Whenever I read an article regarding investing in crypto, the authors usually mention for the readers to "Do Your Own Research" or "DYOR". That's because there are no definite indicators that will tell whether a crypto-project will succeed or fail. Even BTC, the #1 crypto doesn't guarantee success or failure until it happens. The crypto projects of today are products-in-progress.
Now that we have officially entered the altcoin season, there will be a series of pumps and dumps on a variety of tokens through this season.
Many are too excited to shill the tokens they invested in and will jump as the "Fear Of Missing Out" or "FOMO" kicks-in. I've been there and I had some regrets as well. I'm not saying that I'm smart enough to prevent myself from blindly jumping into a crypto-project and buy the token. In fact, I still do every once in a while.
Especially on the first week that BTC started its bullrun. As the tides change in the crypto world and so is my attitude towards investing. I tend to be sentimental on many occasions. Let me explain...
About 3 weeks ago, I invested a couple of bucks in $EASY token. It's DeFi token. And it's the native token for the EasyFi Network which is a direct fork of Compound. Easyfi network is a version of Compound in Matic Network. It's said to be a promising project because of the success of Compound in the DeFi space in Ethereum. Easyfi could prove to be better than Compound because it's built on Matic Network which will result in relatively low fees. There's an obvious strong point there. A reliable network, good product, and low fees; it's a no-brainer, right?
That's exactly the reason why I jumped in and bought some tokens. Also, I read good articles proving that it is a good project to invest in this 2021.
Starting on January 17th I started buying $EASY and bulking up my stake in BitMax exchange.
It took me less than a week to buy the tokens based on my plan. I don't intend to buy much since I know very little about DeFi projects. I don't even know the team that's working on this project. I didn't really go through a ton of research about the project. I just simply based my reading of 2 articles, sounds like a dumb move right?
After completing my token build for $EASY, it got to me that "Why did I buy this token with very little knowledge about it?"
And so a day after I staked all of the tokens, I immediately unstaked with a 1% penalty. Yes, there's an immediate unstake in BitMax with a fair amount of charges which they call penalty fee. I'm about to sell it off but since the price got lower I decided to just simply stake it again and earn some rewards from it.
So, because of my hast decision making, I lost 1% which is still fine since the staking reward is about 110%, I can simply recover that in 4 days.
And then 2 days later, I realized that BitMax stops giving the staking rewards for $EASY tokens. I don't really know the reason why but they just need without even giving me the notice. I guess that's just how centralized exchanges work, they just go for the changes without even consulting the stakers of the token in their platform.
Anyway, that threw me off big time!
And so I decided to unstake my $EASY tokens with another 1% penalty. It's really annoying.
At first, I sold 75% of my $EASY tokens thinking that I will hold it in case the price still goes up.
After 1 day, I sold the rest of the tokens because I was really annoyed about the cancellation of staking rewards for this token.
FUD kicks in...
And so I sold everything and never look back.
I bought my $EASY tokens at an average price of $4.43 per token which I sold at an average price of $5.20... not bad, right?
I thought that I would not look back but then I checked on the price a day after I sold everything and found that it dropped to $4.63... awesome! I felt smart for selling off.
On the 2nd day of selling off... the price rally to $6.68
Huh? So what, I made 20% and I'm already happy with that (in denial).
On the 3rd day of selling off... the price went up to $8.00, I'm starting to feel a little upset at this point.
I'm still in denial and telling myself it could have gone the other way.
On the 4th day of selling off, it dropped down to $6.64 :D
I knew it, that's the end of the rally, for sure. It's really a good decision that I sell-off. Lol
Yesterday, the price of $EASY tokens shoot up to $19.88, the ATH!!!
Damn, that really hurts :( Right now it's sitting comfortably at $15.87
Crypto has its way to make me feel I lose at something.
Even though I made 20% profit from investing in $EASY, I'm still having regret that I sold too soon that I could have gained 350% in Net Profit in less than a month.
Looking back at what happened, I realize that the lack of knowledge about the specific crypto that I invested in has resulted in my lack of trust and confidence that this token would make an outstanding performance in this bull run.
And in the crypto world, investing in a project or $token with very little knowledge about it is a dangerous game to play. I could win but I could also end up on the losing side.
It's always best to take enough time to study the project, learn about the team, vet through the proposition, and understand the defensibility of the project.
So even if I won in this round, I still regret that I didn't win enough. I'm just being sentimental about it and that tends to happen in crypto investing.
Anyway, it is what it is and I'm glad that I learned something from this experience.
I hope to be better at my next crypto investment.
Peace
Oh, I feel sorry for you :(. How many tokens did you have?