Steemit Crypto Academy Contest / S3W2 – My Experience Investing in the Crypto Market : by @armstrongdiho

Discuss your first experience investing in the crypto market.

You know there are a lot of people that just invested in the crypto market without having any basic understanding of how it works, believe me, I'm one of them. I invested in the crypto market without knowing anything about it. I was opportune to have people around me that have little knowledge about it and they were the ones telling me the coin to buy and I wasn't buying to sell instantly but to hold.

Honestly, my first investing experience was funny. Can you imagine that I bought some of the coins without having any idea about the coin? I only bought coins based on sentimental analysis (those based on the coins I heard from people or media). To worst the case, I didn't even know there's what will call fundamental analysis and technical analysis. Though I always see the candlesticks charts but never knew one can use them to predict the direction of the crypto market.

Nevertheless, the steemit team 👥 did great work to introduce steemitcryptoacedmy I really learnt a lot about the direction of the trend (bullish and bearish ) and various indicators. I appreciate the steemit team for such a great idea 💡. However, to learn more about cryptocurrency, I registered with someone who has a good idea and he taught me a lot about technical analysis which later made me have a good experience in the crypto market.

Well, I think in the next question I will deliberate more on my experience. So, let's check it out.

What is your first investment in the crypto market and what drives you to invest in the crypto market?

Just as I said, I don't know what fundamental, technical or sentimental analyses were back then. That's I didn't know that is something called analysis in the crypto market. But when I found out I knew what I did in my first investment was sentimental analysis.

However, the first coin I invested in was Dogecoin and I was privileged to purchase it at the rate of $0.0626. I don't know what Dogecoin was all about though I have heard about Bitcoin and Ethereum.

Yes, I never knew Dogecoin but I had someone who told me about it. I could remember vividly when he told me that this coin has a good future and can be manipulated to reach $5 within 3years and this was what drives me to invest in the crypto market, particularly dogecoin. So, when I invested in it which was early February 2021 within the range of $0.0626, just for 4 months appreciated to $0.7224 and I but a good amount of it.

After getting such profit, it became the big boost that drives me to invest in the crypto market. To understand it better, I decided to learn more about it technically and fundamentally. And today I'm really benefitting on it regardless of its high volatility.

Have you ever encountered any loss as a result of the instabilities in the crypto market? Discuss

Yes, of course, I believe nobody in the crypto world hasn't experienced loss in the crypto market. The instability of the market has caused me a big loss. Last year, I invested more than $600 on ICP and other altcoins. And based on the current instability, I last hugely.

Initially, I planned to invest the $600 on TLM but I decided to diversify it by buying different coins including ICP. I bought ICP when it was $50 and that week the market price was $85 then I did my analysis and placed an entry of $50. Guess what it hit my entry and I invested it with $112 of my funds and triggered a sell entry of $60, that's should in case it appreciates to $60 it will sell it. I told myself 10% was a good profit.

The next week it appreciated to $52 and I didn't sell believing it will rise to $60. I waited and waited instead of going high it was depreciating. I saw it at $30 but refused to sell before I could know, it's in the range of $8 this means I lost about $104 only on ICP remember it was not just the ICP including the TLM, ATOM, LINK, and so on.

The loss was high though I tried not to think much about it but to focus more on the future and I used it as a lesson. Another loss I experienced was investing in Luna. It hits 👊 me bad that I purchased luna even knowing it's crashing though I used $11 believing in the future the Terra ecosystem will bounce back. All these losses are now serving as an experience to understand the practical part of instability in the crypto market because I only write and talk about it but now I have understood it with this loss 😁😁.

What crypto assets are you currently holding?

Currently, I'm holding some altcoins such as BTTC, Reef, Link, Atom, ICP, SHIB, Dogecoin, and so on.

Why did you invest in them? Please take a screenshot of your portfolio.

Most of this coins I invested on them based on sentimental analysis while some I invested in them because I researched and made fundamental and technically analyses hoping they will appreciate in the future. Some of them have a good foundation and their project is bight like the Reef, Ripple and so on.

Also, I invested in some of the penny coins because I have that mindset that they will raise like Dogecoin. In a nutshell, the reason behind my investment was that they have a high potential to increase.

As an experienced cryptocurrency investor, Do you believe in Holding or Trading cryptocurrencies?

These two criteria are different and have their advantage and disadvantages. First I will explain them based on their advantages and disadvantages before picking one. Although I'm practising both and I have made good cash on both.

Holding cryptocurrencies doesn't require huge risk because you can invest $6000 on BTC and when it depreciates to $300, you can still hold it and wait when it gets to your desired price before you sell. This means in holding it requires patience and the use or having to wait. Also, holding crypto generates huge cash for instance in the situation of the dogecoin I bought in early February 2021 within the range of $0.0626, just for 4 months appreciated to $0.7224 that's a huge profit. All these are advantages of holding cryptocurrencies.

Then, the disadvantage is that it takes a long time before it will appreciate, and not everybody can wait. Also, if the project of the coins you're holding is not strong to withstand the instability of the market, they will crash and once it happens you lose all your funds. Let's used the case of the Terra ecosystem as an example. The rumour has it that lot of people committed suicide because of the crash of Luna. This is because they made a huge investment in luna, they hold the coin and expected such a big dump.

Well, the aspect of Trading cryptocurrencies, it's an advantage is that once the market price move in your direction you receive huge money depending on your margin and leverage though. It doesn't require patience or waiting on when the price will appreciate or deprecate. Just read the candle charts and make your analysis.

But the case of the disadvantage is that it's highly risky because you can predict the market now and it won't go in your direction which means you will be losing and if the leverage and margin are high then the loss will be bigger. The truth is that nobody can understand the instability of the crypto market.

So back to the question,

As an experienced cryptocurrency investor, Do you believe in Holding or Trading cryptocurrencies?

I believe in trading because it gives me sharp money. Yes, my trade most at times hit 👊 stop loss but my winning 🏅 rate is always higher than the losing. In some case, I might lose like 5 trades in a row but one of the winning trade will cover all the losses however, all this depend on your trading strategy.

Yes it's full of risk I accept that but the remedy is just for you to apply a suitable strategy and proper risk management. I fancy trading over holding regardless of the high risk.

What's your advice to a newbie investing in the cryptocurrency market?

A friend of mine will always tell me in crypto you don't need to advise the newbie because they will think you're lying 🤥 so you should allow them to experience the negative part of the crypto market so that they will be the one to look for you. Then they will appreciate your advice and adhere to them is funny 😄 right?

✅Well, I for the sake of the post, I will advise the newbies to understand and interpret how the crypto market works.

✅Also, a proper understanding of fundamental and technical analysis is needed. And before investing in coins based on sentimental analysis(the coins you hear from people or media) do well and make your research fundamentally to know the foundation of the project.

✅ Make proper research about the crypto wallet or exchange you want to trade or hold your assets.

✅ For those glancing at trading, have a good trading strategy and make use of proper risk management.

✅ Invest your funds on cryptocurrencies based on what you can lose because the instability is real.

✅ It is ideal you diversify your funds though this is based on your style.

CONCLUSION

Trading or holding cryptocurrency is a great opportunity to make wealth but don't venture into them when you don't know how it works. It can also send you back to square one that's making the wrong investment or trading without proper management will make you a loss hugely.

THANKS FOR READING THROUGH