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What I learned while starting out in trading Here's what I learned from spending $1 on cryptocurrencies every night for 30 days Over the past month, I committed to buying $1 worth of cryptocurrencies every night at 9 p.m. My goal was not to get rich, but to explore how consistent investing in cryptocurrencies could teach me about the market. By the end of this experience, I had access to 30 different cryptocurrencies. Here's what I discovered along the way. --- The Experiment: $1 a Night, 30 Coins The plan was clear: buy $1 of a different cryptocurrency every night. My idea was that spreading investments across different currencies would reduce risk while giving me a crash course in cryptocurrency investing. It was a way to test the waters without risking a huge amount. However, the trip came with some surprises. --- Lesson 1: Cryptocurrency Prices Are Highly Unpredictable One of the first things I noticed was the extreme volatility in cryptocurrency prices. Some nights, I woke up to see a coin I purchased had risen more than 10% in a matter of hours. On other nights, the same coin may fall by the same percentage or more. The huge price swings meant my portfolio felt like a roller coaster. Even though I bought 30 different currencies, the collective behavior of the market often made everything move together, magnifying the highs and lows. --- Lesson 2: Diversification Is Not a Perfect Armor I assumed that buying 30 different currencies would spread out my risk. Unfortunately, this was not always true. When the overall market declined, almost all the currencies in my portfolio followed the trend. Even when some currencies performed well, their gains often outweighed broader losses. This taught me that while diversification is a good strategy, it can't completely protect you from the wild swings of the cryptocurrency market. --- Lesson 3: Timing Matters More Than You Think Sticking to a strict buying schedule at 9pm every night was convenient, but it wasn't always ideal. The cryptocurrency market moves quickly, and there have been nights where I bought at the peak, only to see prices drop shortly after. Conversely, on nights when there is a decline, the currency often recovers and gains in value. This has highlighted the importance of timing in investing in cryptocurrencies. A more informed purchasing strategy would have yielded better results. --- Lesson 4: The Value of Research One of the surprising benefits of this experience was the opportunity to learn about the coins I was purchasing. Each night, I spent time reading about the coin's purpose, its development team, and the problems it aims to solve. While some coins looked promising, others seemed speculative or lacked a clear use case. This research has deepened my understanding of the cryptocurrency landscape and helped me think critically about long-term investments. --- Lesson 5: Managing Emotions is Key I did not anticipate how emotionally involved I would become. Watching the currency appreciate has made me feel excited and hopeful. On the other hand, seeing the coin go down immediately after purchasing it was frustrating. This experience has reinforced the importance of staying calm and avoiding impulsive decisions based on short-term price movements. Emotional investing can be dangerous, especially in such a volatile market. ---What's next? After 30 days, I gained valuable insights into the world of cryptocurrencies. In Part 2, I will break down the specific cryptocurrencies I have invested in and analyze the performance of my portfolio. For now, here are the most important things I've learned: 1. Cryptocurrencies are highly unpredictable. 2. Diversification can help but will not eliminate risk. 3. Timing plays an important role in maximizing gains. 4. Research is crucial to identifying potential long-term winners. 5. Emotional discipline is vital to dealing with market fluctuations. Finally, I wish everyone all the best and friendliness, and a happy and prosperous year in advance