My Crypto Journey 2021 (Lessons and Motivations)
January 2, 2021
Happy New Year of 2022 Bcashers!
How's your New Year's Eve celebration? Happy and fun? I hope you all did great and were happy with your family. Despite being alone on New Year's Eve (again), I somehow managed to stay happy when I talked with my family over the phone. Besides, I don't want to end the year feeling sad and negative, as it is unlucky in our beliefs. And I promised to myself that no matter how tough my day is, and arduous my life's journey is, I would stay optimistic and would only do things that would make me happy.
Moving on...
Being a crypto trader and a small investor is a tedious job and too risky just like our real life's journey. We would traverse a volatile path, pass through bumps and dips, go up and down, and even sideways. We would encounter the inevitable bull and bear, and would sometimes go south or fall to the bottom. But it is worth taking the risks if we reach the peak.
Just like I mentioned in my article Trading and Life:
WE ARE RISK-TAKERS
The cryptoverse isn't a place for the cowards because risks are inevitable as the bull and bear. And in this crypto arena, those who know how to chase the bull, take advantage of the bear, and learn how to divert a trend that is going south, would stay longer and would succeed in the end. And we all know that "the higher the risks, the higher the profit." So if you want to be successful in this journey, you have to be a risk-taker.
WE ARE BYPASSERS
Along with earning opportunities is greediness. At some point, we would feel greedy and would want more profit, instead of taking the real small ones. As crypto traders, we have to bypass that greediness, just like how we get through the volatility of the crypto market to become successful traders. It's better to earn a small profit than lose that opportunity. Small profits would turn bigger anyway over time.
WE ARE OPPORTUNITY CHASERS
Who doesn't like taking opportunities anyway? This cryptoverse offers a lot of it, most especially the DeFi world. From trading, staking, lending, compounding, farming, NFT, and all. These are the ways to earn passive income, even just at the comfort of our home. But it is worth noting that before diving into any pool, you have to consider the risks, DYOR, and conduct due diligence before taking any action.
And lastly,
WE ARE GOAL SEEKERS
We are born to be goal seekers, only if we allow ourselves to follow the right path. As a crypto trader, our goal is to maintain successful trades, avoid too many losses, and generate more profits. When the market turns upside down, our goal is to seek a proper exit and take advantage of the red market. And if it goes along with our predictions, our goal is to deliver positive returns on investments.
Risks and losses are inevitable in this cryptoverse. And oftentimes, we would feel lucky, not lucky, as the market is unpredictable unless you are an expert. But even experts got losses as well, despite carrying out better strategies. Because no one could read the TA perfectly, and no one could tell at which certain point the trend would fall or when it would reach its peak. Everything is just imperfect predictions.
If there is something I learned from this year's crypto journey, that is to control our emotions every time we engage in trading, and before taking any decision and action in this cryptoverse. Our emotions are the vital aspect that could impact our trading results and decision-making. And any triggered negative emotion while trading could lead to failures and loss of investments.
The FOMO or fear of missing out is a common phenomenon in trading, from newbies, even experts. Because of the hype in the cryptoverse, especially on Twitter or in our Telegram group, we tend to dive in as well without thinking well if the token is worth investing in, or if it will continue to surge higher after we buy some. But if things got worse and another source of FOMO arises, we tend to sell at a lower price. Technically doing the opposite of the main principle "buy low, sell high" because of FOMO.
The greediness that I mentioned above is sometimes the cause of our failure in trading. Undeniably, what we always wanted is higher profits. Once the bull takes over the market, we would always want to chase its peak. So even if we already have a realistic profit, we would sometimes wait longer to get more profits. But even in a bull market, the trend is always volatile. It could rise in just a short moment. At the same time, it could rob your investment in just a blink of an eye. This most especially happens in future trading. And that's the main reason why I opted to pursue spot trading rather than future trading. There is a quick profit, but if you won't be vigilant, your investment would easily fade into the air.
Another thing is, do not trade if you are anxious just for the sake of getting profits. You would likely lose your trade due to impatience and abrupt decision-making. This happens to me many times. And if I would count all my losses since the beginning, it's fair enough to buy a whole BCH or more.
Enviousness is also inevitable. Just because we saw our friends gaining huge profit from trading a certain token, we would invest in it without making DYOR. It is worth noting that in crypto trading, or anything related to investing, we should conduct due diligence before taking any action, and we should be accountable for our decisions and actions.
Intensive research and best strategies are always important here, and we should not rely on our emotions or any hype in the market to avoid getting FOMOed. An analyst once said:
“Trade according to your strategy, not your feelings”
– Peter Hanks, Junior Analyst
So if you want to be successful in crypto trading or investing, learn how to control your emotions, lay out your best strategy, do not just go with the flow, DYOR, and most especially, be clever and brave enough to face the risks. No risk, no profit! Learn how to manage it, not avoid it.
I hope you learned something good from this article, especially the newbies.
Thanks for reading!
©read.cash/@Jane (All Rights Reserved 2021)
I learned a lot. I am not yet ready to fully take a risk in crypto world. That's why I'm building a foundation first which is saving up for emergency fund. When I got to fully fund it, I think that's the time where I can venture with crypto market.