Good day everyone, today i want to share the experience and lessons i have learned buying and holding different crypto currencies.
Just before i tell you the lessons i learned here is little story of how i got involved with bicoin and altcoins.
Back in early August 2017 i was introduced to crypto currencies by a friend she walked me through many account creation processes and setting up security to make sure i don't get hacked.
I was so excited to get onboard my blood so hot due to the fact that i couldn't wait for the bitcoin i purchased from a p2p network called Remitano to hit my blockchain.info wallet.
As soon as i got an alert that my wallet has been credited i quickly signalled my friend to come and show me how to transfer the money to my exchanger account which at the time was Bittrex .
I watched her as she logged in and there were lots of things going on that didnt make a single bit of sense to me though it was so amazing to watch her punching those bitcoin digits which felt like magic to me.
When i got home that day i with the whole excitement began to do my research just to get in-depth understanding on how to transact on my exchanger (bittrex) i continued till it was 3 am in the morning and my sight was getting blurry i had to go to bed still feeling that there was so much i am yet to discover and heck i was right.
A few days passed and i was still on the internet watching videos and reading up lots of articles just to get more clarity and finally i found a videos that really explained it all to me like it was specifically recorded for me.
By the end of the video i felt a sudden surge of confidence in me that says i can now talk to my friends about bitcoin without the fear that one of them could drop a question on me that will make me look bad.
Wait there was still one more thing missing which was how to calculate what the bitcoin equivalent of any particular transaction i needed to make on my exchanger account.
There we go again just when i think i know it all now the challenge was to find a calculator that could do the conversion for me in real-time to help me know exactly how much i was about to spend.
It dint take too long snooping around on google i found a very wonderful site called coindesk and with the site was a bitcoin calculator that did exactly what i needed.
I was so excited to find this site
Now that i had talk about how i got involved with bitcoin and altcoins let me now share with you the painful lessons i learned holding different crypto currencies in 2017
Now late December 2017 due to the excitement and the feeling gaining deep understanding of how the crypto market works so i thought jumped in and began to purchase any coin that appealed to me with little or no due diligence to find out if it was wise to invest my hard earned cash in them.
Lesson 1:
Never be in a rush to invest in any coin that you know absolutely nothing about even it was recommended by a friend but he forgot to tell you why you should invest in it.
remember the money is yours and you know how much you worked hard to earn it so be wise.
Lesson 2:
Always look at the market cap of the coin to see if its high or not. if the market cap is very low run with your two legs on your head
Lesson 3:
visit the website of the coin or token to see if they have typos which is a bad sign that the company behind the token or coin has little concern for details and if that is the case then there is trouble ahead.
lesson 4:
Before you invest your money in any altcoin please take the time to read their white paper and see what they are proposing. in case you dont know what a white paper is, it's what their project is all about, how they intend to execute their project, what their future projections are and how long they think it's going to take them to achieve it.
If what they are offering makes sense to thats cool.
Wait that's not all
The next thing you should lookout for is the team behind the project check and they included their social network link for you to look them up and see if they have been a part of another successful project or not.
Try to do a background research on them and see what you can come up with.
I know this might seem like a lot of work but trust me it's better to painstakingly do this to help you make a good investment decision than just rush and sink you money into a shity coin or token that might end of being a scam or will make you wait for years before it generates you any meaningful profit.
Time is money so take this seriously.
oops i almost forgot to mention one very important thing which is
always check the total number of the coin or token in supply and in circulation.
if you see a coin or token with very huge number in circulation like 1billion and even bigger say 3 billion in supply or even worse it just has huge number in circulation and nothing was said about the total supply then that soon such coin or token will become worthless.
This is a simple law of demand and supply in play here.
well these are the lessons i have learnt from August 2017 till date February 2018.
i will keep sharing my finding every few months. i hope this helps someone invest in the right coin or token that will bring reasonable profits.
Please if you found this post helpful up vote it, follow, comment and resteem to more people who needs this information.
Cheers everyone.
