2021 was a very special year for cryptocurrencies, especially for Bitcoin which reached its all-time high of almost $ 70,000. During this year I have made numerous mistakes in the area of cryptocurrencies and now, looking back, they appear very clear. You will say: "we have committed them all", but here today I will tell you about mine. Even though I've been in this world for several years now, I always have something to learn and I hope someone else can learn from my mistakes too.
1. Bitcoin
Bitcoin is (obviously) the project I believe in the most. This is why it is also the biggest mistake that I think I made during 2021. I am talking about an error referring to the fact that at the beginning of the year its value was about half of the current one and the growth estimate was very high, in accordance with the most famous models. Being a project that I studied, studied in depth and in which I had already decided to invest, I only regret not having fully believed in it, trusting what I had studied and my post-halving forecasts. If I had, I would certainly have bought more.
2. LUNA & SOL
Luna and Solana are two projects in which I believe and in which I have invested. These are two assets that have had incredible performances over the last year, thanks to their solid and innovative fundamentals. Here too, as with Bitcoin, I have decided to invest cautiously and against my sixth sense. I usually rely on logic more than feelings in investments and this has always led me to generate moderate profits and never losses. This time, however, if I had listened to my sixth sense and made more purchases at the beginning of the year, I would certainly have a bigger profit now.
3. "Not your keys, not your coins"
Those who use cryptocurrencies know the meaning of this phrase well: if you lose the private keys of a wallet, you no longer own the coins inside it. This is just what happened to me! Fortunately it was a wallet I used for farming on Osmosis.Zone, a DApp on Cosmos (Read: My DeFi experience #2: Osmosis Zone on Cosmos), and it contained only a small percentage of my total investment portfolio. It all happened because I decided to format my PC and I didn't remember to back up the seed-phrase. Always backup your seed-phrase! Obviously this is a beginner's mistake, but sometimes it can also happen to those who pay close attention.
4. Airdrops
Airdrops usually distribute money to people, rewarding those who somehow earned a certain amount of a new token. Therefore, they should represent an income and not a loss. However, there are risks associated with airdrops and my inexperience has led me straight to one of them. I am referring to the $VRT token airdrop by Venus Protocol, intended for holders of $XVS. It was announced, in fact, that an amount of $VRT would be paid to anyone who held $ XVS at a certain future date. I (and many others like me) bought $XVS before the snapshot, with the idea of reselling it soon after, but not everything went according to plan. The purchase price was high due to the hype and as soon as the snapshot was taken everyone sold quickly, dropping the price (from $140 to $20). Furthermore, as if this were not enough, the airdrop amounted to a few dollars and for this reason it certainly did not cover the loss suffered. (Read: Airdrops - How to Participate (and get Free Money)).
5. Celsius Network & BlockFi
In 2021, I discovered the existence of these two CeFi annuity services. Particularly interesting is the interest they offer on Bitcoin and Ethereum, which makes them the best choice to passively earn on their savings. In reality, I already knew these two platforms, but I made the mistake of not informing myself immediately, losing the possible income that I would have received if I had deepened the use of these services in a shorter time. Today I am a very satisfied user of Celsius Network and BlockFi and I have described them in these two articles: My CeFi Experience: BlockFi & My CeFi experience #2: Celsius Network.
What I learned
What's important, once you make a mistake, is that you learn something. I must say that first of all I learned to trust logic, study but also my sixth sense (which ultimately derives from what I studied). In addition, I have also learned to always pay the utmost attention in the Crypto world because a small oversight such as forgetting a backup is enough to lose all your savings. In fact, unlike the bank that holds our money for us, when we hold cryptocurrencies we are the only ones responsible. This, as we have seen, can be bad if we are careless or careless, but it becomes a positive side considering the fact that we are free to manage our finances. Finally, I must admit that the most important thing I have learned is that in this world, before investing in a project, we must study it and therefore believe in our abilities. DYOR.
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