If You‘ve Been In Crypto For At Least 5 Years, Then You’ve Done All These Things
A few days ago, I wrote a post on women in cryptocurrency and what we can do to engage more women in the space. The reason that I bring this up is because the outpouring of support for that post was overwhelming and I realized that there needs to be more conversation about changes that are happening in the crypto space.
These changes are going to happen whether we are ready for them or not.
I agree with Paco Ahlgren, a Financial Analyst at Wi-Fi Alliance who said
This may be the purest form of democracy the world has ever known, and I- for one- am thrilled to be here to watch it unfold.
I can’t wait to see what comes next!
Fortunately, we can inspire and create change by fostering new developments. I work in the crypto space every single day in order to keep up to date on the changes and to learn more myself on how I can grow my portfolio.
I want to share some of my experiences and my mistakes in the hope that others can avoid them and save themselves some headaches and heartaches. We all work hard for our money and want to keep as much of it as possible in our own wallets, right?
So what mistakes have I made that I can help you to avoid?
Starting Before Learning
It is so easy to want to buy in during a downturn when it seems that experts are screaming that everyone should buy in. But what you should realize is that experts are not always right and experts typically have some money to lose on poor trades because they have been in it for a while.
But the thing is they have learned about the market and how to gauge market activity. They know how to research and anticipate what fluctuations are happening next. Most of them do it on instinct now just by looking at financial charts. The market is not going anywhere and there will likely always be some sort of good deal on crypto so take the time to learn before jumping in and never jump in with money that you cannot afford to lose.
Buying Into The Hype
I am not a newbie investor but I still find myself getting hyped up about a new ICO or coin that seems to be going to the moon. Thankfully, I have been able to curb my impulses most of the time but I have lost quite a bit of money when first starting out in investments that were hyped up by “experts” in crypto so I bought in without doing my own research.
The best piece of advice that I can give you is DO YOUR OWN RESEARCH!
It is perfectly fine to ask for advice on Facebook, Twitter, or in your local Meetup group but you need to do your own homework and develop your own financial strategy and take responsibility for that strategy if it doesn’t work. Keep on your toes and be willing to adjust your strategy as needed on the fly. It helps to have multiple exit strategies for investments as soon as you buy into them instead of trying to come up with a new exit strategy when you are desperate and possibly emotional. Nothing good ever comes from being overly emotional.
Quitting My Job Too Early
I would honestly recommend that you not quit your job at all because the crypto market is extremely volatile and one or two missteps and you could lose a big portion of your portfolio. I understand that many of you have families and mortgages that need to be paid so the financial strain that could be put onto you in the event of a bear market would add a lot of unnecessary stress to your plate.
I don’t work so I cannot tell you that you should never quit your job. But, I do have diversified investments outside of the crypto space and I do own a couple of businesses that could provide the necessary income my family needs in the event the crypto market tanks or gets crazy. I spent years building up my small empire though and still feel that I quit my job too early. Jobs won’t make you rich, but they will put food on the table and give you money to put into more investments. Please don’t leave your job too early.
Trying To Sell At The Top Of The Market
The very first lesson that I learned in trading crypto was to not be greedy. The market literally changes every few seconds and the market can increase drastically up or down in only a few minutes. So, set buy and sell orders if you have to and stick to those. By trying to wait to sell until the market is at its highest, you take the risk of it turning around and plunging drastically.
Sell after you have made some profit but don’t sell everything. Personally, I don’t ever sell my entire position but you have to make your own decisions. Keep some of your position in the event the market continues to skyrocket during that trend or shoots up again in the future. But don’t get greedy and keep the entire position hoping to ride it all of the way up.
One major problem with trying to sell at the very top is that everyone else will be trying to sell then too and the system may not see your sell order in time. I have had that happen to me more than once if the market is fluctuating wildly with many people trying to buy and sell at the same time.
Putting Someone Else Down
I partake in many crypto Facebook groups and I was heartbroken yesterday when I saw a comment on a post where a woman was asking a beginner question about market trends. A commenter on the post made the assumption that women in general cannot invest in crypto because we are not good with numbers or with math and are better suited for the traditional women’s roles
At first I was so angry that the commenter chose to knock that woman down like that but now that I think about it, I am just sad really. I am sad that this woman reached out for help and was treated that way. Thankfully, many people reached out to help her and to answer her questions. But, I wonder if that woman will continue to ask questions or if she will sit on the sidelines from now on out of fear of being mistreated again.
We should not be tearing each other down, but I know that even I have been guilty of not reaching out to someone that needs help getting started. I wont do that anymore, I plan to reach out and try to help others in future and have already started to do so. We will not be able to expand the community by tearing each other down. We will expand the crypto community by building each other up. There is enough profit in this for all of us so we really should not be so competitive and degrading to others.
What mistakes have you made since getting into crypto? I would love to have a conversation about it!
And if you found value in this post then please share with friends.
Disclosure: This blog post is for educational and informational purposes only and is based upon my individual experience. Please do your own research and do not invest any money that you cannot afford to lose. Consult with attorneys and tax professionals for any legal or tax related questions that you may have. This should not be considered to be investing, legal, or tax advice.