Written by Steemit Featured Author: Ultron @manishmike10
There is a saying “We learn from our Mistakes”.
Sometimes those mistakes can be expensive, And sometimes it may not concern us. If only we could learn without making a mistake, it’d be much better and save us a lot of money. Even a small mistake may hurt at times.
A Digital Economy is different. It is overall a new concept that the world is adapting to.
I’ve seen many people make mistakes in this economy. They primarily think this is just a temporary wave that will disappear someday. What they fail to see is the power of the economy. They are trading with Digital Currencies only to make money on a short term basis and that is the biggest mistake many of us make. Pump and Dump is the term given to these types of trades.
Three underlying mistakes in Digital Economy trading:
- Failure to Understand the Future.
- Lack of patience.
- Seeing it as a trend that will vanish soon. (Its not a fidget spinner)
Failure to understand the future.
The future of Digital currencies (economy) is more vast than the money that we hold in our hands at the moment. When you have a cash in your wallet. “You have $20. In next 30 days I don’t see the value of the $20 go to $25.”
But if I was to hold 1 Digital token worth $20. Tomorrow it may go up to $50. What’s better is that it is not controlled by any Central body.
But the Future just is not on the prices of the economy. The prices can change any time, Just like the real market. The future is the way people will use these currencies in the day to day life. Ask yourself;
“Why did the prices of Bitcoin Shoot up from being $1 in 2010 to $2700+ today?”
“Why are there more and more currencies coming up?” “What is the future with this?”
Many digital currencies have already been accepted as a medium of exchange like Bitcoin, Dash, Ethereum etc. Bitcoin is used by many firms around the world. Some of the Apple Outlets have begun using Dash. The future just wont stop here. The economy will keep growing from time to time and someday will replace the fiat to be the medium of exchange. This also will kill corruption all over the world. This is the real reason why many don’t want to adopt the Digital Economy.
Here are the list of companies accepting Bitcoin.
| Company | Usage |
|---|---|
| Microsoft | Users can buy content with Bitcoin on Xbox and Windows store |
| Virgin Galactic | Richard Branson company that includes Virgin Mobile and Virgin Airline |
| CheapAir.com | Travel booking site for airline tickets, car rentals, hotels |
| Expedia.com | Online travel booking agency |
| Pembury Tavern | A pub in London, England |
| Bloomberg.com | Online newspaper |
| Square | Payment processor that help small businesses accept credit cards using iPhone, Android or iPad |
And many more
Since the usage of Digital currencies can be tracked the authorities fear their under the table income will be at risk.
We don’t even know how must of Fiat is circulating in the economy. But we do know the circulating supply of the Digital currencies. This helps the value degrading. The more the money in the real market, the lesser the value of it. But since the Supply of the digital currencies is already fixed, it helps stabilize the prices. The future is vast and beyond our imagination. It has a lot of potential over the future.
- And thus when you trade, think of the future of that token which you will buy. Will that token create value? Will that token last long? Is that token a Pump and Dump? How does the token add value to the community?
(You can do a complete check of the token you intend to buy, by going to their websites, take help from the experts.)
Lack of patience.
Patience is the key to everything. And so is it to the Digital Economy. Biggest of the Biggest traders have patience with their money. Two of the biggest examples are Warren Buffet, Elon Mask. If they were impatient, we wouldn’t have known them. Elon Mask was patient enough to almost go bankrupt before becoming a billionaire. And Warren buffet was patient enough to hold his money in the Shares he bought at the age of 12.
The Most successful people in the world are the most patient people too. And if we were to see a success with the seed we plant today in the next 15 years, we need that medicine called patience. Even the digital economy needs time to grow. It’s only 8-9 years old. And if we are to trade in the digital economy, patience is key.
After all the research you’ve done on the token you planned to buy and if you were satisfied with the research, there is no need for you to panic when they are at their lowest. They will go back up. It will go down only because some pack of fools decided to make a short term money and they flooded all the tokens they held. But remember, there’s always someone who will buy the tokens sold. That’s how the demand and supply work after all. Bitcoin has a lot of demand and lesser supply. Not just bitcoin, there are many other tokens who have created value over time, like Gnosis, Bitcoin Dark, Bitconnect, Dash etc. Like I once said “Patience is the key to success.”
It is not a trend that’ll vanish.
When you say Cryptocurrency will vanish and it’s only a bubble, think again! A fidget spinner is a trend, not Digital currencies. Digital Economy is like the Internet introduced to the world for the first time. Or the Computers that was gifted to the Mankind. Who knew they would be a major part of our lives.
We are at the early stages of the cryptocurrencies and things will take time to evolve. If it was to be a trend, Bitcoin would not make it till here.
Cryptos are here to stay. They have created a lot of value to our lives. Take the case of Steem. It is the only platform who actually pay you for doing things you’d do in Facebook or other social Medias. Even if you were to blog and use Adsense as the revenue source, you’d make more in steemit. It’s much easier to use than Adsense and struggle to make revenue.
Take the case of fees on transaction in central banks, a lot of your money is trapped by the authorities. The money will take a lot of time to reach the receiver. Then the receiver will have to submit his documents which makes it really annoying and time consuming. While for Digital currency, you don’t need anyone in between. You can just send them without being asked, without showing documents and a hell lot faster than normal bank transaction.
Here’s what you should ask yourself when you enter into trading in digital economy.
• What value does this token give?
• How does this create a value in the market?
• What is this token used for?
• How long should I be holding my token before I sell it?
• Will I trade for short term?
• Do I have patience for long term trade?
• Should I chose to invest or trade?