Taking Risk: Whatever Pumps Fast Dumps Fast
This is a scary thing about crypto, just as your coin can moon, it’s right to know that your coin can also dip. I got my fair share of experience when I joined crypto in 2018. I decided to focus on ETH because I wanted to get a whole ETH instead of buying parts of bitcoin. I bought ETH and watched it crashed from $1,000 to $80, but one thing kept me going, the believe that crypto is the future.
I didn’t care how long it would take, but as long as I believed in the future of cryptocurrency and it’s utility, I didn’t have any reason to be scared. This is why I will always advise anyone investing in crypto to be patient with the market. Just like Warren Buffet said, “investment is transferring wealth from the impatient to the patient.” I have experienced this so many times, not me personally, but newbies who join crypto. I watch them panic when the market starts dumping, they panic and start selling off their tokens because they don’t like the sight of their crypto value down.
These people see crypto as a gamble, that’s the reason they react that way. Some of them don’t even know what crypto is or the basics of crypto, I was in that position. This is the reason I can relate, my initial mentality towards cryptocurrency is buying and getting rich. I didn’t read to understand that utilities matters for the longevity of how a certain digital asset will be valued for a long time.
If there is one thing I have learnt from Hive, it’s that, in crypto you can never stop learning. Before buying a coin for long term, you should know if the coin is strong enough to withstand technological changes, because everything in this world will always go through changes. If the coins technology is stagnant and not flexible to changes, then it’s utility is extremely limited. New innovations will always surface, how does the technology adapt to it? This quality of crypto generally makes it the alpha digital asset of all digital asset currently. Though it’s quite new, barely just over 10 years since its existence.
Being a crypto investor or probably a crypto blogger will always put you in a position to always read and do your research, so learning is inevitable, it’s part of the process. Even if you studied business and accounting in school, crypto has come to change all those principles. Those principles were written from a centralized point of view, crypto is decentralized, a total different rule and ball game.
As a Newbie who is new to the crypto space, before you start jumping on all cryptos because you are seeing a pump, just know that as you are buying the pump, it can also dump. Doing your own research can never be over emphasized, if you are buying a shitcoin because of its quick pump, be ready for its dump.
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That is why I am perfectly content to let Hive fly under the radar for a while. We saw the price pump to over $3 and now it is dropping, along with the rest of the market. That is what markets do.
For me, the long term builder idea rings true. This is something that I prefer.
A lot of building taking place on Hive so I am very comfortable regardless of what the token price is doing.
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Yeah, am so comfortable, as long as I trust the project, I have nothing to worry about. My main focus was on shitcoin, they pump like crazy and also dumps like crazy
Let me just say that its my first experience but am fast growing above that gambling mentality 😂😂.
Hive is a good place to learn, analyze and make some good moves with some quality content from this platform unlike a regular outsider just gambling away cash for lack of knowledge.
you have to learn to be better as long as you spend some time on Hive. Hive has its way of teaching you that.
I remember when I started, I was only looking for coins with low value so they could easily do times two. I didn't even care whether it was a shit coin or not🤦🏽♂️. Obviously loss was more than wins
But lessons have been learnt right?
Yes, they have. But at times it still influences my decision.
2018, did people actually believed in crypto? Cause in my side of the world people saw it as a scam until of recent.
Nah, just few people, glad to be among the few people.
Wow. So we can buy coins in installments? That's so cool!
Also, in doing our research, what are the basic things (in regards to Technology) that we should look out for in a coin? Is it like a Blockchain background?
How do we tell the Shitcoins apart from the obvious?
As technology evolves, for Newbies, how can we tell a coin is going to do well in the next years?
These are my question. Thanks so much for the insightful post!
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Reading the coin’s white paper is very essential to understand their mission and goals.
I sometimes check their social media handles and check to know if their developers have revealed their faces just in case.
You can check the blockchain smart contract to know if some specific accounts are Hodling a big chunk amount of the token, if they are, then be careful because they can rug pull
I tell Shitcoins from their outrageous supply and they focus more on advertising on making you rich rather than having a reasonable utility.
You should know that great utility comes first before wealth, any coin that promises you wealth before utility is a gamble
Very true. If something goes to the moon in a day, it will most likely fall from the moon shortly after. If something slowly builds like Hive and builds strong backing for its value, then it has a much better chance of sustaining long term growth in price. The short game is for day traders, the log game is for the believers.
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