You Can Call It A Crypto Golden Rule
During your crypto journey you are bound to learn a lot of things. For someone who has spent 3 years in crypto, I have made lots of mistakes and learnt a lot. To a Newbie when you make profit from crypto, they see it as magic, but it’s not magic its based on 3 years experience of making mistakes and learning a lot from the lessons. In finance we are told to not see money lost as a loss but rather it’s a fee paid to learn a lesson, but some of us pay the fees to learn the same lesson over time without actually learning because of impatience.
The wildest thing I saw this year was a Newbie who joined crypto this year and decided she was going to risk it all because she wants to be very rich. She was just few months into crypto and she was aspiring to become as rich as those people who have been in crypto for 3+ years. I advised her that as a Newbie she needed to stick to spot trading. She listened to my advise for like 2 seconds, she made 70% profit from spot trading and lost everything in a single day from future trading 🤦♂️.
I was so disappointed because she came back crying and kept asking me to teach her how I grow my own portfolio. It all depends on patience and not investing based on emotions rather than facts and doing your research.
Panic selling is something I don’t condone, because I don’t like to be under pressure. Most people that panic sell always lose money because they usually buy at the top and sell at the bottom. Which is backwards investment, because buying at the top and selling at the bottom is more like throwing your money away. Before you buy an asset, research about the asset to be sure that you know where you are putting your money in. If you don’t know where you are putting your money in, the slightest dip, inconvenience and FUD (Fear Uncertainty and Doubt) can make you panic sell.
Taking profit on your way up is another golden rule I use in crypto, sometimes. The emphasis is on “sometimes” because am a Hodler, I only take profit with DCA(Dollar Cost Averaging) when am day trading, and I don’t trade all the time.
There was time in my life where I traded forex for 1 year, and it helped me understand the risk behind leveraging, this has helped me in avoiding leveraging in crypto. I won’t advice anyone to go into leveraging without proper training and knowledge. The risk in leveraging is too high, if you want peace of mind and less risk, stick to spot trading and staking.
Always have some money in stable coin to buy the dip. If you have come across my post before, you will see where I stated few times that I have some “buy the dip extra money” always set aside for dips. Buying dips always feels good sometimes, it’s like Black Friday sales. In buying dips and saving money to buy dips, it will show you that sometimes crash can equal opportunities.
Don’t always chase green candle, chase utilities, use case and fundamental, then sit back and watch green candles chase you. We can see evidence here on Hive where we saw Hive turned lots of people that have been on Hive and have invested on Hive for a long time rich. They chose the utility Hive’s blockchain had to offer even when there were no green candles to motivate them to stay. But the belief, the utilities and the potentials of Hive kept them investing on Hive. I can remember coming to Hive in May and seeing someone on Hive’s account read 1 Million Hive power, in May that was probably worth $170k because Hive’s price was $0.17. During the Hive pump, I went to check his account and this Hiver is over $2 million rich 🤑. That’s wild, he didn’t chase green candles, he chased utilities and now green candles are chasing him.
The general underlining rule that is the best rule to follow is “Patience”. After following all necessary rule, don’t forget to be patient with yourself and your portfolio.
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