: A website that provides news and analysis on the latest developments and trends in the crypto space, such as regulations, innovations, events, and more.
• Do your own research: Before investing in any coin, do your own research and analysis on the project, team, and community behind it. Check the credibility, reputation, and track record of the project, team, and community. Study the whitepaper, roadmap, and vision of the project. Evaluate the market, competition, and demand of the project. Verify the sources, facts, and claims of the project. Do not rely on hearsay, rumors, or opinions, but on evidence, data, and logic. Many online tools, platforms, and forums can help you do your own research.

Some of the Resources that I Recommend are:

• Etherscan: A website that provides information and analytics on the Ethereum blockchain, such as transactions, addresses, contracts, tokens, and more.
• Binance Smart Chain Explorer: A website that provides information and analytics on the Binance Smart Chain blockchain, such as transactions, addresses, contracts, tokens, and more.
• Messari: A website that provides data and research on the crypto industry, such as metrics, reports, profiles, and more.
• CryptoCompare: A website that provides data and tools for comparing and analyzing different coins, platforms, and exchanges, such as charts, ratings, reviews, and more.
• Reddit: A website that provides a forum for discussing and sharing news, opinions, and insights on the crypto space, with millions of users and thousands of posts and comments.
• Manage your risk: Before investing in any coin, manage your risk and exposure to the market. Set a budget, a plan, and a strategy for your investment. Follow the rules, limits, and targets of your investment. Diversify, balance, and hedge your portfolio. Take profits, cut losses, and adjust your position. Do not invest more than you can afford to lose. Do not invest in coins that you do not understand or trust. Do not invest based on emotions, biases, or mistakes. Many online tools, platforms, and services can help you manage your risk. Some of the resources that I recommend are:
• Coinsmart: The smart way to trade crypto.
  Whether you want to buy, sell, or exchange cryptocurrencies, Coinsmart is the platform for you. Coinsmart is reliable, secure, and easy to use. You can trade with confidence and earn profits with Coinsmart. Click Here to join the smart crypto community today and start trading with Coinsmart.
• CoinTracker: A website that provides a portfolio tracker and tax calculator for your crypto investments, such as performance, transactions, balances, and more.
• 3Commas: A website that provides a trading bot and automation tool for your crypto investments, such as signals, strategies, orders, and more.
• Crypto.com: A website that provides a platform and app for buying, selling, storing, and spending your cryptos, such as cards, wallets, loans, and more.
• Ledger: A website that provides a hardware wallet and app for securing and managing your crypto, such as keys, backups, and more.
• BlockFi: A website that provides a platform and service for earning interest and borrowing money with your crypto, such as savings, loans, and more.

Some Common Red Flags to Watch Out for When Investing in Cryptocurrencies

Finally, I want to warn you about some common red flags that you should watch out for when investing in cryptocurrencies. These are signs and indicators that the project, team, or community behind the coin is not trustworthy, reliable, or legitimate and that the coin is likely to be a scam, a shill, or a fad. Here are some of them:

• Too good to be true: If the project, team, or community promises or guarantees unrealistic or unbelievable returns, such as doubling your money in a day, or making you a millionaire in a month, it is probably too good to be true. If the project, team, or community claims or implies that the coin is risk-free, foolproof, or guaranteed, it is probably too good to be true. If the project, team, or community offers or rewards you with free or discounted coins, referrals, or bonuses, it is probably too good to be true.
• Lack of transparency: If the project, team, or community does not provide or disclose clear and consistent information and data about the coin, such as the whitepaper, roadmap, vision, metrics, sources, and more, it is probably a lack of transparency. If the project, team, or community does not have or reveal verifiable and credible identities, backgrounds, and reputations, such as the names, faces, profiles, and records, it is probably a lack of transparency. If the project, team, or community does not have or allow open and honest communication and feedback, such as channels, forums, and reviews, it is probably a lack of transparency.
• High pressure: If the project, team, or community pressures or urges you to invest in the coin as soon as possible, without giving you enough time or space to think or research, it is probably high pressure. If the project, team, or community uses or creates artificial scarcity or urgency, such as limited supply, limited time, or limited opportunity, to make you invest in the coin, it is probably high pressure. If the project, team, or community uses or exploits your emotions, biases, or mistakes, such as greed, fear, FOMO, or FUD, to make you invest in the coin, it is probably high pressure.

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Conclusion

Thank you for reading my blog post. I hope that by sharing my personal experience, I have helped you understand the challenges and opportunities of crypto investing, and the dos and don’ts of crypto investing. I hope that you will use my recommendations and resources to educate yourself, do your research, and manage your risk when investing in crypto. I hope that you will avoid the red flags and pitfalls that I fell into, and make better and smarter decisions than I did.

I am not a financial advisor, and this is not financial advice. This is just my personal story and opinion. Crypto investing is a personal and individual choice, and you should always do your due diligence and research before investing in any coin. Crypto investing is also a risky and volatile activity, and you should always be prepared for the possibility of losing some or all of your investment.

I am still a crypto enthusiast and investor, and I still believe in the future and potential of crypto. I am still learning and improving from my experience and feedback, and I am still pursuing my crypto goals and passion. I am not giving up on crypto, and neither should you.

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Thank you for your time and attention.