A Letter to Crypto Newbies: Get used to price rise and fall

over 3 years ago

I'm penning this down because of some experiences I have had over time as a cryptocurrency tutor and consultant. Owing to the fact that, I have come to see many opportunities in cryptocurrency and blockchain, I'm always being pushed to tell, teach and encourage others who are still in the dark to invest in this money evolution. During this process, I've come to hear of many misconceptions people have about cryptocurrency which I will share some other time. For this post, I'll be talking about a few things I face when my students eventually decide to invest in cryptocurrency.

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One of the most outstanding feature or characteristics of cryptocurrency is its price volatility. You cannot talk about cryptocurrency without mentioning that price is never constant rather it keeps moving either upward or downward. It is then incumbent on the trader or investor to study and know price directions. By that I mean being able to predict when the market will be in an uptrend or downtrend movements (though no one can perfectly predict the market). Also, you need to understand that no one person controls the price rather everyone who holds the token does.

Some persons especially the newbies to cryptocurrency are still yet to understand this. They tend to be very worried and fearful when price hits lower bottoms. I've had instances of people who I introduced to cryptocurrency always calling and disturbing whenever the price of a certain coin they bought goes down. I keep telling them that it will always happen and they just need to get used it.

The crypto business is one that requires a lot of patience and strong heartedness. A weak-hearted and impatient person cannot survive in this space. You also need a strong heart to manage losses should you experience one. When you are too impatient, you might not get the best returns or profit from your investment. This is why those who invest with their spare cash (people with multiple streams of income) and not with funds needed for day-to-day living tend to have a little edge over those who invest with little or no spare funds left at hand. But then again, you shouldn't make wrong choices just because your capital is small or because you don't have multiple income sources.

To the newbies, note that the rise and fall of cryptocurrency prices will not end. It is a matter of knowing the right moves (buy or sell) to make in the market. When the market goes downwards, it is said to be in an accumulation stage. It is not a time to be fearful rather it is a time to buy and accumulate as much as your capital can take so far, the coin is one that has potentials to grow. And that is ascertained by the tech, use cases and developments surrounding the coin.

Don't fail to remember that after a dump comes a pump and vice versa.

What are your thoughts?

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