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Cryptos are a slippery slope.
Once you tip your toe in this world, it becomes hard not to spend every commute time, lunch break, and evening reading news, learning new concepts, listening to podcasts, and watching youtube influencers.
That's what happened to me in the last six months. And I can say that I learned a few things during this journey (even as a newbie in the field).
Here are some of these learnings:
Crypto makes you learn about your own emotions
I thought that the red days would be the most stressful, that looking at my coins losing value would be a mental challenge. It turns out that red days are easy to manage. They are just a great opportunity to buy more of the coins with the most potential in the long run. I even feel some excitement when I experience a dip in the market.
On the other hand, green days can be hard to handle. I feel a greater mental load and indecision when several coins are gaining, 5%, 10%, 20% overnight. I would have never thought that possible.
Should I sell? Should I buy more? I should have definitely bought more.
In the end, one needs to find a strategy that fits well with your own emotions, supported by a set of rules that lift the mental load and bring peace of mind.
This brings me to my next learning.
It is crucial to develop a clear strategy when investing in crypto.
In order to be successful in crypto while still being able to sleep at night, it's essential to have a clear strategy.
This includes an entry and exit strategy and a way to manage the dips and the highs.
Personally, I only use money that I am able to lose. This means that I don't invest solely in cryptos and that, in the worst-case scenario, losing all my crypto investments won't directly impact my life too negatively.
Then, I invest the same amount in fiat money every month, always choosing days that present small dips. If a significant dip in the whole market occurs, I may decide to invest a bit more in blue-chip cryptos.
When my cryptos start gaining value, I either do nothing for some of my top cryptos (BTC, ETH, ADA) or sell a small portion of my asset and store the gain in stable coins to be used later.
I have a long-term investment strategy. Therefore, I try to focus on cryptos that offer staking rewards or yield opportunities.
It is important to find your trusted sources.
The crypto world is a vivid community with great momentum, inspiring projects but with a lot of misinformation, manipulation and scammers of all kinds.
Hence, it is important to find your trusted sources. Nothing beats the "Do Your Own Research" DYOR, but you still need some sources that bring valuable information that you can then cross-check.
In my case, I receive daily news from my "Crypto News" app (news aggregator), follow the Twitter accounts of the projects I invest in, and follow three influencers or "crypto experts" on Youtube and social media. So far, this has proven to work. But it doesn't stop me from being critical with every news I read and take with a pinch of salt news that appears to be too good to be true.
Grant yourself some well-deserved rewards.
My last learning is maybe one of the most important ones.
Once in a while, it is essential to celebrate and give yourself a small reward. In this long journey, with its ups and downs, I am convinced that a factor of success is to reward oneself every now and then.
The reward might be to take some gains out and treat yourself with an evening in a nice restaurant or to buy a hyped NFT you know you shouldn't be buying or simply anything that you do for your own good to celebrate that crazy journey.
These are my thoughts after the beginning of my own crypto journey.
I hope it might help someone out there.
