Steemit Crypto Academy Contest / S3W2 – My Experience Investing in the Crypto Market by @steemdoctor1 | Supporting BurnSteem25
Hello everybody.
Welcome to this post. I hope that all if you will be happy and enjoying your precious health with the grace and blessings of Almighty Allah. Today, I am actually here to take part in the Steemit Engagement Challenge Season 3 and Week 2.. My this publication is actually in the SteemitCryptoAcademy community and the topic of discussion for today is My Experience Investing in the Crypto Market. So, let's start the discussion without any wastage of time.
Discuss your first experience investing in the crypto market.
Cryptocurrency market is a very risky and volatile market and one must gave to get a proper knowledge about the working of coins, their worth, their statics, as well as, the situation of the market before investing in it because it is very important to keep a strict eye on the movement of the market so that we could be able to avoid the losses that are on every step of the cryptocurrency investment. So, you can predict from this discussion that how complex in the mechanism of successful investment in the crypto markets.
Most of the newcomers that invest in the crypto market are so much confused and actually blank to that extent that they even don't know how to purchase a coin and how to sell it. It is very surprising for you to know that my condition was the same when I made my first investment in the market of cryptocurrencies. Actually, it is the time back to 3 years ago when I was completed blank about the crypto trading. One of my friend ask me for some money as he wanted to invest in the crypto. He told me a bit about the crypto trading and I gave him some money for trading. So, he, with my investment, made a trade a gave a reasonable profit to me.
Fortunately, I was free from exams in those days so I took a great interest in this trading. In order to know about the crypto trading, I spend days and weeks with my friend and at last I became able to buy/sell the crypto assets. But still the problem was there, as I was a newbie in the market so I used to invest in the strange tokens and coins without having any knowledge about them. With the passage of time, I learnt lot of things from the online articles and YouTube videos. At last, I created my own account on the Binance Exchange and started trading with little capitals at that time.
During my early journey, the Steemit Crypto Academy played a vital role in grooming my experience. Although, it is difficult to the predict the next move of the crypto market, but I learnt so many things from the Academy like the trends, different technical indicators, different strategies, many patterns, so many techniques and so much. I am really thankful to the whole Steemit team for providing such an impressive platform to the crypto lovers where they can groom their experience of crypto trading. So, that's all about the start of my crypto investing journey.
What is your first investment in the crypto market and what drives you to invest in the crypto market.
From the above discussion, you came to know about the fact that I did not made my first investment in the crypto market by myself, however, it was my investment by it was invested by my friend in the crypto market. But, as I started my crypto trading I made many successful investment in the highly-volatile market of the cryptocurrencies. So, now I am going to talk about the first ever investment that I made in the crypto market by myself.
Actually, as I learnt some basic things about the crypto trading, I made my own account in the Binance exchange and after buying some Dollars from the P2P market of the exchange, I invested 100$ in the TRX (Tron) token and this was my first ever experience as a crypto investor. Actually, in those days, the TRX coin was in the list of the trending coins of the crypto space.
It is very interesting to know that I had no any proper knowledge about the TRX coin and even the Tron blockchain but I came to know about this coin from the Hot menu of the Binance application. I invested 100$ in it without any type of analysis, even I was unaware of the words 'Fundamental and Technical Analysis'. I just invested in the market by keeping in view the trending state of the coin.
So, this was my first time that I have invested in the highly volatile market of the cryptocurrencies. I would also like to share that I made good profit from this trade by chance. It is only my luck that played its game and I close my trade at $111 with a profit of $11. This was really a great profit for me and I became so happy on this. So, that's all about the first trade that I made in the crypto space. Also, I have discussed the reasons that why I selected the TRX coin for my this first trade.
Have you ever encountered any loss as a result of the instabilities in the crypto market? Discuss
As we are well aware about the highly volatile nature of the cryptocurrency markets, jumps and dumps are the usual cases in the crypto currency and almost every trader got intraped in these high fluctuations many times and experience lot of loses due to their wrong decisions in the market, mismanagement of the companies of the coins that they are holding for, or any other reasons. So, it is not strange to share with you that I have also experienced many great loses during my crypto journey. But the most noticeable is the recent one.
Actually, the most dangerous loss that I have experienced so far is the loss that I had to face due to the instability in the prices if the Terra coins (LUNA and TerraUSD). Actually, it is the time back to the start of the May 2022. By the March, I have bought 3 LUNA and the total worth of these tokens was around $260. But due to the mismanagement and the instability of the Terra Network, I had to face the greatest loss ever as my worth becomes from hundreds to almost zero.
Also, at that time, I was also holding my stablecoins in the form of the TerraUSD. They were of worth $200 but due to the greatest loss in the crypto history, my this value also reduced to nearly a few cents. I am not the only who experienced this huge loss but many of the experienced investors had to face due to this huge instability in the crypto market. Also, this huge decline in the prices of such impressive and strong coins effected the whole crypto market.
There are a lot of reasons behind this huge decline in the prices of the Terra coins. The most important reason behind this huge instability is the sell orders of the strong hands (whales) of the market. Also, the unpegging of the TerraUSD from the US Dollar is the most important reason behind that. You can also read about the reasons of this great instability in the Terra Blockchain from my article linked below👇.
What happened to the LUNA (Terra) in this week | By @steemdoctor1
What crypto assets are you currently holding? Why did you invest in them? Please take a screenshot of your portfolio.
Actually, my these days routine is very different from the others. Currently, I am so much busy in the studies that's why I pay a little attention to the crypto trading. But I still have managed to continue my journey with the Crypto trading and invested in some cryptocurrencies that I think suites the current situation if the cryptocurrency market. The screenshot of my current Binance portfolio is shown below.
So, now I will discuss about the coins that I have kept in my wallet. The reasons for purchasing them are given below one by one.
- BOND (BarnBridge):
As you can see in the above screenshot that I have purchased some BOND tokens of roughly $380 worth at this time. The BOND token is actually a very strong token and it belongs to the BarnBridge protocol that is it self a tokenizing platform in the crypto space. I have invested in this token for long-term investment and I believe on the future of the BOND token. That's why, I have made this investment.
- LINKDOWN:
The second coin that I am holding these days is the LINKDOWN token. Actually, it is a short token that was designed to flow against the orignal token, LINK. I have purchased this token by keeping in view the current market condition, as the LINK is up this day so I bought the LINKDOWN coin to secure good profit when the price of LINK will increase. Also, I would like to clear here my this investment is actually with the intraday strategy. I wilk sell this token when I will think it suitable at reasonable price.
- USTC (TerraClassicUSD):
In the earlier discussion that I had made in the previous sections, you would came to know that I purchased some TerraUSD and was holding them as a stable coins. So, after the decline of the price of TerraUSD, I didn't think it so easy to sell them at very low prices. So, I, in the hope of increase the price of this token, is holding this token as a long-term investment.
As an experienced cryptocurrency investor, Do you believe in Holding or Trading cryptocurrencies?
There are actually two opinions in this regard. Being a regular crypto trader, I would like to suggest everyone to trade the cryptocurrencies on the daily basis. Trading cryptocurrency does not mean to the assets at the lower prices and sell them on the higher prices. But actually, trading means to put in the knowledge of the market analysis and by using your experience, predict the next move of the market and take advantage in the return.
In simple, we know that the market of the cryptocurrency is so volatile and fluctuating that it us even very difficult for the highly-experienced traders to predict the next move of the market. So, we can take advantage of these high fluctuations in the market. We can take the advantage on both side movement of the market (Long and Short Trades).
While on the other hand, the clear and successful future of the cryptocurrencies urges us to hold the crypto assets for long time, instead of playing the buy and sell game. But I think this concept is less beneficial than the trading. Actually, this strategy is only helpful for the long-term investors, but the weak hands if the market like me and all of you have to look for the crypto trading in order to make daily profits from the price fluctuations. In short,
"Holding Cryptos is better strategy but Trading Cryptos is the best".
What's your advice to a newbie investing in the cryptocurrency market.
The start of the trading journey in crypto market is not so easy a newcommer has to face a lot of issues in the start. Sometimes, it becomes very important to guide them in order to continue their trading journey. So, I am wall-aware about the issues that the newbies have to face so there are some guidelines based on the experience that I have in the crypto trading and it could be helpful for the beginners. So, have a look on the below points.
- Enter The Market With Proper Knowledge:
There are many newcomers who not even know the basics of crypto trading and this things results in huge loses for them in their trades. So, I would like to recommend to enter the market after proper knowledge of the working of the coin in which you are going to invest your money. So, fundamental analysis of the coin is very important before investment.
- DYOA (Do Your Own Analysis):
As a beginner in the crypto trading space, you must have to take this point in mind that you should have to do proper analysis of the market everytime you enter the market. Technical Analysis is the most important thing before entering the market. So, you should have to make a proper understanding on some important technical analysis tools and by applying them on the candlesticks, you can get help in making trading decisions.
- Stress Control:
Another important thing that I would like to mention here is that many of the new traders got worried and even develope stress in their minds if the market goes against their predictions and expectations. So, you have to control yourself and never make wrong decisions by getting panic. You should have to control your sediments as ups and downs are the usual cases of crypto markets.
- Selection of Coins:
The selection of correct coins for investment is very important for your success in the crypto trading. So, a newcommer must have to do a proper research about the coin in which he are going to invest his money. Also, there are some coins that are fake, so be contious about this matter.
- Step By Step Progress:
There are many new traders that started a lot of things at the same time and as a result they become much confused. Suppose, there are many ones who start the Margin Trading without having any proper knowledge about this. So, you have to make progress step by step and start from simplest to the complex ones. So, I would suggest to take a start from the Spot Trading first.
- A Number of Coins:
Never invest the whole of your capitals in the same coin. You should have to divide your total capitals into various parts and then invest in many different coins. It is a better strategy to secure good profits from even a single coin.
- Never Purchase/Sale all Coins at Same Prices:
The most important thing that the new investors should keep in the mind is that they should not sale or purchase a coin at the same prices by the whole of their capitals. One should have to sale or purchase the tokens in percentages.
- Risk Management:
The risk management is the most important thing that can play a vital role in the successful career of the crypto traders. Risk Management means the Take Profit and Stop Loss levels that play a very important role in reducing the possibilty of huge loses in the trades.
Conclusions
When I started the Crypto trading, I was a blank about the knowledge of cryptocurrency. Then my friend told me about the working of this currency. So, I got involved in the impressiveness of this investment and now I am a good part of this this great Trading Journey. I hope that my experience will improve more and more and one day I will become a successful trader and crypto analyst.
Also, there are some guidelines that are discussed in the post including the Risk Management, Capital Management, Stress Control, Proper Technical Analysis, Selection of Coins, and many more. I hope that all of us would have a very safe and pleasant journey in the crypto trading space.
I would like to invite my friends @numanfarooq7677, @badmus-official, @chant, @rosz to take part in this amazing contest.
Writer: @steemdoctor1
For me I couldn’t learn a lot from the YouTube videos, I think I subscribed to wrong YouTube videos who did not look out for newbies in the crypto space 😂.
The academy played a very big role in my journey too, all though I was already into crypto before joining steemit, there was a lot I did not know. I only knew how to buy and sell. I didn’t even have an app for tracking the prices of the cryptocurrency I was holding. I only knew that I had to check my portfolio from time to time and try to sell when I see my money going up.
11 dollars profit on a first trade is something huge buddy. I remember the first time I made profit in the market I felt on top of the world 😂. I walked with my head up high as if I knew everyone about the market. I slept that night thinking of how rich I will become by following my ridiculous trading style😂.
The moment I saw UST in your portfolio then I was certain that you made a huge loss in it. I was a victim in the Luna crash too. Even after they made the airdrop the tokens that I received from Luna 2.0 was very small. It’s was not up to a dollar. I invested 200 dollars into Luna and after the total crash binance gave me an airdrop about of less than 1 dollar. I hope your airdrop amount was better though.
Yes this is a very important point. When you realise that you are making looses its best to leave the market and relax. Don’t try to get back your money by hook or crook. Control your stress and emotions and take a break, it actually helps.
A very valuable comment I have ever read on any post. Salute to you sir.
Wow what a well presented and well decorated my dear brother. You cover all parts of this post in detailed manner. Yes Bond, Linkdown and USTC are very good projects I also invested some money in it. Thank you for sharing this informative article with us. Best of luck for this contest.
Thank you so much...
A well piece of information you have given in your work and you discuss about the loss you have to beard in LUNA yeah the situation is same for all of us I had also beard the same loss , never the less we will fight back one day IA.
Thanks again for such a great work
Thank you dear.
Great entry buddy, its unfortunate what happens to Terra chain, i believe we've all had our share of the loss.
Goodluck in your contest friend.
Thanks man.
Greetings friend @steemdoctor1
The case of Terra was frightening for many investors who believed in this project, unfortunately it collapsed to end the illusions of those who invested in it.
I find your portfolio very interesting.
Thank you for your participation.
Yes bro, truely, the Terra blockchain left many people in deep sorrow.
Thanks for your precious comment.