Hello friends, I guess majority of the people who entered in the crypto currency market joined in the all time high of
bitcoin which is in December 2017, including me.

Now that this one rookie mistake was not enough, I have made more mistakes that you can ever imagine. We all have made mistakes which cost us our dear money but gave us priceless lessons.

For those who are going to enter now or are thinking to enter, this post will help you in being alert of what you should not do in order to become successful in the cryptocurrency field.

Never buy when the prices are high!

“Oh come on! Its common sense! Who would do that?”
Yes it is common sense but as Human Beings, when it comes to purchases, we buy more out of instinct, emotion, FOMO than logic and common sense.
When we see something that is going up in price, we jump in at that time. It’s better to stay away from the market than to invest at high price.
As Warren buffet’s famous quote: “Buy when others sell and Sell when others buy.”

Never buy anything in one single shot!

This is one thing I realised very late. A simple term for this is called as Dollar Cost Averaging.
Imagine you bought a coin at 80 when you thought it was in a dip and after few days, it plunged to 50.
Now, if you had the extra money/currency you could have purchased it again and averaged your cost of the coin to 65.
So always try to avoid FOMO and give yourself the luxury of Dollar Cost Averaging.

Selling one coin in LOSS to invest in another!

As I was new to the cryptocurrency world, any coin which showed 100% jump or more, I would sell one of my existing coins and move into the new one, only to get a major setback and loss.
I have made these errors 2 to 3 times and let me tell you, the end result was not good. Not only did I lose money in the process, I lost my position in the coins which had superb potential.

Chasing the price and not the Coin!

It’s very easy to look at price and buy stuff in the beginning, but it will take minimum effort to study a coin and then invest in it.
Researching the coin is so important because it will show if the coin is a diamond, or shit coin or a scam coin.
Two examples of my mistakes are Pac coin and Bit radio. The former was a pump and dump coin and the latter were delisted from all the exchanges.

Understand Day trading vs. Short term-long term investing!

You can understand the difference just by reading the heading. Choose which side you are going to adapt yourself into.
If you have lots of time and no other work and can dedicate 8 to 12 hours to crypto trading, you can be a good Day-trader.
If you have less time and have other things to do such as a job or you run a business and are busy, term investing is the way to go.
However, one major thing I noticed is that, day traders also have few long term positions in their portfolio and term investors also sometimes day trade for a quick buck.
So my advice is never go 100% day trading or 100% term investing.

Don’t be greedy!

It will make you lose money. Period. Cryptocurrency markets is the only field where you can easily 2x 3x or even 10x your money in one year and that return is mind boggling. What I have observed is that many people view it as a get quick scheme or some kind of lottery.
Yes, there are people getting 100x returns in 10 days or 1 month but these are mere results of luck, inside information from the coin, pump and dumb groups, etc. For us common folks who are dependent on themselves should not set unrealistic goals. It’s better to gets 2x or 50% in profit than getting 10% of loss.

Seeing ICOs as a way to 'get rich quick'.

In the begining I use to see and think ICOs are a way to get rich quick. i saw an ICO launched the token and it went 100x in 1 day after hitting exchange and i would just feel that i missed a opportunity and would think that in any next ICO, i would go all in.
But educating myself, i realized it was completely opposite to my beliefs.
ICOs are long term investments in general.
You are investing in the future of a protocol/ token/coin/vision of the team.
Most of the ICOs are outright SCAMS.

Setting unrealistic goals.

I would like to compare this to bodybuilding.
Bodybuilders taking steroids can increase their muscles 3x faster than natural bodybuilders.
But at the same time when they come off of the steroids, they lose their muscle 3x faster too unlike the natural bodybuilders, who have small yet steady gains throughout the years.
Most people who entered the market in December 2017 cannot make so much profit that they can buy a ‘Lamborghini’. Even most of the people whom you see successful in this field are in the Cryptocurrency market from a long time.
I would advice to give yourself at least 3 years of time before you can ‘imagine yourself in a lambo’ and go to the moon.’

What about you?

These are some of the mistakes which I made. Comment below some of the mistakes which you made in cryptocurrency market and trading.