I bought my first cryptocurrency in August 2021, just about half a year ago. Since then, I’ve gotten around the basics of trading and managed to profit around end of October 2021. This was when Bitcoin reached a new all-time-high. Don’t get me wrong, I’m still very much a crypto newbie. I don’t know how to use the more complicated instruments yet. However, let me share with you a little bit of my tips for those of you who are interested to dabble your toes in this trend. (UPDATE: Since October cryptocurrency has undergone major crashes, but I still think it’s a viable long-term investment).
Find trusted people to teach you
As a crypto newbie, I was lucky to have two friends who were quite experienced crypto traders. They introduced me to the Tokocrypto app and walked me through the beginning infancy stages. Just like anything else in life, whenever you think about starting something new, be sure to have a trusted and experienced source of information to guide you along your path. Exploring new terrains by yourself might be fun, but it can also be dangerous. It’s much safer (and also much more fun) to explore with trusted peers / friends.
Don’t use money allocated for your daily needs
When experimenting with cryptocurrency, be sure to use money you don’t need on a day to day basis. Manage your personal budget so that you know how much you will allocate for food, bills, emergencies, healthcare, insurance, etc. Then when you have “leftover” money which you would like to invest, you can consider investing it in cryptocurrencies. It’s no secret that crypto is highly volatile – your money can suddenly go poof! – so allocate your money wisely.
Following up on the volatility of cryptocurrencies, when the market is on the downturn (called a “bear” market) and twitter is going crazy with bad news: DO NOT PANIC. A good strategy during those days is something called “hodl”. It basically means just hold on, hang on to it, wait and see. Of course if you’re using money that you need for daily use then you likely will panic, which is why it’s best not to use money allocated for daily use. Unless of course, you’re a really good day trader (which most of us aren’t, and if you’re a newbie you won’t be a great day trader right away).
Last but not least, have fun!
If trading cryptocurrency is just going to increase your stress level, then don’t do it. It’s not for everyone. When you are stressed then your immunity system will drop. You’ll get sick easily (not a good condition to be in during a pandemic). Or you’ll be in a bad mood, lose sleep, all the signs of a downward spiral…It’s not worth it for you. There are other safer, more conventional investment options which will serve your goals just as well especially if you are disciplined over a long period of time.
If the daily adrenaline is fun, you like the risks (while knowing your limits) and enjoy opening new possibilities / futures for yourself, then hey go for it!
If you like this post, you might find my article on financial freedom for women interesting.