Some Safety Precautions I Learnt During My Crypto Journey

Investing in cryptocurrencies is a very interesting wild experience. One minute you are all green and you are smiling, the next minutes you are experiencing blood color all over your asset. Due to the hope and belief I have in crypto, I always look for ways to distract myself to avoid making regrettable decisions based on current emotions.

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I have been investing on crypto for 3 years and I already feel like a grandpa because the journey towards attaining these experiences were really exciting and trust me they are worth it. One of my greatest regret in life, but I know it’s not late, was underestimating Hive(steemit) when I found it 3 years ago. I regret not taking it seriously, but it’s not late at all.

This year has been one tough interesting year for crypto, as they were lots of FUD. We saw the bull run come to a halt and started going bearish. The bearish movement was really devastating especially for those who were new to crypto. But one lesson I learnt from the experience is that Fundamental Analysis always comes first before Technical Analysis. The market is usually 70% news, and how people react to the news and 30% charts.

When SEC sued Ripple in late 2020, we saw how easily it was for XRP price to go really low. When China banned bitcoin and crypto mining activities, coupled with Elon Musk’s announcement towards Tesla delisting bitcoin as means of payment, we saw how Bitcoin’s price fell up to 50%. So always consider news as a precaution to know when to buy coins. Because during the FUD was the best time to buy based on the low prices.

This takes me to the second precaution and lesson I have gotten from my journey in crypto. There was a time in 2020 where a telegram group chat link was been shared. This was a pump group chat link.

A pump group chat is social media group that agrees to buy the price of a token at a particular time to drive the price really high, so as to trap the bears and liquidate them.

I joined this group chat on telegram and the agreed time and date for the pump was set and agreed. I bought lots of the token before the agreed time and watched the price grow. Although I invested small initially because I wanted to test it. I invested $150 and in a matter of 3 days before the agreed collective pump, my token was up 160%. I was really excited so I decided to buy more. It finally got to the actual pump day, I bought a lot and waited. I set my alarm so o can sell and leave the group when the time comes. My alarm went off, and suddenly, the value of my coins started dropping. Everything was dumping and I was confused.

Apparently I wasn’t the only one with the idea of dumping my coins on the day of pump. Lots of people also had that mindset.

I was in a dilemma thinking, should I take my loss? Or wait for it to retrace and pump? I finally decided to take my loss. I was really angry that day. Since then I have decided to avoid Pump Groups. They are going to dump on you. That was the day I understood what “Buy The Rumor Sell The News” meant.

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Another lesson I learnt is the ability of not dwelling in the past. You know that feeling you get when you start regretting the decision you made in the past and you start dwelling on it. For instance you bought a coin at $3 dollars then you sell it off at $9 then months later, you come back and that coin is $20. You start regretting and start wishing you never sold it too early. Don’t blame yourself, you actually made a pretty cool profit, so stop regretting.

This next lesson is the most important one because Hive is involved. Before you decide to add a project to your watchlist and you want to make it long term, do your personal research and Study it. Don’t gamble because you love it’s name or you like their advert. This is the reason I will not power down any time soon. This is because all I see with Hive is a dignified future. Hive is one of the greatest project in the crypto space.

Practice Dollar Cost Averaging when buying a coin to help you maximize the amount of coins to buy.

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