I am new to crypto and I see a lot of posts from other new people as well. Which is great, the more mainstream crypto becomes, the more gains we can possibly make.
What I will advise is only based on my opinion as someone who bought his first coins around 2 months ago.
Disclaimer: these advices are not financial advice, and are aimed at fellow newbies.
- Avoid clickbait videos
I started learning about crypto on YouTube. First I was watching everything, and obviously I stumbled across videos with flashy thumbnails. BUY BEFORE IT'S TOO LATE, LAST WARNING, XY token 638% gains.
It all sounds amazing but please think for a second how these youtubers make money. With hype, clickbait. Obviously a title saying "XY coin moves sideways for now" is not a title that will bring a lot of views. There are big "prominent" channels that spew nonsense, just to hype people into a certain token.
And the result will be disappointment in many cases, which will just lead to people selling the given coin after a few weeks. It is bad for business. There are good channels, which rely on TA, and besides the possible upside, they will tell you about the possible drop as well. (For which you have to be prepared mentally.)
- You are not the next wolf of the Wallstreet
Most people who get into crypto, especially alt coins are average Joes. I work in a callcenter for example and most people I know that are invested in crypto are simple folk with average education.
And this is fine, in fact a good thing, that average people get interested in finances and want to make another income next to their 9 to 5 jobs.
But this also means that you have to be humble when it comes to your abilities in trading. Just because you watched a few TA videos (like I did as well) you don't magically become a master trader. People spend years or a lifetime to learn this profession. And even they don't make successful trades all the time. Learn, develop yourself, you can find a lot of useful information on the Internet. But handle it with humility, knowing that you are not the smartest person who just unlocked some hidden truth.
- Invest in projects
Now this is something that I heard in the beginning, but did not fully understand. Now I get it. There are thousands of tokens and many of them promise you quick riches.
But there is a difference between investing and gambling. If you just buy coins that have no practical use in real life projects, you just got into gambling with extra steps.
My first ever coin was Doge. :) I practiced transactions with it, learned how to buy, exchange, send, receive, etc. If I would have kept my money in Doge, I would have more money now, that is for sure. Yet I don't regret that I moved my money into other PROJECTS. (Personally Cardano, Zilliqa, VeChain, bit there are plenty more) I feel like keeping my money in Doge would have been a gamble. You cannot possibly predict that a meme coin or shitcoin will moon. With solid projects you are still gambling, but to a lesser extent as there are timelines, events that can increase the value of your portfolio.
- Not every single event will raise the value of your tokens
There is a lot of going on with crypto projects, lot of announcements, development. But not every of these will moon your coins. Just as an example. Let's say your coin's team tweets we are negotiating with McDonald's, will not necessarily increase prices. Some teams like to overplay these news.
A negotiation can mean many things. It can be a contract, but it could also mean just a scheduled meeting for a presentation. Like I said in the title, don't let wishful thinking get the better of you. Don't get disappointed that tomorrow you won't wake up as a millionaire after these amazing news.
Yes, negotiation means they have a plan, a vision, which eventually can lead to adoption. But it can also mean many other things. For example just becase a company is interested in blockchain technology, ot does not necessarily mean that your token itself will become a payment method. (Which could actually raise value)
- Be patient
One of the hardest thing to learn in trading was the perception of time for me. My initial mistake was for example selling high, and planning to buy low. However these changes can take days. If you trade as a hobby (because for most of us this is a hobby) you don't need to make money every day. You sold high, you can rest your money in a stable coin for example and wait possibly days for a dip. Maybe this is just me but I started to get fidgety after a few hours, and while I gained some, I could have gained more if I understand how time is in crypto.
If you are unsure in your trading abilities, then just hodl. I do the same.
- Wishful thinking
Yes, I want my ADA to be the next Bitcoin, I want to be a millionaire. And I want it now. Anyone who tells me about market cap, and that ADA can be only 6-8-10 dollars, and it will take years, is automatically an asshole.
Don't be this guy, don't get upset or rude just because someone tells you an opinion about your token of choice that you don't like.
- Prepare for bear season
Now I'm new so I don't have much to say about this, as I bought my first coins in the bull market. But one day the bear cycle will start probably. This is normal. And know about it. At one point people will start to sell, reap profits, and prices could plummet. But if you decided to hodl, then hodl unless you need that money that is more important. I am just putting this here because there are a lot of new people and might get surprised and panic one day.
Well this is it, if I said something stupid, feel free to correct me. These are my general thoughts as a newbie. I wish huge gains for everyone.
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