3 Deadly Mistakes To Avoid Early In Your Crypto Journey
I have been in the crypto space for some time now and have learned many valuable lessons along the way that I would love to share with new people.
Before I go any further, remember that I am not the most experienced person in the space and you shouldn’t take my thoughts word by word.
I am just going to share my experience so that I can shorten the learning curve of new or other people in this fast-moving crypto space.
To be precise I have been in the space for more than 3 years getting close to four years so I am also that still new in the space.
Let us begin by defining the word mistake so that we can have a grasp of what we are talking about.
According to dictionary.com mistake is defined as below
- an error in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, insufficient knowledge, etc.
- a misunderstanding or misconception.
So a mistake is an error in judgement caused by poor reasoning, careless or insufficient knowledge as per the definition above.
In my case and many cases, mistakes are errors in action, opinion or judgement caused by insufficient knowledge!
Since we have clearly known what a mistake is, now let us get to these deadly mistakes that people should avoid early in their crypto journey.
Mistake 1: Blindly Following Influencers
I know all of us are naive when we first start something and we are tempted to follow blindly the people who came first before us!!
It is not bad to follow influencers, in fact, it is the best thing to do, but we need to take caution while following them.
Who TF are Influencers?
According to Wikipedia influencer(also internet celebrity, key opinion leader) is
An Internet celebrity (also known as a social media influencer) is a celebrity who has acquired or developed their fame and notability through the Internet. The rise of social media has helped people increase their outreach to a global audience. Influencers can also be typical individuals rather than celebrities, who post their interest and sponsorships with brands
In simple terms, influencers are those folks with insane followings on Twitter(over 100K followers) and always post promotional content.
Let us be reminded that not all people with a high following on Twitter or any social media are paid influencers!
Sometimes as a beginner it is difficult to know who is an influencer and who is not(regular old crypto enthusiast).
Most of these influencers are great individuals and want to help the biggest number of people get into crypto and benefit from it.
Some of these influencers post great info that really helps newbies and many of them have helped me, though sometimes they misadvice!!!
We all know that no one individual is perfect, so not everything your favourite influencer should be taken as gospel truth.
I have realized that some of these influencers have personal beef(there’s beef in every industry) and this sometimes affects their judgement.
Now if your favourite influencer judgement is compromised, then even the info he will churn out is and that will affect you if you take his/her info as gospel truth.
I have missed insane gains in the space because sometimes I blindly followed my influencers to the core.
Did you realize that if your favourite influencer for some particular reason hates a certain crypto blockchain/project, you as a follower will automatically do the same!!!
Let me give an example of crypto called Hex
If we follow similar influencers then the first thought you are having now is that Hex is a scam or Ponzi or whatever!!
Anyway made the unforgivable mistake of blindly following what my influencers said about this project without me personally doing due diligence.
I remember when Hex first came out, there was so much resistance to it and it was called names by many folks.
I regret not investing even $10 dollars in it however much people called it names coz it had made insane gains.
Now I am not sure whether it is a Ponzi or not, but I am shocked that it has made insane gains.
I began reading of it again a few weeks ago and its price is fucking skyrocketing.
I just took that screenshot from coingecko
It has increased by 53062.8% from its All-Time Low price of $0.00005645 a year ago.
So that literally means if I had decided to rebel against my favourite influencer and invested only $10 by then, I would now have 10*530.628=$5306.28
My $10 would have turned into a whopping $5306 holy fuck.
Now get me right, I a not encouraging you to invest(promote) in Ponzi/scams, but have time and check it out.
The golden rule in investing is
Always Invest What You Cna Afford To Lose
Do not invest your rent or food money in any project however promising it is….that is another lesson.
I have learned that whenever a project has so much controversy and being debated a lot, invest some small amount of money as per ur rule above.
Another current example of blindly following influencers is dogecoin!!!
I will not go into what Dogecoin is doing currently, but most of us followed our influencers and did not invest in this meme coin, thinking it cannot make such insane moves!!
Mistake 2. Emotions
Emotions have fucked up many things in the world!!
Whenever we are emotional we make wrong decisions most of the time.
You jog in your memory the last time you were emotional, what kind of decision did you make, was it wrong or right??
okay maybe, you are rarely emotional, if you check around your friends, what kind of decisions do they make when they are emotional??
We need to stop using our emotions in crypto and instead use logic.
FOMO is caused by emotions, you feel like you are losing out so you ape in at the wrong time.
Have you ever seen the price of a coin/token increasing, you do not think twice you just get in and buy(FOMO-Fear of Missing Out) and guess what immediately you buy or moments later the price drops badly!!
You took an emotional(and not logical) decision to buy when the coin was pumping and a few moments later it dumped badly, we have all been there folks hehe.
Another thing with crypto is that we attach emotions mostly negative to some blockchains or projects!
Just because your crypto influencer hates a certain blockchain does not mean you should hate it too, he might have a personal problem with the founder of that project or a previous bad experience.
Let us remember that having a negative emotion to a particular project will not make that project fail!!
Just because you hate Dogecoin does not mean it will not succeed haha.
We need to start using logic when making these crypto decisions.
I have been a victim of this emotional attachment to blockchains, but I am now using logic.
However much I do not like a particular project on an emotional level, I have matured up to invest in it logically hehe.
I am saying this because I have missed insane gains from not investing in these projects because I am emotionally attached to them negatively.
So folks, throw emotions aside and use logic for investing.
Btw it is not only negative emotions that fuck us up!!
Have you ever been in a situation where you are watching your coin/token on Binance increase in price steadily??
You see a coin increase by 56%, then 30 mins later 150%, you are tempted to sell, but you excitedly tell yourself to wait.
The token keeps rising to 210%, you are very happy, visualizing what you will buy with your profits(which you have not taken yet)….
In that excitement, someone sends you a WhatsApp/telegram message and a notification pops on your phone.
By the time you finish replying to that call/whatsapp/telegram message, the 205% is now 47%, by the time you press sell while panicking(negative emotion), it has turned into -30%!!!!
So what caused this loss is you thinking that the price will keep rising(your emotional assumption because it would make you profits haha) and you failed to sell and the price tanked.
In conclusion, stop making emotional decisions in crypto, else you will keep making losses!!
Mistake 3: Not Doing Personal Research
There is something widely promoted in crypto and that DYOR meaning Do Your Own Research.
Yes, you should always do your own research before investing in any crypto project.
I know you have heard this several times if you have been in crypto for more than 6 months or so unless you joined crypto through those Ponzi schemes that do not teach such.
So what does DYOR mean??
DYOR means you personally doing your own personal research on any project someone tells you about.
You personally go Google and search about this particular project, you can even start by typing
“Project name” scam
“Project name “ review
You check out the project website when it was registered and by who, check out does the project have a team, do they have active social media profiles, is the team active on social media, tokemetrics of the project and many other things
You can also personally search for your own metrics that you think make the project more legit.
You are now ready to make an informed decision to invest what you can afford to lose after making a personal informed decision.
I just realized that I have written so much, let me summarize.
I know there are many lessons to be learned and mistakes to be avoided as a newbie in crypto though I have only talked about 3 of them
If you have some other mistakes that you can advise a newbie in the space, then comment below.
Posted Using LeoFinance Beta
Originally published at https://leofinance.io on May 9, 2021.