Steemit Crypto Academy Contest / S3W2 – My Experience Investing in the Crypto Market by @sadiqxylo
Hello Everyone…!!!
It it’s the second week of season three of the engagement challenge and very happy to participate in the crypto academy contest on my experience investing in the crypto market.
1 - My first Experience investing in the Crypto Market
Cryptocurrency though was initiated in 2008 with the Bitcoin network, I had my first experience a decade later in 2018 with the pie network. I friend sent me a link via WhatsApp to register, initial I thought it was the fishy links they usually sent round but he later explained to me.
It was a 24 hour cycle which we used to mine by just taping on the pie App on your mobile phone or any compatible device. The mining rate depends on your security cycle and the number of people you invite the more your security cycle. By then I didn’t even know we were mining, at some point I ran out of storage on my phone and decided to delete the lie App to free space.
Years later, I head friends talking about Bitcoin and how investing in it is very profitable. I had no knowledge about it then and decided to make Inquiries about it. Then a good friend introduced me to the steemit social media blockchain network in early 2021.
At first, I used to transfer all my earnings to a friend who knows how to sell tokens online. This was because of online scam and not believing in investing into crypto currencies. When I join the crypto academy community and started participating in weekly assignments, then I gained full knowledge about blockchain and cryptocurrency, and started investing into different coins aside steem.
2- What is your first investment in the crypto market and what drives you to invest in the crypto market?
At first I used to keep my steem tokens in my steemit wallet since I had no knowledge of exchange platforms and what they do. As time passes, I was introduced to the Binance exchange platform where I transferred all my steem tokens to, waiting for steem to hit one dollar before I sell. I did this for several months and was just selling my steem tokens for fiat.
One time, I did a crypto assignment on penny cryptocurrency, upon making my research, I realized Bitcoin was once a penny currency and worth below a dollar. I said to myself, investing in this penny currencies can bring a lot of profits in the coming years so I decided to invest in penny currencies. The most talked about penny currencies was Shiba Inu, then I converted some of my Steem on Binance through sport trade to buy Shiba Inu worth 25 dollars. One Shiba Inu was worth $0.0000067 and so I had like 3 million tokens. I said I will leave it till Shiba Inu hit a dollar.
I have always use my steem tokens to trade for different token but the first time I bought a token with my own money was March this year. The market of ADA was very volatile within that period and I need USDT to enter the trade. Through the Binance p2p feature, I was able to buy 32 USDT which is GHC 241.60 in my currency.
3 - Have you ever encountered any loss as a result of the instabilities in the crypto market
I have encountered a lot of losses as a result of the instability of the crypto market. One which I can never for get is the LUNA crushed that happened recently. I loss a total of 200 USDT during this crush. As the price of LUNA now as LUNA classic hit one dollar and was bouncing back, I entered a future trade with buy position at $1.038 and was expecting a great profit the following day. To my surprise, the following day my position of 200 USDT worth LUNC was 15 USDT, I had nothing to do than to close the position.
The great drop in the crypto market has also cost me a lot. My positions on several assets have be liquidated in future trade. The market sometimes behaves in away even expert can’t seem to understand. I have always made my analysis before entry any position, but sometimes the market disappoints me. The recent loss I have made was on SOLUSDT perpetual and BNBUSDT perpetual.
4 - Crypto assets i’m currently holding? And Why i invest in them?
I used to hold a lot of assets in my portfolio but due to the current market instability and some economic hardship, I have sold out some of the tokens. The remaining assets in my portfolio are BNB, Steem, TRX and CINU
BNB: is a less volatile token with great and trusted founders. When you hold BNB in your portfolio, you can participate in Initial Coin Offering (ICO). Also, BNB holders can save up to 25% margin and spot trading fees.
TRX: is a decentralized token that has the highest number of stable coins in circulation. It has a great promising future and still worth below a dollar, which means that it can be purchased with low capital.
- Cheems Inu (CINU): is a meme token that tries to imitate Shiba Inu token. The token is a penny cryptocurrency and still worthless just like when SHIB was introduced. I have a believe it will shoot just like SHIB did several months ago.
5 - As an experienced cryptocurrency investor, Do you believe in Holding or Trading cryptocurrencies?
Initial when I had no knowledge of technical analysis, I used to hold a lot of coins in my portfolio for future benefits. But as I gained more experience in the crypto market, I realized some token a good for scalping due high volatility ratio.
There are a lot of benefits in holding a token for long term. Holding is mostly good for traders who lack technical analysis to do scalp trading. For instance, I bought SHIB when it was $0.0000067 and hold onto it for several months till it hit its all time high price of $0.00008845 before I sold it. I made a profit of about $200. All this was possible because, I had an alternative source of income and.
When holding a token, you do not have to constantly monitor the crypto market, you only wait for the asset to hit your target price.
With trading, investors must have a good knowledge in technical analysis, being able to read crypto chart graphs, employ indicators and also formulate good trading strategy. Investors have to constantly monitor the crypto market in case of sudden fluctuations and take advantage of market volatility.
Investors who involve in trading takes advantage of market fluctuations to make little profit before the market retraces. It’s very risky in trading as the market can turn any direction at any moment.
With me, I will prefer to hold the penny cryptocurrency since it’s still worthless and can be purchase with something small. With the popular cryptocurrencies like BTC, BNB, ETH and many others, I will spot for good trading opportunities to scalp for little profit.
6 - What's your advice to a newbie investing in the cryptocurrency market.
My advice to newbies joining the crypto world is that, the crypto market is very volatile and fluctuates within every seconds. To trade on any asset, one should have the knowledge of technical analysis, fundamental analysis and sentimental analysis of such asset. This will help spot good entry and exit positions for investments.
Also, newbies shouldn’t invest the amount they can’t afford to lose. The crypto market is not stable and sometimes even with your technical analysis the market will still move in opposite direction. I have lose assets that has cost me a lot and I will advise newbies not to be like me.
Newbies should also diversify their capital. One shouldn’t invest all his/her capital in a single asset, you can invest 20% of the capital of different assets. For instance, if one has a capital of $100, he can take 20% each on five different assets instead of investing all in one assets. When you diversify your capital, in case of crush on one asset, you can still make profit from the other assets.
CONCLUSION
Cryptocurrency is a good but risky investment. My experience in the crypto world is all thanks to steemit crypto academy professors, they have always outlined interesting topics of study and reviews on my assignments to correct possible mistakes made.
As we indulge in crypto trading, we should always expect losses on our way. It’s a volatile market and so assets prices always fluctuate.
I will like to invite @tymestwo77, @abu78 and @chinto1 to also share their experience in crypto investment.
Wow nice post and nice presentation bro.
Can’t wait to write my post as well.
I wish you all the best bro
Sorry to hear that bro. But you are not alone the instability of the crypto market is something else one moment you start making profit and the next you are on the verge of being liquidated.
Almost every one taught it smart to take advantage of LUNA and buy the dip little did we know that, we were all going down.
Yeah that’s true - but as a trader with little knowledge it would be quite good to blend the two together.
Your advices to the newbies are on point. Another one I would like to add is not letting their emotions get in the way when they are investing in crypto assets. Thank you for sharing and good luck
Thanks for stepping by buddy
Hmm the LUNA instability got us all really bad. These last months haven’t been good at all. You lost so much in both Luna and futures trading.
Personally, I’ve stopped trading futures because of how difficult it is and how easily you can get liquidated. Like you’ve rightly pointed out, making analysis can go a long way in helping us.
I have really lost a lot in future trades, I have also stopped it for awhile now till the market recovers.
Thanks for the visit buddy.
We have to take care of our wallets as best we can.
Yeah cause it houses our assets. Thanks for your time.
I enjoy reading your article, very inspiring.