Curse or Learn
A well-known proverb says, "Little learning is a dangerous thing." Often, we need to learn something in detail, and without even knowing the basics we start judging them just because we had a bad start, and we don't even bother to check whose fault it was. During the end of the last bull market, someone invested a big chunk of his money and lost them all. Seeing a short pump, he then put his savings and lost them too; now he is just cursing the whole crypto ecosystem as a curse and scam just because he couldn't get what he had expected. I didn't talk much as no matter how valid the reason or logic I presented before him to defend crypto in its real scenario, he won't admit nor was he going to take my words happily.
After these couple of years of myself living in the crypto space, I have understood a couple of things that I would narrate to every newbie who plans to put their hands (money) in the crypto space. Personal Opinions
Don't Rush (FOMO)
In crypto, FOMO stands for 'Fear of missing out,' where a user's mind instructs to jump in as early as possible as he might lose the opportunity of making a huge sum of profit. In those situations, what's the current token price, token history, potential, or other background factors doesn't mean much. Hype is something that caused me to bleed a lot last time; never going to jump in like this, nor do I suggest someone does like this just because he has seen someone else making profits; no one knows at which point the table is going to turn upside down. All you need to do is hold your breath and do some research and decide with your own wit.
Gather Knowledge (DYOR)
In crypto or financial sectors, one would encounter this DYOR word more and more. It stands for Do Your Own Research. Yeah, one always tries to state this disclaimer at the end of their session because no one is sure how the market will go. Everyone can just predict based on different metrics from the token. Information, as well as all the strategies and stuff like this, need to be learned and practiced by you. I still remember one of my big brothers here who used to provide me with different books related to this field to educate myself, to see how things work, to have an idea from the most prominent players of this field, to learn from them, and to embrace their experience and instructions. I may not be able to learn and apply them correctly, but it did build a solid base to know what's happening and what improvements I need on my next trade.
There is a token on the market with a never-ending mining phase. I bet that the majority of those connected people are indifferent to the crypto space; I mean, they are not well educated on this sector and don't even know the basics. Someone from that group appeared before me with hopes that the sky was not the limit. They are just daydreaming beyond their capability. When I tried to show some actual facts, they got disheartened that I was trying to push them backward. So I left them with a few renowned articles with the responsibility to educate themselves; the rest is in their hands.
Skilled Groups from the Same Field
This one is somehow hard and rare to find, but if you can manage to get involved in such an atmosphere, then half of the workload is done. One can't even imagine how useful it is to stay in a community with diversely skilled persons. For example, I am sharing my experience; I got to jump into a community with professional developers, experienced & successful traders, whales of NFT games, and lots of enthusiasts with significant impacts on this space. How was it beneficial to me? Their conversations, news and information, their thoughts and plans, everything helped me to shape myself to take steps worth taking. I won't say they will not make mistakes; all of their investments will skyrocket, no, no, they will suffer too, everyone does, but those will be calculated. One would get to see what happened and why it didn't work out.
In the last bull, I didn't invest in any meme coins or anything that was overhyped without any potential, and greed couldn't reach that level to convince me, thanks to that community members. Saw lots of people making huge percentages on those, but a large number of people lost everything. THE ABOVE-MENTIONED PERSON WAS ONE OF THEM.
Amount of Investment
I would like to start with one of my favorite lines I came across, which describes it the most, "Invest what you can afford to lose." Initially, you might ask, why would I have a mentality of losing while investing? I did the same, but it is related to emotion and our position to stay above the ground in case of a bloodbath. Investing in everything and losing them all is no impossible thing, nothing to be surprised about, and very common in this space. I have seen lots of such incidents. THE ABOVE-MENTIONED PERSON is also from the same category who invested a big chunk and, out of frustration, ended up investing (I would say he gambled) his savings too, which took him down. Always start by little, taste the water, how it feels to taste, what if it's salty?
Greed & Emotion
If you are in the crypto space and want to try your luck in trading, you have to train your mental health very cautiously. Suppose there is a situation where you see your trade going opposite to your expectations; there are lots of trading strategies where exit strategies are told on those devastating situations. You may suffer a minor loss, but you have to accept that and exit to save yourself from the bigger ones. (Not every time, there are certain situations) Also, you have seen your token going a massive percentage in downside; in the name of dollar cost averaging, you are just investing more and more to recover, but that token might not survive. You haven't checked that possibility through research, just investing double and triple with the hope of a tiny pump to exit; those are risks of fools.
What goes up shall come down, don't get greedy and neglect whatever you were getting initially. Once, I asked someone when to exit with profits, and he replied, "Exit when you are satisfied with your profit." I wish I had been satisfied with my initial plans; greed took over me upon seeing massive pumps, and I ended up losing that big chunk of profit I could have easily secured. That was a significant amount that I didn't meet after that day. Gone!! Always stay grateful for the returns, no matter how small the amount is. Secure profits in intervals; it helps to remain profitable and walk toward more at the same time.
There are many more to come with time, research and experience. The more time one spends, the more he gets to learn to survive here. Oh, I started with the comment from someone who was/is ignorant of this whole thing, stepped in the wrong way and met the cruelest face of crypto, and now cursing on and on. Cursing won't help unless we educate ourselves.
