My journey into the world of crypto started with a simple payment transaction from a client but as evolved into a valuable learning experience. These lessons have not only shaped my investment approach but also instilled a sense of resilience and strategic thinking in navigating the dynamic crypto landscape.
Know and Understand How the Market Works:
When I first entered the world of crypto in 2020, my primary concern as freelance website designer was converting my earnings to fiat currency. It wasn't until a friend offered advice that I began delving into the intricacies of the crypto market. Understanding market trends, analysis, and the factors influencing cryptocurrency values became crucial for making informed decisions.
2. Whatsoever Goes Up Comes Down & Vise Versa:
This timeless principle reminded me of the inherent volatility in the crypto market. Witnessing fluctuations in prices, I realized the importance of not getting carried away by rapid gains. This wisdom guided me to approach my investments with a balanced perspective, prepared for both ups and downs which basically indications to either buy more or sell off.
3. Hodl:
The term "Hodl" became more than just a misspelling of "Hold" for me. It represented a strategy of holding onto my crypto assets despite short-term market fluctuations. This approach allowed me to weather market storms and benefit from potential long-term growth, but you must be careful to hold the right coin, I remember buying $SOL at less than $25 and selling at $250+
4. Put What You Can Afford to Lose:
The realization that cryptocurrency investments carry inherent risks prompted me to adopt a cautious approach. Investing only what I could afford to lose became a fundamental principle. This mindset helped mitigate potential losses and allowed me to navigate the market without compromising my financial stability.
I will talk about Cost Per Dollar in my other write up soon
5. Take Profit:
As I delved deeper into the crypto space, I embraced the importance of strategic profit-taking. Recognizing opportune moments to secure profits provided a means to capitalize on market highs. This strategy, combined with a well-thought-out exit plan, added a layer of financial discipline to my crypto journey.
What's one or two lessons you've learnt too?