Few days ago I made a post about how I gained 50% in a week but now let me show you how I managed to lose almost all of it. Crypto trading can give you some fast gains but if you’re going into it with hopes of getting rich overnight.. you WILL get burned.
1. Be impatient and panic sell!
On this weekend made my research, all into market volumes, dev teams, recent releases, how good the tech is and I had carefully chosen out to diversify between three altcoins as shown below
Now.. If I had only waited for 2~3 days then I would’ve made +50% with XSPEC, +25% with ARK and +20% with OMG. Three out of three. Instead, as you can see on the graph, they were all on the red and I panic sold. All of it. I paid the fees and accepted to sell these at loss DESPITE being 100% sure and researched that these coins have a bright future. Emotions got the better of me. What did I buy into instead? On to my next lesson.
2. Buy at ATH
I did my research, but this time, I wanted something safe. I looked at all aspects but I was extremely tempted by extremely small circulating supply combined with a long-lasting positive trend. GBYTE has 600k of circulating supply and DGD 2 million of max supply. Something that is already growing but in such a small amount (compared to XRP, XVG or ADA that are in billions and still grow in value) can only grow in value, right? Basic economy 101: supply and demand. So I buy into these:
And sure enough I get burned again… I bought of these at absolute ATH (all time high) which is the biggest trap a newcomer can fall into it. Remember, buy low and sell high. If it’s currently high then it means the ship has sailed. Saw a news on Facebook, CNN or Reddit about a promising coin? This means you’re already late to the party.
3. Always rush crypto trading
This week I did a critical mistake, actually two, I went home at a lunch break from office to change some trades, I wanted to hop on QTUM mega spike, i looked it up on coinmarketcap and it said Cryptopia has it. So I quickly sold what I had in Bittrex and transferred this to Cryptopia. How quick? Well, BTC is slow. LTC takes 30 minutes. XRP is not present in Cryptopia so I used DGB… but it was so hard to buy and sell DGB due to huge amount of day traders making mini profits. I had to overpay and sell at a loss to transfer from one platform to another combined with both exchanges transfer fees. Then I typed in the coin in Cryptopia and bought it… only to find out I bought EQT instead which had a mega pump at the moment and when I noticed it had already started dropping. And it was so hard getting rid of the bags and I needed to run back to work. So I sold at a strong loss. Again. Don’t rush it. I made so many mistakes and just threw money away.
Learn from these.
Sweet bonus: Oh and… since you did read this post let me reward you with three extremely underrated coins that either have solid tech, an actual product or a very marketable roadmap: CLOAK, CRW and MAID
PS! If you want to keep me writing my noob journal of my rookie experiences of crypto trading please leave a comment and leave suggestions of what you would like to see more. I like to keep things extremely short, simple and on-point.