How To Not Lose In Cryptocurrency
Welcome to crazy world of crypto! Are you addicted yet? Have you felt the dopamine rush of your assets skyrocketing? Seen your net worth ten-tuple overnight? Have you proclaimed to all your friends and family this new miracle of technology: the future of money? Are they sick of it yet?
If you just got here, congrats! It's a great time to get in (I think). I'm not a financial expert by any means, I'm just a guy who found bitcoin and successively ethereum, litecoin, and whole cannon of altcoins to sink my hard-earned money into. And I LIVE CRYPTO. That means I don't have a savings account. I live a frugal life, day-to-day, off of cryptocurrency.
If you got here last week, don't lose hope just yet. We are in a bit of a correction, hovering about $11,500 USD. If you hold on tight, you should be fine. And well rewarded.
And that brings me to the point. The last few months, or even years for some, have been about "how to make as much money as possible in crypto". Now it's time to talk about survival. How do you squeak by? How do you get yourself and your family through this decision you've made? How do you LIVE crypto?
You stay put. You concentrate before making purchases, trades, or sells. Treat every move like it could be your last. If all else fails, stay in bitcoin. Most traders will tell you, as enticing as the altcoins are, most investors would be better off just holding bitcoin. Maybe you've heard this before. Well, I'm backing it up. You are not a trader, you are an investor.
I'm not going to tell you not to sell, I'm not a hardcore HOLDer. If you really have skin in the game, if you really live crypto, you have to spend occasionally. If you live in the US, you have to pay taxes on the crypto you sell. It may suck, but if you truly believe in the blockchain/tangle/lattice, try putting one foot into the future. It will make you more responsible and less wasteful. If you live crypto, most likely you don't have a lot of fiat, if any. That's OK.
Patience. The number one most important thing in any investment is patience. Even investing my time in this blog post requires patience. Hopefully at some point it will be useful to someone, and that's my attitude towards crypto too. Don't expect huge returns. The only thing certain in crypto is a wild ride. It's not for everyone. It might not be for you. If you are considering getting into Bitcoin, most people will recommend purchasing a small amount, an amount you wouldn't mind losing. When the market picks up and starts making headlines you will feel the need to buy in more. Don't. Don't look at the price every minute. That's time you could be spending with your family, or doing something you love. Dollar-cost average, as they say. Quit your Starbucks habit, and instead put $20 a week into bitcoin. Your body will only miss over-priced caffeine for a week or two.
More patience. If you buy into an altcoin, you'll feel the excitement. That's emotion. It's like gambling. For many people, it is gambling. Don't gamble. Don't day trade. Before you buy any altcoin at any price, consider holding onto it for 3 months, 6 months, or a year, even 5 or 10 years. Are you ok with that? Because you might need to hold it for that long, or longer.
Most likely you have experience buying bitcoin and altcoins. So why am I writing all this stuff you've heard before? Because it's still important, and even I forget it at times. I over-extend my investment all the time, especially during bull seasons like January 2018. It's too hard to stay away. So I'm putting it into words. Patience, family, friends. These are the important things.
If there's one thing true about crypto, it's that it makes time go by very slowly. This is a good thing. We used to be busy people, always running out of time. Then we bought bitcoin and time could not move slower (bull or bear markets). Stay busy while your investment grows. A watched pot doesn't boil, as they say. Warning! If you mess with your investments, if you try and tweak your portfolio every day, you will lose. Don't day trade. It's not worth the mental energy, time, or your life. Would you want to spend your life in front of a slot machine? At least in Vegas they bring you free drinks while you lose.
Invest your time in something creative. Comment on this post. Engage with other people. Network. Research a project. Get in touch with someone. Call someone on the phone. Listen to music and appreciate some art or movies. The people really gaining in crypto are not the best traders, they are the people creating the world around you. This blog is just my contribution. Perhaps I'll write a song next.
Thanks for reading and remember: bitcoin, steem, crypto, is all an experiment. I chose to be a part of that experiment. I'm glad I did, if for no other reason than to be here today sharing it with you. If you would like more updates on how to survive in this manic world, follow my feed and I'll follow yours. Together we can make something better than just a bunch of numbers and graphs.
And yes, we will be wealthy beyond our wildest dreams.
Cheers!
Mr. Runner