I'm new to cryptocurrency and I feel late to the game.
Then again, hindsight is 20/20 and we always feel late when we see others succeeding/profiting in something we're not currently involved in. I had my misconceptions of cryptocurrency as I'm sure many of you reading this did as well. I remember seeing the Bitcoin icon at the bottom of some of my frequently visited websites back in college and brushed it off as a silly internet function like upvoting in Reddit. When I crossed paths with Bitcoin again while working years later, I saw a fad that would eventually go away.
We typically invest in companies that offer a good product, generate revenue and net profit. How could I invest in crypto? I couldn't see a physical product and therefore held off of investing for quite some time. It wasn't until a friend took the time to explain how blockchain technology could be applied to real world situations and how there were different projects that were building on this concept. As I read more, I became more fascinated and slowly became a fanatic.
I started investing in traditional markets around 10 years ago primarily in well run index funds. I knew the tried and true wisdom of low expense ratios and a record of solid yields. Slow and steady wins the race. Dollar cost averaging pays off long term.
My first misconception was that traditional markets and cryptomarkets had nothing in common
At this point in time, I've only been in this market about a month so I'm very new to this. I'm slowly seeing the similarities concept wise. Buy and hold, dollar cost averaging and buy low and sell high. Shout out to the HODLers.
Whether or not you've been introduced to these concepts, sometimes it's hard to apply them in the crypto space. There's so much volatility, thousands of currencies, people shilling over the next best thing and talks of the next moon. There's a lot of noise and it's easy to get sucked into the hype. Up until now I was spreading very little money across several coins. I'm realizing now that I need to consolidate funds into ones I really see growing long term. Bitcoin has now been my primary target to accumulate and I'll eventually start building up Ethereum. Once I get those to the levels I like I'll probably continue building on VeChain as it was the first project I felt would work out long term.
My takeaway is this. If you're new to crypto like me and have reservations due to media outlets dictating talking points or that pessimistic uncle, give it a try with a small piece of "play" money. Consider this money already lost and do some research on well established cyrptocurrencies. Pick one you really like and put that money in there. Give it some time and check it from time to time. Keep up with news about project development and see what other crypto enthusiasts are saying. If you end up liking it, great. Apply some of those pearls of wisdom from traditional investing. Find a project you feel will progress long term, set aside a monthly amount in your budget to utilize dollar cost averaging and don't get distracted by all the latest and greatest announcements at every corner.
I am by no means pushing you what to invest in as I have no track record to back me up, but I am pushing you to give it a try and see how things pan out. Don't let people get into your head. Make up your own mind, because experience is the best teacher after all.