Things Crypto Beginners Like Me Should Know

I was ready to sleep but decided to read crypto-related blogs instead. Since it was my off and will resume work on Wednesday night, I just thought that it would be the best time to read some informative articles about the basics of the basic of our favorite topic, cryptocurrencies.

After a couple of articles I've read, I realized that I came into the crypto world unprepared, which, as you all know, had cost me quite a lot. Although not a lot when it comes to investment, it still is for the entire process.

Now, as a beginner in this crypto world, I want to share with my fellow beginners the things they should know first to save their investment, whether it's from their hard-earned money or free money. This could have saved me actually if only I had listened to a friend, who advised me to watch tutorials or read blogs first. But then, the stubborn me was so eager to do it right away that I thought what I had in mind was enough to make it through.

But I was wrong. And I know for sure that there are also some people out there who are kind of like me, who think they are ready to do all the trading or investing, only to find out they're not. So before you jump into your very own assumptions, here are the things you need to know first before diving into the world of cryptocurrencies:

Try not to be super excited

Really? Does being super excited affects your decision-making or everything in general? My answer would be YES.

Honestly, I didn't know how exciting this whole thing was until I experienced it myself. I first joined crypto last year and that same year I first invested a few bucks to my coinsph wallet. I bought my first BTC without even knowing if it was the right time to buy it or not.

But the real fun has begun just recently when I first decided to do the actual trade. Unlike investing in coinsph where you only see the increase-decrease of your money, it can be quite different in trading. The latter has also a chart that shows the ups and downs of the chosen crypto and that alone, could give you intense, nerve-wracking, heart-stopping vibes when doing an actual trade. Imagine if the chart goes up, it's like waiting to hit that jackpot, and when it starts going low, it's like there's a part of you that is starting to shrink.

I started trading after two days of talking to a friend without enough idea on how it's going to be. I did try the demo though, but we all know that the feeling is quite different when it comes to actual trade. Back then, all I knew was the buy low and sell high rule. In short, I came to war without enough weapons to protect myself.

So whether you're investing your own money from your pocket or use coins you earned from mining, be sure not to get super excited, and try to understand the basics and some of the advanced things you need to know first. Being super excited makes you buy crypto even at a high price because you just couldn't contain your excitement, especially when you've just had a successful trade. So you end up buying them because your hopes are as high as the price.

So try not to be super thrilled. That way, you won't have to deal with regrets afterward.

Focus on the buy low, sell high only

In addition to the first example above, when you get super hyped because everything seems so right, there's a possibility that you won't be able to contain your excitement and end up buying your favorite crypto even at a high price.

That's often one of my downsides, to be honest. I know the rule, but I keep forgetting it and buy them at a high price instead. This was the reason I lost everything. I had almost $50, then I decided to buy it even when the price was high, and suddenly, boom! My heart stopped for a few seconds. Took me hours trying to keep the trade alive but in the end, I failed to save it. Too bad. I lost $72 in all.

So to my fellow beginners, try to avoid this. Always stick to the rule. Not unless you're willing to take the risk.

Aim not just one but more cryptos

Rather than sticking to BTC or BCH, you should invest more in other stable cryptos like ETH, XRP, and other altcoins in the market.

Back in the early days of my crypto journey, I only invested in BTC. I only started BCH after reading some articles from the experts here. Thanks to their helpful articles, I've learned that you should also buy in different cryptos to help you grow your portfolio.

One needs a contingency plan, right? If one doesn't work, at least you have another one to turn to. So far, I have BCH, XRP, and a teeny weeny bit for ETH. But my goal now is to invest more in all three soon. Thanks to these three super ladies, who helped me understand things bit by bit.

By the way, to learn more about what altcoins to buy, please do follow @Jane @Eybyoung @Eirolfeam2 coz they know way better than I do.

Save every profit

Here's another epic fail I did recently. Okay, so I also know this rule and have been doing this for quite some time now since I started investing again. I would usually take my profit regardless of how small or big it is, but that was until recently when I have withdrawn my read.cash money worth 1200 pesos to my coinsph.

Since that withdrawal, whenever I see my profit growing, I just ignored it. I don't know why I did that. I was supposed to take the profits, but for some reason, I didn't. The next thing I know, my 1200 to 1300 down to 800+. I was so sad, but now, I'm taking any profit again. Once I gain my loss, I will invest the money into either XRP or ETH.

So the best thing to do is to take the profits, especially if you're a beginner like me who knows only the basics. Take the profit and use that to buy once the price is low.

Don't ignore the Stop Loss

In one of my previous articles, I did mention that it's better not to enable the stop loss when doing a trade. I did say that after failing my first trade because of the stop loss. I could have saved my trade if it wasn't enabled.

For some scenarios, not enabling it allows you to bounce back, but this is pretty risky. You could have lost it all in one trading, which is why if you're not the risk-taker type, the stop loss is a necessity. Better lose some or majority than losing all.

Unfortunately, in my previous trades, I was determined to go all out, so it was a "win or lose" game for me. But I've learned my lesson now, and after reading an article a few hours ago, I might consider using it the next time I trade again.

Don't stop learning

Keep moving forward. When you fail, don't stop. Only stop when you're no longer willing to take chances, or you're a millionaire or something. Keep learning. Keep feeding your brain with information you need to know and don't be afraid to ask questions.

PS: Just want to share my observations based on my personal experience.

And just want to thank @Jane @Eybyoung @Eirolfeam2 and a few others for being an inspiration. Hats off to all of you!

**All photos are free images from Unsplash.