For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).
This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.
Let’s get started…
Don’t FOMO in to all the hype
It’s hard not to FOMO in crypto. The trick is to make sure you don’t lose your shirt in crazy bets. Always limit your bets to what you are comfortable losing.
The common ways you can become victim of FOMO are:
- Following your favorite YouTuber without actually doing your own research on the project.
- Investing into projects at the top.
- Believing in promises of 100x or 1000x without any substance behind those claims.
HODLing far too long
Remember why you are into crypto – to make the money.
Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.
Have a strategy to take your capital out before you become a HODLer.
If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.
One of the best ways to HODL is to take your capital in full and profit in tranches.
This rekt story will give you a right perspective of what it looks like, it’s one of many:
Educate yourself. There are so many stories like this.
If you don’t like my course, take somebody else’s but please don’t become genius too early. https://t.co/4oZUYA3eGH
— CTO Larsson ? (@ctoLarsson) November 8, 2020
Don’t put all your eggs in one basket
Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes.
And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.
And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion.
Put aside the share of Profits for Taxes.
One way you can get a good night’s sleep is by paying taxes.
Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations.
Exchanges are more evil during bull run
Don’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical.
Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell.
And the shady exchanges scam out before you know.
Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.
Exchange may freeze funds pending investigations when such issues arise.
Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.
Never fall for Arbitrage gains
Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits.
Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out.
Remember, there is no free Giveaway
Scammers rise with the rising market.
When the crypto market buzzes with all time highs – scammers cash in big time on newbies.
The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention. Read this article on various sophisticated scams that are being deployed.
We hope these lessons help you through your trades and crypto life. Stay safe and always DYOR.
Thank you for reading and sharing this article. We appreciate you.
Stay safe and healthy!
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