Crypto by nature is a speculative investment instrument and is highly volatile. Its high-risk high reward characteristics attract a lot of new investors. The truth is crypto is not a get-rich-quick scheme and requires a lot of deliberation. Following are some mistakes I made while starting my investment journey in cryptocurrencies.
1. Not Booking Profits on a Timely Basis
I received 1000 Algos while working on an ICO project on the Algorand blockchain. The value of 1 Algo was ranging between 60 to 70 INR. At that point, I sold 45% of my holdings and left the rest in my Algowallet. A few months down the line I forgot about my holdings just to realize that Algo’s value had tumbled to a mere 20 INR. At the same time, I needed some fiat liquidity to buy MATIC and ETH. So I sold off my Algo holdings and brought in Ethereum-based tokens.
2. Timing the Market
This is a no-brainer. This is by far the most discussed subject in investing and trading. Well, I did unconsciously fall for it. The PoW to PoS transition that happened in September, 2022 created a hype around Ethereum and a probability of it soaring high. To make a quick buck, I invested 3000 INR in ETH. After this, the asset saw a bearish trend that continued till December 2022 end. Later, I liquidated my ETH holdings as I needed cash for making some payments.
3. Investing in Crypto at Market Price (Always)
As an amateur investor, I always ended up buying crypto at the market rate. Months later I saw my dad placing a limit order on CoinDCX – a crypto investing app for Indian crypto investors. He got cryptocurrencies at better rates.
4. Falling for Pretentious Crypto Exchanges
Well, I am not talking about FTX here. When I began my career in web3 writing I would receive payments via metamask. To sell off my ETH holdings I chose Remitano – a P2P crypto trading platform. I moved a small fraction of my ETH payment to the platform. But to date, the account shows 0.00 ETH in the wallet. The amount was around 7,000 INR. After which, I decided to sell my ETH in small fractions on WazirX. I had a really bad experience on WazirX as well. Hence, I made sure that I moved ETH in small amounts only.
5. Going all in for One Altcoin
As a beginner, I would always stick to Ethereum as I believed it to be the safest crypto investing option. By simply refraining from reading about other cryptocurrencies I missed out on many better ROI cryptos’ down the road.
6. Losing my Crypto Wallet Seed Phrase
Well, I wasn’t a degen back then, but I did know the importance of keeping a seed phrase safe. With 220 MATIC tokens with a valuation of 15,000 INR, losing my seed phrase made me look like an idiot. I bought MATIC at 33 INR and after months the value of MATIC rose to 65 INR. Good heavens, I found my seed phrase and wrote it on a piece of paper, and kept it in a safe place later.
7. Ignoring Bitcoin
Well, I always believed in crypto serving a certain purpose which is why I stuck to altcoins alone. Little did I understand that Bitcoin’s store of value was much more than one can see on the surface. The asset is the king of all cryptocurrencies because of its peer-to-peer ledger that cannot be hacked. Unlike BTC other cryptocurrencies and NFT projects have experienced downtime and even malware attacks. The recent recovery of BTC has sparked conversations around the asset and rightly so. The year may see both Altcoin Season as well as Bitcoin Season.
8. Going Overboard With Crypto News
It is important to stay abreast with the latest trends and investment opportunities in crypto. However, consuming too much of it can shake your confidence in investing. So for the past few days, I have been reading about mixed reactions from different people on the crypto market’s recovery. Some believe that the market will see a bearish trend again while some believe that 2023 will be a year of consolidation for crypto. This made me confused about my stance and strategy for crypto. Thus, it is good to know what’s going on in the market, but don’t assume everything that you hear or read is 100% right thing.
Personal Note From MEXC Team
Check out our MEXC trading page and find out what we have to offer! You can learn more about crypto industry news. There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading!
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