Some advice for Crypto newcomers

Background

With the last bull run that started middle of 2017, we saw a massive increase in newcomers to the world of cryptocurrency. In fact, I was one of them as well. I got into the space after an offhand conversation I had with an acquaintance who was describing how this thing called "Ethereum" was appreciating so fast and that there was no signs of it stopping anytime soon.

By the end of the conversation I was convinced that this was the future and I could do no wrong by pouring money into Ethereum. So, no research, no getting accustomed to how these markets work, not much of an idea on what a "wallet" was (Paper wallet? What even is that?), I signed up to an exchange and put in $1000 convinced I'll be a millionaire by the end of year.

I don't think it would come as a surprise to anyone that this was not how it actually came to be. The time I made the purchase was the middle of June, and as it turned out, that was the time the market took a downturn for Ether. Within a couple of weeks, I had lost over half of my initial investment. I felt like banging my head for how stupidly I had entered the whole market. I think this is the time when most people would have lost faith and exited the market licking their wounds, calling it all a scam and vowing to never return again. But, fortunately for me, I had been doing my research while my future "million dollars" were dwindling (better late than ever I guess). And instead of being convinced the whole thing is a scam, I was becoming more and more aware just how big of a fundamental shift this space was inevitably going to bring to the future of humanity as a whole.

I think most people tend to equate blockchain as a disruptive technology akin to services such as Uber and AirBnB.But what everyone should understand is that blockchain isn't disruptive, its foundational! The closest thing that comes close to the innovation of blockchain technology is the introduction of TCP/IP in 1972. Back then, TCP/IP gained traction as a single use case; as a basis for email among the researchers as ARPAnet [1]. I suggest you read this article by the Harvard Business Review which does a great job explaining how TCP/IP evolved over time, and how it and blockchain have much in common.

Anyways, now for the advice!

"Don't rush into it." "Start by paper trading."

Just..don't be an idiot like I was. It's easy to get carried away when you're entering this whole new world of trading where 10% daily gains is not only common, but sometimes even taken for granted by some. Don't let everything overwhelm you. There is much to learn and it can sometimes be an information overload. So, take your time before you commit your hard earned money into the market. You are an early adopter! Not much more than 1% of the world population is currently in the market. So there is no reason to rush. Take your time to get your head around everything.

While you are doing your research, start paper trading. This will prove extremely helpful to you when you finally decide to enter the market. What you should do is keep a written record of trades you would have made if you were in the market. So, if you feel like you would have bought in at a certain time and price, write down what price you would have entered at, how much you would have put in, and when you would expect to exit the trade. This would help you get an understanding of the market and how it works in general. You would also be able to see clearly which strategies are working, and which are not. Through this you'll be able to refine your trading strategies and give you confidence overall when you finally decide to enter the market. I can't stress how important this is. You will essentially be running a proof of concept on your trading strategies.

"Don't invest more than you can afford!"

Keep in mind that investing in cryptocurrencies is extremely risky. Part of being an early adopter is that it brings risk as much as reward. So please don't invest more than you can afford to lose!

"Have fun!"

Lastly, have fun! Making money is a game, and you should enjoy it. Don't let this consume your life. Remember there is much more important things than money. So, don't let the market consume your life. Find time to rest and relax as much as trade. Also, go have a read on 10 tips of money making by Robert Kiyosaki while you're at it.

_{Disclaimer: I'm in no way claiming that I'm an expert. In fact, I consider myself to be still learning. But I thought I'd put this up because I believe this is good advice in general that most people should follow when getting started. I'd appreciate your feedback as well. Thanks!}