As they say, we always learn better from our mistakes. The way this mantra is true for our lives, it is true for Crypto trading as well. The initial days of my Crypto journey are also full of mistakes.
But after making mistakes, I come out with stronger strategies, which get me $100k in just three months. So I thought of sharing my mistakes and strategies so the beginners do not make the same mistakes as me and end up losing all of their investment.
How I Learnt From My Crypto Trading Mistakes
In my initial days in the Crypto investment world, I have made a number of mistakes; I am listing them in this article. Later, I found the bitcoin revolution, which has helped me in channelizing my investments and gaining more returns.
Knowing these mistakes will keep you far away from doing them. When you know the most common mistakes that most beginners or even, in some cases, experienced Crypto traders usually make, you will be able to develop your own winning strategy.
1. Not Having A Plan
When I started investing in Cryptocurrencies, I did not have any plan. I was just going with the hype, asking my colleagues and friends where they are investing and how much they are investing, and following their path.
But the return one wants to get varies from person to person. You might want to invest for a shorter-term; on the contrary, I might be interested in long-term profits. So, first, be very clear about what you actually want, and then develop a proper plan to achieve the goal.
2. Buying Cheap Coins
There are thousands of Cryptocurrencies in the market. So, as initially, I did not want to lose a huge amount, so I opted for a cheaper coin; I am not revealing the name of the coin here. However, it was not obviously Bitcoin or Ethereum.
Remember that cheaper coins do not have the potential to get you the desired return, just like Bitcoin or other Crypto assets. Plus, they do not come with a properly built mechanism and are not secure at all.
3. Relying On Luck
Due to the volatile nature of the Crypto world, I used to think that it is all about being lucky and unlucky, which is true to a certain level. But it is not at all about just luck. It is about proper knowledge, understanding, and planning.
So, rather than relying and leaving everything on your luck, be very active on different Crypto platforms, websites, and news platforms. Get as much knowledge as you can. On the basis of your knowledge and experience, develop your own strategies, which will work for you.
4. Not Diversifying
I used to have a bad habit of putting all my eggs into a single basket. And one day, accidentally, I dropped the basket, and all my eggs were broken. You might be thinking, why am I telling you this irrelevant egg story?
It is because you should not invest all your money in one single Cryptocurrency. Instead of that, diversify your investment in several currencies, which have the potential to perform well. So that in case one does not pay well or fails to perform, you will have other resources to get the money.
5. Buying High Selling Low
Before the pandemic time, when the Price of Bitcoin was decent, I invested a considerable amount in Bitcoin. Later during the tough time of the global coronavirus pandemic, when the price of Bitcoin started to fall, just like most of the traders, I sold my coins at a lower rate.
Thus, basically, a part of the invested amount got wasted. After a few months, the price started to rise again and reached its peak and made the record for reaching the maximum value. This is why you should wait before selling the Cryptos you bought at a higher price.
Earned $100K In 3 Months
After committing so many mistakes, I started to plan accordingly using the right Cryptocurrency exchange. Now guess what? Within only 3 months, I ended up getting $100k as the return for investing in Cryptocurrency properly.