Lessons Learnt From Crypto One Year On (Part 2)

in cryptocurrency •  28 days ago

Hey guys! Yesterday I made Part 1 of this post, and today I decided to write the rest! I'll leave all of part 1 in here and just continue it from the bottom.

A Summary of my Crypto History

I first got into crypto around late August of last year, so it's been almost a full year since I purchased my first 0.2BTC! This 0.2BTC rose in value fast as I invested in some random altcoins (I literally don't even remember which ones), and soon I had doubled my initial investment!

However, that was when I discovered crypto gambling, and within seconds I had lost it all.

Completely shook, I had no idea what to do. I lied to my mum about my situation, and borrowed another $2,000 AUD from her to buy back most of what I had before. Luckily for me, the market was quite good and it soon doubled, doubled, and doubled again! I withdrew about $7,500 AUD and just told myself I'll let the rest sit in here until it either goes to $0 or I become a millionaire.

Within a few months, I was sitting on 6 figures. Euphoria and excitement gripped me, but greed clouded my judgement. Many people around me, including myself told me I should sell, but my money kept going up, including one day which I "earned" $50,000. I literally thought I was going to be a millionaire by the end of the week.

However, I soon realised JUST how much money I had. I decided to sell my KCS (I was all in on KCS) into BTC and "diversify". I bought VEN and COSS.

Long story short, I put 60% of my money into COSS near ATH, then DCA down. COSS today is around 98% down from ATH, and around 96% down from where I DCA'd to. I am glad I sold at a 75% loss, which I used to buy Steem (which has also just kept going down LOL). After some calculations, I realise I'm in a slightly better financial position I am now compared to if I just stayed all in in COSS, but the most important thing is with the majority of my crypto in Steem, I can sleep well at night. Price doesn't affect me anymore knowing that I truly believe in this platform. Sometimes seeing a sub $1 Steem is discouraging, but at the end of the day I believe we're worth more. This brings me to my first lesson

Lesson 1: invest in what you believe in

It sounds easy, but it's really not. I thought I believed in COSS, yet at the same time when I was all in on it, I legit couldn't sleep at night. If you're constantly anxious about your investments, you NEED to do something about it, as at that point I feel it's more gambling than investing.

You're either in too deep, or in on something you don't really understand/believe in. For me it was both.

If you are anxious about your investment, consider your position and re-evaluate your choices. However, if you do make a mistake it's not the end of the world

Lesson 2: learn from your mistakes

THIS is something that can be applied to life all round. I currently tutor maths, and I try to emphasise as hard as I can that mistakes are natural, in fact it's welcome! Without any mistakes, what can we learn from?

After an investment goes bust, think to yourself, why? Try to think about what happened and learn from it. I understand crypto is volatile, unpredictable and sometimes simply irrational, but there's always something to learn. Sometimes it's easy to blame others, but if you're finding yourself failing a lot, the common factor in all those failures is you.

Lesson 3: don't beat yourself up

That being said, it's also easy to go overboard blaming yourself. Especially when everyone around you were like "wtf are you doing with this magic internet money", your mentality going in probably involved something to prove. When this happens, and things don't go your way, you're more inclined to blame yourself even more, since everyone around you was against your ideas.

Remember, everyone makes mistakes, own up to it, learn from it and don't dwell on it. I make $25 an hour tutoring at my current job, I could dwell on the fact I lost around 10,000 hours, or I could just simply NOT!

I understand that it's easy for me to just forget about my losses since I'm young with no responsibilities, but for those out there who are in a different boat, especially for those who never got to withdraw their capital, understand that you can make your money back, and more importantly, what's gone is gone.

This comes back to lesson 2, don't dwell on it, learn from it and hopefully next time you decide to invest in crypto (or anything), you'll have more experience so you can make more mature decisions regarding your money.

Lesson 4: don't invest more than you're comfortable losing

I have heard so many people putting in way too much, way more than they're comfortable losing. This is a big mistake in any investment, but especially in something so traditionally volatile. However, what happens when you make a lot of gains? This leads to my next lesson.

Lesson 5: be methodical, not greedy

What do I mean by this? Simply set yourself goals, once you hit them, don't be greedy and take your profits. Think back to lesson 4, look at your crypto portfolio and think to yourself, if this was how much fiat I had right now, would I be comfortable putting that much into crypto? If the answer is no, you should probably consider selling off a bit of your crypto portfolio.

Lesson 6: money isn't everything, learn about what you're doing

However, money isn't everything! I feel like blockchain has the potential to be a truly disruptive force in the future, and as "early adopters", we have a giant advantage/head start in familiarising ourselves with everything. Don't just focus on the monetary value, focus on the implicit value of what you're investing in, learn about it and build on that knowledge. I know we're not all computer scientists, but there's something to learn for everyone, in almost every discipline.

Lesson 7: blockchain is still in its infancy, and I'm not giving up

These three lessons (6,7 and 8) are all quite connected. What I'm trying to say here is to don't get discouraged looking at prices, what you invested in is the same (likely better) than what you invested in months ago, back when the price was I don't know, 10 times higher?? So the implicit value is still there, we just gotta wait for the market to get back up there!

Lesson 8: the market is cyclical

Many are thinking that the"bubble has burst", but I FEEL that this is still just the beginning! There are so many new developments on blockchain daily, especially on Steem so I am confident that we are not going anywhere any time soon. The market is cyclical and the development is exponential. I have great faith in blockchain and especially Steem.

50+ Steem Prize Pool Charity Raffle

Since I'll be promoting this post a bit (probably not to trending though), I thought it might be a good time to advertise my raffle!
Here's a post for some more information about the prizepool, how to enter and where the money goes!

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I truly believe crypto is the future!

hard lessons learned! I have similar stories and i agree with all the advice. its a fickle market but thats why i think it shows so much attraction... to the right people :)

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That's true, very high variance in the amount of profit/loss people get!

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Hi your 8 leesson is verry good cryptomarkit but not fowllo today me im loss .i am new comar in field .

I had a similar story but it spans 5 years- who has mined, traded and bought 20 BTC, 2000 LTC, 1000 DASH, 5M BCN and lost it ALL. Now I have only STEEM that I have belief and strong understanding. STEEM at $2.5, I can just break even after 5 years of hurdles. However, I believe STEEM is undervalued and market is CYCLIC. $5-15 STEEM is a matter of time not probably a chance.

Still the lessons would be the same. The experience with trials and mistakes make us stronger.

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me too... but in span of 3 years. at this moment i hardly trade. just buy any potential and hodl.

you are right about "don't invest more than you're comfortable losing" because i sold out all my btc to buy LTC while the price was $150 and i lost alot of money so i sold it too while the prize was $80.
and the second thing is that i learned from my mistakes and now im correcting them by buying alot of LTC coin because it will get a high prize next couple of weeks.
and if you asked me why you do buying it again then im going to tell you bevause you are right again by saying " blockchain is still in its infancy, and I'm not giving up "
and i'll not 🙌

thanks for that great post ✍

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Attitude of an achiever; a great one
Maintaining a positive attitude towards failure is a sure way to success...
I love your vibes...

Hey @cryptoeater, we're about the same age and you've been one of those who inspires me most on the crypto world. It's crazy how you borrow money, make money, lose and thrive. Your lessons really make sense and as I don't have capital, I can really learn from you. Thanks a lot man, I'm not giving up too!

Great post. I think your points and advice and very realistic and can even apply to many other investments as well. It really comes down to putting some good thoughts into what you invest in and how you invest while understanding your own risk tolerance.

You got a 26.92% upvote from @emperorofnaps courtesy of @cryptoeater!

Want to promote your posts too? Send 0.05+ SBD or STEEM to @emperorofnaps to receive a share of a full upvote every 2.4 hours...Then go relax and take a nap!

Pretty good post there cryptoeater. I'm only 6 months in but the probably the most important thing I've learned in those 6 months is that Bitcoin is where to put most of my money. That being said I do own about 6 alts/tokens and quite a bit of ETH.

Cheers,
John Noe

I am fortunate enough to have entered the market as it was going down (January 2018). All my coins have been dropping in value but the way I see it, it is perfect for me to buy more for cheaper !

Once the market changes, your advices will be very valuable to me. Thank you!

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It's sad seeing your coins drop, but as long as you have more fiat to invest, DCA is nice!

Lesson 5 is one lesson most people have to learn the hard way, including myself. Doing okay now (made a lot and lost a lot). Sometimes though, you do have to cash out profits. I'm sure many people wish they would of cashed out when it was green candle mania. I've made some 100X gains, but I've also had some 100-1000X losses (CarVertical, anyone?). Long term, though, I think your right. Be optimistic, see the mid-to-long term picture, gain blockchain knowledge, and be patient.

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This is truly an exciting space to get involved in. The earlier the better. Great article.

As a newbie, I took this as great advice.

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We make the mistake of looking at crypto purely as a financial investment. If you think about how you are creating a better and more connected world then your buy and sell decisions will always pan out.

Coins mentioned in post:

CoinPrice (USD)📉 24h📉 7d
BTCBitcoin6655.377$-0.98%3.9%
COSSCOSS0.060$-5.21%-2.44%
KCSKuCoin Shares1.345$-1.05%-10.33%
STEEMSteem0.874$-1.53%-3.53%

I don't agree that you should invest in something you believe in. I don't think that you should even rely on your believes when investing. Investing is about making money not seeing your most favorite thing to succeed. Unless you are investing to support a project instead of to make money.

what I learnt is, no crypto expert available to predict the crypto market. :)

I learned lesson 5 (dont be greedy) the hard way. I foolishly bought into deep brain chain after it got listed on kucoin. It quickly appreciated by like 3 or 4 times and I was making tons of money. Sadly as I saw it begin to drop I figured such a cool coin would turn around. I was wrong... it quickly wiped out a lot of my gains and went negative. Now I'm holding some pretty big bags.

Dont get attached to an investment to where you make stupid choices.