Crypto is always a big risk and before you enter into it, I want you to hear my own story and experiences.
This post will help you understand the value of HOLDING along with some other important points.
And by the way, this post is full of my own regrets. Writing this post is not easy for me as I will be sharing some of my past trades, and experiences that would have already made me a good $$$$. But sadly, emotions won and I lost.
I’m not holding a big amount yet.
Anyways, I want you to learn from my mistakes so that you can avoid them and make a good profit out of your investments.
Let’s begin the story.
My First Bitcoin Experience
I’m following Bitcoin since 2016!! I never thought of buying it then but I always followed the prices.
And it always came in front of my eyes through Facebook feeds.
By January 2017, I even started talking about Bitcoin.
Anyways, long story short. I started my Bitcoin Journey on 8th May when I first signed up for Zebpay.
1 BTC was just under $1700 during that time.
I remember that I bought BTC of around $200-300 at that time. However, since I was new to crypto, I was not able to withstand $100-300 movements in the price.
Also, as I was using Zebpay Exchange, the rates were very different from the actual USD to BTC rate. And seeing my investment drop by Rs 1000-3000 ($10-50) was a big deal for me.
And that was My MISTAKE NUMBER 1 !!
If you are into Crypto, then keep in mind that the rates will fluctuate very fast and a difference of 10-30% should not be a big deal.
Back then when it was under $1700, it would fluctuate $100-300 daily. Today, it’s much higher. With BTC at over $15000, you will easily be able to see movements of $1000-3000 within 24 hours.
How to cope with this???
Understand the Fact that you never lose money until you sell it at a loss. So to avoid this fear and problem, NEVER SELL AT A LOSS. Instead, Hold (also called as HODL) it.
And if you are not able to do that, then this game is probably NOT FOR YOU.
Coming back to my story.
I sold at a loss, bought again, got some profit and then I finally I thought of not converting it back to FIAT (Paper Currency – INR/USD).
After around 10-15 days, I got to know about ALTCOINS. Altcoins are other currencies apart from Bitcoin.
My interest in them increased and I signed up at Poloniex. I was very much fascinated to see huge gains in Altcoins as compared to BTC. I was literally seeing coins grow 50-100% within 24 hours.
I ended up transferring BTC from Zebpay to my Poloniex account.
By the end of the month, I ended up depositing 0.14815835 BTC to my Poloniex account.
It was only $325 back then.
Well, today the same would have been over $2000.
My bad. Just try to understand what I did and try to learn from my mistakes.
Since I transferred my BTC to Poloniex, it was time for me to buy some Altcoins.
My First Altcoin Purchase, Loss, and Experience
So, I had $325 worth of BTC on my Poloniex account.
I am regretting a lot while writing this !!!
Hmm, so the first altcoin that I bought was Ethereum (ETH). I bought 0.33 ETH when it was at around $100.
I paid around $30 for 0.3 ETH. And I sold 0.1 of it within 5 days and rest was also sold within 1-2 months. If I had 0.3 ETH today, it would be worth $369.
My $30 would have been $369 today.
|1 ETH =||851.49 USD|
See the power of Holding?? A small $30 amount which I could easily have held would have given me 12x Return in less than a year.
Don’t judge me or my decisions, instead, take it as a learning.
Anyways the next coin that I purchased was Zcash (ZEC). I purchased around 0.4 ZEC (for around $100-125) on 23rd May 2017. At that time ZEC was worth around $200-300.
Instead of holding the coin, I did the opposite and sold it. 🙁
A small Dip and I panicked. Another reason was, I saw some other coins rising high.
That was the reason I sold it and went for a coin that was already up.
Anyways, 0.4 ZEC is now worth $280.
This trade, however, is not something that I regret about. ZEC didn’t really increase that much.
Moving onto my next altcoin purchase.
I bought 22 Stratis (STRAT) at around $220. Today the worth would have been 22*20, that is $440.
This would have been another 2x trade, but I sold this too early and didn’t even book 50% profit.
The next purchase was interesting. I bought RIPPLE (XRP) Coin on 26th May.
At that time, I bought 421 XRP for $100-120. And guess what, I sold all of them by September. In fact, my overall XRP trade was in a LOSS. My own foolishness played a big role here.
Here’s a snap !! Feels painful seeing this.
If I had my XRP today, it would have been $2.5*421= 1055 Dollars.
A 10x Profit !! But naaah, I was a noob and my hands were weak. I couldn’t HODL a coin for long. Moreover, a dip of 10-20% forced me to SELL.
One big reason behind my foolishness was lack of knowledge. I didn’t really know trading and directly jumped into it. This can happen to YOU as well!!!!
This post is warning to you. Try to understand the mistakes I made.
After a few trades on Poloniex, I got to know that it has only a few coins. I read about other exchanges and eventually found Bittrex.
I quickly got my account on Bittrex and transferred my funds from Poloniex to Bittrex.
Bittrex is much better than Poloniex!! And Binance is even better.
Anyways, the next coin that I had in my mind was NEO. I heard a lot about NEO. According to me, NEO is still a VERY GOOD COIN TO BUY FOR LONG TERM.
I bought NEO in parts !!!
I bought 2 NEO on 11th August (at $35 each), 2 NEO on 13th August (at $45 each), 5 NEO on 4th September (at $23 each) and 0.8 NEO on 18 November (at $45).
So in total, I bought 9.8 NEO for $320.
Well, today that much NEO is worth is $1127. But as usual, I already sold it before.
The story with my NEO trades is very interesting. NEO is a Chinese Creation and is a spinoff of Ethereum with its own Technology. During Q3 of 2017 (September), the Chinese government imposed some sort of BAN on ICOs (Initial Coin Offerings). NEO is a platform used by ICOs and with the ban of ICO in China, the whole market fell.
Many altcoins were hit and NEO was one of it. NEO fell down to $13 in September and the whole market started panicking.
However, with time and some clarifications regarding the ban, NEO regained its position.
During the time of the fall, I had 2 simple options.
Either I could have sold all my NEO at a huge loss or I could have added more to my portfolio.
Well, this time I was not a big fool to sell at a loss. And instead, I bought more at the DIP. I got 5 NEO for $23 each and eventually, it brought down my average investment in NEO.
Though its always a risk but after my previous experiences, I didn’t sell at a loss and took the other way round.
Well, don’t clap on my move. I made a mistake later. 😛
I knew that NEO is a good coin, but I was not able to see movements. It was not moving at a visible rate. And I started losing patience.
And that’s another mistake.
I sold all of them for $362. All this and I just made $40 profit. 🙂
Crap !! Crypto is not a simple game.
Today that NEO would be worth $1127.
So I shared 5 of my trades and I feel these are enough for you to understand some of the mistakes that I made.
I made profits from Cryptocurrencies, but I could have made much more if I didn’t make these mistakes.
I hope you liked this article, many more experts and investors will be sharing their experiences on this blog. Till then, stay updated.