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My $100,000 Crypto Journey and the Lessons it Taught Me

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My Crypto Journey

My $100,000 Crypto journey and the lessons it taught me

Lesson: ‘Not taking profits is a sin’

How I got into Crypto?

My first contact with cryptocurrency was when I was asked by my brother to attend a blockchain seminar. 

To be honest I was nowhere near understanding what it all meant.  

Later my brother talked to me about how he had invested a few dollars in a project called Ethereum that tripled in just a matter of weeks.

At the time this was a big deal. We were spending money on other business ideas but nothing was reaping any revenue.

And here comes cryptocurrency that tripled my brother’s small investment.  

You could say this greed got me started which led us to learn more about cryptos, and then came the ICO craze.

2017 ICO craze

Blockchain, ICO’s and smart contracts sounded gibberish

I felt like a new kid at the school. I was not able to understand what blockchain is or what ICO or smart contracts were.   

It took me quite a while to understand the concepts of this new technology. 

What helped me the most?

I found that the best way to learn about blockchain was to be active in communities such as Reddit,  Telegram, Discord.

Slack was quite active back then. And, of course, YouTube helped me gain quite an idea of what cryptocurrency, blockchain and ICOs were all about.

My first ICO

My first experience buying tokens through MyEtherWallet was Aeternity at 30cents per token. 

I still remember how MyEtherWallet, Gas, ICO, Ethereum address, Cryptocurrency, Tokens all sounded too alien to me. 

Wasn’t pretty sure why the private key was so crucial.

Aeternity

Trust me, it was so easy for anyone to just talk to me into giving my private key, that’s how naive I was back then. 

If the current giveaway scams were to happen then I would have handed over my private keys in a jiffy.  That’s how naive I was.

Mistakes I made

cryptocurrency investment mistakes

You could say I have made a lot of mistakes since 2017.  There were so many of them that I would have to categorize them.

  • FUD Missing out on an ICO 
  • Lost Keys
  • Got lured into scams
  • Missed token swaps
  • Keeping tokens on exchanges that went down
  • My Biggest losses

FUD Missing out on an ICO 

2017 saw a sharp rise in ICOs.  Projects with half baked whitepapers were selling like hotcakes. 

I was part of the investors who had their ETH ready in the wallets to take part in any ICO. 

I was ready to invest in projects like Monetha, CargoX and others. They would sell out in a matter of seconds.  I felt missing out on these ICOs that 10x’d immediately after getting listed on the exchanges.

Was ICO the best Investment?

In my experience, ICOs yielded great return if you were smart to cash out.  Those who held in the hopes of bigger moons lost their money when the project eventually failed. 

It is the project development and actual use case that will determine the price to rise or fall. 

Projects with a good team that solved a real problem were the only projects that saw some future after the ICO.

Sure Weight Loss

Lost Keys  – My first Monster mistake

Mistakes are bound to happen, but when it’s a matter of your life savings, it does hurt very hard. 

One among many such incidents was Monsterbyte ICO. 

Monsterbyte ICO

I purchased around $500 (In India this is more than 2 months of income) worth of tokens. 

I did not pay attention to the mnemonic phrase which was given before creating the wallet for making the purchase. 

All I thought was my username and password was all I needed, this grave mistake meant it was impossible to access my tokens.

Looking back, those tokens would be worth nothing over time but when this incident happened it did hit me hard.  I lost sleep over this mistake for days.  

What happens if I lose the mnemonic phrase?

I know this might sound disheartening, but the fact is there is no way you can retrieve the lost seed or private keys. 

Find a way to store them safely as ownership of your tokens depends on your private keys/mnemonic phrase. 

Got lured into Scams

2017 was the year of the crypto revolution, or so I was made to believe. 

The crypto projects had their community discussions mostly on slack. At this point, the slack was so prone to phishing and was getting hacked easily. 

Slack community

Someone would hack Slack channels and lure the unassuming investors into believing that the team is giving away rewards and free airdrops.  

Many fell for this slight of hand. I was one such victim at the time.

Missed Token Swaps

This is something new to any investor in crypto. While I was aware of the mainnet and token swaps, I just missed the boat because I was not paying attention to some random announcement. 

As a result, I lost some of my tokens to the mainnet swaps.

In general, the projects give you a certain time frame to swap your tokens with their mainnet tokens and once the time is elapsed then un-swapped tokens will be burnt, in other words are useless. 

I missed swapping a couple of projects and lost my tokens. 

To avoid this, I suggest you to get on their telegram or social channels from time to time to keep upto date with the project.

My biggest losses

In spite of my due diligence, I did fall for a few elaborate advertising tricks, scams and some projects that never took off.  Here are my big bad decisions:

  • CoEval (Monkey Capital): This ICO was my second biggest investment in 2017. There was so much promise and hype surrounding the project.  

Some websites even regarded it as Platinum ICO.  Who knew, you could buy that ‘status’ to screw the investors.  

  • Bridge Protocol: One of my biggest single investments in any project to date, Bridge Protocol is not a scam but it never took off.  It did manage to turn my $18000 into $380.  

It is easy to lecture my past self to NEVER go all in.  Hindsight is always perfect.  However, 3 years later I am still paying the loan that I took to get invested.  

  • HODLING:  While Bridge Protocol is a single biggest investment failure story of mine, it doesn’t come anywhere close to the losses I incurred because of FOMO. 

I lost a fortune for not having an exit plan.  I kept hodling even when some of the projects I picked 130X.  Yes, that’s right.  I was so naive in the space that I did not know that I should cash out.  

Which is why I say ‘not taking profits is a sin.’  If there is any bigger sin than not taking profits then it is ‘trying to time the market’.  

Now, I just have a target price to enter and exit.  I am usually on the money with these targets and I simply get out.  Never to look back.  

This may not be a great strategy but it is a strategy that works for me.

Never trust exchanges

Cryptopia newsI was too lazy and let my tokens sit on exchange and paid the price. 

Remember Cryptopia? 

When Cryptopia shut down it took my tokens with it.  

This is not an exchange problem though.  

It is a problem of not having discipline when I knew the crypto commandment: “not your keys, not your tokens.” 

Even the biggest exchanges are not safe to hold your crypto. 

Exchanges are just meant to trade your crypto and once done you have to safely move your tokens to a wallet that has your private key.

Jackpots I hit and the Coins that went Boom

ICON ICX ICO

My story is not all doom and gloom.  

In 2017, I got into ICOs like ICON and Bitquence.  

The ICON was sold around $0.11 per token in ICO and it went up to $12.64 during the bull run. However, I did not cash out. 

Bitquence which is now called Voyager was sold at $0.04 per token during ICO and it went up to $10, which is a staggering 250X. And I did not cash.

Free Crypto

Ontology Airdrop

I was fortunate enough to subscribe to Ontology airdrop and got free 1000 tokens. At one point, these free tokens were worth $10,000.

As you may have guessed, I did not cash out.

You could say I used to suffer from a serious case of FOMOtitis.

Lessons learnt

The Golden rules of Crypto

rules of Crypto

When all is said and done.  While I am sad that I did not cash out when I should have or avoided the investments in scammy ICOs, I do not regret my journey so far.

In the past 3 years, I have grown as an individual and never had a boring day, thanks to the Cryptos.

Even those who are making millions may not say that they never had a boring day with the same gusto, sincerity and confidence that I can. 

Crypto continues to educate me and I am wiser because of it.  

I am passing on my hundreds of thousands of dollars worth lessons that I learned so far below.  

Not to preach you.  No.  Just for your consideration or amusement or both.

  • FOMO – Don’t fall for the hype

If it is too good to be true, especially in the crypto space, it may not be true. Tread carefully.

  • FUD

Lack of research is the number one reason why people fall for FUD.  

If the fundamentals are strong and nothing indicates otherwise, there is simply no reason to fall for FUD.

Another thing is to always have target entry and exit prices.  If you are in something for the long-haul then always use the ‘dollar cost average’ to keep stacking.

It is a better strategy to accumulate over time instead of buying all at once.  If you get lucky, you could buy all in at a low price but what if the prices go even lower?

Dollar cost averaging seems to address that issue.

Once you have set the target for entry and exit, always execute on it.  Never let your emotions come in between your trades.

You can pour your heart into a project but always trade with your mind.

Here is an article on FUD and FOMO you could benefit from.

Other lessons I have learned include:

  • Invest only what you afford to lose
  • DYOR before investing
  • Have an entry and exit targets and execute on them (yeah, I know, it bears repeating)
  • There are no free lunches – never fall for free giveaways
  • Until the crypto space figures out a way to avoid this misfortune for investors, stay up-to-date on projects so you don’t miss on the swaps
  • Never trust exchanges
  • Always have two factor authentication
  • Keep track of your trades and get your taxes done.

Taxes, do not forget them

Keep track of your trades for taxes

  • If you think you can track your trades manually, think again
  • Use crypto tracking and tax calculator software like Cointracking.info
  • Do not try to evade taxes, millions are not worth your peace of mind
  • Although death and taxes are not inevitable – only one of them you can anticipate

It is easy for someone reading this to pity me.  Please do not.  I was sad for sometime but I never regret my crypto journey so far.  In fact, I am more excited now than I was in 2017.

Why shouldn’t I be?  I have the life lessons to carry me through now.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

best Crypto Tax Software

 

Sure Weight Loss

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

CryptoSpace

Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

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

FomoIt’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:

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

Foreign ExchangesDon’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

Free CryptoScammers 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!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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