- There are 80% chances that you will fail in your first time of trading/investing in cryptocurrency.
Crypto is undoubtedly the fastest way to make good money today, and also the fastest way to lose money (it’s a double edged sword)! You can make up to 100X of your investment in a matter of hours.
The major reason why most crypto investors and trader lose their money in their first time of trading/investing in crypto is lack of information and poor orientation. I was a victim of this the very first time I traded Bitcoin as far back as 2014.
I got to know about Bitcoin from a friend who I meet on one of the social media, so I decided to make a little research on how I can acquire some Bitcoins with the hope of making an extra bucks for myself.
I succeeded in creating a Blockchain wallet and I bought my first $100 worth of bitcoin from a vendor ($100 worth of btc was around 0.137btc at that time). I was astonished on how fast the transaction went through, and this increased my level of curiosity on the Blockchain technology.
I said to myself now that I have 0.137btc in my wallet, I need to figure out a way to make my btc grow, so I went online to search on Bitcoin investment. Fortunately for me, I had a handful of options to choose from. So I choose a HYPE investment who claimed to pay 1% of my investment every 1 hour, I was a bit skeptical at first, but after a little conviction from a promoter, I gave in and sent my btc to their wallet. To my greatest surprise, I got my first 1% payout after 1 hour and I said to myself “yes I’ve found the break through I’ve been looking for”. I started thinking about how cool I would be driving a cold black lambo on a summer afternoon while wearing Armani suite. I was so convinced that I will be filthy rich in the next couple of months.
After receiving payments for a couple of days I decided to invite my friends so I can earn a little more from the referrer bonus. I successfully invited about 5 of my friends who invested about $500 each on the platform, and they got paid 1%/hr for a day or two. ON the third day, oops! The site domain was gone, 60% of my money gone and my friends lost about 90% of their money. I did not only lost my money, I also lost my friends.
After the whole scenario I decided to start trading crypto on exchangers, so I opened a trading account with Poloniex and deposited some funds (about $4000 which i borrowed from a family member) to start trading. At first I bought Game credit and I made a little profit and I said to myself this is it! I made some profits continuously for quite some time, until I joined a telegram group and I was engulfed by FOMO (fear of missing out) and I bought Digibye (DGB) at its all time high around 2,500 satoshi . Hold and behold I gradually watch my portfolio fall by almost 90%. So I sold my DGB token losing about 90% of my money. I was being suicidal at this point.
I took a break from my computer for quite some time. I then meet a friend on Telegram who referred me to a site where I can learn about trading, (Babypips) I took a course and I spent a couple of weeks and I learnt about technical and fundamental analysis. I also started some popular traders like Neill fuller and i learnt about price action trading strategy. He also showed me some key sites where I can keep track of what is happening in the crypto world. You need to stay informed to be at the top of your game in the crypto sphere. After my training I was able to trade crypto successful.
IF YOU PLANNING ON TRADING/INVESTING IN CRYPTO FOR THE VERY FIRST TIME, HERE ARE SOME TIPS THAT WILL GUIDE YOU.
1. Focus more on what you have to lose rather than what you have to gain. Don’t be carried away by the profits, rather focus on the risk/reward ratio.
2. Never take a loan to invest in crypto. in a nutshell, “only invest what you can afford to lose”
3. Do your homework before investing in any token. It’s better to have a fraction of a coin with good worth than to have a bag full of thousands of sheet coins.
4. ICO (initial coin offering) are highly unregulated so, conduct your research on the team behind a project, their past successful projects, study their white paper thoroughly and their road map.
5. Always read review and comments on play store before using any wallet as three wallets on play store were recently reported to contain malware that steals your private key.
7. Never add to your portfolio when you are in loss what this means in a nutshell is that for instance you buy a coin and immediately it deeps by 20% don’t rush into buying the deep, because you will only be adding to you loss.
8. Never save your coins on an exchanger, you have variety of wallets to choose from ranging from the hardware wallets, paper wallet, Nano ledger e.tc every wallet has its advantages and disadvantages so do your homework before choosing any one
I WILL LEAVE YOU WITH THIS; “FIRST YOU HAVE TO ‘LEARN’, THEN REMOVE THE ‘L’ AND EARN”
DO share some of your tips in the comment section, together we can help save the portfolio on a Newbie.