How I Started My Crypto Investment Journey
I started my crypto journey in May 2021 after reading some articles and watching some videos. Earlier, I was skeptical about investing in cryptocurrency but the more I read and watched about it, the more I became confident about investing in it.
One day while surfing the internet, I chanced upon a 2 day workshop on cryptocurrency; without giving any second thought I joined and attended it.
Later, I joined some courses too and learned more about this. All this while, I learned and unlearned many things and would like to share
‘Top 3 Crypto Investment Mistakes‘ which I made in the last 10 months.
1. Investing before understanding cryptocurrency: I started my crypto investment journey with a huge mistake. I got to know somewhere that people are minting good money by investing in Matic cryptocurrency. It was during May when the alts were at their peak price. So, I invested a huge amount in Matic and some other good tokens in one go. And we all know what happened later. The trend changed and the market went down for a few months. I did not follow basic principles of investing: DCA (dollar cost averaging), stop losses, profit booking. And so my money got blocked and I kept waiting for the market to bounce back. Though the market recovered and I made profits, I lost the opportunity of making more money with my blocked money. So, before investing in crypto, one must understand the basics of investing, and cryptocurrency market trends and cycles and more.
2. Taking too much risk: Veterans of cryptocurrency always say that invest only that much money in crypto which you are okay to lose. Well, they are right if one is investing in a project which doesn’t have any utility and isn’t backed by any authority figure. Some people gamble when they take too much leverage. We are aware how volatile the crypto market is. Any news can make or break the portfolio of an individual with a high leverage. Some even take loans from family and friends to invest and trade in crypto. All these are risky ways of investing in crypto. The right way is to take measured risks and be mindful of your choices.
3. Not taking profits: I have been through some instances, when I made 50X and 25X profits overnight but with hopes to make more, I did not cash it out and lost that too. To make money in crypto, you need to have a proper cash out strategy first. With proper risk management and a plan to take profits at set levels is the key to making regular money from it.
I hope sharing my mistakes here would help you in making less mistakes of your own!
“Intelligence is learning from the mistakes of others.”
P.S. – “I am on a mission to create more financially confident women in India.”
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