Most People Will Suffer on Their Bitcoin/Crypto Journey

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2 May 2022
129


I first got into crypto in 2017.

I’ve seen my portfolio 7x.

I’ve seen my portfolio go to zero.

I’ve been through the pain of buying alt coins and seeing them dump. I’ve been through the pain of over-leveraging myself. It’s been a roller-coaster.

Why?

Because I wanted to get rich. Just like you. And in that pursuit, that desire sometimes got the better out of me and made me poorer.

It’s counterintuitive. But through one scope of analysis, the more you desire wealth — the poorer you become. Let me explain.

You start chasing. And chasing. And the chase never stops. In that pursuit, you take on more risks. And more. And more.

You make mistakes. You learn from the mistakes. Then you make the same mistakes in a different form. You learn from those.

Nothing about this crypto game is easy. It sells us the illusion of quick wins.

But in reality, for most, there’s a lot of pain along the way to becoming a good investor or trader. You’ve most likely underestimated how difficult this journey can be— and I can tell you that you’re not the only one.

Our negativity bias means that we register a greater emotional impact from a loss of an equivalent amount far more than the gain of the same amount. When I was up 700% — it didn’t make me that happy — but when that 700% came down to a 500% increase it made me despondent. This just goes to show how the market can play with our emotions.

We’re dealing with superintelligent AI based on the amalgamation of market sentiment across different asset classes + economic policy + a wide variability of human decisions — combined with our own flaws and human biases.

It’s a tricky game to play.

My Top 5 Key Lessons from the Last 5 Years

  • Avoid alt-coins like the plague — unless you’re confident about timing the start and end of alt season
  • Don’t be afraid of selling a portion if you’re in profit and then going back in at a later point if you need the cash
  • Aggregate multiple sources of information — but not too many. Do not follow 10x YouTubers for example — you’ll get lost. Have 3–4 key people in the space you learn from who contradict each other at times so that you avoid tunnel-vision
  • Study the rest of the markets outside crypto — they’re connected
  • Invest in your education — a small amount paid upfront could save you much more



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9 Comments

B
MBA ChitChat
Thanks for sharing your experience. I like your conjecture on that We’re dealing with superintelligent AI based <--- I believe this !. I always wonder why the price charts of most coins follow very similar patterns ? That's not possible without the computer aided trading.
Miguel
Interesting read! I say that cryptocurrencies are not for the faint of heart! The volatility can make your stomach churn, and it's a roller coaster ride. If you're looking for stability, crypto is not the place to look.
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