Novice in the crypto circle

22 Dec 2022

In the comments at my previous article , a reader asked this question:

"DeFi does not for me, not enough money to buy NFT, i only bought Ethereum coin. I missed the opportunity to multiply my investment ten times and one hundred times. Is it the only way for newbies?"

Seeing such a question, i remembered my own step-by-step process in this field, thought of the hardships i had encountered at the beginning of my first step into this field, and thought of too many opportunities that i had missed.

I think for most investors who enter this space, I am afraid that they are entering this space because of the bull market. Because bull market have no wealth effect for newbies, the vast majority of outsiders cannot rush into such a new field for investment.

As a first-time layman, with very limited knowledge, just entering a completely unfamiliar field, there will be the following two phenomena:

First, it is generally impossible to participate in activities with high thresholds. Specifically in this field, it is difficult to participate in DeFi mining or simply miss DeFi mining as this reader said.

Second, in the face of a dazzling variety of coins, it is impossible to start investing and judge coins, so it is difficult to seize various new opportunities and new tracks in the market.

Faced with this situation, different novices will behave differently:

Some people think that Bitcoin and Ethereum are too expensive to buy, so they buy altcoins.

Some will keep changing positions all the way, buying this one today and changing that tomorrow according to their own feelings.

Some people who are cautious feel that Bitcoin and Ethereum are too expensive to buy.

There are also some lucky ones who bought some coins according to the advice of their predecessors, and finally insisted on holding them and made money, but he probably doesn't understand how to make money at all.

Then we see after the bull market bubble burst, the vast majority of novices tasted the bitter fruit. And even if a few lucky people earn some money, when they think of the high returns obtained by others, they feel a strong sense of unwillingness in their hearts.

Therefore, no matter whether they make money or not, it is difficult for almost all newbies to leave fond memories of the first bull market they experienced.

I think this is very normal. It is a tuition fee that all novice investors have to pay on the road of growth.

Therefore, for all novices, after experiencing their first bull market, no matter what the final outcome is, there is no need to worry too much. They should let go of all kinds of emotions in their hearts and restore a calm state of mind.

But what about after paying tuition? Different type of novices investment thinking.

Most of the novices who lose money will leave this field, and in retrospect, they will say "that's hype" without hesitation; some have seen the drastic fluctuations in this market, and think that there is an opportunity here, which is more exciting than other investment markets. , So many people started to play leverage and contracts, hoping that one day, i will not only making all the money easily and also cover my past losses, but also get rich overnight, and the villa will be on the sea.

There are very few people who will carefully review their mistakes and wrong decisions in the process, and seriously accept their bad crypto investment decisions and correct them. For the new crypto investors the best advice is take the time to learn in the bear market, take the time to exercise your mentality, and seize the opportunity to plan for the next bull market.

Therefore, for investors who still have too many other coins in their hands and are not so confident in their handling, my suggestion is to take some of them and either exchange them for stablecoins and leave the market, or exchange them for bitcoin or ether.

I think in the end this kind of novice will eventually grow from a novice to a rational investor, and develop his investment into a long-term career that will benefit him for life.

Write & Read to Earn with BULB

Learn More

Enjoy this blog? Subscribe to CapitalThink


No comments yet.
Most relevant comments are displayed, so some may have been filtered out.