You might be familiar with the story of the young man who bought pizza with Bitcoin, only to discover years later that the amount he had leftover amounted to $5 million. He was later to exchange this money for cash and I can only presume he is doing rather well in life now. In many ways, this although not by design is the best way to think about crypto.
Sure, we can’t become a millionaire through a few dollars as easily anymore but the lack of expectation is what makes this story so compelling. I am now going to list two things you need to consider when investing in crypto, and that’s when you have already learned the basics of the crypto science.
Be Prepared To Have Bad Months
When you invest in the stock market, you are investing in a game of fractions. Maybe to target a return of 5% a year. In crypto, these strategies are completely redundant and don’t excite us anymore. However, with all the rewards investing in crypto brings it is so important to note that things won’t exactly be plain sailing. Things will get rough in crypto but please always see this as a positive, a chance to buy more or a clear sign that the markets are genuine. The number of people who lose money whereas if they just had patience would be able to live a different life now is staggering.
Don’t Buy After A Huge Run
It is, without doubt, tempting to buy some crypto when you see it has gone up by 400% in one week and is the talk of the town. However, the people who are really loving this FOMO are the people who bought the coin when things were quiet and they felt like they were part of a secret community. Granted there will be sometimes when jumping on a bandwagon is the right thing to do but live by Warren Buffets’ famous expression that you should, ” buy when there is fear and sell when there is greed”.
It Has Never Been Easier
Investing has never been easier and if you live in a world of youtube videos you can easily be swamped by the idea that everyone has become rich overnight through crypto. Some have, but this should not be the aspiration as this is no different to gambling. Please go through the information you are consuming carefully and invest in the right projects at the right time.