Are you interested in investing in cryptocurrencies? Here is what I have learned investing in cryptocurrency 2018. Hopefully this will help you to not make the same mistakes that I did.
So what is my trading history? I am investing in the stock market for quite a while. Actually, I am investing for the past 6 years. I had ups and downs. I am pretty sure we all had that. In this time I learned a lot. And in the end, I was pretty successful. Out of my 5000€ start investment I made 18.000€. Since there was a point where I was on just 1000€ I think my recovery was remarkable.
So I started investing in cryptocurrencies 3 years ago. And therefore I learned a lot. I want to share my knowledge with you. So you don’t have to make these mistakes.
What I have learned investing in cryptocurrency 2018
1) Don´t go all in
Before I started investing in cryptocurrencies I was really careful. A friend just told me 2 months ago that he made a lot of money with Bitcoin. I was surprised and of course, I wanted to achieve the same. So I bought carefully some Bitcoins. I stayed patient and invested some more lately. But that´s it. My friend, on the other hand, was overly hyped by cryptocurrencies. And when they hit 20.000 at the end of last year he said that it will hit 500.000 next year. So he went pretty much all in. We then saw cryptocurrencies dropping and with it his money. So NEVER go all in when you invest in cryptos. Even if it looks so promising that it couldn´t go wrong. My friend thought the same.
2) Don’t be scared
Talking about checking the charts every minute, every little drop will spread fear. But don t be afraid. If you took your time and did your research and came to the conclusion that your investment is good, there is no reason to be scared. There might be little drops but in the end, your investment will be successful. This mindset will save you a lot of nerves.
3) Don’t listen to others, do your own research
A lot of people love cryptocurrencies and the possibilities with it. They invest in it and hope for the better. Therefore there is an increasing tendency that they are only looking for good news. They are avoiding bad news and just spread the good one. It probably makes them feel better. That’s the way to delve into deceptive security. And this could be a reason for wrong investment. So never listen to others and their good news. Do your own research and look primary for the bad and not for the good news.
4) Don’t check the charts every minute
I know, watching your money grow gives you a good feeling. But checking the charts every minute won’t change anything. It will just spread fear. So don’t check the charts every minute. Instead, check for new news that can give you an advantage.
5) Don’t trust chart pattern analysis
When cryptocurrencies dropped at the beginning of 2018 a lot of people tried to convince other that everything is good. These are created examples of false chart pattern analysis. For every big drop, they pulled out their chart and said: “here it will bounce off”. But chart pattern analysis don t work that well for cryptocurrencies. They face a lot of regulations and other stuff that cant be implemented into charts. So never invest because you see an appealing chart pattern analysis.
6) Investing in cryptocurrency is gambling
Yes, I know investing in crypto sounds pretty controversial. But actually, it is not investing. There is no big company behind your investment. No management. No value that is generated. You just invest your money and hope it will go up. That is not investing. You can’t predict anything. It is gambling. So when you invest in cryptocurrencies keep in mind that is just luck.
7) Risk comes from not knowing what you are investing in
This might be the most important lessons. When I started investing I was hyped up by my friend. So I didn’t t think much about the technology I invested in. The reason I made money was pure luck. Later on, I learned everything about cryptocurrencies and the technology behind it. So learn about crypto and Blockchain before investing. This will give you an edge over others. And every successful investor will give you that advice. Before you invest in something, learn everything about it. As Warren Buffet said before “Risk comes from not knowing what you are doing.” If you are interested, here are some useful articles for you.
“What I have learned investing in cryptocurrency 2018” – Conclusion
Investing in cryptocurrencies is at the moment risky. The biggest cryptos declined 80-90% this year. I am pretty sure there will be more regulations and it will drop even further. Sometimes it is better to miss the chance to earn some money but not risk losing everything. Don’t get me wrong, I think blockchain will change the world, but we want it to grow too fast in a too short amount of time. So stay at the sideline and wait patiently. The right moment will come and then you can invest in cryptocurrency without big risks. And that is what I have learned investing in cryptocurrency 2018. I hope it will help you.
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