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I am a late entrant to the crypto-verse, but having joined the crew, I am proud to be here. That said, until recently, I had a no knowledge of cryptocurrency beyond having heard of Bitcoin.
Now, for persons who have been investing in cryptocurrency for years, some since 2010, it might be difficult to understand and relate to the level of ignorance that pervades around blockchains and digital currencies, but this is an undeniable reality in many parts of the world. For many of us, cryptocurrency is still not yet part of the public discourse.
And while some of us may have heard of Bitcoin and some of the major altcoins, for many, there remains an extremely limited understanding of and high levels of mistrust for cryptocurrency and the vaulted ideals behind the crypto movement. And there are many reasons for this. For the purposes of this post, I'll focus on two: crypto-illiteracy and crypto-suppression.
Crypto-Illiteracy
Unfortunately, very often, prominent voices driving discussions around cryptocurrency, e.g. mainstream media and leaders in the world of finance, have dismissed Bitcoin and altcoins as the preferred medium of exchange for cybercriminals, money launderers and tax evaders, and others with nefarious intent. It's equated to malware and a scam.
And despite cryptocurrency's growth and successes for well over a decade, many in the world of finance with a vested interested in maintaining the status quo, continue to reject the financial evolution (some may say revolution) out of hand, dismissing cryptocurrency as a bubble and threat to the financial system. In fact, in some quarters, it has been dismissed outright as not being real money and having no value.
To the crypto-cautious and crypto-illiterate, these blatant obfuscation tactics can serve as a deterrent.
Crypto-Suppression
Purportedly in the interest of protecting the innocent investor, central banks and regulators have, in some instances, adopted or threatened a strong arm approach to cryptocurrency. And while, I concede that establishing laws and frameworks to regulate cryptocurrency investing is a move in the right direction as, if done properly, this ensures that crypto can finally occupy its well earned place in mainstream finance, I humbly hold the view that strong arm regulation by banning, as has occurred in some countries, is counter productive.
In some countries, investing in crypto-currency is illegal. In other countries, where it is not illegal, it is near impossible as banks tend to suppress or freeze accounts seeking to purchase crypto-currency with personal funds and few allow for conversion from cryptocurrency back to fiat. In this, I must say El Salvador's bold step forward and that of its main bank, Banco Agricola's to accept cryptocurrency is certainly a welcome move that will be followed by many in the crypto-verse.
This is not for the faint of heart
Crypto investing is not for the faint of heart. Sometimes it can feel like a roller coaster ride with dizzying heights and eye watering falls.
However, if you are motivated enough to learn, really learn; and if you are, like me, determined to push past any mental blocks you may have for code, numbers and technical multiple syllable terms like scalable, interoperable parachains, (quite a mouthful), to truly research Bitcoin or any altcoin you may be interested in, its use cases and chances of success, then I promise you, it can be quite a ride.
Get some practice
I think it's always a good idea to get your feet wet first.
Some platforms allow for a low entry, and afford learning to earn opportunities where you can learn to trade and invest with limited risk. COINBASE is one such trading platform with an entry of US$2. If platforms like these are available in your country, you can try a very small investment on one of them. In addition to researching the programs you want to support, in this way, you can get first hand exposure to the nuances of cryptocurrency without being heavily exposed.
Crypto-Safety
Any guide to crypto-investing will tell you this: Before investing, DO YOUR OWN RESEARCH. There are scammers in all corners of the financial world and in this, cryptocurrency is no different. Take caution to protect one's assets.
I'll share a personal story.
After my first few days of investing, I was bitten by the crypto bug, and I was anxious to earn the huge returns I had heard other persons had made. I had zero patience would hardly leave my investments to sit for ten minutes, and at a few dollars here and there, I felt the returns I had earned were not grand enough.
I wanted to go to bed one night and wake up the next morning to learn that I was a millionaire. So, throwing caution to the wind, I transferred money onto a decentralized exchange (we will discuss these in later post), paid no attention to the astronomical fees associated with transferring the coin, no attention to the rate of conversion to another coin, no attention to the warning of the risk associated with in investing in new coins, and I proceeded to invest into a surefire meme that had only been launched a few days before. I had learned of the coin from a Twitter bot, I kid you not, and I was convinced that I was going to the moon.
So I invested, and went to bed with a proud smile on my face. In the morning, I told myself, I would buy my new home.
The next morning, I woke up to egg on my face. My sure fire investment turned out to be nothing more than a rug pull. I was the harshest jolt of reality I had to come to terms with, just a few days in.
And so, what did I do? I could have sworn off crypto-investing completely. I could have blamed cryptocurrency for being unreliable without taking responsibility for my own rash and irrational investment. I could have blamed the crypto-verse because of a few bad actors. There were many things I could have done. I chose instead to learn, and to try again. But that, my new friends, is a story for another post.
Crypto Lexicon
Here are some fun terms crypto-enthusiasts use:
HODL: Hold On For Dear Life: Cryptocurrency trading is volatile. Like I said, it's like a roller coaster. If you see a project you believe in, stack those coins when it is trading low and HODL as much as you may be tempted to sell when prices fall drastically or even post new highs.
FOMO: Fear of Missing Out. Sometimes when crypto coins are posting gains and they are trending on social media, and you see people celebrating the huge returns they earned, you can be tempted to invest in the same coins as well, driven by the fear of missing out, and expecting the same successes. Hopping onto a project because of FOMO is not always an advised approach. Be careful and calculated about your investments and how you time them.
Whale: Individuals who hold large amounts in a particular cryptocurrency.
Shilling: Covertly advertising of a coin, pretending genuine interest for a paid service. I took great pains not to do any of that here.
And so, that's it for me today. It's my first post, I hope you enjoyed it. I hope we can become great friends on this platform. Until next time, arrivederci.
