I learned a lot this past bull run. I made some major mistakes. In crypto, mistakes can be costly.
Keep reading to find out the mistakes I made and what I learned. You’ll avoid devastating losses and missed opportunities.
Being risk averse
It took me a while to recover from 2018. I stepped away from crypto. Crypto seemed too volatile and the gains people had earned seemed too good to be true.
Crypto started to pick up in late 2020. I saw the potential, but I was reluctant to put money into it. I invested a few hundred dollars (bought ETH around 700 USD). I thought crypto was really cool back then, but I didn’t invest much. I had a lot of money sitting around but I didn’t want to pour it in. Instead, my money went into less risky index funds.
Hindsight is 20–20. I wish I listened to my conviction. That’s a mistake I’m not going to make again.
Getting greedy
I eventually decided to take the leap and started going all in on crypto. NFTs are volatile. A lot of the prices are driven by hype and FOMO. I got burned by holding some NFTs for too long.
There was one instance, where an NFT I bought was up over 500% (well above the goal I set). I had two of them. I had long term conviction in the project, so I wanted to hodl. In hindsight, I should’ve sold at least one of them and covered my cost basis.
I didn’t sell any of my Eth either. I’m fine holding it, but I could tell that it was overpriced near the $5k mark. It would’ve been nice to have taken some profits.
Not having a plan
I just bought Btc, Eth, and altcoins whenever I felt like it. I had no idea how much I wanted to put in. No idea how I would allocate. I didn’t have a buying schedule. I did this for a few months.
I realized something had to change, when I couldn’t pinpoint how much I had gained/lost. I came up with a plan. My average cost has reduced as a result and it’s much easier to manage risk.
