1. Don’t invest in something you don’t understand. To be honest, I only invested because I didn’t want to be left behind. I did not know anything about the technical side of cryptocurrency or the ecosystem. The only thing I knew about Bitcoin was that drug dealers accepted that as a form of payment on the dark web. True story.
2. Don’t take financial advice from just anyone. I was reading Twitter (which is another mistake) and someone said his Uber driver was giving him advice on investing in cryptocurrency. I mean if an Uber driver is giving someone financial advice.. if he’s so successful.. why’s he driving for Uber? The crypto days gave rise to many Crypto-famous influencers, including truck driver Bitcoin Ben.. who makes me cringe when he talks. This is like taking advice from your hair stylist when you need to go see a doctor. On the other hand, big players like Warren Buffet did warn the general population about investing in cryptocurrency..
3. Cryptocurrency still has a long way from adoption. I am pretty tech savvy myself, but my digital wallet got HACKED and all my crypto were stolen. The sad thing about this is, there wasn’t anyone I can call to help me. Even tech savvy people like myself are very skeptical, let alone the less tech savvy people. I still prefer traditional banking.. FDIC insures bank deposits To $250,000.. so if one day I wake up and $200,000 is missing, I can call up my bank and they would recover it. In crypto, if you lose $200, it’s lost.
4. You can only make money in the early days. These days are now long gone. The days of 100x ICO and such are over. Even legitimate ICO’s can barely do 1x returns. This is talking about profit. I’ve invested in ICO where I did not even receive tokens or anything that I was promised, and it became a total loss. You need to be earlier than the rest of the population if you want to make money. If you are just jumping on the bandwagon, prepare to get thrown off like the rest.
5. Don’t invest in a coin/company where you don’t trust the leadership team. Would you invest in a company whose CEO are Unknown/Satoshi Nakamoto (Bitcoin), Vitalik Buterin (ETH), Charlie Lee (LTC), Justin Sun (Tron)? Satoshi Nakamoto would not show his face or reveal his identity, Vitalik Buterin can barely sit carry a conversation, Charlie Lee sold all his coins at the top and laughed all the way down, Justin Sun is a shill who also sold his coins..
6. Cryptocurrency wasn’t invented to make the “little” people rich. If “little” people were all rich, then who is really rich? In any business, the big guys like institutions will make money, and the little guys..stay little. Sorry, that’s just how the world is.
7. During a gold rush, sell shovels. The people who made money weren’t really the “HODL’er” or traders, but the ones who created the tools and platforms for everyone else. Prime examples are: Brian Armstrong of Coinbase, charging a fee for people to convert fiat to cryptocurrency, Changpeng Zhao of Binance, charging a fee for people to trade on his cryptocurrency trading platform, Jihan Wu of Bitmain, charging for his bitcoin miners, or even social media influencers, charging people to get into their paid groups for their analysis/picks.
8. Take the loss and move on. Before you ask, No, I am not bitter at all. In any business and situation, it was a good learning experience.