Suddenly everybody is interested in Bitcoin. BTC surged past the 10k mark and twitter was set ablaze with these million tweets on how BTC is so good and will help financial freedom. And, adoption happens to capitalize on the gain. New people register, spend some bucks and get in. That's how it works.

Well, I am not that newbie :P

I registered with Hive in May 2020, well before the supposedly bull market of July 2020 happened. I am aware of crypto space and partially following crypto assets since 2018, right after the previous bull run. I managed to buy very few crypto assets back in 2019 but never got into the space other than writing on Scorum. Then, this year I took that leap of faith.

I thought I was aware of crypto space and assumed I could make wise decisions. But still I made some rookie mistakes. I will list those mistakes here so that others would know what not to do when investing in crypto assets.

1. Panic Buying

By May 2020, I know that I will finally make a call and invest in Crypto. I was on Twitter and everybody was talking about Zilliqua and how great this investment is. I did not know enough about the coin but I saw everyone saying good things about it. I thought I would cash in the benefits and without understanding the market history and how it was performing, I panic- bought.

As experts say, when you know a coin is doing good it is almost always late to invest in that asset. The value of the coin when I bought was 0.023 $ which is now trading at around 0.017$, a loss of around 9%. So, a lesson here is do not panic buy. If you are not an expert trader and new to crypto space, don't ever let the twitter trend influence your investment decisions. That's your hard earned money, you want to decide with a cool head.

2. Read and Research

I thought I was well versed with crypto assets. I watch YT videos, follow crypto influencers, listen to crypto podcasts, and read crypto articles. Doing all that, I assumed I know everything about crypto. Following Vitalik on Twitter is not enough to consider yourself well versed on Ethereum blockchain. One needs to get deep into the system and the asset you are planning to invest on. More importantly, try to understand and analyze what value that coin will bring to the real world so that the price will eventually go up. The value of the coin relies on its applicability. We are investing into the potential of each project proposal. Some will go bust but some will take off. We need to find a couple of projects that could help you build assets and that is possible only if we research enough.

3. Hold your Emotions

Buying crypto assets is not a race that we need to win against others. It does not matter how you fare against your friends or the Youtubers who profited 10K in a day by investing in some coin that you never heard of. They are making their gains because of their time investment and knowledge. Holding your emotions and creating a vantage point that is related and relevant to you is the optimal balance you want to have.

I am not an expert and I feel I am cheating my readers by posting in crypto investment. These are my learnings from the mistake that I made. I am sharing these so that I can get feedback from seasoned professionals and help newbies who are thinking of investing in the near future.

First published on leofinance.io