After getting into cryptocurrency trading back in 2019, I have seen multiple crypto crashes so far. Secondly, I am a holder of altcoins, and I have lost thousands of dollars in holding altcoins.
After losing a lot of money, I realized that I am making some mistakes and that’s why I am at a loss. I should understand and change.
After analyzing, I realized a few of them. And I have learned the 6 biggest cryptocurrency trading lessons.
The lessons I learned are already said by experts, so there is nothing new. Although, we don’t learn unless we make mistakes ourselves.
I thought to save the lessons so that I don’t make the same mistakes again. And also compare it with my other opinions in the future.
This blog is not financial advice for anyone. Although, beginners can understand from the given examples, and save their investments.
Let me share my story a little bit.
Once I started acquiring crypto, I bought from the top 10 to 20 coins. That period was crazy and everything was going fast.
I had started with 350 dollars and it was 600 the same day. The same investment went to 1200 dollars in a couple of days.
I realized that crazy things happen in crypto. As crypto has a future, so it’s worth investing at least to some extent.
That 1200 started coming down, and it was the time when the first crypto crash started in my crypto experience.
I had no idea that Bitcoin has a pattern to follow, the pump and the dump are part of it. As being ignorant, I started adding money in crypto. I was focusing more on Bitcoin and I had a reasonable amount of it.
I had no idea that the Bitcoin crash has been started, and it was not a safe time to invest.
It was a time when still many altcoins were pumping. Especially, meme coins. Now I started buying meme coins.
Making a long story short, I lost some reasonable amount in the meme rug pulls.
Later on, I learned to find profitable cryptocurrencies. It made me realize that it was not wise to invest in a pump and dump coins. It’s even better to find some coins with strong fundamentals.
I realized that MoonRabbit has strong fundamentals and it’s worth holding. But I didn’t realize that there is always a buying time, and it was not the right buying time.
There is also another worse thing about MoonRabbit that I have discussed in the last lessons.
Well, after making so many mistakes, here is what I have learned.
On this page
The safest coin is Bitcoin
As Michael Saylor said, there is no second-best coin, and it’s true.
I was in crypto when Bitcoin was below $4000. There have been many dumps in its history but still, it’s at $30,000 today 16th May 2022.
Even if it goes to 14,000 again (the expected price for this dump), it’s still many times higher than it was 2 to 3 years ago.
Secondly, the best thing about Bitcoin is that it has a limited supply, and it’s the only decentralized coin.
It’s what I have learned if you don’t want to gamble with your investments, the safest coin to put your money blindly is Bitcoin (in this price range).
And there is no second-best coin.
Still, if you believe that you need a second coin to put your investments safely, it’s $Eth for sure. Although Ethereum has also faced a huge dump in its history still, it’s the only second option that’s safe.
All other coins may or may not be safe. So if you want to hold your coin for long, I can’t suggest any other coin.
This is the first lesson I have learned after losing sound money in altcoins and memes.
Always wait for the right buying time
What goes up must come down. It’s the wisest advice for all crypto traders.
We see that many coins are making 5x and 10x a day, and we are in a hurry to buy them.
If something is already up, never buy it.
No matter how excited you are about the coin, it’s never wise to buy a coin when it’s up. Wait for it to come down.
Look at these two examples to see if it’s true or not.
I have seen $Vet and $Doge was running hard a year or two ago. It was the period when everyone was thinking that both will tough $1 soon, and it was coming true for both coins.
Elon Musk was behind Dogecoin and Vechain has strong fundamentals. Who would not believe in such coins?
But today, $Vet has touched 2c and $Doge has touched 8c.
If you have been greedy in buying coins when the coins were up, and you Hodled or staked. You must have been at a huge loss.
The same story is for $Sol and many other coins.
So the second biggest lesson for crypto trading is that always wait for the best buying time. And the best buying time is when everyone is waiting for the crypto market to die.
Always play with Stop Loss
It’s the third biggest lesson I have learned in crypto trading.
It’s true that Crypto is highly volatile. You can’t guess from where the market will reverse and you will miss the chance to buy or sell the coin.
But at least you can play with SL (stop loss).
If you analyze a coin and believe that the coin will not go down below the second support, then keep the second support as your SL.
If it went down, you should wait for it to see the actual direction and then get into it again.
Sometimes, it takes weeks to see where the coin will go. In the meanwhile, there are thousands of other coins to trade with.
Never invest more than 50%
It’s another biggest lesson I have learned in crypto. Balance your crypto-fiat ratio.
I understand that when coins are going up, we want to take profit on all the money. Why keep 50% in fiat?
If you too don’t keep in fiat, you can’t win in short-term trading.
If you are a long-term investor, you may or may not win. Because now it totally depends on the coin in your wallet. Say it’s Bitcoin you will surely win.
Take temporary benefits from the hype
Buying coins in the hype is a good strategy, but remember everything that goes up must come down.
So if you see that a coin has a hype, it’s wise to take temporary advantage and move on.
Say, there was a huge hype about GM Wagmi a few months ago. I thought that $gm would do magical things like $SHIB did earlier.
But once it started coming down, it was 200 times down from its all-time high.
The telegram admin said that the team is swapping and that’s why it’s coming down. But the question is why do you launch coins if you are not fully prepared for it?
The same question fits MoonRabbit. MoonRabbit is also 100x down and they say it’s not yet started.
Well, the wisest thing is to take advantage of the hype and move on.
Always see if the team is minting coins or not
I believed in MoonRabbit because of its fundamentals, and I still hold it.
But I have lost much in the MoonRabbit mint scam.
When it was coming down, the whole market was red. The admins in their telegram group never told its members that the team is minting $AAA coins.
If someone tried to raise questions, the admins instantly removed them. I was too removed from the group.
Later on, people realized that the MoonRabbit crash was not due to the red crypto market but due to minting. Once I realized it, it was too late to leave the coin.
Many are stuck in staking and they can’t withdraw.
The same thing happened with $LUNA. If you had staked Luna, you must have lost everything. It was 120 dollars a few days ago, and it’s not a cent anymore – it’s zero.
It’s said that there is no role of $LUNA founder in minting, but who knows?
Well, after these two scams, it’s the biggest lesson for crypto trading that is always to see if the team is not minting coins.
If they are minting coins, never touch such coins because they will never make you rich.
If you follow the 6 lessons I have learned in trading, you might not lose money in crypto crashes, scams, and rug pulls.